India's key stock market indices are expected to open with minimal change on Friday, hovering close to their all-time peaks. Trading activity is likely to remain subdued due to thin volumes typical of the year-end period, with market experts pointing to corporate earnings as the next major trigger for movement.
Market Position and Trading Indicators
As of 8:00 a.m. IST, the Gift Nifty futures were trading at 26,111 points. This signals that the benchmark Nifty 50 index would start the session near its previous close of 26,142.1 points from Wednesday. Most global markets, including India, were shut on Thursday for the Christmas holiday.
Both the Nifty and the Sensex scaled record highs in November after a gap of 14 months. However, the momentum has stalled in December, with both indices shedding approximately 0.2% and 0.4% respectively so far this month.
Analysts Cite Year-End Dynamics
Ponmudi R, the Chief Executive Officer at Enrich Money, commented on the near-term outlook. "While the medium-term structural outlook for Indian markets remains constructive, thin liquidity conditions and year-end book squaring are likely to cap sharp directional moves in the near term," he said.
Year-end book squaring is a standard process where financial institutions like banks and investment firms close out or rebalance their positions to finalize their annual accounts. This practice leads to muted activity as companies avoid taking new positions, resulting in lower liquidity and fewer trades.
The data supports this trend: the average daily trading volumes for Nifty 50 stocks in December have been around 250 million shares. This is notably lower than the approximately 300 million shares traded daily in November, indicating reduced activity as the year draws to a close.
Stocks in Focus on Friday
Several companies are in the news and could see specific movement:
- IndusInd Bank: The private lender has stated that the Serious Fraud Investigation Office (SFIO) is investigating it under the Companies Act.
- Ola Electric: The electric vehicle maker has received government approval for an incentive payout of 3.67 billion rupees under the Production-Linked Incentive (PLI) scheme for automobiles and auto components.
- Panacea Biotec: The pharmaceutical company has received an amended award from UNICEF for vaccine supply. The move projects an increase in the contract value by $2.55 million for 2026 and $2.70 million for 2027.
- Vikran Engineering: The firm has secured a significant order worth 4.59 billion rupees from NTPC Renewable Energy.
The market's trajectory in the final sessions of 2023 will depend heavily on these stock-specific developments and the broader liquidity environment.
