Indian equity markets are poised for a flat to slightly positive opening on Thursday, December 18, following three consecutive sessions of decline. A crucial shift in foreign investor activity and a recovery in the domestic currency are likely to support market sentiment.
Market Indicators and Recent Pressure
The Gift Nifty futures were trading at 25,871 points around 7:35 a.m. IST, suggesting the benchmark Nifty 50 index will open near its previous close of 25,818.55. This comes after the key indexes dropped approximately 0.9% over the last three sessions. The recent weakness was driven by anxieties over foreign capital outflows and the Indian rupee hitting record lows, partly due to stalled progress on the India-U.S. trade deal.
Positive Triggers: FII Buying and RBI Action
In a significant turnaround, foreign institutional investors (FIIs) ended an eight-session selling streak on Wednesday. Provisional data shows they were net buyers of Indian shares worth 11.72 billion rupees. Simultaneously, the Indian rupee registered its strongest single-day gain in two months. This rebound was largely attributed to aggressive intervention by the Reserve Bank of India (RBI) to stabilize the currency.
Globally, investor caution prevails ahead of the release of key U.S. inflation data, which will influence the Federal Reserve's future interest rate decisions. Asian markets traded lower, dragged down by technology stocks as investors reassessed the valuation outlook for shares linked to artificial intelligence.
Stocks in Focus Today
Several stocks are likely to see specific action based on recent developments:
- Asset Management Companies: Shares of mutual fund houses will be in the spotlight after India's markets regulator, SEBI, approved new measures aimed at ensuring a transparent breakdown of costs charged by mutual funds to investors.
- Antony Waste Handling Cell: The company secured two substantial contracts worth a combined 13.3 billion rupees from the municipal corporation of Mumbai.
- HCLTech: The IT major announced it has won a multi-year contract from Netherlands-based ASN Bank. The deal focuses on driving digital transformation and improving customer experience for the bank.
While domestic cues have improved, the market's trajectory will also depend on the global risk appetite and the upcoming U.S. economic data.
