Investors will eye a host of stock market triggers in the third week of December including the domestic macroeconomic indicators, primary market action, foreign capital inflow, crude oil prices, and global cues.
Domestic equity benchmarks Nifty 50 index and BSE Sensex rose about 2.3 per cent in the week, extending gains for the seventh consecutive week, marking their longest winning run since January 2018.
Specifically, the BSE benchmark jumped 1,658.15 points or 2.37 per cent on the week, while the Nifty climbed 487.25 points or 2.32 per cent. Global cues triggered foreign capital inflows into Indian markets after the US Federal Reserve signalled the end of its tightening cycle.
The surge in domestic equities closely follows Fed Chair Jerome Powell’s acknowledgment of the risks of delaying rate cuts on Wednesday, bolstering expectations of a 25 basis points (bps) rate cut by March and fueling a rally across global stock markets.
On Friday, Sensex breached the 71,000 mark during the session, as domestic macroeconomic data and easing concerns over the US economic growth bolstered market sentiment.
Rising for the third straight session, the 30-share BSE Sensex surged 1,091.56 points or 1.54 per cent to 71,605.76, logging its all-time intra-day high level. The Nifty 50 also zoomed 309.6 points or 1.46 per cent to hit its record intra-day peak of 21,492.30.
In the broader market, the BSE smallcap gauge climbed 0.58 per cent and the midcap index dipped 0.07 per cent. The Nifty Midcap 100 touched record high, hitting a 52-week high-mark of 45,814.45, and closed up 0.11 per cent at 45,586.55 level, while the Nifty Smallcap 100 ended 0.71 per cent higher.
Vinod Nair, Head of Research at Geojit Financial Services. said, “The IT sector rallied 7.6 per cent this week in expectation of a rise in demand from the US, optimism about AI-based opportunities, and hope that the Fed will cut interest rates in 2024. We expect a near-term consolidation in the market due to elevated valuations, concerns over El Nino, and a slowdown in world GDP.”
Going forward, a busy week awaits the primary market as a string of new initial public offerings (IPO) and listings are slated across the mainboard and small-and-medium enterprises (SME) segments. The upcoming week will be crucial from the domestic and technical point of view as investors will closely eye the global cues along with key domestic economic data.
Overall, analysts expect that markets may consolidate in near term but the optimism on a stronger outlook continues on the back of a liquidity driven rally. The short-term technical outlook continues to be in favor of bulls -who eye Nifty 50 at the 22,000-mark, after the benchmark seized its lifetime-high level last week.
Here are the key triggers for stock markets in the coming week:
12 new IPOs, 8 listings to hit D-Street:
In the mainboard segment, eight new IPOs are opening for subscription in the coming week. Muthoot Microfin IPO, Motisons Jewellers IPO, and Suraj Estate Developers IPO re opening on December 18.
Happy Forgings IPO, RBZ Jewellers IPO, and Mufti Menswear IPO are opening on December 19. Azad Engineering IPO will open for bidding on December 20 and Innova Captab IPO will open on December 21.
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