Market Headstart: Nifty likely to open higher on Fed status quo; Ujjivan Small Finance Bank eyed

The Nifty is expected to open higher with a gap on December 12 following Asian markets, which were trading positive after the Federal Reserve signalled that rates were likely to remain accommodative.

The Fed kept interest rates unchanged, as expected, at its policy meeting on December 11 but indicated interest rates would remain on hold, which nudged Wall Street stocks higher, reports Reuters.

Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 45.5 points gain. Nifty futures were trading around 11,994 levels on the Singaporean Exchange.

The Sensex rose 172 points to 40,412 and the Nifty closed with gains of 53 points at 11,910 on December 11.

The rupee appreciated seven paise to settle at a fresh one-month high of 70.85 against the dollar on December 11 on the back of firm domestic equities and easing crude oil prices, extending its winning run for the sixth straight session.

On the institutional front, FPIs and DIIs were net buyers in Indian markets to the tune of Rs 605 crore and Rs 239 crore, respectively, provisional data showed.

After a massive 166 times subscription to its initial public offering (IPO), all eyes are now on the listing of Ujjivan Small Finance Bank scheduled on December 12.

Non-banking lender L&T Finance is raising up to Rs 1,500 crore through a bond sale, the proceeds of which will be used for on-lending and refinancing of existing debt.

Private sector Axis Bank is evaluating the acquisition route to scale up microfinance books while its rivals such as Kotak Mahindra Bank and IndusInd Bank have already taken strides in this segment.

Diversified conglomerate ITC is looking to garner up to 20 percent of the Rs 7,400-crore frozen food market in India in the next three years with the firm expanding its offering in the category, a senior company official said on Wednesday.

We spoke to Bonanza Portfolio and here’s what they have to recommend:

Divi’s Laboratories Ltd: Buy| LTP: Rs 1819.60 | Target Rs 1,960 |Stop Loss: Rs 1,746|Upside 7.75%

Phoenix Ltd: Buy| LTP: Rs 762.65 | Target: Rs 830|Stop Loss: Rs 720|Upside 8.92%

Havells: Sell| LTP: Rs 635.45 | Target: Rs 585 |Stop Loss: Rs 665| Downside 8%

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