Stock Market Today: Top 10 things to know before the market opens

Dalal Street

The benchmark Sensex and Nifty are likely to open marginally higher on December 28 as trends in the GIFT Nifty indicate a positive start for the broader market with a gain of 81 points.

On December 27, the benchmark indices ended at record closing highs. The BSE Sensex climbed above the 72,000 mark for the first time, rising 702 points to 72,038, while the Nifty 50 surged 214 points to 21,655 and formed a long bullish candlestick pattern on the daily timeframe.

Technically, this pattern indicates an upside breakout of the previous swing high at 21,593 levels. "Positive chart patterns like higher tops and bottoms are intact as per the daily chart and currently, the Nifty is moving towards the new higher top formation. Still, there is no confirmation of any higher top reversal at the highs," Nagaraj Shetti, senior technical research analyst at HDFC Securities said.

The pivot point calculator indicates that the Nifty is likely to see immediate resistance at 21,722, followed by 21,789 and 21,969 levels, while on the lower side, it can take support at 21,542, followed by 21,429 and 21,249 levels.

Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.

GIFT Nifty

The GIFT Nifty indicates a marginally positive start for the broader index with a gain of 81 points. GIFT Nifty futures stood at 21,751 points after making a high of 21,792 points.

Trade setup for Thursday: Top 15 things to know before the opening bell

US Markets

S&P 500 futures are near flat Wednesday night as the benchmark index closed in on a new all-time high. Futures tied to the benchmark index and Nasdaq 100 were both little changed. Dow Jones Industrial Average futures slipped 6 points, also near flat.

The action follows a modestly winning day on Wall Street. The S&P 500 ended up 0.1 percent, rising closer to record levels. The Nasdaq Composite added nearly 0.2 percent in the session, while the 30-stock Dow finished 0.3 percent higher. While the moves were muted, they come as investors look toward to end of what’s been a strong year for stocks.

With just two sessions left in the trading year, the blue-chip Dow and the S&P 500 are poised to finish higher by more than 13 percent and 24 percent, respectively. The latter is within 0.5 percent of its highest closing level, which was set in January 2022.

European Markets

European markets closed higher on Wednesday to kick off the final trading week of 2023, as major indexes around the world hovered near record highs. The pan-European Stoxx 600 index closed up 0.27 percent. Energy and technology were the leading sectors, gaining around 0.61 percent and 0.7 percent.

The European blue-chip index traded around the 478.87 mark, not far below the index’s record closing high of 483.44 notched in November 2021. Stock markets in Europe were closed on Monday and Tuesday in observance of Christmas Day and Boxing Day.

Stateside, the S&P 500 is also seeking an all-time high after another winning day on Wall Street on Tuesday. U.S. stocks were little changed Wednesday. Shares in Asia-Pacific advanced overnight, with Chinese and Hong Kong indexes bouncing on the back of a strong showing for video game stocks. Australia’s S&P/ASX 200 hit its highest level since April 2022.

Asian Markets

Australia stocks kicked off Thursday on a positive note, hovering near two-year highs, while Japan shares fell at the open after rallying the day before. Markets including Australia and Hong Kong resumed trading Wednesday after a Christmas break, both ending higher, while China stocks were buoyed by a rebound in online gaming stocks.

Australia’s S&P/ASX 200 index rose 0.33 percent, holding at its highest level since late April 2022. The index is set to end the year decidedly higher at 7.7 percent. Japan’s Nikkei 225 fell 0.69 percent at open, after closing more than 1 percent higher in the previous session. The broader Topix index shed 0.45 percent. Retail sales data from Japan showed a 5.3 percent growth in November, higher than a Reuters poll forecast of 5 percent.

India to be world's third-largest economy by 2032, largest by end of the century: CEBR

India is set to become the world's third-largest economy by 2032 and will eventually surpass China and the United States to become the "world's largest economic superpower" by the end of this century, as per a report released by the Centre for Economics and Business Research (CEBR) on December 27.

India will sustain "robust economic growth", averaging 6.5 percent from 2024 to 2028, CEBR stated in its 'World Economic League Table 2024' report. This will result in the country surpassing Germany to become the fourth-largest economy in 2027 and overtaking Japan to become the third-largest economy by 2032, it added.

"Key drivers include India's large and youthful population, a growing middle class, a dynamic entrepreneurial sector, and increasing global economic integration," the report said.

CEBR, however, also drew a line of caution for India, saying that the country must address challenges such as "poverty reduction, inequality, human capital and infrastructure improvement, and environmental sustainability".

SEBI extends Dec 31 deadline for mutual fund and demat account nomination

With barely a few days left for the December 31 deadline for mutual fund (MF) and stock market investors to complete nomination for their investments, the securities market regulator SEBI yet again extended this deadline.

As per a circular issued on December 27, the regulator has extended the last date to June 30, 2024. By this date, investors must either choose a nominee/s or explicitly opt out of nomination by submitting a declaration.

“Based on representations received from the market participants, for ease of compliance and investor convenience, it has been decided to extend the last date for submission of ‘choice of nomination’ for demat accounts and mutual fund folios to June 30, 2024,” said the SEBI circular.

This is not the first time the deadline has been extended. Even a few months ago as the September 30 deadline approached, SEBI pushed this further to December 31. With many investors failing to complete their nomination on time, the deadline extension saves them from the problem of their MF folios or demat accounts being frozen for debits. That is, investors would not be able to make redemptions/ withdrawals from their MF folios / demat accounts if they had failed to complete the nomination process.

CCI clears IndusInd Bank-Reliance Capital deal

Fair trade regulator Competition Commission of India on Wednesday said it has cleared the proposed stake acquisition in Reliance Capital by IndusInd International Holdings Ltd, IIHL BFSI (India) Ltd, and Aasia Enterprises. Reliance Capital Ltd (RCL) is an RBI-registered non-banking, non-deposit-taking systemically important company (NBFC-CIC-ND-SI). It is engaged in the financial service sector.

The combination relates to the acquisition of a controlling stake in Reliance Capital Ltd by IndusInd International Holdings Ltd, IIHL BFSI (India) Ltd, and Aasia Enterprises. Post the completion of the transaction, IndusInd Bank, along with other entities, will have a controlling stake in Reliance Capital. "Commission approves the proposed acquisition of the control/stake in Reliance Capital Limited by IndusInd International Holdings Limited, IIHL BFSI (India) Limited, and Aasia Enterprises," CCI said in a post on X.

In July, Hinduja group-owned IndusInd International Holdings (IIHL), the promoter of IndusInd Bank, announced a $1.5-billion capital-raising plan to fund the proposed acquisition of Reliance Capital and increase its stake in the lender. The board of the Mauritius-registered IIHL also decided to increase its holding in Reliance Capital to 26 percent from the present 15 per cent. In June, the lenders of the crippled Reliance Capital accepted the revised Rs 9,661 crore bid by IndusInd Bank.

In November 2021, the Reserve Bank of India (RBI) superseded the board of Reliance Capital in view of payment defaults and serious governance issues. The deals beyond a certain threshold need approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.

Canara Bank to launch IPO of Canara Robeco AMC

Canara Bank on December 27 said it is going to list its mutual fund subsidiary. The lender did not comment on the timeline for the same.

“We wish to inform you that Canara Bank has in principle approved to initiate the process of listing its Mutual Fund Subsidiary Canara Robeco Asset Management Company Ltd, in the stock exchanges by way of Initial Public Offer (IPO), subject to following the due diligence, laid down procedures, opportune time, regulatory approvals etc.,” said the company in an exchange filing.

When listed, this will be the fifth mutual fund company to list in India following HDFC AMC, Nippon Life India AMC, UTI Asset Management Company, and Aditya Birla Sun Life AMC. The modalities of listing will be decided in due course, Canara Bank said.

Vedanta makes interest payment on NCDs as it navigates through debt concerns

Mining conglomerate Vedanta Limited made the interest payment for secured redeemable non-convertible debentures (NCD) due on December 27, as the company navigates through debt repayment concerns.

The NCDs had a face value of Rs 1,00,000, aggregating upto Rs 2,500 crore, the company said in an exchange filing. The Anil Agarwal-owned company which is reeling under a debt mountain, managed to reduce its net debt by Rs 1,420 crore sequentially to Rs 57,771 crore as of the end of the September quarter.

The company said on December 19 that its Committee of Directors has approved raising Rs 3,400 crore via private placement basis, ahead of its bond repayment due in January.

Oil Prices

Oil prices stabilized on Wednesday after the previous day’s strong gains as investors monitored Red Sea developments, with some major shippers resuming passage through the trade route despite continued attacks and broader Middle East tensions.

Brent crude futures was down 55 cents, or 0.68 percent, at $80.52 a barrel. US West Texas Intermediate crude eased by 74 cents, or 0.98 percent, to $74.83 a barrel. The benchmarks settled more than 2 percent up in the previous session as fresh attacks on ships in the Red Sea prompted fears of shipping disruption, with further price support from hopes of U.S. interest rate cuts that could boost economic growth and fuel demand.

Despite the attacks by Yemen’s Iran-backed Houthi militia, large shipping companies such as Maersk and France’s CMA CGM were resuming passage through the Red Sea after the deployment of a multinational task force to the region.

Dollar Index

The Dollar index traded 0.59 percent lower in futures at 100.87, whereas the value of one dollar hovered near Rs 83.28.

Gold Prices

Gold prices steadied on Wednesday as trading was muted in the last week of the year, but bullion was headed for its best year in three on expectations the Federal Reserve will cut rates in the first quarter of 2024.

Spot gold was flat at $2,067.14 per ounce, not far from an over two-week high of $2070.39 hit on Friday. Bullion was on track to mark an over 10 percent gain this year — its best since 2020. US gold futures rose 0.5 percent to $2,079.20 per ounce. Gold is mainly supported by expectations of interest rate cut in the US next year, Jigar Trivedi, a senior analyst at Reliance Securities, said.

However, trading volumes are very thin and spot gold will remain in a $2050 to $2070 range on Wednesday and Thursday, Trivedi added. Last week’s cooler US inflation data boosted financial market expectations for an interest rate cut from the Fed next March, with traders now pricing in about an 80 percent chance, according to the CME FedWatch tool.

FIIs and DIIs

Foreign institutional investors (FIIs) turned net buyers for the first time in the last seven consecutive sessions, buying shares worth Rs 2,926.05 crore, while domestic institutional investors (DIIs) turned net sellers after six-day of consistent buying, offloading Rs 192.01 crore worth of stocks on December 27, provisional data from the NSE showed.

With inputs from Reuters and other agencies.