The domestic market is starting the last trading day of the week with many important indicators. On one hand, buying by foreign investors is supporting the sentiment, while on the other hand, inflation data from America has given a big relief to the global markets. News related to commodities, IPO listing and some selected shares will also decide the direction of trading today.
Strong support from FIIs and domestic funds
Foreign institutional investors continued buying in the cash market for the second consecutive day and bought shares worth about ₹600 crore. Despite this, total net purchases by FIIs including index and derivatives stood at ₹2721 crore. Domestic funds also continued record buying for the 79th day and invested around ₹2700 crore in the market. This clearly shows that large investors are showing confidence in the market at current levels.
Rapid recovery in American markets
Despite a lot of volatility, US markets remained strong after inflation data came in lower than expected. After four days of decline, the Dow Jones closed up nearly 65 points, while the Nasdaq saw a sharp rise of 300 points. US CPI inflation stood at 2.7% in November, which is much lower than expected. Core inflation also reached its lowest level since March 2021, reducing concerns about interest rates.
Positive signals from Asia and GIFT Nifty
GIFT Nifty is trading around 25,950 with a gain of about 70 points. Although Dow futures are showing some weakness, Japan’s Nikkei is showing a strength of about 400 points ahead of the Bank of Japan’s policy announcement. This has created expectations of a positive start in the Asian markets.
Mixed trend in commodities
In the domestic market, gold reached a new all-time high of ₹1,35,590. However, silver witnessed sharp profit-booking and fell by almost ₹3900 to close around ₹2,03,600. Crude oil remains soft around $60 per barrel, which may provide continued relief on the inflation front.
Listing of ICICI Prudential AMC today
ICICI Prudential AMC IPO, which received applications worth about ₹3 lakh crore, will be listed on the stock exchange today. It was the fourth most subscribed IPO in the country. The issue price is ₹2165 per share, and the market will keep an eye on the listing gains.
Stock-specific news in focus
The investigation into derivative accounts linked to IndusInd Bank has now been handed over to the SFIO, as confirmed by the bank itself in a disclosure. Ola Electric promoter Bhavish Aggarwal sold stake for the third consecutive day. He sold about 2.2% stake in three days to repay a loan of ₹260 crore. The company has made it clear that the promoters will not sell any more shares.
IT Stocks to Watch
Global IT giant Accenture reported strong results with a massive 76% increase in AI bookings. As a result, Infosys’ ADR closed up by around 4.5%. Therefore, good movement can be seen in domestic IT stocks today.