Summary of this article
GIFT Nifty signals a gap-up start near 26,170 levels following positive global sentiment.
The Indian rupee’s recovery to the Rs 89.30–89.60 range is expected to stabilize institutional flows.
November’s Eight Core Industries output data will be a key domestic trigger for industrial and infrastructure stocks.
Stock Market Cues: Infrastructure Output Data, Rupee Strengthening, Crude Oil Prices And Other Factors Set To Affect Trade Today STRAP BODY On December 22, the headline indices are likely to begin the session on a positive note. The likelihood of a positive start comes amid a slew of largely positive cues for D-Street investors.
The Gift Nifty opened in the green around 26,172.50 levels on December 22, climbing to 26,199 levels. On December 19, the headline indices closed in the green zone. The BSE Sensex finished the session with gains of 0.53 per cent at 84,929.36 levels. The Nifty 50 finished the session around the 25,966.40 level up by 150.85 points or 0.58 per cent.
Stock Market Cues For Today
On December 22, relative strengthening of the Indian rupee, the release of India’s Infrastructure output data, institutional investor (FII) flows and changes in crude oil prices are expected to impact trade
India Infrastructure Output Data
The Infrastructure Output data (Eight Core Industries) for November is expected to be released today. The data is one of the key indicators of industrial health and acts as an early indicator for the overall Index of Industrial Production (IIP) data. A IIP strong reading indicates strong industrial health and boosts investor sentiment.
Strengthening Rupee
The Indian rupee came under pressure last week dropping to a record low close to the 91.14 per dollar mark last week. However, the Indian rupee witnessed a significant rebound on December 19 as the Reserve Bank of India’s aggressive intervention contributed to the rupee’s recovery to the 89.30–89.60 range. The potential stability of the rupee is likely to curb aggressive foreign institutional selling today, making Indian stocks more attractive to global funds.
FII Flows
On December 19, FII’s remained net buyers of Indian equities for the fourth straight session purchasing shares worth Rs 1,830.89 crore. Domestic Institutional Investors also continued their buying spree and purchased equities worth Rs 5,722.89 crore.
Crude Oil Prices
On December 22, crude oil prices inched upwards, the price of West Texas Intermediate crude traded around $56.92 up by $0.41 or 0.73 per cent. The price of Brent Crude was around $60.89 up by $0.42 or 0.69 per cent in the early hours of the day.
Gold Rate On December 22
Physical gold prices declined in the early hours of December 22 as the price of 24 karat gold was Rs 13,417 per gram, the price of 22 karat purity gold was around Rs 12,299 per gram and the price of 18 karat gold was around Rs 10,063 per gram.
Asian Indices Trade Mixed
On December 22, major Asian indices traded in the green, the Nikkei 225 and the Hang Seng gained 1.83 per cent and 0.39 per cent respectively. On the other hand the KOSPI and the Shanghai Composite index traded with gains of 1.72 per cent and 0.64 per cent respectively.
US Markets
US market indices closed the session higher on December 19, the Nasdaq Composite closed with gains of 1.31 per cent. On the other hand, the S&P 500 and the Dow Jones Industrial Average (DJIA) closed lower by 0.88 per cent and 0.38 per cent respectively.
