The Indian equity markets opened on a cautious note this Monday, reflecting a measured approach to global sentiment despite recent supportive measures. Investors are bracing for a decisive week filled with high-impact economic events, ranging from crucial central bank decisions to significant diplomatic trade discussions.
Market Snapshot: At the Opening Bell
As of 9:16 AM IST on December 15, the benchmark indices started the day in the red. The NIFTY 50 index is trading at 25,953.65, marking a decline of 93.30 points or 0.36 percent. Similarly, the BSE SENSEX is down by 262.31 points or 0.31 percent, trading at 85,005.34.
Currency markets are also feeling the heat. The Indian rupee touched a fresh record low of 90.57 during opening trade, slipping from Friday’s close of 90.42.
However, the broader sentiment is not entirely bleak. Market confidence has been partially restored following the Federal Reserve’s recent announcement of a 25-basis point rate cut, which has helped ease immediate liquidity concerns. Supportive central bank policies and steady domestic investments are acting as a buffer, keeping the market ranged amid the volatility.
Global Economy: All Eyes on Central Banks
The primary driver for market direction this week will be the scheduled meetings of three major central banks.
- Bank of England (BoE) & ECB: Officials from the European Central Bank and the Bank of England are set to meet on December 18. The BoE is widely expected to cut its benchmark interest rate by a quarter percentage point. Conversely, the ECB is likely to maintain the status quo on rates for December.
- Bank of Japan (BoJ): The spotlight shifts to Asia on December 19, where the Bank of Japan may deliver its first rate hike in 11 months. This potential move comes amid rising inflation and a weaker yen.
- Our Commentary: Market sentiment remains noticeably jittery regarding this development. A potential rate hike would push Japan’s benchmark rate above 0.5 percent for the first time in three decades. Such a move could prompt a sharp reversal of the ‘yen carry trade’, potentially triggering significant capital shifts out of global equities and injecting further volatility across financial markets.
In addition to policy decisions, traders will scrutinise economic data from the United States. Key releases include the unemployment rate, which economists expect to remain steady at 4.4 percent, alongside inflation numbers for November. Retail sales data and flash PMI numbers from the US, China, Japan, and Europe will further guide the Federal Reserve’s future interest rate decisions.
(Source: Moneycontrol, Business Standard)
Domestic Policy: RBI Steps In
The Reserve Bank of India (RBI) is taking active steps to manage liquidity. The central bank has announced the second tranche of its Open Market Operation (OMO) purchase of government securities.
The RBI will purchase securities worth ₹50,000 crore on December 18. The auction is scheduled to take place between 9:30 AM and 10:30 AM via the RBI’s Core Banking Solution, E-Kuber.
(Source: Moneycontrol)
Corporate Radar
Several major Indian companies are making headlines this morning due to regulatory updates and fresh order wins.
- Bharat Electronics: On a positive note, the defence PSU has bagged additional orders worth ₹776 crore since November 14. These orders cover a wide range of defence equipment, including indigenous counter-unmanned aerial systems (SAKSHAM), software-defined radios, and anti-drone systems.
- Inox Wind: The company has secured a significant 102.3 MW order from ABREL EPC Ltd., a subsidiary of Aditya Birla Renewables. This deal involves the supply of 3.3 MW turbines for projects in Karnataka.
- pTron: Palred Electronics announced that its subsidiary, pTron, is entering the smart eyewear category. The brand has launched ‘Orbis Era’ and ‘Orbis Urban’, two Bluetooth-enabled smart glasses designed for communication and entertainment.
(Source: Moneycontrol)
Institutional Flows: Big Money Moves
High-value transactions have been reported in the mid-cap and small-cap segments, signalling sustained institutional interest.
- Kaynes Technology: US-based Smallcap World Fund Inc has acquired 4.46 lakh shares of Kaynes Technology for ₹188 crore. The transaction was executed at ₹4,206.38 per-share.
- Usha Martin: A promoter group entity, Peterhouse Investments India, sold a stake in the company. Buyers included the 3P India Equity Fund, owned by ace investor Prashant Jain, along with Bandhan Mutual Fund and Morgan Stanley. Together, they acquired 23 lakh shares (a 0.75 percent stake) for ₹98.9 crore at ₹430 per-share.
(Source: Moneycontrol, Business Standard)
IPO Watch: Listings and New Launches
The primary market remains buzzing with activity as new listings and offers hit Dalal Street.
- Corona Remedies: Shares of the pharmaceutical company are set to debut today. The IPO saw robust demand, with subscription levels reaching 137 times.
- ICICI Prudential AMC: The ongoing IPO witnessed decent interest, with 72 percent subscription recorded on Day 1, driven largely by Qualified Institutional Buyers.
- Upcoming Issues: This week will see four companies launch IPOs worth a combined ₹830 crore. The main highlight is KSH International, a magnet winding wires manufacturer. Its ₹710-crore IPO opens on December 16 with a price band of ₹365-384 per-share.
- SME Segment: Neptune Logitek opens its ₹47-crore issue today, followed by Global Ocean Logistics India and MARC Technocrats on December 17.
(Source: Moneycontrol, Business Standard)
Corporate Actions Schedule
Investors should also keep an eye on the following corporate actions scheduled for the week.
- December 15: Moneyboxx Finance Ltd (Bonus Issue 1:1) and Tilak Ventures Ltd (Right Issue).
- December 17: Eclerx Services Ltd (Buy Back), Krishival Foods Ltd (Right Issue), and Sylph Technologies Ltd (Bonus Issue 5:11).
- December 18: Anirit Ventures Ltd (Right Issue) and Indian Oil Corporation Ltd (Interim Dividend of ₹5.00).
- December 19: A busy day featuring Dr. Lal Pathlabs Ltd (Bonus Issue 1:1), Space Incubatrics Technologies Ltd (Stock Split ₹10 to ₹1), Unifinz Capital India Ltd (Bonus Issue 4:1), and Can Fin Homes Ltd (Interim Dividend).
(Source: NDTV Profit)
The Bottom Line
As the week progresses, market participants will remain focused on the India-US trade deal developments and the manufacturing PMI numbers, which could provide further direction to the indices.
However, the underlying domestic resilience, fueled by robust institutional inflows and strong corporate order books, suggests that while the headline indices may remain range-bound, significant opportunities will lie in stock-specific action and the bustling primary market.
Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. The securities are quoted as an example and not as a recommendation.
Investors are requested to do their own due diligence before investing. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532, Depository Participant – IN – DP – 416 – 2019, Depository Participant Number: CDSL – 12088800, NSE (90165), BSE (6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. For complete Terms & Conditions and Disclaimers visit: https://www.paytmmoney.com/stocks/policies/terms .
