Sensex, Nifty may open on a strong footing

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Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 125 points at the opening bell. On the macro front, India’s index of industrial production (IIP) grew by 3.2% in October, according to the data released by the Ministry of Statistics & Programme (MoSPI) on Friday. Industrial output, as measured by IIP, leapt 4.5% in October 2020 and surged 3.1% in September. Meanwhile, the mining output during October (2021) rose by 11.4%, whereas, manufacturing sector output jumped 2%. Electricity generation in October grew 3.1%.

Global markets

Overseas, Asian stocks are trading higher on Monday, with investors looking ahead to a week of central bank meetings that could indicate the end of U.S. policy stimulus.

Investors now await the Federal Reserve’s policy decision, due on Wednesday. The Fed is among the 20 central banks due to meet throughout the week, with the group also including the European Central Bank, the Bank of England and the Bank of Japan.

On Friday, data showed US consumer prices continued to surge in November, climbing 6.8% compared to the same month in 2020, the biggest jump since June 1982.

Wall Street advanced on Friday and the S&P 500 notched an all-time closing high as market participants digested an inflation reading that was in line with consensus, but also marked the largest annual increase in consumer prices in nearly four decades.

Geopolitical tensions are on the rise after the Group of Seven reportedly warned Russia on Sunday to de-escalate its activities around Ukraine or face “massive consequences.”

In the U.K., the government raised the coronavirus threat level Sunday and warned the rapid spread of the omicron strain pushed the country into risky territory, as per reports. Prime Minister Boris Johnson reportedly said the U.K. faces a “tidal wave” of Covid cases caused by the new variant.

Domestic markets

Back home, key equity indices snapped three-day rising streak and ended with minor losses on Friday, tracking negative global cues. The barometer index, the S&P BSE Sensex, shed 20.46 points or 0.03% to 58,786.67. The Nifty 50 index lost 5.55 points or 0.03% to 17,511.30.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,092.40 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 386.63 crore in the Indian equity market on 10 December, provisional data showed.