Indices set to open in green as IIP paints a rosy picture; Burger King IPO may see a blockbuster debut!

In the last week, volatility was witnessed on the Indian shores, especially in the last trading session of the week as the market swung both ways before settling the day with modest gains. The extinct bears had attempted all tricks in the books to make a comeback but all efforts were in vain as the mighty bulls were backed by the strong liquidity gush by FIIs. In the end, the markets continued their ascend for the sixth straight week.

As we enter into the fresh week, the news continues to paint a rosy picture as India’s Industrial Productions witnessed a strong pickup in October, indicating a strong recovery. The Index of Industrial Production (IIP) rose 3.6 per cent in October 2020 over the last year. As a result, SGX Nifty is indicating a prosperous start to the week as it traded up by 42 points at 13,576. The market participants will look forward to another set of data to be released today i.e. the inflation numbers. The retail inflation jumped to 7.61 per cent in October and it is well above RBI’s 2-6 per cent target range. It would be interesting to see whether the trajectory remains on the upside or we see its trend reversing?

Also, all eyes would be on the listing of Burger King, the fast-food chain operator, which had received an overwhelming response to its IPO as it was oversubscribed by nearly 157 times.

The Asian markets were seen trading in the green on Monday. Japan’s Nikkei 225 surged 0.65 per cent as the market participants cheered the outcome of Bank of Japan’s survey, which showed that the business sentiment remained buoyant for the second straight quarter in the fourth quarter of 2020. China’s Shanghai Composite was up by 0.17 per cent and Hong Kong’s Hang Seng added 0.11 per cent.

US stocks recovered from the lower levels to close mixed on the final trading session of the week. Dow ended the day in the green, courtesy of a solid surge in the stock price of Disney as it gained 13 per cent after the company estimated strong subscriber growth.

Under economic news, the consumer sentiment for the month of December unexpectedly jumped to 81.4. Meanwhile, the European Indices ended mostly lower amid dampening hope of the US fiscal deal and a Brexit trade deal.