US Fed And BOJ Rate Decisions, Global Economic Data Set The Tone: The Week Ahead
On the domestic front, multiple mainboard IPOs are lined up for the week.
The coming week is set to be action-packed, with a flurry of activity in the primary market and some major global economic developments.
On the domestic front, multiple mainboard IPOs are lined up, offering investment opportunities across sectors. Notably, Inventurus Knowledge Solutions and International Gemmological Institute (India) are among the major offerings closing during the week, while new IPOs such as Transrail Lighting and Mamata Machinery are set to open.
Globally, a host of central banks will take center stage, announcing their monetary policy decisions. The US Federal Reserve, Bank of Japan, and central banks in Pakistan, Thailand, and Indonesia will reveal their stances on benchmark lending rates, with market participants keenly watching for signals on future rate trajectories.
Fed Chair Jerome Powell’s comments at the conclusion of the FOMC meeting will be closely scrutinised for insights into the central bank’s stance on upcoming rate decisions. Key economic data, including US retail sales, GDP figures, and China's industrial production, will also come out during the week.
Markets Last Week
Last week, the Nifty gained 0.61% and Sensex added 0.77%. The benchmark equity indices recorded a fourth straight week of gains as they ended higher after a volatile trading session on Friday.
The NSE Nifty 50 ended 219.60 points or 0.89% higher at 24,768.30, and the BSE Sensex closed 843.16 points or 1.04% up at 82,133.12. During the day, both the Nifty and Sensex fell over 1% and also rose more than 1%.
The Nifty FMCG and Nifty Bank were the top gainers on Friday and Nifty Metal fell the most. Six out of the 21 sectoral indices on the BSE ended lower, with BSE Metal falling the most.
Global Cues
Markets will closely track key global developments as several central banks are expected to announce cuts in their nations’ benchmark lending rates. Major economic data will also be announced.
On Monday, Dec. 16, the State Bank of Pakistan is expected to announce a rate cut of 150 bps, bringing rates down to 13.5%. China will release its Nov. industrial production and retail sales data, with growth expected to slow to 5% and 4.6% year-on-year, respectively.
Tuesday, Dec. 17, will feature the release of US retail sales data for Nov., with headline growth anticipated at 0.6%, driven by higher vehicle sales. Canada’s inflation data and Sri Lanka’s third-quarter GDP figures, which are likely to show a slowdown to 3.9%, are also due. US industrial production data is expected to reflect a rebound after resolving recent labor disputes.
The two-day Federal Open Market Committee meeting concludes on Wednesday, Dec. 18. The US Federal Reserve is expected to cut rates by 25 bps, lowering the target range to 4.25%-4.50%. Attention will also be on Powell's stance on future rate decisions. Thailand and Indonesia are likely to maintain their key rates at 2.25% and 6%, respectively.
Thursday, Dec. 19, will see the release of the final print for US third-quarter GDP, expected at 2.8%. Initial jobless claims, expected to show continued volatility, and the Bank of Japan’s rate decision will also be in focus. Governor Kazuo Ueda is expected to hold rates steady this month, with a potential move anticipated in Jan.
Primary Market Action
The IPO market will be buzzing in the coming week, with offerings scheduled in both the mainboard and SME space.
Mainboard IPOs
The Rekha Jhunjhunwala-backed Inventurus Knowledge Solutions IPO will close on Monday, Dec. 16. The Navi Mumbai-based healthcare solutions provider has already been fully subscribed. On Tuesday, Dec. 17, the International Gemmological Institute (India) IPO, owned by Blackstone, will close. Proceeds from the issue will be used to acquire full ownership of IGI Belgium Group and IGI Netherlands Group. Later in the week, on Thursday, Dec. 19, IPOs of Transrail Lighting and Mamata Machinery are set to open for subscription.
SME IPOs
In the SME space, Yash Highvoltage IPO will close, and Dhanlaxmi Crop Science will debut on the exchanges on Monday, Dec. 16. On Tuesday, Dec. 17, the Hamps Bio IPO will close, while NACDAC Infrastructure’s IPO opens the same day. Identical Brains Studios will launch its IPO on Wednesday, Dec. 18, with NACDAC Infrastructure set to close and New Malayalam Steel opening its IPO on Thursday, Dec. 19. The Identical Brains Studios IPO will close the week on Friday, Dec. 20.
Corporate Actions Ahead
Company's are set to announce dividends, stock splits, bonus issues and right issues. Few of them will be hosting Extraordinary General Meetings as well. Check the full list below:
