Vishal Mega Mart, One Mobikwik IPO, and FII Action Among 8 Factors That Will Drive D-St This Week

Despite Friday’s decline, the Nifty ended the week up 2.3%, led by gains in bank and IT stocks. When markets resume trading on Monday, important domestic and global events lined up during the week are likely to affect them.

The Nifty closed down 30.60 points or 0.12% at 24,677.80 on Friday.

“Commenting on the previous session’s action, Om Mehra, technical analyst at SAMCO Securities, said the Nifty index is steady above the crucial 24,650 support level. According to him, the primary trend remains positive, as the Nifty is trading near the upper band. The Donchian channel, which Tends higher – an indication of potential bullish momentum.

Additionally, India’s VIX remains subdued, hovering below the 15 mark, indicating contraction in volatility and reducing fear in the market, he added.

Factors that may affect movement when markets open this week:

1) IPO this week

Plenty of action awaits investors in the primary markets this week, as high-profile IPOs of Vishal Mega Mart, One Mobiquik and seven others open for subscription. Besides the new issues, the Street will also see three listings from Nisus Finance, Property Share REIT and Emerald Tire Maker.

Leading supermarket chain Vishal Mega Mart’s IPO will open for subscription on December 11 and close on December 13. Rs. 8,000 crore offer with a price band of Rs. 74-78 per share has been fixed.

Meanwhile, Gurugram-based One MobiKwik Systems is all set to launch its initial public offering (IPO) on Wednesday, December 11. The three-day bidding period will close on Friday, December 13. The price band for the IPO is Rs. 265-279 per share.

On Friday, private equity major TPG Capital-backed Psy Life Sciences said it has raised its Rs. 3,043 crore has set a price band of Rs 522-549 per equity share for the initial public offering (IPO), which will open for public subscription on December 11.

As many as six new issues from Dhanalakshmi Corp, Toss the Coin, Jungle Camps, Supreme Facility Management, Purple United Sales and Inventurus Knowledge Solutions will open next week in the SME segment.

2) IPO lock-in expiry

Shareholder lock-ins worth $867 million will be lifted in 10 companies between December 9 and 13, IIFL Alternative Research reported. While the value is related to the total locked-in opening shares, it is important to note that not all these shares will be put up for sale, as a large portion of these shares are also held by the promoters and their groups.

Stocks that will see lock-in expiry include Shree Tirupati Balaji Agro, Segility India, Kronox Lab Science, Crocs, Swiggy, Acme Solar Holdings, Bajaj Housing Finance, Niva Bupa Health, Tollins Tires and PN Gadgil Jewellers.

3) US markets

Domestic markets will take cues from their foreign peers, especially those on Wall Street.

Wall Street’s headline indexes, the S&P 500 and the Nasdaq Composite, hit fresh record highs on Friday, supported by a strong U.S. jobs market. The broad-based S&P 500 rose 0.25% to 6,090.27, while the tech-rich Nasdaq Composite Index gained 0.81% to end at 19,859.80. Meanwhile, the blue-chip index Dow ended 30 days down 123.19 points, or 0.28%, at 44,642.50.

4) FII/DII action

On Friday, foreign institutional investors (FIIs) invested Rs. 1,830.31 crore were net sellers, while Domestic Institutional Investors (DIIs) contributed Rs. 1,659.06 crore were net buyers.

Foreign portfolio investors (FPIs) reversed their selling trend in December, so far this month at Rs. A net equity inflow of Rs 24,454 crore was recorded. With the latest inflows, FPIs ended November at Rs. 15,019 crore in 2024 as against an outflow of Rs. 9,435 crore has experienced a net inflow.

5) Technical factors

Technically, on the daily chart, the index paused after a strong rally and formed a small red candle, while on the weekly chart, it formed a strong bullish candle, indicating strength, Hrishikesh Yedve, AVP of Technical and Derivatives Research Asit C. Mehta Investment Intermediates said. Further, the index has seen a breakout from an inverted head and shoulders pattern, he added.

“As per this breakout, the index may test 25,000-25,200 levels in the medium term. Immediate support is placed near 24,550, followed by 24,300. As long as Nifty remains above 24,300, traders should adopt a ‘buy on dips’ strategy. .” Yedve said.

6) Rupee vs Dollar

The Indian rupee strengthened on Friday, supported by a softer dollar and India’s central bank kept policy rates unchanged but cut banks’ cash reserve ratio by 50 bps to 4%, effectively easing monetary conditions amid slowing economic growth. The rupee closed at 84.6875 against the US dollar, up from the previous close of 84.7325. The currency logged its fifth consecutive weekly decline, falling 0.2%

The rupee fell to its all-time low of 84.7575 earlier in the week due to weakness in the Chinese yuan and a strong bid for the dollar.

The increased capital inflows to India from these FCNR measures may help the INR marginally in the short term, but are unlikely to be significant enough to change the overall trajectory for USD/INR upside,” MUFG Bank said in a note.

7) Crude oil

Oil prices rose nearly 1% on Friday to settle at a two-week high, as the intensifying war in Ukraine this week increased the market’s geopolitical risk premium. Brent futures rose 94 cents, or 1.3%, to settle at $75.17 a barrel, while US West Texas Intermediate (WTI) crude rose $1.14, or 1.6%, to settle at $71.24.

Both crude benchmarks rose nearly 6% for the week, marking their biggest gains since Nov. 7, as Moscow stepped up its Ukraine offensive after Britain and the US allowed Kiev to strike deep into Russia with its missiles.

8) Corporate Action

Exaro Tiles and several other companies are likely to be in focus this week as they approach their record dates for dividend, bonus issue and stock split purposes.

December 10 is the ex-date for Achut Healthcare stock, which announced a bonus issue in the ratio of 4:10. Achyut Healthcare, Global Education, Shraddha AI Technologies and Shraddha Infraprojects will trade ex-split on this day.

December 13 will be the ex-date for Essen Specialty Films’ 1:5 bonus issue, while shares of Exaro Tiles will trade ex-split on this day.

(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)