Market may open near flat line; US Fed meet outcome eyed

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could fall 9 points at the opening bell.

On the macro front, consumer prices in India rose at the fastest pace in three months in November as food prices increased, according to government data released Tuesday. Annual retail inflation in November rose to 5.55%. The reading was higher than a 4.87% rise in October.

India`s industrial production growth accelerated to 16-month high of 11.7% in October, mainly due to double-digit growth in manufacturing, power and mining sectors` output, according to the official data released on Tuesday. The factory output growth measured in terms of the Index of Industrial Production (IIP) had contracted by 4.1% in October 2022. The IIP for September 2023 was revised to 6.2% from provisional estimates of 5.8% released last month.

Global markets:

Overseas, Asian stocks are trading mixed on Wednesday, as investors assess the quarterly Tankan survey from Japan and ahead of the interest rate decision from the US Federal Reserve. The Tankan survey, compiled by the Bank of Japan quarterly, measures economic conditions in Japan.

US stocks closed at fresh highs of the year on Tuesday, after inflation data did little to alter views for the timing of a rate cut by the Federal Reserve, as investors awaited the central bank`s last policy decision of the year on Wednesday.

The United States Federal Reserve`s (US Fed) two-day monetary policy meeting is being held from December 12-13. And on Wednesday Fed Chair Jerome Powell will announce the central bank`s rate decision in a press conference. Besides the interest rate decision, Powell is also expected to release the central bank`s economic projections for the US. The Federal Reserve will opt to maintain interest rates at the current target of 5.25-5.50%, as per reports.

Later in the week, the European Central Bank (ECB) and the Bank of England (BOE), are also due to make policy announcements.

Domestic markets:

Back home, the domestic equity benchmarks experienced minor declines on Tuesday after reaching record highs. The barometer index, the S&P BSE Sensex declined 377.50 points or 0.54% to 69,551.03. The Nifty 50 index lost 90.70 points or 0.43% to 20,906.40.

Foreign portfolio investors (FPIs) bought shares worth Rs 76.86 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,923.32 crore in the Indian equity market on 12 December, provisional data showed.

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