1. Foreign investor buying
High liquidity, robust valuations and the weak US dollar pushed foreign investors to flock to the Indian stock market in a big way with the highest-ever net inflow of Rs1.4 lakh crore in 2020. As we get ready to countdown this year, the FPIs have so far made a net inflow of Rs1.42 lakh crore -- the highest level of such investment in a calendar year since 2002. In comparison, the net inflow into Indian capital markets was at ₹1.36 lakh crore in 2019. This comprised a net investment of Rs1.01 lakh crore in equities, Rs25,880cr in debt and around Rs9,000cr in hybrid securities.
As far as this month goes, FIIs purchased equities worth Rs 26,927.66cr. However, domestic institutional investors (DIIs) remained net seller. DIIs sold equities worth of Rs18,625.86cr till date this month. In the last week, FIIs bought equities worth Rs16,721.30cr, while DIIs sold equities worth of Rs12,535.34cr.
2. VACCINE Developments
Markets will keenly watch the progress on COVID19 vaccine front. Saudi Arabia become the latest country to approve Pfizer Inc. and BioNTech SE’s Covid-19 vaccine, joining the United Kingdom, Canada and Bahrain. The US Food and Drug Administration (FDA) on December 11th approved the Pfizer-BioNTech COVID-19 vaccine for emergency use, and a rollout could begin within days. Closer home, applications of the Serum Institute of India (SII) and Bharat Biotech seeking emergency use authorization for their COVID-19 vaccine candidates were not considered due to "lack of safety" and inadequate data on efficacy. Pfizer is awaiting approval from India.
3. BREXIT discussions
European union and UK are yet to see eye-to-eye regarding acceptable terms of the exit. With less than three weeks until the UK’s final split from the EU, key aspects of the future relationship between the 27-nation bloc and its former member remain unresolved. British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen had set Sunday as the deadline for a breakthrough or breakdown in negotiations. Now, Britain and the European Union say talks will continue on a free trade agreement.
4. US stocks
Wall street had a wobbly run Friday, with most key indices registering declines as uncertainty over the stimulus package dampened investor buying. The S&P 500 fell 4.64 points, or 0.1%, to 3663.46, its third straight session of declines. The Nasdaq Composite lost 27.94 points, or 0.2%, to 12377.87. The Dow Jones Industrial Average added 47.11 points, or 0.2%, to 30046.37. After signs of progress amid a bipartisan push for a roughly $900 billion stimulus deal, Senate Republicans suggested Thursday that they couldn’t accept some aspects of the proposals. The U.S. Senate, facing a midnight deadline on Friday, unanimously approved a one-week extension of federal funding to avoid a government shutdown and to provide more time for separate negotiations on COVID-19 relief and an overarching spending bill.
Burger King India, the subsidiary of US-based quick service restaurant chain Burger King, will debut on bourses on December 14th after receiving a strong response to its initial public offering. The public offer was subscribed 156.65 times, receiving over 1,100 crore bids compared with 7.45 crore shares on offer. The company has fixed the issue price at Rs 60 per share. Its shares are available at a 75% premium in the grey market. Burger King India's initial public offer was open between December 2 and 4. The primary market offering consisted of a fresh issue of equity shares amounting to Rs450 crore and an offer for sale worth Rs360 crore by the promoter QSR Asia. The shares were offered in the price band of Rs59-60 per share.
Meanwhile, Mrs Bectors Food, which manufactures and markets a wide range of items from biscuits to buns, will be conducting its IPO (Initial Public offering) for 3 days between December 15th and December 17th. Price band of the Rs540 crore IPO has been fixed at Rs286 to Rs288 per share. Bids can be made for a minimum of 50 equity shares and in multiples of 50 equity share thereafter. The issue comprises fresh issue of such equity shares as aggregating up to Rs40.54cr and an offer for sale aggregating up to Rs500cr.
6. WPI, CPI
The central government will release wholesale and retail inflation data for November on Dec 14th. The number, which has been on the rise for a while, plays a significant role in Reserve Bank of India’s monetary policy decision.
7. Budget 2021
The Ministry of Finance on Sunday informed that FM Nirmala Sitharaman will start her pre-budget consultations with different stakeholders from December 14th, Monday. It will be for the first time that budget consultation will happen virtually in wake of the coronavirus outbreak. The pre-budget consultations will be with the country’s top industrialists.