Trade Setup Wednesday: Sensex, Nifty May Extend Gains; RCFL, Axis Bank, Zee, Indian Bank In Focus

The Indian stock market is expected to open on a muted note on Wednesday (December 13) due to mixed clues from global indices. While the Gift Nifty indicated a positive start for the Indian equity market, Asian shares mostly opened lower. However, all three major US indices closed higher in the overnight trading on Wall Street. Indian equity indices ended lower in the volatile session on Tuesday, where Sensex slipped 0.54% at 69,551.03, and the Nifty was down 0.43% at 20,906.40 points.

US equities ended at fresh highs of the year on Tuesday, after inflation data was released which gave some hints on the Fed's stance on policy rates for the year. At market close, the Dow Jones Industrial Average rose 0.48% to 36,577.94, the S&P 500 gained 0.46% to 4,643.70 and the Nasdaq Composite advanced 0.70%, to 14,533.40.

The November Consumer Price Index (CPI) jumped 3.1% on an annual basis. On a month-on-month(MoM) basis, consumer prices edged 0.1% higher last month, compared with estimates of remaining unchanged. Meanwhile, investors are also awaiting the US Federal Reserve's policy announcement at the conclusion of its two-day meeting on Wednesday.

The European Central Bank and the Bank of England are also scheduled to deliver their policy verdicts later this week.

Gift Nifty indicate a flat-to-negative start

With a gain of 0.23% at 21089.5 points, trends in the GIFT Nifty indicate a flat-to-negative start for the Indian equity market.

Asian Markets

Asian shares mostly opened lower today. South Korea's Kospi was down 0.38% at 2,525.62 points, and the small-cap Kosdaq was down 0.55%. Topix was up 0.17%. Hong Kong's Hang Seng index futures were down 0.59% at 16,290.0 points. Japan's Nikkei 225 rose 0.47% at 32,997.50 points in the early trade on Wednesday.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 76.86 crore, while domestic institutional investors (DIIs) bought Rs 1,923.32 crore worth of stocks on December 12, according to the provisional data available on the National Stock Exchange (NSE).

Buzzing stocks:

Indian Bank:

Indian Bank shares will remain on focus today as the state-owned bank launched its qualified institution placement (QIP) issue on Tuesday. The floor price has been fixed at Rs. 414.44 per share. The bank's Committee of Directors (Capital Raising) is slated to meet on December 15 to consider the issue price of equity shares to be allotted pursuant to the proposed QIP of equity shares.

Axis Bank:

According to a media report, entities associated with private equity firm Bain Capital will likely sell a further stake in the bank in a fresh block deal worth $444 million.

Zee Entertainment Enterprises:

Plutus Wealth Management LLP purchased 90 lakh equity shares, equivalent to 0.93% of paid-up equity, in the media and entertainment company at Rs 292.34 per share.

Rashtriya Chemicals & Fertilizers Ltd

Shares of Rashtriya Chemicals & Fertilizers Ltd (RCFL) will be in focus on Wednesday as the stock will trade ex-dividend today. The company's board of directors declared a final dividend of Rs 3.70 per share for its eligible shareholders.