Domestic markets are expected to open flat with a positive bias. With strong macro numbers – IIP at 11.7 per cent and inflation at 5.6 per cent – analysts expect bullish sentiment is likely to continue. However, all eyes are on the outcome of the US Federal meeting that will be known later today (early morning in Indian time). Analysts expect foreign portfolio investments, which resumed in the last few weeks, will depend upon the rate as well as Fed chief comments.

Gift Nifty at 21,067 indicates a flat opening as Nifty futures on Tuesday closed at 21,023. Asian stocks are mixed with Japan, and Australian and Taiwan markets are up even as China, Hong Kong, and Korea are down.

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Markets will face profit taking on every rise, keeping the market in a narrow range, said.

Amit Goel, Co-founder & Chief Global Strategist at Pace 360, said: India’s inflation jumped to 5.6% year on year in November, came in lower than the consensus estimates of 5.8 per cent with halting a three-month slowdown to 4.9 per cent in October from a peak of 7.4 per cent in July. The pick-up was due to higher food inflation. A lower year-earlier base and shortages of onions and tomatoes due to unseasonal rains likely pushed up vegetable prices. “The jump in food prices was driven by temporary factors which we expect to start reversing in January,” he added.

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According to Nikhil Gupta, Chief Economist, MOFSL Group, “IIP grew 11.7 per cent, better than our forecast of 11 per cent and mkt consensus of 10.5 per cent.”

Gupta added: “we expect moderation in 3QFY24 real GDP growth and inflation to remain around 5.2 per cent YoY in 4QFY24. The RBI, thus, doesn’t need to think about easing at all and keep monetary policy unchanged in the coming months.”

Globally, investors await US inflation data as this would provide some clues on Federal Reserve’s move in its policy meeting, which will commence today. “Fed’s policy outcome will provide some direction, untill than market are expected to consolidate. IPO market is again action with six IPO’s in pipeline starting with India Shelter Finance and DOMS open for subscription on Wednesday,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.