Indian markets could open flat, following mixed Asian markets today and despite positive US markets on Thursday - HDFC Securities

U.S. stocks finished higher Thursday, with two major indexes setting new records as investors rung out a tumultuous year that saw equities collapse into a bear market before rebounding to alltime highs. U.S. data showed first-time jobless benefit claims unexpectedly declined by 19,000 to 787,000 last week. Economists had forecast initial claims to rise to 835,000. However this number remained well above the peak of the 2007-2009 Great Recession.

All eyes are on two U.S. Senate races in Georgia next week that will determine control of the chamber and influence Democratic President-elect Joe Biden's ability to enact his agenda.

European markets closed lower on Thursday, the final trading day of a year dominated by the coronavirus pandemic and extraordinary stimulus measures that have tried to mitigate the economic hit from the health crisis.

The Centre’s fiscal deficit for April-November 2020 soared to Rs 10.76 lakh crore, or 135 percent of the full year budgeted target of Rs 7.96 lakh crore, as the government’s finances continued to be stretched due to lower revenues arising from the COVID-19 pandemic and the economic slowdown. Expenditure for the period has been 62% of the Budgeted estimate vs 65.3% last year.

Contracting for the ninth consecutive month, the output of India’s eight core infrastructure sectors dropped by 2.6% in November, mainly due to decline in production of natural gas, refinery products, steel and cement.

The production of eight core sectors had recorded a growth of 0.7% in November 2019. Barring coal, fertiliser and electricity, all sectors -- crude oil, natural gas, refinery products, steel and cement -- recorded negative growth in November 2020. During April-November, the sectors' output dropped by 11.4% as compared to a growth of 0.3% in the same period of the previous year.

Most Asian markets were mixed as multiple markets were shut Friday on account of the New Year holiday.

The Indian benchmark equity indices ended Thursday's choppy session on a flat note. In the process Nifty breached all-time high level of 14,000 intraday.

Nifty closed flat at 13,981.75 on Dec 31. Nifty touched 14000 on the final day of the calendar year. Despite low institutional presence, the broader markets continue to do well. There are no negative triggers on the horizon and hence the gradual move up could continue.

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