Indian stock market indices, Sensex and Nifty 50, are expected to open strongly on December 12 Indian stock market indices, Sensex and Nifty 50, are expected to open strongly on December 12 due to positive global cues, following record highs in the Dow and S&P 500 after the US Federal Reserve’s rate cut. Asian markets also showed gains, contributing to the positive outlook for Indian equities. The Gift Nifty suggests a robust start, trading near a record high. On December 11, the Indian market ended a three-day decline, with the Sensex rising 427 points to 84,818.13 and the Nifty 50 gaining 141 points to 25,898.55 after the Fed signaled further rate reductions.
Domestic markets saw a broad rebound following the Fed’s anticipated 25-basis point rate cut amid high U.S. inflation, with declining U.S. 10-year yields suggesting reduced future FII outflows, enhancing market sentiment. The auto sector thrived due to expected strong demand, and IT stocks rose due to the prospect of increased spending. However, other Asian markets faced selling pressure due to concerns over AI-driven valuations and rising Japanese yields, which adversely affected domestic sentiment, according to Vinod Nair, Head of Research at Geojit Investments Limited.
Asian stocks began positively on Friday, buoyed by US markets that reached record highs, with Australia’s benchmark rising nearly 1%. Futures for the US benchmark remained steady, although Nasdaq 100 futures dipped 0.1%. The MSCI All Country World Index also hit a new peak, spurred by the Federal Reserve’s anticipated rate cut, positioning the global equity benchmark for its best year since 2019.
The Gift Nifty trends suggest a strong opening for the Indian benchmark index, trading near a record high of 26,134, up 108 points or 0.4% from the previous close of Nifty futures.
Gold prices fell on Friday after reaching a seven-week high, as investors took profits; spot gold dropped 0.2% to $4,277.64 per ounce. Silver, despite a slight dip of 0.5% to $63.31, continues to rally, having gained 119% this year due to strong industrial demand and reduced inventories. Additionally, platinum and palladium experienced minor declines, while oil prices rebounded from a near two-month low, with West Texas Intermediate approaching $58 a barrel amid improved market sentiment. This optimism, however, contrasts with a bearish outlook for crude oil, which has fallen nearly 20% this year due to a growing supply glut and high global inventories.
