Indian stock market benchmarks, the Sensex and Nifty 50, are expected to open with marginal gains on Wednesday, December 17, following two consecutive sessions of decline. The early trends from Gift Nifty futures point towards a subdued start for the domestic indices.
Market Opening and Global Cues
The Gift Nifty was trading around the 25,937 mark, showing a gain of 21.5 points or 0.08% over the previous close of Nifty futures. This indicates a tentative positive bias at the opening bell. However, the broader Asian market sentiment remained cautious. Major indices in the region edged lower, mirroring a muted closing on Wall Street. The tepid reaction followed weaker-than-expected US jobs data, which did little to bolster hopes for more aggressive interest rate cuts from the Federal Reserve.
On Tuesday, the Indian equity market extended its losses, dragged down by a record-low rupee and persistent weakness in global markets. The benchmark Sensex plummeted 534 points, or 0.63%, to close at 84,679.86. Similarly, the Nifty 50 index retreated by 167 points, or 0.64%, settling at 25,860.10.
Expert View and Sectoral Performance
Vinod Nair, Head of Research at Geojit Investments Limited, commented on the market's weakness. He attributed the fall to the continued depreciation of the Indian Rupee (INR) to fresh record lows, driven by persistent foreign institutional investor (FII) outflows and subdued global sentiment. Small-cap and mid-cap stocks underperformed large caps during the session. Sectorally, IT, metals, banking, and realty stocks were the major laggards, while consumption-oriented stocks provided only limited support.
Nair added that market volatility is likely to stay elevated due to currency fluctuations and uncertainty over foreign fund flows. He noted that progress on the US-India trade deal and stabilization of the rupee will be critical factors to watch. On a positive note, softer commodity prices and improving earnings visibility offer a constructive medium-term backdrop for the markets.
Key Domestic and International Drivers
Wall Street presented a mixed picture on Tuesday. The S&P 500 declined for the third straight day, falling 0.24%, while the Dow Jones Industrial Average dropped 302 points, or 0.62%. The Nasdaq Composite, however, managed a slight gain of 0.23%. Investor sentiment was weighed down by fresh labor market data showing weak job growth in the US for November, with the unemployment rate climbing to a four-year high of 4.6%.
In a significant development, oil prices surged after US President Donald Trump ordered a complete blockade of all sanctioned oil tankers entering and leaving Venezuela. This move escalated geopolitical tensions, adding a risk premium to crude prices. Brent crude futures rose 0.9% to $59.46 a barrel, and US West Texas Intermediate gained 1% to $55.82.
Meanwhile, gold prices held steady, with spot gold trading near $4,306 an ounce. The precious metal found support from the soft US jobs data, which reinforced expectations that the Federal Reserve may maintain a dovish stance on interest rates.
In other news, the tech-focused Nasdaq stock exchange has proposed to regulators a plan to extend its trading hours to nearly 24 hours a day, five days a week, a move that could significantly alter global trading patterns if approved.
