India's key stock indices, the Nifty 50 and the BSE Sensex, are poised for a subdued start on Tuesday, December 23, following two consecutive sessions of gains. Market analysts attribute the likely flat opening to an absence of new market-moving catalysts and the typical year-end lull in trading activity.
Market Indicators Point to Muted Start
The Gift Nifty futures were trading at 26,260 points as of 8:04 a.m. IST, suggesting the benchmark Nifty 50 index would begin trading near its previous close of 26,172.4 points. This indicates a marginal gap-up opening. The 50-stock index has climbed 1.4% over the last two sessions, while the 30-share Sensex has gained 1.3% in the same period, buoyed by expectations of foreign capital inflows and a stronger Indian rupee.
Foreign Investors Turn Sellers, Volumes Dip Sharply
The recent positive momentum faced a minor setback as foreign portfolio investors (FPIs) turned net sellers on Monday. Provisional data shows they offloaded Indian shares worth 4.57 billion rupees ($51.04 million), ending a three-session buying spree. Domestic trading activity also showed a significant slowdown.
Cash market turnover on the National Stock Exchange of India plummeted to 974.58 billion rupees on Monday. This figure represents a steep 21.5% decline from the previous session and is also approximately 7% lower than the average daily turnover recorded in November. This drop aligns with the global trend of thinning volumes as major markets like the United States head into the Christmas and New Year holiday season.
Global Cues and Stocks in Focus
In Asian markets, shares edged higher on Tuesday alongside precious metals, driven by continued momentum buying ahead of the festive break. Investors are also awaiting an advanced reading on U.S. GDP data due later in the day for further direction.
On the corporate front, several stocks are likely to be in the spotlight. HCLTech announced that its software business division intends to acquire Jaspersoft, an embedded analytics platform, from Cloud Software Group for $240 million. In a regulatory move, the NSE will exclude futures and options contracts on Indian Railway Catering and Tourism Corp (IRCTC) effective February 25. Additionally, Antony Waste Handling Cell has secured a contract worth 3.29 billion rupees from the Thane Municipal Corporation.
As the year draws to a close, market participants expect trading to remain range-bound in the absence of major domestic triggers, with global cues and currency movements likely to guide sentiment in the short term.
