Indian equity markets are gearing up for a positive opening on Wednesday, December 24, with the benchmark Sensex and Nifty 50 indices expected to start the session in the green. This optimistic sentiment is primarily fueled by supportive cues from global markets, where major indices have scaled fresh record highs.
Global Markets Set the Stage
The rally on Wall Street has provided a strong tailwind for Asian and Indian markets. The S&P 500 Index climbed to a fresh record close, gaining 31.30 points or 0.5% to end at 6,909.79. This performance was mirrored by the Dow Jones Industrial Average and the Nasdaq Composite, which also advanced. The driving force behind this surge was a surprisingly strong economic report from the United States.
Data released on Tuesday showed the U.S. economy expanded at an annualised rate of 4.3% in the third quarter, accelerating from a 3.8% growth in the previous quarter. This figure exceeded most forecasts and marked the fastest pace of growth in two years, signaling resilience in consumer demand and business spending.
Asian Markets and Early Indicators for India
Following Wall Street's lead, Asian stocks opened higher on Wednesday. MSCI’s broad index of regional equities extended its gains for a fourth consecutive session. Markets in Japan and South Korea traded positively, although Australian shares saw a slight dip in a shortened session ahead of the Christmas holiday.
The most direct indicator for Indian equities, the Gift Nifty, was trading around the 26,234 level. This was higher by 31 points or 0.12% compared to the previous close of Nifty futures, pointing clearly towards a positive start for the domestic market.
Recap of Previous Session and Market Outlook
In the previous trading session, Indian markets ended largely flat. The Sensex declined marginally by 43 points to close at 85,524.84, while the Nifty 50 inched up 5 points to settle at 26,177.15. The market witnessed profit-taking at higher levels, although broader indices showed modest strength.
Vinod Nair, Head of Research at Geojit Investments Limited, noted that the domestic market traded in a narrow range amid mixed global cues. He stated, "Going forward, investors are positioning for the next earnings season and monitoring evolving Fed policy expectations, as rate‑cut probabilities are slowly inching up for the January meeting." He added that while improving domestic demand provides support, global trade negotiations and the rupee's trajectory will influence sentiment.
Other Key Market Movers
Commodities: Precious metals soared to record levels. Gold surged above $4,500 an ounce, while silver traded above $70 for the first time. Platinum also jumped to an all-time high. This rally is partly attributed to safe-haven demand and expectations of future interest rate cuts by the Federal Reserve.
Currencies and Bonds: The yen strengthened against the dollar after Japanese officials signaled readiness to intervene in currency markets. In the US bond market, yields were mixed, with the 10-year Treasury note yield easing slightly.
Oil Prices: Crude oil extended its gains for a fifth day, with West Texas Intermediate trading above $58 a barrel. Geopolitical tensions, including actions off Venezuela's coast, provided support, although oil remains on track for an annual decline.
As trading commences, Indian investors will digest these global developments while focusing on domestic fundamentals and sector-specific movements. The positive setup from global peers offers a conducive environment, though sustainability will depend on local factors and liquidity flows.
