Indian equity benchmarks, the Sensex and Nifty 50, are on track for a positive start on Tuesday, December 23, marking their third consecutive session of gains. This sustained upward momentum is driven by a bullish trend in global markets and positive early signals from the Gift Nifty futures.
Market Momentum and Key Drivers
The domestic market is riding a wave of optimism fueled by a strong performance on Wall Street and gains across major Asian indices. Gift Nifty was trading near the 26,237 level, up 26 points or 0.10%, indicating a firm opening for the Indian benchmarks. This follows a sharp rally in the previous session where the Sensex surged 638 points (0.75%) to close at 85,567.48, and the Nifty 50 advanced 206 points (0.79%) to settle at 26,172.40.
Vinod Nair, Head of Research at Geojit Investments Limited, noted, "Indian markets extended their year-end rally, supported by strong liquidity and global cues, as expectations of further Fed easing in 2026 continue to underpin growth." He highlighted that Foreign Institutional Investors (FIIs) turned net buyers, reinforcing the positive sentiment, with sectors like Information Technology and Metals leading the charge.
Global Cues and Commodity Surge
Asian markets extended their gains for a third straight session on Tuesday. Japan’s Topix advanced 0.6%, Hong Kong's Hang Seng futures climbed 0.4%, and Australia’s S&P/ASX 200 rose 0.5%. This positive sentiment stems from a strong close on Wall Street, where the S&P 500 gained 0.6%, the Dow Jones added 0.5%, and the Nasdaq Composite rose 0.5%.
In a significant parallel development, gold prices jumped to a record high, with spot gold reaching $4,469.52 per ounce. Silver also touched an all-time high. This surge is attributed to safe-haven demand amid geopolitical tensions and expectations of interest rate cuts. Meanwhile, crude oil prices held onto a four-day gain, supported by supply concerns related to Venezuela.
Data Watch and Cautious Optimism
Investors are now awaiting the release of the US quarterly GDP data later today, which is seen as a crucial input for the Federal Reserve's future monetary policy decisions. Economists expect the US economy to have expanded in the 3–3.5% range. Domestically, market participants are looking forward to India's Q3 GDP estimate for further policy clarity, with consensus pointing towards resilient growth.
Despite the bullish trend, experts advise caution. Nair pointed to persistent risks such as limited progress on trade negotiations, geopolitical uncertainties, and volatility in crude oil prices. The market's trajectory will depend on a combination of domestic economic data, continued foreign fund flows, and the evolving global macroeconomic landscape.
