Nifty, Sensex to Open Higher on Monday Amid Global Strength

Pre-Market Update at 7:40 AM: The Indian equity market benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday, supported by strong global cues and firm sentiment across Asian markets. GIFT Nifty futures were trading near the 26,185 mark, reflecting a premium of about 150 points over Nifty 50’s previous close. Asian share markets edged higher, mirroring tech-driven gains on Wall Street, where major indices ended last week on a positive note.

Foreign Institutional Investors (FIIs) remained net buyers for the third consecutive session on Friday, 19 December, purchasing equities worth Rs 1,830.89 crore. Domestic Institutional Investors (DIIs) continued their consistent inflows, buying equities worth Rs 5,722.89 crore, marking their 41st straight session of net buying.

Indian benchmark indices ended a four-day losing streak on Friday, 19 December, closing with impressive gains as heavyweights like Reliance Industries and HDFC Bank supported market sentiment. The Nifty 50 settled at 25,966.40, while the Sensex advanced to 84,481.81. Despite the gains, the indices remain on track for a third consecutive weekly decline due to earlier rupee weakness and foreign fund outflows. Confidence improved as FIIs reversed course to become net buyers. ICICI Prudential Asset Management also made a strong stock market debut following its USD 1.2 billion IPO.

All 11 sectoral indices ended higher, led by Nifty Realty, which surged 1.67 per cent, its biggest Intraday rise in over a month. Broader markets outperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining more than 1 per cent each.

In the US, equities continued their upward trend on Friday, with major indices erasing earlier weekly losses. The S&P 500 rose 0.9 per cent to 6,834.50, recording a slight weekly gain of 0.1 per cent. The Dow Jones Industrial Average added 0.4 per cent to end at 48,134.89. The Nasdaq outperformed, gaining 1.3 per cent to finish at 23,307.62 and securing a 0.5 per cent weekly rise. Tech stocks led the movement, with Nvidia advancing 3.9 per cent and Broadcom climbing 3.2 per cent. Oracle surged 6.6 per cent after announcing plans to form a new TikTok US joint venture alongside Silver Lake and MGX, with all three entities set to hold a 15 per cent stake.

Market attention now shifts to upcoming US GDP data due on 23 December. Growth expectations range between 3 per cent and 3.5 per cent, slightly below the 3.8 per cent expansion recorded in the second quarter of 2025. The data will be closely watched for signals on potential Federal Reserve policy adjustments.

Japanese government bonds weakened further on Monday following last week’s Bank of Japan rate hike. The two-year JGB yield rose 1.5 bps to hit a historic 1.105 per cent, surpassing its previous 2007 high. The 10-year yield climbed 5 bps to 2.07 per cent, after crossing 2 per cent on Friday for the first time in more than 20 years. The benchmark rate now sits at its highest level in three decades, with the BOJ indicating room for further tightening.

Precious metals continued to advance, supported by safe-haven demand amid geopolitical tensions and expectations of further Federal Reserve rate cuts. Silver touched a fresh record, rising 0.6 per cent to USD 67.5519 an ounce at one point. Spot gold moved closer to its all-time high, trading at USD 4,363.21 an ounce by 8:27 a.m. Singapore time, up 0.5 per cent and nearing the October peak of above USD 4,381. Geopolitical risks, including tighter US oil sanctions on Venezuela, added to the appeal of precious metals.

Crude oil prices gained on escalating tensions surrounding Venezuela. Brent crude approached USD 61 per barrel after two straight weeks of declines, while West Texas Intermediate hovered near USD 57. The upward momentum followed reports of US forces seizing a Venezuelan tanker and tracking another, heightening supply concerns.

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Disclaimer: The article is for informational purposes only and not investment advice.