Muted Opening Likely for Nifty, Sensex as FIIs Extend Selling

Pre-Market Update at 7:40 AM: Indian equity markets are poised for a subdued opening on Wednesday, December 3, even as global cues remain supportive. GIFT Nifty traded near 26,207, showing a marginal premium of just 1 point over the previous Nifty futures close, signalling a muted start for the domestic indices. Despite gains in Asian and U.S. markets, investor sentiment in India remains cautious due to high valuations, delays in the Indo–U.S. trade deal, and persistent weakness in the rupee.

Asian markets opened higher in early trade, supported by optimism around a potential U.S. Federal Reserve interest rate cut. Overnight, Wall Street extended its positive momentum, led mainly by technology stocks, marking its sixth rise in the last seven sessions.

Institutional flows reflected continued divergence. On Tuesday, December 2, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 3,642.30 crore. Domestic Institutional Investors (DIIs) maintained their buying streak for the 28th straight session, purchasing stocks worth Rs 4,645.94 crore.

Indian markets continued their downward trend for the third consecutive session on Tuesday. The Nifty 50 fell 0.55 per cent to close at 26,032.20, slipping below its 20-DEMA. The Sensex declined 503.63 points or 0.59 per cent to settle at 85,138.27. Financial stocks led the correction, with the Nifty Financial Services index dropping 0.9 per cent as HDFC Bank and ICICI Bank slid over 1 per cent ahead of the upcoming weightage revision in the Nifty Bank index. Broader indices also weakened amid worries over rupee depreciation, persistent foreign outflows, and uncertainty ahead of the RBI policy announcement.

On Wall Street, the Dow Jones Industrial Average climbed 185.13 points or 0.39 per cent to 47,474.46. The S&P 500 added 16.74 points or 0.25 per cent to 6,829.37, while the Nasdaq Composite advanced 137.75 points or 0.59 per cent to 23,413.67. Major tech stocks showed mixed performance. Apple gained 1.09 per cent, Nvidia rose 0.86 per cent, and Microsoft added 0.67 per cent, while AMD dropped 2.06 per cent and Tesla slipped 0.21 per cent. Intel surged 8.65 per cent, and Boeing rallied 10.15 per cent.

On the geopolitical front, Russia and the U.S. reportedly held constructive talks aimed at resolving the Ukraine conflict. According to Yuri Ushakov, adviser to President Vladimir Putin, the discussions were held in the Kremlin with U.S. representatives, including Steve Witkoff and Jared Kushner, to explore potential peace terms.

Japan’s services sector continued its steady improvement, with the S&P Global final Services PMI rising to 53.2 in November from 53.1 in October, indicating sustained expansion.

Gold prices remained largely stable after a 1 per cent drop in the previous session. Spot gold traded near USD 4,207.43 per ounce, while U.S. December gold futures edged up 0.5 per cent to USD 4,239.50 per ounce.

Oil prices were almost unchanged as investors weighed possible outcomes of the Russia–Ukraine peace dialogue. Brent crude inched up 0.02 per cent to USD 62.47 per barrel, while WTI crude added 0.02 per cent to USD 58.65 per barrel.

For today, Sammaan Capital will remain on the F&O ban list.

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