Nifty, Sensex Likely to See A Muted Start Tracking Asian Peers

Pre-Market Update at 7:57 AM: Global cues turned mixed ahead of Thursday’s trade, keeping investor sentiment cautious. Early trends in Gift Nifty hinted at a muted start for domestic equities, tracking weakness in Asian and US markets along with volatility in commodities and currency markets.

On Wednesday, benchmark indices extended losses for a third straight session. The Sensex slipped 102 points (0.12 per cent) to close at 84,961.14, while the Nifty 50 declined 38 points (0.14 per cent) to settle at 26,140.75. Broader markets outperformed, with BSE Midcap up 0.47 per cent and BSE Smallcap gaining 0.12 per cent. 

Asian markets opened mixed as geopolitical jitters and overnight US weakness weighed on risk appetite. Japan’s Nikkei 225 fell 0.46 per cent and Topix slipped 0.27 per cent. South Korea’s Kospi edged up 0.12 per cent and Kosdaq gained 0.1 per cent, while Australia’s ASX/S&P 200 added 0.21 per cent. Hong Kong’s Hang Seng futures indicated a softer start.

Gift Nifty traded at 26,184 early this morning, down 42 points (0.16 per cent) from the previous close, signalling a subdued opening for domestic indices.

US equities ended mixed on Wednesday. The S&P 500 and Dow Jones snapped their three-day winning streak, with the Dow dropping 466 points (0.9 per cent). The Nasdaq Composite bucked the trend, rising 0.2 per cent supported by Alphabet, whose 2.4 per cent gain pushed its market valuation above Apple’s for the first time since 2019.

Geopolitical focus stayed on US–Venezuela relations after President Donald Trump signalled a meeting with Colombian President Gustavo Petro and commented on Venezuelan crude supply. PDVSA stated it is in talks with the US to sell Venezuelan crude. Trump announced plans to transfer up to 50 million barrels of Venezuelan oil to the US, with revenue managed to benefit both nations.

Crude oil prices edged higher after a larger-than-expected drawdown in US crude inventories. Brent futures rose 0.6 per cent to USD 60.34 per barrel, while WTI gained 0.7 per cent to USD 56.36 per barrel. Despite the bounce, analysts expect a supply surplus in the first half of 2026, estimated at up to 3 million barrels per day.

Gold and silver prices declined as investors booked profits. Spot gold slipped 0.9 per cent to USD 4,445.32 per ounce after falling as much as 1.7 per cent Intraday. Spot silver dropped 4.1 per cent to USD 77.93 per ounce. Weaker US jobs data later limited downside by strengthening expectations of future Federal Reserve rate cuts.

The US dollar traded largely flat against major peers as traders awaited more labour market data. The dollar rose 0.24 per cent to 0.797 versus the Swiss franc and gained 0.08 per cent to 156.75 against the yen. Data from the US Labor Department showed hiring slowed and job openings declined in November, suggesting cooling labour demand.

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