Nifty, Sensex Set for Muted Start; Gold, Silver Hit Record Highs

Pre-Market Update at 7:45 AM: Indian equity benchmarks Sensex and Nifty 50 are likely to open on a muted note on Friday, December 26, despite broadly positive global cues. Early signals from the GIFT Nifty point to a cautious start, with the index trading near the 26,115 mark, around 16 points lower. Asian markets edged higher in thin holiday trade, led by gains in Japanese and South Korean equities, while several regional markets remained closed due to year-end holidays.

Institutional activity remained mixed on Wednesday, December 24. Foreign Institutional Investors were net sellers for the third straight session, selling equities worth Rs 1,721.26 crore. In contrast, Domestic Institutional Investors continued to provide strong support, buying equities worth Rs 2,381.34 crore, marking their 44th consecutive session of net inflows.

Indian equities ended marginally lower on Wednesday as profit booking erased early gains. The Nifty 50 slipped 0.13 per cent to close at 26,142, while the BSE Sensex declined 0.14 per cent to 85,408. Sectoral performance was largely weak, with oil and gas, energy, IT and FMCG stocks dragging the indices. The BSE Telecommunication index stood out as the sole gainer, rising about 0.25 per cent. The India VIX eased over 2 per cent, indicating lower near-term volatility.

Broader markets also closed in the red. The BSE Mid-Cap and Small-Cap indices fell 0.37 per cent and 0.14 per cent, respectively, while market breadth on the NSE remained negative. Trent, Shriram Finance and Apollo Hospitals supported the Nifty, whereas InterGlobe Aviation, Adani Enterprises and Dr Reddy’s Laboratories weighed on the index.

US equities ended a quiet pre-Christmas session on a positive note on Wednesday, with major indices touching fresh record highs. Investor sentiment was supported by economic data that eased concerns about a sharp slowdown in the US labour market, strengthening expectations of a soft landing. The S&P 500 rose 0.3 per cent to 6,932.05, the Dow Jones Industrial Average gained 0.6 per cent to 48,731.16 and the Nasdaq Composite advanced 0.2 per cent to 23,613.31. US markets closed early on Christmas Eve and remained shut on Thursday, with full trading resuming on Friday, though volumes are expected to remain muted.

Japanese government bond prices edged higher on Friday, helping yields retreat from multi-decade highs. The 10-year JGB yield slipped by one basis point to 2.035 per cent after touching 2.1 per cent earlier in the week, its highest level since 1999. Yields have risen sharply in recent weeks amid concerns over debt-funded fiscal stimulus, while expectations of future rate hikes by the Bank of Japan continue to influence short-term yields.

Precious metals extended their rally amid persistent geopolitical risks. Spot gold traded 0.3 per cent higher in early Asian hours at USD 4,493.63 per ounce, setting a new record high. Spot silver surged as much as 2.7 per cent to cross USD 73.78 per ounce, hitting an all-time high for the fifth consecutive session.

Crude oil prices edged higher on Friday and are heading for a weekly gain. Brent crude futures traded near USD 62.4 per barrel, while WTI crude hovered around USD 58.5 per barrel. Prices were supported by heightened geopolitical tensions after the US intensified its naval blockade of Venezuela, including the seizure of oil tankers.

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

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