Indian Equities Gain Mildly Ahead of Weekly Sensex Derivatives Expiry

Market Update at 12:30 PM: Indian equities traded with mild gains on Thursday, driven by a mix of domestic and weak global cues. Market sentiment is expected to be influenced today by the weekly expiry of Sensex derivative contracts.

Around 12 PM, the BSE Sensex was at 84,616.94, up 57 points or 0.07 per cent, while the NSE Nifty50 quoted 25,870.45, rising 52 points or 0.2 per cent.

Among individual stocks, SunPharma, M&M, Power Grid, NTPC, and BEL were the Top Losers. On the other hand, TCS, Infosys, ICICI Bank, and Tech Mahindra emerged as Top Gainers, providing support to the broader indices.

Sector-wise, Nifty Auto and Nifty Pharma were the biggest decliners, falling 0.91 per cent and 0.16 per cent, respectively. Meanwhile, Nifty IT, Metal, and Consumer Durables indices posted gains of 0.89 per cent, 0.69 per cent, and 0.74 per cent, respectively.

In the broader market, the Nifty Midcap index was up 0.18 per cent, while the Nifty Smallcap index declined marginally by 0.10 per cent.

On the global front, investors are awaiting key economic decisions and data releases. The Bank of England (BoE) is set to announce its interest rate decision, while the European Central Bank (ECB) will unveil its rate decision for the euro area. In the US, investors are tracking inflation and jobless claims data. Additionally, the Bank of Japan has begun its two-day meeting, with expectations of a rate hike to 0.75 per cent on Friday.

Market Update at 10:10 AM: India’s equity benchmarks opened little changed on Thursday after three consecutive sessions of declines, supported by renewed foreign investor buying and a rebound in the rupee.

At 9:15 a.m. IST, the Nifty 50 fell 0.21 per cent to 25,764.7, while the BSE Sensex eased 0.05 per cent to 84,518.33. Twelve of the sixteen major sectors opened lower, reflecting continued caution across the market.

The broader Mid-Caps and Small-Capstraded flat in early moves. Financials slipped 0.4 per cent, limiting sentiment, even as information technology stocksgained 0.3 per cent.

The benchmark indices had declined about 0.9 per cent in the previous three sessions, weighed down by concerns over foreign outflows and the rupee’s slide to record lows amid delays in progress on the India-U.S. trade deal.

Pre-Market Update at 7:40 AM: Indian equity benchmarks Nifty 50 and Sensex are expected to open flat on Thursday, 18 December, following three sessions of losses amid weak global sentiment. The GIFT Nifty was trading near 26,874, showing a discount of about 15 points, suggesting a muted start to trade. Asian markets were also lower, mirroring Wall Street’s decline for the fourth consecutive session ahead of key US inflation data.

Foreign Institutional Investors (FIIs) ended their 14-session selling streak on Wednesday, 17 December, turning net buyers with equity purchases worth Rs 1,171.71 crore. Domestic Institutional Investors (DIIs) continued their positive stance, buying equities worth Rs 768.94 crore and marking 39 straight sessions of net inflows, offering some support to investor sentiment.

On Wednesday, Indian markets extended losses as benchmark indices slipped for the third consecutive session. The Nifty 50 declined 41.55 points or 0.16 per cent to close at 25,818.55, briefly touching its 50-DEMA level. The Sensex fell 120.21 points or 0.14 per cent to 84,559.65. Pressure from heavyweight financial names, including HDFC Bank and ICICI Bank, weighed on the indices. Market sentiment remained weak amid concerns over foreign fund flows and currency movement, even as India VIX eased 2.24 per cent.

Broader markets also faced selling pressure. The Nifty Midcap 100 index dropped 0.54 per cent, while the Smallcap 100 index fell 0.73 per cent. Sectoral performance was mixed, with Nifty Media declining 1.71 per cent, making it the top laggard. On the upside, PSU Bank gained 1.29 per cent, emerging as the leading sectoral performer and moving within 4 per cent of its record high.

Globally, US markets remained under pressure on Wednesday, recording a fourth straight session of decline. Heavy losses in AI-focused stocks overshadowed optimism around potential US Federal Reserve rate cuts. The S&P 500 fell 1.16 per cent to 6,721.43, the Nasdaq Composite tumbled 1.81 per cent to 22,693.32, and the Dow Jones Industrial Average dropped 228.29 points or 0.47 per cent to 47,885.97.

Uncertainty over the timing of the Fed’s next rate cut and speculation around potential successors to Fed Chair Jerome Powell added to caution. Fed Governor Christopher Waller signalled scope for further easing amid softening labour market conditions. In contrast, Atlanta Fed President Raphael Bostic maintained a hawkish stance, stating that last week’s cut was unnecessary and projecting no further reductions in 2026.

In currency markets, the USD held steady ahead of central bank decisions in the UK, Europe and Japan. The pound remained under pressure after a surprise decline in UK inflation raised expectations of a Bank of England rate cut.

Gold traded just below a record high on Thursday, supported by geopolitical tensions surrounding Venezuela and anticipation of US inflation data. The precious metal hovered near USD 4,340 per ounce, up from a 0.8 per cent gain the previous day and only around USD 40 short of its October peak. Safe-haven demand also climbed after US President Donald Trump ordered a blockade of sanctioned Venezuelan oil tankers.

Oil prices advanced in Asian trade after the US imposed restrictions on tanker movements linked to Venezuela, squeezing exports. US WTI futures rose USD 0.98 or 1.7 per cent to USD 56.89 per barrel, while Brent crude gained USD 0.92 or 1.54 per cent to USD 60.60 per barrel.

For today, Bandhan Bank will remain on the F&O ban list.

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