Indian Markets Extend Gains in Holiday-Shortened Week; IT and Metal Lead Rally

Market Update at 12:40 PM: Indian equity markets continued to trade positive in a holiday-shortened week, extending Friday’s gains despite mixed global cues. Strong buying interest in information technology (IT) and metal stocks helped lift market sentiment, keeping benchmark indices firm through the early afternoon session.

At 12:33 PM on December 22, the BSE Sensex was at 85,430.28, up 500.92 points or 0.59 per cent. Minutes later, around 12:34 PM, the NSE Nifty 50 traded at 26,139.10, higher by 172.70 points or 0.67 per cent.

Among Nifty 50 constituents, Shriram Finance, Wipro India, and Tata Motors Passenger Vehicles remained the Top Gainers. On the flipside, shares of Tata Consumer Products, State Bank of India, and SBI Life Insurance continued to face selling pressure.

Sectoral strength was led by Nifty IT and Nifty Metal, both gaining over 1 per cent, supported by sustained buying interest. Positivity also spilled over into Nifty Media, Media, and Consumer Durables indices, highlighting broad participation across the market.

Broader indices further reinforced the upbeat trend, with both the Nifty MidCap and Nifty SmallCap rising 0.8 per cent each.

Despite mixed signals from global markets, domestic equities held firm, driven by sector-specific momentum and wider market engagement.

Market Update at 9:45 AM: Indian shares opened higher on Friday, tracking gains across Asian markets after a softer U.S. inflation reading strengthened expectations of further monetary easing by the U.S. Federal Reserve in 2026.

At 9:15 a.m. IST, the Nifty 50 rose 0.37 per cent to 25,911.50, while the BSE Sensex gained 0.33 per cent to 84,756.79. Thirteen of the 16 major sectoral indices opened in positive territory, reflecting broad market strength.

The broader market also moved higher, with the Nifty Midcap index edging up 0.2 per cent and the Nifty Smallcap index gaining 0.3 per cent. Asian equities climbed 0.6 per cent after U.S. consumer price data pointed to easing inflation pressures.

U.S. consumer prices rose 2.7 per cent year-on-year in November, compared to forecasts of a 3.1 per cent increase, supporting views that the Federal Reserve may cut rates next year. Meanwhile, the Bank of Japan raised interest rates to levels not seen in 30 years, broadly in line with expectations.

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.

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

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