Nifty, Sensex Set for Muted Start; Silver Hits Record High

Pre-Market Update at 7:45 AM: Indian equity benchmarks Sensex and Nifty 50 are expected to open on a muted note on Monday, December 29, despite broadly supportive global cues. Early indicators point to limited upside as investors remain cautious amid year-end thin trading volumes and persistent foreign fund outflows.

The GIFT Nifty was trading around the 26,102 level, indicating a premium of about 28 points over the Nifty 50’s previous close. Asian markets were mixed in early trade, with Japan’s Nikkei 225 declining by nearly 300 points, reflecting cautious sentiment across the region.

On Friday, December 26, Foreign Institutional Investors (FIIs) continued their selling streak, selling equities worth Rs 317.56 crore. This marked the fourth consecutive session of net FII outflows. In contrast, Domestic Institutional Investors (DIIs) remained supportive of the markets, buying equities worth Rs 1,772.56 crore and extending their net buying streak to 45 consecutive sessions.

Indian equity markets ended lower on Friday amid subdued year-end activity and cautious sentiment. The Nifty 50 declined 99.8 points, or 0.38 per cent, to close at 26,042.30, while the Sensex fell 367.25 points, or 0.43 per cent, to 85,041.45. Both indices have stayed subdued through December after hitting record highs in November, weighed down by a weaker rupee, persistent FII selling, firm crude oil prices and profit booking near peak levels, signalling short-term market fatigue.

Sectorally, only two indices closed in positive territory. Nifty Metal was the top gainer, rising 0.59 per cent for the seventh straight session, while FMCG stocks edged up marginally. Nifty IT was the worst performer, slipping 1.03 per cent. Broader markets also ended lower, with the Nifty Midcap 100 declining 0.23 per cent and the Nifty Smallcap 100 falling 0.08 per cent.

US equities were largely flat on Friday amid thin post-Christmas trading, but still ended the holiday-shortened week on a positive note. The Dow Jones Industrial Average slipped 20.19 points, or 0.04 per cent, to 48,710.97, the S&P 500 eased 2.11 points, or 0.03 per cent, to 6,929.94, and the Nasdaq Composite declined 20.21 points, or 0.09 per cent, to 23,593.10. Despite the muted session, US markets are set to wrap up a strong year, with the S&P 500 up nearly 18 per cent and the Nasdaq gaining over 20 per cent so far in 2025. No major economic data or earnings announcements are expected in the final trading days of the year.

Crude oil prices edged higher during early Asian hours on Monday as investors assessed rising geopolitical tensions in the Middle East, which could threaten supply. Uncertainty surrounding Russia–Ukraine peace negotiations also remains a key overhang for the oil market.

Silver prices extended their rally, surging past the USD 80-per-ounce mark on Monday to hit a record high. The move has been driven by tight supply conditions, strong industrial demand and expectations of additional interest-rate cuts by the US Federal Reserve. Gold prices also remained firm, supported by geopolitical risks and a weaker US dollar.

The Indian rupee weakened further, slipping 19 paise to close at 89.90 against the US dollar on Friday, pressured by weakness in domestic equities and continued foreign capital outflows.

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

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