Indian Benchmarks Edge Higher; Nifty 50 Nears 26,200 Amid Low Holiday Volumes

Market Update at 12:18 PM: Indian equity benchmark indices traded marginally higher on Tuesday, supported by favourable global cues, even as trading activity remained muted ahead of the Christmas holiday. Market participants stayed cautious, leading to limited Intraday movement across key indices.

Around 12 PM, the NSE Nifty 50 was trading 0.04 per cent higher, up 10.56 points at 26,185.56. The BSE Sensex was largely flat at 85,527.51, reflecting a lack of strong directional momentum in frontline stocks.

On the BSE, NTPC, Bajaj Finance, Adani Ports, Trent, Bharat Electronics (BEL), Kotak Mahindra Bank, and Axis Bank emerged as the Top Gainers. In contrast, information technology stocks faced selling pressure, with Infosys, Tech Mahindra, and HCL Technologies among the Top Losers.

Broader markets outperformed the benchmarks. The Nifty Midcap 150 index was trading 0.08 per cent higher, while the Nifty Smallcap 250 advanced 0.27 per cent, indicating selective buying interest beyond Large-Cap stocks.

On the sectoral front, the Nifty Pharma and Nifty IT indices emerged as the worst performers during the session. Meanwhile, the Nifty Media and Nifty Financial Services indices led the gains, providing limited support to the overall market.

Market Update at 10:10 AM: India’s equity benchmarks opened almost unchanged on Wednesday, as continued foreign fund outflows and thin year-end trading volumes weighed against optimism from stronger-than-expected U.S. economic data.

The Nifty 50 slipped 0.02 per cent to 26,170.65, while the BSE Sensex edged up 0.01 per cent to 85,533.11 as of 9:15 a.m. IST. Market sentiment remained cautious despite positive global cues, with investors refraining from aggressive bets amid low liquidity.

Sectoral performance was mildly positive, with 12 of the 16 major sectors opening in the green, though gains were marginal. Broader markets also saw limited upside, as Small-Cap and Mid-Cap indices rose around 0.1 per cent each.

Asian equities gained 0.3 per cent, tracking overnight gains on Wall Street after data showed the U.S. economy expanded faster than expected in the third quarter. Growth was driven by strong consumer spending, reinforcing optimism about the resilience of the world’s largest economy despite global uncertainties.

However, the supportive global backdrop was largely neutralised by persistent foreign institutional investor selling in Indian equities and subdued participation due to the year-end holiday season

Pre-Market Update at 7:40 AM: Indian equity markets are expected to open on a positive note on Wednesday, December 24, supported by firm global cues. Asian markets traded higher after Wall Street scaled fresh record highs, driven by stronger-than-expected economic data from the United States. Early indicators remained supportive, with GIFT Nifty trading near the 26,236 level, indicating a premium of around 33 points over the Nifty 50 and signalling a steady start for domestic benchmarks.

Global sentiment improved after data showed the US economy expanded at an annualised pace of 4.3 per cent in the third quarter, up from 3.8 per cent in the previous quarter. This marked the fastest pace of growth in nearly two years, reflecting resilient consumer spending and steady business investment. The rebound followed a contraction in the first quarter, the first economic decline in almost three years. Asian equities advanced after the S&P 500 Index closed at a fresh record, with risk appetite improving across global markets.

On the institutional front, Foreign Institutional Investors remained net sellers on Tuesday, December 23, selling equities worth Rs 1,794.80 crore for the second consecutive session. Domestic Institutional Investors continued their strong buying streak, purchasing equities worth Rs 3,812.37 crore, marking their 43rd straight session of net inflows.

Indian equity benchmarks ended Tuesday’s session nearly flat as early gains faded amid weak year-end volumes and a lack of fresh domestic triggers. The Sensex slipped 42.63 points, or 0.05 per cent, to close at 85,524.84, snapping a two-day winning streak. The Nifty 50 edged up 4.75 points, or 0.02 per cent, to settle at 26,177.15, extending gains for a third straight session. Sectorally, six of the eleven indices closed higher, led by the Nifty Media index, which rose 0.8 per cent for the third consecutive session, followed by gains in metals and energy stocks. The Nifty IT index declined 0.8 per cent, ending a four-day rally, while broader markets outperformed, with the Nifty Smallcap 100 rising 0.37 per cent and the Nifty Midcap 100 closing flat.

US equities ended higher on Tuesday, supported by a series of economic data releases. The Dow Jones Industrial Average rose 79.73 points, or 0.16 per cent, to 48,442.41. The S&P 500 advanced 31.30 points, or 0.46 per cent, to close at a record 6,909.79, while the Nasdaq Composite gained 133.02 points to finish at 23,561.84. Strong growth data pushed bond yields higher during the session and lifted investor interest in growth-oriented stocks.

According to a delayed report from the Bureau of Economic Analysis, the US economy grew at its fastest pace in two years during the third quarter. Consumer spending increased 3.5 per cent, while business investment rose 2.8 per cent, driven by strong demand for computer equipment and data-centre infrastructure. While net exports supported growth, inventories and housing activity weighed on momentum. Inflation remained elevated, with the Federal Reserve’s preferred core PCE index at 2.9 per cent, reinforcing expectations of limited interest-rate cuts going forward.

US Treasury yields were mixed. The benchmark 10-year yield edged lower by 0.4 basis points to 4.167 per cent, while the 30-year yield declined 1.8 basis points to 4.8252 per cent. The 2-year yield rose 2.9 basis points to 3.532 per cent, reflecting sensitivity to Federal Reserve policy expectations. In currency markets, the dollar index weakened 0.29 per cent to 97.96, while the euro strengthened 0.25 per cent to USD 1.1789.

Gold prices surged past USD 4,500 per ounce on Wednesday, hitting a fresh record high, driven by expectations of further Federal Reserve easing and rising geopolitical tensions. Crude oil prices extended gains, with WTI crude trading around USD 58 per barrel and Brent crude hovering near USD 62 per barrel, holding a five-day winning streak and staying close to two-week highs amid escalating geopolitical risks.

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

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