Stock Market today: The benchmark indices of the Indian stock markets – Sensex and Nifty 50 were expected to open with gains on Wednesday, December 24, amid supportive cues from global markets. Asian stocks moved higher on Monday, mirroring record-high gains on Wall Street after GDP data showed stronger-than-anticipated economic growth during the summer period.
The U.S. economy expanded at an annualised rate of 4.3% in the third quarter, accelerating from 3.8% growth in the second quarter. This represented a sharp reversal from the first quarter, when economic activity contracted for the first time in three years.
Early indications from the Gift Nifty also pointed to a positive opening for Indian equities. The Gift Nifty was trading around the 26,234 mark, higher by 31 points or 0.12% compared with the previous close of Nifty futures.
In the previous session, Indian stock markets ended largely unchanged with frontline indices weighed down by profit taking at elevated levels, while broader markets showed modest strength despite mixed global signals. The Sensex declined 43 points, or 0.05%, to 85,524.84, whereas the Nifty 50 inched up 5 points, or 0.02%, to 26,177.15.
“The domestic market traded in a narrow range and ended flat amid mixed global cues. Selling pressure persisted across most sectors, though financials and FMCG offered marginal support. Going forward, investors are positioning for the next earnings season and monitoring evolving Fed policy expectations, as rate‑cut probabilities are slowly inching up for the January meeting. While an improving domestic demand outlook provides underlying support, uncertainty around global trade negotiations and the trajectory of the rupee will continue to influence sentiment,” Vinod Nair, Head of Research, Geojit Investments Limited.
Here are the key things that changed since the stock market closed yesterday and may impact Sensex, Nifty 50 movement today:
Asian Markets
Asian stocks opened higher after the S&P 500 Index climbed to a fresh record, supported by data showing the US economy expanded at its fastest pace in two years. MSCI’s regional equities index extended gains for a fourth straight session, rising 0.3%, with markets in Japan and South Korea trading higher, while Australian shares slipped in a shortened trading session. The move followed a fourth consecutive gain for the S&P 500, as a gauge of large technology stocks rose nearly 1% amid light volumes ahead of the Christmas holiday. S&P 500 futures were little changed as of 10 a.m. Tokyo time. Hang Seng futures edged up 0.1%, Japan’s Topix gained 0.1%, while Australia’s S&P/ASX 200 declined 0.5%.
Gift Nifty Today
The trends on Gift Nifty indicate a positive start for the Indian benchmark index. The Gift Nifty was trading near 26,234 level, up 31 points or 0.12% from the Nifty futures’ previous close.
Wall Street
Wall Street ended Tuesday’s session at fresh record highs after data showed stronger-than-expected economic growth during the summer months.
The U.S. government’s initial estimate of third-quarter growth also indicated that inflation pressures remain elevated. Meanwhile, a separate release showed consumer confidence continuing to weaken in December, together presenting a mixed and complex economic backdrop. Despite broad-based weakness across the market, the S&P 500 notched another record close. Most stocks within the index declined, but continued strength in technology shares — the key driver of this year’s rally — offset losses in other sectors.
The S&P 500 climbed 31.30 points, or 0.5%, to close at 6,909.79, breaking the record set earlier in December. The Dow Jones Industrial Average advanced 79.73 points, or 0.2%, to 48,442.41, while the Nasdaq Composite gained 133.02 points, or 0.6%, to end at 23,561.84.
US GDP Data
The US economy grew in the third quarter at its strongest pace in two years, supported by steady consumer demand, solid business spending and easing trade tensions.
According to a report released by the Bureau of Economic Analysis on Tuesday, inflation-adjusted gross domestic product — which tracks the value of goods and services produced in the US — rose at an annualised rate of 4.3%. This reading exceeded all but one estimate in a Bloomberg survey and followed growth of 3.8% in the previous quarter.
The BEA had initially scheduled the advance GDP estimate for release on October 30, but the publication was called off due to the government shutdown.
US yield
Yields on U.S. government bonds were mixed, with the benchmark 10-year Treasury yield easing 0.4 basis points to 4.167% from 4.171% late on Monday, while the 30-year bond yield declined 1.8 basis points to 4.8252%.
In contrast, the 2-year Treasury yield — which closely tracks expectations for Federal Reserve interest rate policy — climbed 2.9 basis points to 3.532% from 3.503% in the previous session. The dollar index, which gauges the greenback against a basket of major currencies including the yen and the euro, slipped 0.29% to 97.96, while the euro rose 0.25% to $1.1789.
Yen
The yen strengthened against the dollar as investors assessed the likelihood of near-term intervention after Finance Minister Satsuki Katayama said Japan has a free hand to respond to excessive moves in the currency. The comments marked Tokyo’s strongest signal yet of its readiness to step into markets to curb sharp yen declines. The Bank of Japan also raised interest rates at its policy meeting in December, in line with expectations.
The dollar fell 0.47% against the Japanese yen to 156.31.
Gold and silver Prices
Gold surged to a fresh record above $4,500 an ounce. The metal’s safe-haven demand strengthened over the past week after Washington blocked oil tankers linked to Venezuela. Silver also touched a record high, while copper prices climbed past $12,000 a tonne for the first time. Traders are also betting the Federal Reserve will follow three straight interest-rate cuts by lowering the cost of borrowing again next year, which would be a tailwind for non-yielding precious metals. Silver — which traded above $70 an ounce for the first time on Tuesday — advanced a further 0.7% to set a record of $71.9175. Platinum also soared to an all-time high on Wednesday, jumping 4% to trade above $2,300 an ounce for the first time.
Spot gold rose 0.6% to $4,513.87 an ounce as of 8:54 a.m. in Singapore. Silver advanced 0.6% to $71.89. Platinum rose 3.3% to $2,365.72 and sister metal palladium also rose more than 3%. The Bloomberg Dollar Spot Index was down 0.1%.
Oil prices
Oil extended a five-day advance as markets balanced rising geopolitical risks against growing inventory levels.
West Texas Intermediate traded above $58 a barrel after climbing nearly 6% over the previous five sessions, while Brent crude settled above $62 on Tuesday. Washington continues to pursue a third oil tanker off Venezuela’s coast as the White House increases pressure on Nicolás Maduro’s government.
Despite the recent gains, oil remains on course for a yearly decline, with global supply expected to exceed demand in the coming year. WTI futures are down about 18% so far this year and are headed for their steepest annual drop since 2020, although geopolitical tensions have helped limit losses and provided support to prices.
(With input from Agencies)
