On Monday, December 8, the Sensex and Nifty 50 are likely to open on a flat note, tracking muted cues from global markets.
GIFT Nifty hovered near the 26,322 mark, showing a discount of about 12 points over the previous close of Nifty futures. This signalled a flat opening for the Indian equity indices.
Asian equities began the week cautiously as investors assessed deteriorating China–Japan relations and the US Fed meeting.
Back in India, the markets are expected to take cues from several major developments this week. Key factors to watch include progress on India–Russia economic partnerships, the US Federal Reserve’s policy outcome, domestic CPI inflation numbers, updates on the India–US trade negotiations, trends in foreign investment and USD/INR movement.
Investor sentiment turned positive last week after the RBI cut the repo rate by 25 basis points and announced a large liquidity boost of ₹1.45 lakh crore through bond purchases and dollar–rupee swap operations. This accommodative move supported the market’s upward momentum, helping the benchmark indices close with strong gains on Friday.
US Under Secretary of State for Political Affairs Allison Hooker began a five-day visit to India on Sunday aimed at strengthening strategic and economic cooperation. According to the US embassy, the visit reinforces President Donald Trump’s push for a deeper US–India partnership and a more secure, open Indo-Pacific region.
In their annual summit on Friday, President Vladimir Putin and Prime Minister Narendra Modi announced an expanded roadmap for bilateral cooperation, seeking to broaden trade well beyond the traditional focus on defence and energy. The discussions came as the US urged India to reassess its long-standing relationship with Moscow amid ongoing efforts to broker a peace deal in Ukraine.
Marking 25 years of the India–Russia Strategic Partnership, the two leaders set an ambitious goal of boosting bilateral trade to $100 billion by the end of the decade, with India currently making up less than 2% of Russia’s imports.
On Friday, December 5, Foreign Institutional Investors (FIIs) were net sellers, selling equities worth ₹438.90 crore. Domestic Institutional Investors (DIIs) continued their positive stance, buying equities worth ₹4,189.17 crore, marking their 31st consecutive session of net inflows.
Indian markets ended higher on Friday, December 5, after the RBI delivered a 25 bps rate cut, boosting sentiment in rate-sensitive sectors. The Nifty 50 rose 152.70 points (0.59%) to 26,186.45 and the Sensex gained 447.05 points (0.52%) to 85,712.37, extending the previous session’s gains. India VIX dropped 4.6%, though the Nifty still ended the week slightly lower by 0.06%, breaking a three-week winning streak.
The RBI also unveiled liquidity-support measures worth up to $16 billion, highlighting confidence in India’s “goldilocks economy.” The rate cut, supported by soft inflation and a stable outlook, is expected to make borrowing cheaper, lift loan demand, and reduce funding costs for banks and NBFCs. Lower rates are also set to support auto and housing demand, strengthening growth momentum across key sectors.
The US stock market inched closer to its record highs on Friday.
The S&P 500 rose 0.2%, ending the session just 0.3% below its all-time closing peak set in October. It briefly surpassed that level intraday before trimming gains. The Dow Jones Industrial Average climbed 104 points, or 0.2%, and the Nasdaq composite advanced 0.3%.
Shares of Warner Bros Discovery surged 6.3% after Netflix announced a $72 billion deal to acquire its TV, film studio, and streaming businesses, concluding a tense bidding war that lasted several weeks. Netflix’s stock, however, slipped 2.9%, while Paramount Skydance — one of the competing bidders — tumbled 9.8%.
US consumer spending recorded a modest 0.3% increase in September after strong gains over the previous three months. This followed a downwardly revised 0.5% rise in August, aligning with economists’ expectations.
The Fed’s preferred inflation metric — the PCE Price Index — rose 0.3% in September, mirroring August’s growth. On a yearly basis, it climbed 2.8%, the fastest pace since April 2024, after a 2.7% rise in August.
The US dollar was steady on Monday after two weeks of declines as traders braced for a busy week of global central bank meetings, especially the Federal Reserve’s. While a rate cut is widely anticipated, divisions within the FOMC have injected some uncertainty. The euro held at $1.1644, and the yen traded at 155.28 per dollar, stabilising after November’s sharp drop.
Gold traded at $4,202 per ounce, pulling back slightly after touching $4,259 on Friday. Silver remained near its all-time high.
Oil prices firmed, supported by expectations of lower interest rates and concerns over potential supply disruptions from Russia and Venezuela. Brent crude inched up 0.2% to $63.85, while US crude matched the 0.2% gain to reach $60.18 per barrel.
Disclaimer: The article is for informational purposes only and not investment advice.
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