Pre-Market Nifty/Sensex Analysis Today, Dec 17: Nifty, Sensex Likely to Open Flat; FIIs Continue Their Selling Streak

The GIFT Nifty was trading near the 26,940 mark, showing a premium of about 17 points, indicating a flat start for the Indian markets. 

Asian equities exhibited a mixed trend, tracking a subdued finish on Wall Street, as softer US jobs numbers failed to strengthen expectations of further Federal Reserve rate cuts. At the same time, oil prices surged after US President Donald Trump announced a “total and complete” blockade on sanctioned oil tankers moving in and out of Venezuela, heightening geopolitical risks.

Institutional Flows – FIIs and DIIs

On Tuesday, December 16, Foreign Institutional Investors (FIIs) were net sellers, selling equities worth ₹2,381.92 crore, extending selling streak to 14th trading sessions. Domestic Institutional Investors (DIIs) continued their positive stance, buying equities worth ₹1,077.48 crore, marking their 38th consecutive session of net inflows.

Tuesday's Market Action

Indian equity benchmarks ended lower on Tuesday, December 16, with the Sensex and Nifty slipping over 0.6% amid persistent foreign fund outflows, a sharp fall in the rupee, and the absence of clarity on the India–US trade deal. 

The Nifty 50 closed 0.64% lower at 25,860.10, while the Sensex declined 0.63% to 84,679.86. Market volatility eased slightly, with India VIX down 1.83%, even as the rupee weakened past 91 per US dollar for the first time. Markets have remained range-bound over the past two weeks after hitting record highs on December 1.

On the sectoral front, Nifty Media was the only index to end in the green, edging up 0.03%, while Nifty Realty fell 1.29%, snapping a two-day rally. 

The broader markets underperformed, with the Nifty Midcap 100 down 0.83% and the Smallcap 100 lower by 0.92%. 

Wall Street On Tuesday

US equities ended Tuesday session on a mixed note as investors weighed fresh labour market numbers and ongoing sector rotation, keeping sentiment cautious.

The S&P 500 extended its losing streak to a third straight session, closing 0.24% lower at 6,800.26. The Dow Jones Industrial Average underperformed, sliding 302.30 points, or 0.62%, to 48,114.26. In contrast, the Nasdaq Composite managed modest gains, edged up 0.23% to settle at 23,111.46.

US Jobs Data

Employment growth in the US remained subdued in November, while the unemployment rate rose to a four-year high, highlighting a gradual cooling in labour market conditions following a weak October. Nonfarm payrolls increased by 64,000 in November after a sharp decline of 105,000 jobs in the previous month, according to the Bureau of Labor Statistics.

The unemployment rate climbed to 4.6%, up from 4.4% in September. An official unemployment figure for October was not released, as the government shutdown prevented the collection of revised data. The steep fall in October payrolls, the largest since late 2020, was largely due to a reduction of 162,000 federal government jobs, as employees who accepted deferred resignation packages under the Trump administration formally exited the workforce.

Dollar Index

Asian currencies consolidate against the dollar in early trade, but may be supported by Fed rate-cut prospects. Overall, U.S. economic data released overnight were weaker than expected.

The dollar index, which measures the currency's strength against a basket of six key rivals, was up 0.01% at 97.837. 

Gold & Silver Prices

Gold edges higher in the early Asian session, aided by prospects of Fed rate cuts that typically enhance the allure of the non-interest-bearing precious metal. Spot gold is 0.1% higher at $4,307.90/oz 

Silver posted a 2.26% surge to $65.16/oz after a sharp recovery on Tuesday, 

Crude Oil Prices

Oil prices jumped on Wednesday after US President Donald Trump ordered “a total and complete” blockade of all sanctioned oil tankers entering and leaving Venezuela, heightening geopolitical tensions amid already weak demand. Brent crude futures rose 53 cents, or 0.9%, to $59.46 a barrel, while US West Texas Intermediate gained 55 cents, or 1%, to $55.82.