On Thursday, December 18, the Nifty 50 and Sensex are likely to extend losses for a fourth consecutive session amid a negative handover from Wall Street, as a heavy sell-off in AI stocks rattles global risk sentiment and weighs on tech-led momentum.
The GIFT Nifty was trading near the 26,874 mark, showing a discount of about 15 points.
The majority of Asian markets were trading lower, mirroring the selloff on Wall Street for the fourth straight session ahead of US inflation data.
On Wednesday, December 17, Foreign Institutional Investors (FIIs) were net buyers, buying equities worth ₹1,171.71 crore, ending a selling streak of 14 consecutive trading sessions. Domestic Institutional Investors (DIIs) continued their positive stance, buying equities worth ₹768.94 crore, marking their 39th consecutive session of net inflows.
Indian equity benchmarks ended lower for the third straight session on Wednesday, December 17, dragged by selling in heavyweight financial names such as HDFC Bank and ICICI Bank.
The Nifty 50 slipped 41.55 points or 0.16% to 25,818.55, while the Sensex fell 120.21 points or 0.14% to 84,559.65.
In the broader market, the Nifty Midcap 100 and Smallcap 100 indices declined 0.54% and 0.73%, respectively.
Sectorally, the Nifty Media index shed 1.71% to top the laggards, while PSU Bank advanced 1.29%, emerging as the day’s best performer and moving within 4% of its record high.
US markets continued their downward trend for a fourth straight session on Wednesday, weighed down by sharp losses in AI-focused stocks that overshadowed optimism around further US Federal Reserve rate cuts.
The S&P 500 slipped 1.16% to finish at 6,721.43, while the Nasdaq Composite tumbled 1.81% to 22,693.32. The Dow Jones Industrial Average also ended lower, declining 228.29 points, or 0.47%, to 47,885.97.
Concerns are growing over the timing of the Fed’s next rate cut and speculation about who President Donald Trump may nominate to succeed Fed Chair Jerome Powell. On Wednesday, Fed Governor Christopher Waller signaled scope for further easing as labour market conditions soften. In contrast, Atlanta Fed President Raphael Bostic took a hawkish stance, saying last week’s cut was unnecessary and forecasting no additional reductions in 2026.
The dollar held firm against major peers on Thursday as traders prepared for central bank decisions in the UK, Europe and Japan. Sterling remained under pressure after a surprise drop in UK inflation boosted expectations of a Bank of England rate cut.
Gold hovered just below a record high on Thursday, supported by geopolitical uncertainty surrounding Venezuela and anticipation of key US inflation data. The precious metal traded near $4,340 per ounce, up from a 0.8% gain the day before and only around $40 shy of its peak set in October.
Markets are watching the upcoming inflation print, which may shape expectations for future Fed rate cuts. Safe-haven demand also increased after President Donald Trump ordered a blockade of sanctioned Venezuelan oil tankers.
Crude prices climbed in Asian trading on Thursday after President Donald Trump announced restrictions on tanker movement to and from Venezuela, limiting most exports from the country. US WTI futures rose 98 cents, or 1.7%, to $56.89 a barrel, after earlier gaining more than a dollar. Brent crude advanced 92 cents, or 1.54%, to $60.60 per barrel.
Disclaimer: The article is for informational purposes only and not investment advice.
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