The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Friday, December 19 after 4 sessions of losses following positive trends in the global markets.
The GIFT Nifty was trading near the 26,955 mark, showing a premium of about 78 points.
Asian Markets rose following gains in US peers after cooling US inflation data backed the case for Federal Reserve interest-rate cuts and calming tech jitters supported US stocks.
On Thursday, December 18, Foreign Institutional Investors (FIIs) were net buyers, buying equities worth ₹595.78 crore for 2nd consecutive trading session. Domestic Institutional Investors (DIIs) continued their positive stance, buying equities worth ₹2,700.36 crore, marking their 40th consecutive session of net inflows.
Indian equities ended with mild losses on Thursday, December 18, as heavyweights like HDFC Bank and Sun Pharma dragged the market lower. The Nifty 50 briefly crossed 25,900 after early buying support but failed to hold gains, closing almost flat at 25,815.55. The Sensex also slipped 77.84 points to 84,481.81, marking the fourth straight session of decline. Caution ahead of the Bank of Japan’s rate decision contributed to profit-booking at higher levels.
Sectorally, Nifty IT led gains with a 1.21% rise, while Nifty Media was the top loser. Broader markets outperformed, with Nifty Midcap 100 and Nifty Smallcap 100 closing in the green.
The S&P 500 snapped a four-day slide on Thursday, boosted by lighter-than-expected inflation data that brightened the outlook for lower interest rates in 2026 and blowout guidance from chipmaker Micron Technology.
The broad market index jumped 0.79% to settle at 6,774.76, while the Nasdaq Composite advanced 1.38% to 23,006.36. The Dow Jones Industrial Average gained 65.88 points, or 0.14%, to end the day at 47,951.85.
US consumer prices eased more than expected in November, boosting hopes that inflation is cooling and could prompt more monetary policy easing. The CPI increased 2.7% annually versus the 3.1% forecast, while core CPI climbed 2.6% against expectations of 3%. Monthly gains were also softer at 0.2%. The data, delayed due to a government shutdown that also canceled the October CPI report, showed food and energy prices up 2.6% and 4.2%, respectively, while shelter costs rose 3%. Although economists remain cautious without October comparisons, investors viewed the report as supportive for future Fed rate cuts following three consecutive reductions this year.
The Bank of England trimmed its benchmark interest rate by 25 bps to 3.75% on Thursday, citing quicker-than-expected easing in UK inflation and lingering concerns over economic softness. The five-to-four vote marked the first rate cut since August, ending two meetings of pause. Markets had already priced in the move, which came ahead of the European Central Bank’s rate call later in the day.
The European Central Bank held rates unchanged for a fourth straight meeting, maintaining its deposit rate at 2% as euro-area inflation stays close to target. Policymakers stuck to a data-dependent, meeting-by-meeting approach and avoided forward guidance. Updated projections pointed to firmer growth and inflation returning to the 2% goal by 2028, following a period of undershooting.
Japan’s core inflation remained at 3% for a second month, signalling persistent price pressures just hours before the Bank of Japan was expected to lift rates to 0.75% — a level not seen in roughly 30 years. Headline inflation eased slightly to 2.9%.
Global bonds reacted cautiously to softer US CPI data. US 10-year Treasury yields were steady at 4.126%, below the recent 3.5-month high. Japan’s 10-year note stayed at 1.98%, its highest in 18 years. In the UK, gilts weakened as the BoE’s narrow rate-cut vote and cautious tone pushed expectations for the next cut to June. The pound and euro initially popped before slipping back, with sterling at $1.3378 and the euro at $1.1725. The dollar was little changed versus the yen at 155.60.
Gold hovered close to record territory, supported by lighter US inflation and expectations of further rate cuts. Spot prices traded around $4,335 an ounce, up nearly 1% for the week. Silver also edged higher near historic levels, while platinum held firm at multi-year highs and palladium advanced.
Crude prices were set for a second weekly drop amid concerns about oversupply outweighing geopolitical risk. WTI hovered near $56 a barrel and Brent slipped under $60, with both benchmarks down over 2% for the week. Despite tensions involving Russia and Venezuela, oil remains about 20% lower for the year on rising output and muted demand.
Disclaimer: The article is for informational purposes only and not investment advice.
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