Pre-Market Nifty/Sensex Analysis Today, Dec 22: Nifty, Sensex Seen Opening Higher on Global Optimism; Infosys in Focus

The GIFT Nifty was trading near the 26,185 mark, showing a premium of about 150 points. 

Asian share markets rose on Monday, tracking tech-driven gains on Wall Street.

Infosys ADRs Surge 40% in Sudden US Market Spike

Infosys’ US-listed shares jumped nearly 40% within minutes on Friday, touching a 52-week high of $30 before trading was halted on the NYSE due to extreme volatility. The sharp rise came during a low-liquidity holiday session with no new company announcement, sparking talk of a possible short squeeze after a large volume of ADRs was reportedly recalled, along with speculation that a ticker data error may have triggered automated buying. 

Infosys clarified that there were no material developments behind the move, highlighting how low liquidity and automated systems can amplify price swings even in blue-chip stocks.

Institutional Flows – FIIs and DIIs

On Friday, December 19, Foreign Institutional Investors (FIIs) were net buyers, buying equities worth ₹1,830.89 crore for the 3rd consecutive trading session. Domestic Institutional Investors (DIIs) continued their positive stance, buying equities worth ₹5,722.89 crore, marking their 41st consecutive session of net inflows.

Friday's Market Action

Indian benchmark indices closed with solid gains on Friday, December 19, ending a four-day losing streak as buying in heavyweights like Reliance Industries and HDFC Bank supported sentiment. 

The Nifty 50 finished at 25,966.40, while the Sensex climbed to 84,481.81. Foreign investors turned net buyers, further boosting market confidence, 

All 11 key sectoral indices closed higher, led by Nifty Realty, which surged 1.67% for its biggest intraday gain in more than a month. Broader markets also outperformed, with the Nifty Midcap 100 and Smallcap 100 rising over 1% each. 

Wall Street On Friday

Wall Street continued its upward momentum for a second day on Friday, wiping out the week’s earlier losses as major technology names once again led the broader market higher.

The S&P 500 rose 59.74 points, or 0.9%, to finish at 6,834.50, ending the week with a slim 0.1% gain. The Dow Jones Industrial Average added 183.04 points, or 0.4%, closing at 48,134.89. The Nasdaq outperformed the other major indexes, jumping 301.26 points, or 1.3%, to 23,307.62, and securing a 0.5% rise for the week.

US Technology Stocks Rise

Tech shares were the standout performers on Friday. Nvidia gained 3.9%, making it one of the biggest boosts to the index, while Broadcom advanced 3.2%. Oracle climbed 6.6% after revealing plans to join Silver Lake and MGX to form a new TikTok US joint venture, with each holding a 15% stake, a move that paves the way for TikTok to continue operating in the country.

US GDP Data Ahead

Investors now turn their attention to US GDP figures scheduled for release on December 23. The data will play a key role in shaping expectations for upcoming Federal Reserve policy moves. Economists anticipate economic growth in the 3% to 3.5% range, slightly below the 3.8% pace recorded in the second quarter of 2025.

Record JGB Yields

Japanese government bonds extended losses on Monday, driving short-term yields to unprecedented levels following last week’s rate hike by the Bank of Japan. The two-year JGB yield, highly reactive to policy changes, jumped 1.5 bps to 1.105%, surpassing its prior record from 2007. The 10-year yield climbed 5 bps to 2.07%, having crossed the 2% mark on Friday for the first time in over two decades. The BOJ has lifted its benchmark rate to its highest level in 30 years and indicated scope for further tightening.

Gold and Silver Prices

Silver reached a fresh record high and gold continued to climb as geopolitical strains and expectations of additional Fed rate cuts bolstered demand for safe-haven assets. Silver rose 0.6% to $67.5519 an ounce at one point, while spot gold approached $4,365 an ounce, less than $20 below its record, after two straight weeks of gains. Heightened geopolitical risk, including the US tightening its oil blockade on Venezuela, supported precious metals.

By 8:27 a.m. in Singapore, silver was up 0.5% at $67.46, and spot gold was trading 0.5% higher at $4,363.21, closing in on the October peak above $4,381. 

Oil Prices

Crude prices ticked higher as US action against Venezuela escalated, with American forces seizing one tanker and tracking another within weeks of an earlier capture. Brent crude approached $61 a barrel after two weeks of declines, while West Texas Intermediate hovered near $57.

Disclaimer: The article is for informational purposes only and not investment advice.