Pre-Market Nifty/Sensex Analysis Today, Dec 23: Nifty, Sensex Likely to See a Positive Start; India’s Core Sector Growth Rebounds in November, Gold Hits Record High

The GIFT Nifty was trading near the 26,241 mark, showing a premium of about 30 points. 

Asian share markets rose on Monday, tracking bullish cues on Wall Street.

India’s Core Sector Growth Rebounds to 1.8% in November

India’s eight core industries recorded a modest 1.8% growth in November, reversing the flat performance seen in October. The recovery was supported by strong output in cement, steel, fertilizers and coal, even as oil, gas, refinery products and electricity remained under pressure. 

Cement production surged 14.5%, steel grew 6.1%, fertilizers rose 5.6% and coal output increased 2.1%, reflecting continued infrastructure activity and seasonal factors, while contraction in energy-related sectors capped overall growth. The expansion was lower than the 5.8% growth seen a year ago due to a strong base effect, with core sector output up 2.4% during April-November, and economists estimating overall industrial growth at around 2.5-3% for November.

Institutional Flows – FIIs and DIIs

On Monday, December 22, Foreign Institutional Investors (FIIs) were net sellers, selling equities worth ₹457.34 crore, ending a buying streak of 3 consecutive trading sessions. Domestic Institutional Investors (DIIs) continued their positive stance, buying equities worth ₹4,058.22 crore, marking their 42nd consecutive session of net inflows.

Monday's Market Action

Indian equity benchmarks closed sharply higher on Monday, December 22, extending gains for a second straight session, supported by buying in financials and IT stocks amid signs of foreign investor interest following a rebound in the rupee. 

The Nifty 50 crossed the 26,100 mark to close up 206 points (0.79%) at 26,172.40, while the Sensex rose 638.12 points (0.75%) to end at 85,567.48.

Sectorally, IT and metal stocks led the rally, with the Nifty IT index jumping 2.06%, its strongest intraday gain in a month—driven by gains in Infosys and Wipro, both up over 3%. Metal stocks advanced 1.41% on higher copper and silver prices.

Broader markets outperformed, as the Nifty Midcap 100 and Smallcap 100 indices gained 0.84% and 1.17%, respectively. 

Wall Street On Monday

US equities started the week on a positive note on Monday, as investors looked ahead to a quieter, holiday-shortened trading period. Buying interest was broad-based, with technology and banking stocks leading the gains, while industrials also contributed to the market’s upward momentum.

The S&P 500 advanced 43.99 points, or 0.6%, to finish at 6,878.49. The Dow Jones Industrial Average climbed 227.79 points, or 0.5%, closing at 48,362.68. Meanwhile, the Nasdaq Composite added 121.21 points, or 0.5%, to end the session at 23,428.83.

These advances have pushed the major indices further into positive territory for the month, even as December has been marked by heightened volatility. Technology stocks, particularly those associated with artificial intelligence, continue to be the primary force driving recent market movements.

US GDP Data

Investors are now awaiting US quarterly GDP figures scheduled for release on December 23. The data is expected to play an important role in shaping the Federal Reserve’s interest-rate outlook. 

UK GDP Update

UK economic data showed that gross domestic product rose by a modest 0.1% in the third quarter, in line with estimates. Growth for the April-June period was revised down to 0.2% from 0.3%. The figures indicate that elevated taxes and persistent inflation continue to constrain economic activity, despite resilient consumer spending and lower household savings.

Gold and Silver

Gold prices surged to fresh record highs on Tuesday as investors sought safety amid escalating geopolitical tensions, particularly following US actions against tankers transporting Venezuelan oil. Spot gold climbed 0.5% to $4,467.66 per ounce, after touching an intraday record of $4,469.52. February gold futures rose 0.74% to $4,502.30 per ounce.

Silver also hovered near historic levels, with spot prices reaching an all-time high of $69.59 per ounce. 

Crude Oil

Oil prices extended their rally for a fourth consecutive session, supported by continued US restrictions on Venezuelan crude shipments. West Texas Intermediate traded close to $58 per barrel, after rising roughly 5% over the past four sessions, while Brent crude settled near $62 per barrel. President Donald Trump stated that oil seized from Venezuela-linked vessels would remain under US control.

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