On Wednesday, December 10, the Sensex and Nifty 50 are expected to open slightly lower ahead of the US Federal Reserve’s policy decision due later today.
The GIFT Nifty was trading near the 25,902 mark, showing a discount of about 29 points, indicating markets to open in red.
In early trade, Asian markets traded in red, as investors awaited fresh signals on the Federal Reserve’s policy stance ahead of its final rate decision of the year.
India has ordered IndiGo to cut 10% of its domestic winter flight schedule, up from an earlier 5%, after the airline cancelled over 2,000 flights last week due to poor pilot roster planning, stranding thousands of passengers. The DGCA said the reduction is needed to stabilise operations, even as IndiGo claimed services are now fully stabilised.
On Tuesday, December 9, Foreign Institutional Investors (FIIs) were net sellers, selling equities worth ₹3,760.08 crore. Domestic Institutional Investors (DIIs) continued their positive stance, buying equities worth ₹6,224.89 crore, marking their 33rd consecutive session of net inflows.
Indian equity benchmarks closed lower on Tuesday, December 9, weighed down by heavyweights ICICI Bank and HDFC Bank. The Nifty 50 slipped 120.90 points, or 0.47%, to end at 25,839.65, while the Sensex fell 436.41 points, or 0.51%, to 84,666.28, extending the previous session’s losses. Market sentiment remained cautious ahead of the US Federal Reserve’s rate decision on Wednesday.
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Sectorally, Nifty PSU Bank emerged as the top gainer, rising 1.29%, while Realty, Media, and Energy also closed higher. In contrast, IT, Auto, and Pharma indices ended in the red. Broader markets outperformed, with the Nifty Midcap 100 gaining 0.32% and the Smallcap 100 advancing 1.14%.
US equities mostly traded lower on Tuesday as investors positioned themselves ahead of the Federal Reserve’s policy decision, balancing expectations of an interest rate cut against the risk of hawkish guidance.
The Dow Jones Industrial Average fell 179.03 points, or 0.38%, to close at 47,560.29. The S&P 500 slipped marginally by 6 points, or 0.09%, ending at 6,840.51, while the Nasdaq Composite edged higher by 30.58 points, or 0.13%, to 23,576.49.
Market attention is firmly fixed on the US Federal Reserve’s policy announcement scheduled for later today, December 10. While a 25-basis-point rate cut is largely anticipated, there are expectations of differing views within the policy committee.
The US dollar strengthened modestly on Tuesday, alongside a rise in Treasury yields, as investors digested fresh labour data showing a slight increase in job openings in October, even though hiring remained weak. The dollar index gained 0.15% to 99.22. Meanwhile, the yield on the 10-year US Treasury rose 1.4 basis points to 4.186%, marking its first four-day winning streak in over a month after briefly dipping to 4.141% earlier in the session.
Precious metals advanced as traders stayed upbeat ahead of the Fed decision. Spot gold climbed 0.6% to $4,211.77 per ounce, while February gold futures settled 0.4% higher at $4,236.20 per ounce. Silver surged to a record $60 per ounce, supported by tightening supply conditions.
Crude oil extended losses for a second straight session as markets weighed ongoing peace discussions related to the Russia–Ukraine conflict, concerns about excess global supply, and the upcoming Fed decision. Brent crude futures fell 55 cents, or 0.88%, to $61.94 per barrel, while US West Texas Intermediate dropped 63 cents, or 1.07%, to $58.25 per barrel.
Disclaimer: The article is for informational purposes only and not investment advice.
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