On Tuesday, December 16, the Sensex and Nifty 50 are poised to open on a muted note, tracking broadly negative cues from Asian markets after US equities closed lower on Monday.
The GIFT Nifty was trading near the 26,086 mark, showing a discount of about 8.2 points, indicating a muted start to Indian markets.
Asian markets edged lower as investors turned cautious ahead of important US economic data that could give clues about the future direction of interest rates.
India and the United States are close to finalising a framework agreement aimed at easing reciprocal and punitive duties on Indian exports, Commerce Secretary Rajesh Agrawal said on Monday. While he refrained from sharing a definite timeline, Agrawal noted that talks are moving at a fast pace and in a constructive direction. “Our engagement with the US continues in a very positive spirit, and we are hopeful of concluding the process sooner rather than later,” he noted.
Currently, Indian goods face cumulative additional tariffs of up to 50% imposed by the US. The negotiations gained further traction last week when a US delegation, led by Deputy Trade Representative Rick Switzer, visited India for discussions held on December 10 and 11, underscoring the momentum toward a potential agreement.
On Monday, December 15, Foreign Institutional Investors (FIIs) were net sellers, selling equities worth ₹1,468.32 crore. Domestic Institutional Investors (DIIs) continued their positive stance, buying equities worth ₹1,792.25 crore, marking their 37th consecutive session of net inflows.
On Monday, December 15, Indian equity benchmark indices ended marginally lower, snapping a two-day rally. The markets opened with a gap-down start but recovered most of the losses to close with modest declines, as cautious sentiment prevailed amid continued foreign investor selling and uncertainty over a potential trade deal with the US.
At the close, the Nifty 50 slipped 19.65 points, or 0.08%, to 26,027.30, while the Sensex fell 54.30 points, or 0.06%, to 85,213.36. India VIX rose 1.41%, indicating a pickup in market volatility.
Sectorally, six of the eleven key indices ended higher, with Nifty Media emerging as the top gainer, up 1.79% and posting its strongest intraday gains in over two months. In contrast, the Nifty Auto index declined 0.91%, snapping a two-day rally. Broader markets closed mixed, with the Nifty Midcap 100 edging down 0.12% and the Nifty Smallcap 100 gaining 0.21%.
US equities ended lower on Monday as continued selling pressure in technology stocks dragged key indices into the red, with investors staying cautious ahead of a busy slate of economic data releases. The S&P 500 gave up early gains to fall about 0.2%, marking its second straight decline, while the Nasdaq 100 slid 0.5%, extending losses for a third consecutive session.
The Dow Jones Industrial Average also finished marginally lower, slipping 41.49 points, or 0.09%, to 48,416.56. Meanwhile, the S&P 500 closed down 10.90 points at 6,816.51, and the Nasdaq Composite dropped 137.76 points, or 0.59%, to 23,057.41.
The weakness in the Nasdaq 100 was largely driven by heavy selling in major technology stocks. Broadcom Inc. recorded its steepest three-day fall since 2020, while Oracle Corp. continued its downward run, taking its recent losses close to 17%. US equity futures were largely flat during early Asian hours, signalling a cautious tone among investors.
The US dollar sagged to near a two-month low at the start of the Asian trading session on Tuesday as markets awaited the release of a slew of economic data, including the delayed November US jobs report.
The dollar index, which measures the currency's strength against a basket of six key rivals, was down 0.2% at 98.261, approaching the lowest levels since October 17.
Gold is steady in the early Asian session ahead of the U.S. November employment report due out later today. Spot gold is little changed at $4,306.60/oz.
Silver posted a 0.32% decline to $63.90 after a sharp rise on Monday,
Brent crude oil futures held at $60.3 per barrel and WTI crude oil futures held at $56.6 per barrel on Tuesday, the lowest level since early 2021, weighed down by expectations of a supply glut and optimism over a potential Ukraine peace deal.
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