Indian Stock Market Outlook: Global Market Impact, Gift Nifty, and Key Developments
The domestic equity benchmarks, Sensex and Nifty 50, are expected to open lower on Thursday, following a significant downturn in global markets. This comes after the US Federal Reserve reduced expectations for interest rate cuts in 2025, disappointing investors.
Global Market Trends
Asian markets were in the red on Thursday, echoing the sharp sell-off in US markets. Japan’s Nikkei 225 dropped by 1.4%, while South Korea’s Kospi index fell 1.84%. Hong Kong’s Hang Seng index futures suggest a mildly higher opening, but overall, global sentiment remains weak.
US Market Today
The US stock market experienced a sharp decline on Wednesday. Despite a 25 basis point interest rate cut by the Federal Reserve, investors were unsettled by the Fed’s cautious stance on future rate cuts. The Dow Jones plummeted 1,123.03 points (2.58%) to close at 42,326.87, marking its largest one-day decline since August 5. The S&P 500 dropped by 178.45 points (2.95%) to 5,872.16, and the Nasdaq Composite fell by 716.37 points (3.56%) to 19,392.69. Notable stocks like Tesla, Amazon, and Microsoft saw significant losses, reflecting broader market concerns.
Why US Market is Down Today?
The main reason for the decline in the US stock market is the Federal Reserve’s cautious outlook. While the Fed cut the benchmark interest rate to 4.25%-4.50%, it indicated that rate cuts would proceed at a slower pace in 2025 due to a solid labor market and persistent inflation. This led to concerns about slower economic growth, which is weighing heavily on investor sentiment.
Gift Nifty Live Today
As of now, Gift Nifty is trading around the 23,935.00 level, reflecting a significant discount of nearly 320 points from the previous close. This suggests a gap-down start for Indian stock market indices, with a continued impact from global market turmoil.
Global Indices Performance
Looking at global markets today, US Treasury yields surged after the Fed’s cautious outlook on future rate cuts. The US 10-year treasury yield reached its highest level since May 31, at 4.518%, signaling increased concerns about inflation and growth.
Additionally, US housing starts unexpectedly fell by 1.8% in November, the slowest pace since July, further contributing to the market’s volatility.
Sensex and Nifty Performance
On Wednesday, both the Sensex and Nifty 50 ended the day lower amid heavy selling pressure, especially in financials, auto, and metal stocks. The Sensex closed 502.25 points (0.62%) lower at 80,182.20, while the Nifty 50 settled at 24,198.85, down 137.15 points (0.56%).
Fed Meeting Outcome
The recent Fed meeting outcome revealed that the US central bank remains cautious despite rate cuts. The Fed’s decision to cut rates by 25 basis points was in line with expectations, but its guidance on future rate cuts in 2025, limited to only two, raised concerns about a slower economic recovery.
Market News & Other Key Developments
- Sebi Board Meeting: The Sebi board approved several key regulatory changes, including stricter norms for SME IPOs and a revamp of investment banking regulations. These measures aim to improve transparency and support market growth.
- Direct Tax Collection: The Indian government reported a robust growth in direct tax collections, up 16.45% YoY to over ₹15.82 lakh crore by December 17. This is supported by a 21% rise in advance tax collections, signaling a positive trend for India’s fiscal health.
Gift Nifty Live Chart Today
For real-time market updates and insights, you can track the Gift Nifty live chart today, as it provides a glimpse of how the Indian market might open, influenced by global trends.
In summary, the outlook for the Sensex, Nifty, and Gift Nifty remains cautious, with negative global cues from US markets and weakening Asian indices. The Gift Nifty live today indicates a likely gap-down start for Indian markets, and the global economic slowdown is casting a shadow over investor sentiment. Keep an eye on the Sensex index and Nifty futures for further movements, as market reactions to the Fed meeting outcome continue to unfold.