The market is eagerly awaiting the Reserve Bank's monetary policy decision, with foreign investors' continued buying activity stirring excitement. Whether this trend will persist will depend on the announcement by Reserve Bank Governor Shaktikanta Das. The movement of the rupee will also hinge on the governor’s statement.
Today’s meeting is of particular interest, as it marks the first in 10 monetary policy committee sessions that the governor will be present. The market is optimistic about a possible reduction in interest rates, with expectations that the repo rate and the cash reserve ratio (CRR) for banks may both be cut by a quarter of a percentage point. If this doesn’t materialise, there may be selling pressure from profit-takers.
In the derivatives market, the GIFT Nifty closed at 24,820 on Thursday, falling to 24,800 this morning, suggesting that the Indian market will open with a slight gain today.
The US market saw a decline yesterday, with attention now turning to the forthcoming employment figures. The forecast predicts an increase of 214,000 non-farm payrolls in the US for November. A result significantly below this estimate would make an interest rate cut on the 18th more likely. However, if the actual number meets or exceeds expectations, concerns about a delay in the rate cut could arise.
Yesterday, the Dow Jones Industrial Average closed down by 248.33 points (0.55%) at 44,765.71. The S&P 500 lost 11.38 points (0.19%) to settle at 6075.11, while the Nasdaq Composite dropped 34.86 points (0.18%) to finish at 19,700.26. US futures were also lower, with the Dow down by 0.09%, the S&P 500 down by 0.08%, and the Nasdaq slipping by 0.04%.
US 10-year bond prices rose, bringing yields down to 4.178%.
European markets posted gains for the fifth consecutive day, with the euro strengthening against the dollar.
Asian markets, however, fell today. Japan’s Nikkei lost 0.66%, and South Korea's market was in the red due to political instability surrounding the impeachment of the president. The Australian index also fell.
The Indian markets closed with strong gains on Thursday following significant volatility. The major indices rose by around 1%. The Sensex climbed 1,850 points from the previous day’s low, finishing slightly lower. The Nifty rebounded by 562 points from its low. The Sensex closed at 82,317.74 and the Nifty at 24,857.75.
Foreign investors were major buyers yesterday, purchasing a net Rs 8,539.91 crore on Thursday. This marks a return of foreign investment to the Indian market in December, with foreign investors also buying into the debt market. Additionally, Morgan Stanley released a report suggesting that India will be a strong growth destination in 2025. In contrast, domestic funds and financial institutions sold a net Rs 2,303.64 crore.
The broader market’s advance-decline ratio remains in favour of the bulls, with 2,048 stocks advancing on the BSE compared to 1,931 that declined. On the NSE, 1,495 stocks rose, while 1,310 fell.
The Nifty closed at 24,708.40, up 240.95 points (0.98%), and the Sensex gained 110.58 points (0.14%) to end at 80,956.33. The Bank Nifty rose 1.08% (571.15 points) to close at 53,266.90. The Midcap index climbed 1.05% to 58,112.40, while the Smallcap index increased by 0.89% to 19,173.55.
After five consecutive days of bullish momentum, today’s market direction will depend on the Reserve Bank’s monetary policy review. The Nifty may find support at 24,405 and 24,275, with resistance at 24,840 and 24,970.
SEBI has imposed a ban on Mashtan Foods, preventing the company and its promoters from raising funds from the public. SEBI found that Rs 100 crore had been diverted to the promoters and has instructed the return of the amount.
BSE Limited shares rose 14.3%, hitting a record high of Rs 5,250 during trading. Central Depository Services (CDSL) shares surged 8.5% to reach a record high of Rs 1,865.40. The rise follows the announcement that 43 stocks will be added to futures and options trading on BSE next Friday, which is expected to boost trading volumes. Companies like LIC, Adani Energy, Adani Total, Adani Green, Paytm, Yes Bank, Zomato, Avenue Supermarts, Jio Financial, Hudco, Oil India, Indian Bank, Bank of India, and Union Bank of India will be included in F&O.
The Reserve Bank of India has approved Canara Bank’s sale of its stake in Canara Robeco AMC and Canara HSBC Life via an IPO.
Nykaa Fashion CEO Nihir Pareek resigned yesterday.
Gold prices saw a significant drop on Thursday, falling by $18.30 per ounce to close at $2,632.10. It fell further this morning to $2,620. Today’s employment data will likely influence market trends.
In Kerala, gold prices rose by Rs 80 per ounce to Rs 57,120 on Thursday.
Silver prices increased to $31.30 per ounce.
The US dollar fell in the currency market yesterday, with the dollar index declining by 0.56% to 105.71. It rose to 105.84 this morning.
The rupee held steady yesterday, with the dollar weakening by one paisa to close at Rs 84.73.
The OPEC meeting decided to maintain current production levels, keeping prices low. Brent crude closed at $72.29, falling to $71.97 this morning. WTI stood at $68.24, and UAE's Murban crude was priced at $71.90.
Bitcoin briefly crossed $100,000, reaching a high of $103,844, before retreating below $97,000 due to profit-taking. Bitcoin has risen by 133% in 2024, with a 44% surge following Donald Trump's victory. Standard Chartered Bank forecasts that Bitcoin will double to $200,000 in 2025.
Ethereum fell below $3,800 today.
Donald Trump’s announcement of venture capitalist David Sachs as the crypto czar is expected to boost crypto markets again today.
Industrial metals had a mixed performance. Copper dropped by 0.03% to $8,967.00 per tonne, and aluminium fell 0.01% to $2,640.16 per tonne. Zinc rose by 0.75%, tin by 1.23%, and lead by 0.58%, while nickel decreased by 0.80%.
- Sensex: 81,765.86 (+1.00%)
- Nifty50: 24,708.40 (+0.98%)
- Bank Nifty: 53,603.55 (+0.63%)
- Midcap 100: 58,441.55 (+0.57%)
- Smallcap 100: 19,333.55 (+0.83%)
- Dow Jones: 44,765.70 (-0.55%)
- S&P 500: 6075.11 (-0.19%)
- Nasdaq: 19,700.30 (-0.18%)
- Dollar: ₹84.73 (-₹0.01)
- Dollar Index: 105.71 (-0.62%)
- Gold (ounce): $2,632.10 (-$18.30)
- Gold (pound): ₹57,120 (+₹80)
- Crude (Brent): $72.27 (-$0.04)
