India's stock market has managed to overcome concerns and continue its upward momentum. Reports suggest that the ongoing trade talks between India and the US are progressing smoothly, which has provided a boost to the market sentiment. On December 11, Prime Minister Narendra Modi had a phone conversation with US President Donald Trump after eight weeks, which has been seen as a positive development for the market.
Yesterday, US markets recorded gains across all sectors, except technology, with the Dow Jones hitting new records. The rise in Asian indices this morning is expected to influence the Indian market positively. Meanwhile, the decline in crude oil prices is seen as a favourable factor for the market. However, the US dollar index remains weak, and the Indian rupee continues to face pressure. Yesterday, the dollar surged to ₹90.46, and it is not far from hitting the ₹91 mark. The foreign institutional investors (FII) continue to follow a trend of selling Indian stocks, which remains a significant concern.
In the derivatives market, the Nifty closed at 26,140 on Thursday night and moved higher to touch 26,147 before dropping to 26,123. This indicates that the market is expected to open with substantial gains today, despite fluctuations earlier in the week.
European markets showed strong performance on Thursday, closing with impressive gains. The Swiss National Bank maintained its negative interest rates, while the European Central Bank and Bank of England are expected to make important monetary decisions next week.
In the US, Dow Jones and S&P 500 indices set new records as enthusiasm for interest rate cuts continued to drive investor sentiment. However, Oracle’s earnings dropped, which, along with rising costs, led to a decline in its stock price. Oracle shares fell by 11%, and other tech stocks such as NVIDIA and Broadcom also saw a slight dip.
On Thursday, the Dow Jones surged by 646.26 points (1.34%) to 48,704.01, and the S&P 500 increased by 14.32 points (0.21%) to 6901.00. However, the Nasdaq Composite ended down by 60.30 points (0.26%) at 23,593.86. In the early morning, US futures showed mixed reactions. While Dow Jones rose by 0.14%, both the S&P 500 and Nasdaq were down by 0.06% and 0.17%, respectively.
Asian markets are in positive territory this morning. Japan’s Nikkei opened strong, rising by 1.60%, while Australia’s ASX and South Korea’s KOSPI gained by 1.20% and 0.50%, respectively. Although China’s index declined slightly, Hong Kong's index rose by 0.70%, reflecting a generally positive sentiment in the region.
The Indian stock market opened on a positive note, reacting to the news that India-US trade talks are progressing well. After a brief dip, the market surged with the Nifty rising by 229 points from a lower position, closing at 25,898.55 with a gain of 140.55 points (0.55%). The Sensex also rose by 426.86 points (0.51%), closing at 84,818.13. The Bank Nifty ended the day with a gain of 249.45 points (0.42%), closing at 59,209.85. The Mid Cap 100 index saw a 0.97% rise, while the Small Cap 100 index gained 0.81%.
Precious metals saw a jump as expectations of interest rate cuts drove gold prices higher. On Thursday, gold rose by $51.60 (1.22%), closing at $4,281.10 per ounce. The Indian market followed suit, with 22-carat gold rising by ₹320 to reach ₹95,880 per 10 grams. There are expectations that gold prices may continue to rise in the coming days.
In other metals, silver increased to $64.36 per ounce but ended the day at $63.62. Platinum and Palladium prices also saw upward movements, closing at $1,687 and $1,466, respectively.
