Market Commentary - Pre-Session
Stocks may open on subdued note As on : 15-Dec-23  08:52

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could fall 28 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading higher on Friday as Wall Street continued to rally after the U.S. Federal Reserve held rates and laid out a roadmap for cuts in 2024 and beyond. Investors await key economic data out of China, including November house prices, industrial output, and retail sales data.

Japan?s manufacturing activity contracted in December for the seventh straight month, according to a private survey. A flash reading of the au Jibun Bank Japan manufacturing purchasing managers? index shrank to 47.7 in December from 48.3 in November, signaling the quickest deterioration in manufacturing business conditions for ten months. The au Jibun Bank flash services PMI, however, was 52.0 in December versus 50.8 in November, the fastest gain in the three months.

US stocks ended higher on Thursday lifted by optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. The 10-year Treasury note yield dropped below 4% for the first time since August as traders bet on rate cuts for 2024 mount.

The Bank of England kept interest rates at the highest level in 15 years as its policy makers persisted with their higher-for-longer message despite growing market bets on a wave of cuts in 2024. The Monetary Policy Committee voted 6-3 to keep its key policy rate at 5.25% for the third consecutive meeting, according to minutes of the decision released Thursday.

The European Central Bank left interest rates unchanged as expected on Thursday and signalled an early end to its last remaining bond purchase scheme.

Domestic markets:

Back home, the domestic equity barometers ended near the day's high after a strong session on Thursday. The dovish narrative from the US Fed at the Federal Open Market Committee (FOMC) meeting lifted the investor spirits and helped the key equity indices scale fresh all-time high levels. The barometer index, the S&P BSE Sensex, jumped 929.60 points or 1.34% to 70,514.20. The Nifty 50 index advanced 256.35 points or 1.23% to 21,182.70.

Foreign portfolio investors (FPIs) bought shares worth Rs 3,570.07 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 553.17 crore in the Indian equity market on 15 December, provisional data showed.

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