Indian stock market: 10 key things that changed for market over weekend – Gift Nifty, US inflation to GST Council meet

Indian stock market: The domestic equity market indices, Sensex and Nifty 50, are expected to open higher on Monday tracking positive cues from global markets.

Asian markets traded higher, while the US stocks rallied, with the Dow Jones and S&P recording their biggest daily percentage gains since November 6.

This week, investors will monitor key stock market triggers, including new IPO listings, domestic and global macroeconomic data, flow of foreign funds, US bond yields, crude oil prices, and other global cues.

On Friday, the Indian stock market witnessed a sharp fall, with both the benchmark indices plunging 1.5% each.

The Sensex crashed 1,176.46 points, or 1.49%, to close at 78,041.59, while the Nifty 50 settled 364.20 points, or 1.52%, lower at 23,587.50.

“Several factors contributed to this downturn: weak global cues, the Indian rupee hitting an all-time low, and continuous selling by foreign institutional investors (FIIs). Looking ahead, Indian markets are expected to remain subdued and will closely follow global cues amidst a volatile environment. With the festive season approaching and global markets closed for 2-3 days, including a domestic holiday on December 25, market activity is expected to be low this week,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded higher on Monday, following a rally on Wall Street. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3%.

Japan’s Nikkei 225 rose 0.68%, while the Topix gained 0.51%. South Korea’s Kospi rallied 0.72%, and the Kosdaq surged 0.96%. Hong Kong’s Hang Seng index futures indicated a stronger opening.

Gift Nifty Today

Gift Nifty was trading around 23,790 level, a premium of nearly 165 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.

Wall Street

US stock market ended higher on Friday as a cooler-than-expected inflation report and comments from Federal Reserve officials eased worries about the interest rate path.

The Dow Jones Industrial Average surged 498.82 points, or 1.18%, to 42,841.06, while the S&P 500 rallied 63.82 points, or 1.09%, to 5,930.90. The Nasdaq Composite ended 199.83 points, or 1.03%, higher at 19,572.60.

For the week, the S&P 500 fell 1.99%, the Nasdaq declined 1.78%, and the Dow dropped 2.25%.

US Personal Consumption Expenditures (PCE)

The US personal consumption expenditures (PCE), the Federal Reserve’s preferred inflation measure, rose for a second straight month in November, although lower than expectations. The US PCE price index rose 2.4% in the 12 months to November, up from 2.3% in October.

US Consumer Spending

US consumer spending increased in November amid strong demand for a range of goods and services. Consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.4% last month after a downwardly revised 0.3% gain in October. Economists polled by Reuters had forecast consumer spending advancing 0.5% after a previously reported 0.4% rise in October.

US Federal Reserve

Federal Reserve policymakers, fresh from an interest rate cut this week, fleshed out on Friday the case for reducing borrowing costs more slowly next year as they assess progress in lowering inflation and the impact of tariffs and other policies promised by President-elect Donald Trump, Reuters reported.

GST Council Meeting

Finance Minister Nirmala Sitharaman-led goods and services tax (GST) Council Meeting on Saturday decided to levy an 18% GST on margin value on sale of used electric vehicles (EVs) by businesses and clarified on the taxability of popcorn. The GST Council in its 55th meeting also decided on levying tax over food delivery by app-based platforms such as Swiggy, Zepto, and Zomato.

RBI MPC Minutes

The Reserve Bank of India (RBI) released the minutes of the Monetary Policy Committee (MPC) meeting, highlighting that India’s inflation-growth balance is unsettled for now, and the rate-setting panel’s priority is to restore that balance while continuing with its neutral stance a durable alignment of headline inflation with the target is achieved.

Dollar

The US dollar index held near two-year highs at 107.970, having climbed 1.9% for the month so far. The euro was at $1.0432. Against the yen, the dollar was firm at 156.44, having gained 4.5% so far in December.

Gold Price Today

Gold prices were steady on Monday after gaining on an overall softer US dollar and Treasury yields on Friday, when US economic data hinted at a slowdown in inflation, Reuters reported. Spot gold traded flat at $2,621.19 per ounce, while the US gold futures eased 0.3% to $2,637.00.

(With inputs from Reuters)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.