Stock Market Cues Today: US Fed Rate Cut, India-US Trade Deal And Other Factors To Watch

In the previous session on December 10, the benchmark indices ended in the red for the third straight session. Both Sensex and Nifty 50 started on a positive note; however, gradually the momentum fizzled out, and towards the end of the session, both indices ended near their day's low.

At close, Sensex stood at 84,391.27, down 275.01 points, or 0.32 per cent, and Nifty 50 stood at 25,758, down 81.65 points, or 0.32 per cent.

Key Market Cues To Watch On December 11

US Fed Cuts Rate By 25 bps

The US Federal Reserve, on the night of December 10, announced a 25-basis-point (bps) rate cut at the conclusion of its two-day policy meeting, its third reduction this year. This brings the benchmark federal funds rate down to the range of 3.5 per cent to 3.75 per cent.

The rate-setting panel Federal Open Market Committee (FOMC) was split on the decision. Nine of the 12 FOMC members voted in favour of a quarter-point cut, one policymaker pushed for a deeper 50-bps reduction, and two preferred to leave rates unchanged.

“Available indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged up through September,” the Fed said in its statement.

India-US Trade Talks

US-India trade talks will be on investors’ radar today after a headline-making comment from United States Trade Representative Jamieson Greer. Speaking in Washington DC, Greer said the US has received its “best ever” offer from India, but also described New Delhi as a “difficult nut to crack” given its long-standing resistance to opening up agricultural imports.

Greer’s remarks come as a US delegation is in New Delhi for a fresh round of two-day negotiations that began on December 10.

US Stock Market

US equities cheered the Fed’s decision, as investors turned optimistic that the American central bank may stay more accommodative going into 2026. All three main indices closed higher overnight.

The S&P 500 closed just below its all-time high, gaining 0.67 per cent, the Dow Jones advanced 1.05 per cent, and the tech-heavy Nasdaq Composite rose 0.33 per cent.

Asian Stock Markets

Asian markets opened on a firm note in early trade today, tracking cues from Wall Street’s overnight rally after the US Fed’s rate cut. However, the early gains faded quickly as sentiment turned cautious, weighed down by weak numbers and guidance from Oracle. The US tech major tumbled more than 10 per cent in after-hours US trade after its Q2 cloud revenue came in just below expectations, dragging regional tech stocks with it.

Japan’s Nikkei 225, which was up around 0.65 per cent at the open, has now slipped nearly 1 per cent. China’s CSI 300 has also retreated from an early 0.27 per cent rise to trade 0.20 per cent lower. The Hong Kong-based Hang Seng also gave up its 0.80 per cent initial gains and is now trading flat, and South Korea’s Kospi too flipped from a strong start to trade 0.36 per cent down at the time of filing this report.

Crude Oil Prices Today

Crude oil prices surged in early Asian trade today after the US seized a sanctioned Venezuelan tanker, adding a fresh supply-risk premium to the market. US President Donald Trump called it the “largest ever” sanctions seizure. Sentiment was further supported by Energy Information Administration (EIA) weekly data showing that commercial crude inventories declined by 1.812 million barrels.

The Brent crude oil futures surged over 0.60 per cent in early trade to its intraday high of $62.63 per barrel. The West Texas Intermediate (WTI) crude oil futures rose nearly 0.80 per cent to the day’s high at $58.93 per barrel. However, few hours into trade, both the indices slipped to trade around nearly flat levels.

USD Vs INR

The Rupee opened almost unchanged at 89.87 against the US Dollar. However, it weakened soon after. The USD/INR pair advanced 0.61 per cent to 90.32, just shy of Rupee’s record low. The fall came mainly because the US Dollar was stronger in Asian trade and oil prices surged higher, putting pressure on the Rupee.