Summary of this article
The Gift Nifty points to a muted start, with Nifty 50 and Sensex closing marginally lower yesterday.
Rupee is near an all-time low of Rs 90.75 per dollar, fueling FII outflows and increasing input costs.
Optimism on the India-US trade deal framework is high, while a dip in Brent and WTI crude prices provides a crucial cost-saving benefit for import-dependent sectors.
Stock Market Cues: The Gift Nifty opened lower on December 16, indicating a muted start for the headline indices. Gift Nifty opened at 26,080.50 levels down by 3.5 points.
On December 15, Nifty 50 and the Sensex finished lower. The 30-share Sensex finished at 85,213.36 down by 54.3 points or 0.06 per cent and the Nifty 50 closed at 26,027.30 down by 19.65 points or 0.08 per cent.
Stock Market Cues For Today
On December 16, developments related to the India-US trade deal and weakness in the Indian rupee are expected to impact investor sentiment and trading activity. On the other hand the movement of other indices and changes in key commodities such as gold and crude oil are also likely to impact trade today:
India US Trade Deal
India and the US are close to finalising a trade deal according to a report by the Economic Times which cited Commerce Secretary, Rajesh Agrawal. The report stated that the framework for the trade deal may not require more rounds of formal discussions. However, the timeframe for reaching the agreement still remains unclear. Earlier in December, US deputy trade representative Rick Switzer visited New Delhi for trade negotiations. Notably, India and the US are negotiating a framework trade deal and a comprehensive Bilateral Trade Agreement (BTA).
Rupee Lows
The Indian rupee declined to new lows on December 15. In yesterday’s session the Indian rupee hovered close to an all-time historic low against the US Dollar. The Indian rupee has declined past the Rs 90 per dollar mark around the Rs 90.75 per dollar level. Decline in the Indian rupee feeds foreign institutional investor outflows and leads to increased input costs.
Crude Oil Prices Today
On December 16, crude oil prices dipped as West Texas Intermediate crude traded around $56.49 down by $0.33 or 0.56 per cent. The price of Brent Crude was around $60.21 down by $0.35 or 0.58 per cent in the early hours of the day.
Gold Rate On December 16
Physical gold prices gained in the morning hours of December 16 as the price of 24 karat gold was Rs 13,539 per gram, the price of 22 karat purity gold was around Rs 12,411 per gram and the price of 18 karat gold was around Rs 10,155 per gram.
Asian Indices Decline
On December 16, major Asian indices fell in the early hours of the day as the Nikkei 225 traded with a decline of 1.23 per cent and the Hang Seng traded with a decline of 1.94 per cent. The KOSPI and the Shanghai Composite were down by 1.84 per cent and 1.22 per cent around the same time.
US Markets
US market indices closed in the red on December 15. The Nasdaq Composite, S&P 500 and the Dow Jones Industrial Average closed in the red zone with declines of 0.59 per cent, 0.16 per cent and 0.09 per cent respectively.
