Summary of this article
A 25 basis point US Federal Reserve rate cut is widely anticipated, boosting market sentiment globally.
India-US trade talks and Russian President Putin's visit are key diplomatic developments influencing investor mood.
Investors are closely monitoring the uptick in crude oil prices and the weak opening of the Indian Rupee.
Stock Market Cues: Headline indices are expected to begin the session on a flat note on December 8, tracking the Gift Nifty which opened lower at 26,171 levels. In the previous session the headline indices extended gains as the Nifty 50 closed around the 26,186.45 level up by 0.59 per cent and the Sensex closed around 85,712.37 up by 0.52 per cent.
Stock Market Cues For Today
Investor sentiments are likely to be affected by a variety of cues on December 8 such as developments related to India-US trade talks, Russian President Vladimir Putin’s India visit, and expectations of a rate-cut from the US Federal Reserve. On the other hand, investors will also closely watch changes in gold prices, crude oil prices and changes in the rupee’s value.
India-US Trade Talks
Allison Hooker the US Under Secretary of State for Political Affairs is currently in India to bolster bilateral economic ties between the two countries. The US embassy added that the visit is a step forward in advancing a US-India partnership.
US Federal Reserve Rate Cut Expectations
The US Federal Reserve’s Open Market Committee (FOMC) is set to begin its meeting on December 9. Investors are closely observing any developments which may indicate a potential rate-cut. Presently, a rate cut of 25 basis points is being anticipated by market participants. The expectations come amid the release of key US macroeconomic data such as the Personal Consumption Expenditures Price Index. Notably, the Personal Consumption Expenditures Price Index indicated an increase of 0.3 per cent in September and in the 12 month period ended September 30, it surged by 2.8 per cent.
Indian Rupee
After falling to record lows last-week, the Indian rupee is likely to open with a negative bias around the 89.95 - 90.00 levels, slightly off its all-time lows. In today’s trade Rupee's trajectory is likely to be determined by a tug-of-war between global dollar dynamics and persistent domestic capital flow issues.
Crude Oil Prices Today
On December 8, crude oil prices witnessed an uptick, the price of West Texas Intermediate crude remained around $60.17 up by $0.08 or 0.13 per cent. The price of Brent Crude remained around $63.84 up by $0.09 or 0.14 per cent.
Gold Rate On December 8
Physical gold prices fell in the early hours of December 8, the price of 24 karat gold remained around Rs 13,014 per gram, the price of 22 karat gold was around Rs 11,929 per gram and the price of 18 karat remained around Rs 9,760 per gram.
Asian Indices Trade Mixed
On December 8, key Asian indices traded mixed as the Nikkei 225 and Hang Seng declined 0.08 per cent and 0.78 per cent respectively. On the other hand, the KOSPI and the Shanghai Composite traded higher by 0.25 per cent and 0.63 per cent respectively.
US Markets
US market indices finished the session in the green on December 5, the Nasdaq Composite, S&P 500 and the Dow Jones Industrial Average closed the session higher by 0.31 per cent, 0.19 per cent and 0.22 per cent respectively.
