In the previous session on December 10, 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.
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.
This is a developing story...
