Summary of this article
Headline indices are expected to open marginally lower, tracking Gift Nifty's muted start near 25,905, after Nifty 50 dipped 0.47 per cent and Sensex fell 0.51 per cent on December 9.
The US Federal Reserve's policy decision, with a widely anticipated 25 basis point rate cut, and its future path commentary are major drivers for investor sentiment today.
India-US trade negotiations focusing on market access for crops will commence a new round of talks
Stock Market Cues For Today: D-street is set to factor in a range of cues on December 10. The headline indices are expected to open marginally lower, tracking a muted start to the Gift Nifty which opened around the 25,905 levels with a dip of 7 points.
On December 9, the headline indices extended declines for the second straight session as the Nifty 50 finished around 25,839.65 with a dip of 0.47 per cent while the Sensex finished around 84,666.28 down by 0.51 per cent.
Stock Market Cues For Today
On December 10, investor sentiment will be framed by anticipation regarding the announcement of a potential interest rate cut by the US Federal Reserve, updates on the India-US trade deal and changes in gold,silver and crude oil prices.
US Federal Reserve Policy Decision
Investors in India are anticipating the policy decision announcement by the US Federal Reserve’s Open Market Committee. Analysts anticipate a 25 basis point cut. On the other hand the market is also expected to react to the Fed's commentary on future rate paths for 2026 CME’s FedWatch Tool hints at 89 per cent odds in favour of a 25-bps reduction. Notably, lower interest rates in the US can potentially make US bonds less lucrative which might prompt Foreign Institutional Investors (FIIs) to shift their investment into emerging markets such as India.
India US Trade Negotiations
According to a report by news agency IANS, the United States is expected to go ahead with trade negotiations with India. As per the report, US Trade Representative Jamieson Greer said that India’s deal is “the best we’ve ever received as a country. The talks between India and US are centred around expanding access to Indian markets for crops like grain sorghum and soy as per the report. Notably, a fresh round of talks is also set to begin between the two countries as a three-day long discussion process is set to commence today. A delegation of US trade negotiators led by Deputy USTR Rick Switzer and India-deal chief negotiator Brendan Lynch has already arrived in New Delhi.
Crude Oil Prices Today
On December 10, crude oil prices inched upwards as West Texas Intermediate crude traded around $58.29 up by $0.04 or 0.14 per cent. The price of Brent Crude was around $62.02 up by $0.08 or 0.13 per cent in the early hours of the day.
Gold Rate On December 10
Physical gold prices dipped in the morning hours of December 10 as the price of 24 karat gold was Rs 12,943 per gram, the price of 22 karat purity gold was around Rs 11,864 per gram and the price of 18 karat gold was around Rs 9,707 per gram.
Asian Indices Trade Mixed
On December 10, major Asian indices witnessed declines in the early hours of the day as the Nikkei 225 traded lower by 0.35 per cent, the Hang Seng index dipped 0.36 per cent and the Shanghai Composite fell 0.72 per cent. However, South Korea’s KOSPI traded in the green up by 0.22 per cent, bucking the trend.
US Markets
US market indices closed mixed on December 9, the Nasdaq Composite finished the session higher by 0.13 per cent. On the other hand the S&P 500 and the Dow Jones Industrial Average closed lower by 0.09 per cent and 0.38 per cent respectively.
