Overnight Stock Market Movements: Key Developments 

Indian equities look set for a stronger opening on Friday, December 19, with the Sensex and Nifty 50 likely to start higher after four straight sessions of decline overnight.

Market sentiment improved significantly overnight on supportive global cues, as Asian stocks followed Wall Street’s rally after easing US inflation bolstered expectations of Federal Reserve rate cuts, and calmer tech stocks lifted broader markets.

However, on Thursday, December 18, the Sensex and Nifty 50 ended nearly flat with a mild negative bias, as the lack of fresh triggers kept investors cautious.

Domestic Market Recap

On Thursday, Indian indices closed in the red:

• Sensex slumped by 78 points (0.09%) to close at 84,481.81
• Nifty 50 moved down by 3 points (0.01%) to settle at 25,815.55

Gift Nifty

Gift Nifty was trading near 25,871, around 60 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

Wall Street’s key indices closed higher on Thursday as cooler-than-expected US inflation reinforced expectations of Federal Reserve rate cuts, while an upbeat outlook from Micron lifted confidence in AI-led demand. Data showed consumer prices rose less than anticipated in the year through November, although the Labour Department did not publish monthly CPI figures because the 43-day government shutdown disrupted October data collection.

• The Dow Jones Industrial Average gained by 65.88 points (0.14%) to close at 47,951.85.
• S&P 500 up by 53.33 points (0.79%), ending at 6,774.76.
• The Nasdaq Composite was higher by 313.04 points (1.38%), finishing at 23,006.36.

Gold Prices

• Spot gold was trading 0.16% lower at $4,325.03 per ounce.
• The US gold futures slumped by 0.24% to $4,353.75.

Crude Oil Prices

• Brent crude slipped by 0.28% to $59.65/barrel
• US West Texas Intermediate (WTI) crude was trading 0.27% lower at $55.85/barrel

Overnight Major Global Events Driving Sentiment

1. US CPI Data: US inflation cooled more than expected in November, offering signs of easing price pressure. The Consumer Price Index rose 2.7% year-on-year, below estimates of 3.1% and softer than September’s 3.0%, based on delayed data released by the Labour Department. Inflation has still trended higher through 2025 as President Donald Trump’s import tariffs lifted costs for businesses.
2. Bank of England Rate Cut: The Bank of England cut its key interest rate by 25 basis points to 3.75%, citing faster cooling inflation and ongoing economic weakness. The decision, approved by a narrow 5–4 vote, marked the first rate cut since August.
3. ECB Holds Rates: The European Central Bank kept rates unchanged for a fourth straight meeting, maintaining the deposit rate at 2%. Policymakers reiterated a data-dependent, meeting-by-meeting approach while projecting stronger growth and inflation returning to the 2% target by 2028.
4. Japan Inflation: Japan’s core inflation held at 3% for a second consecutive month, reinforcing expectations that the Bank of Japan will raise interest rates to around 0.75%, the highest level in nearly 30 years.

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