Global Market Cues

Global markets are exhibiting a positive sentiment as Indian markets prepare to open. US stocks closed higher on Friday, December 19, effectively snapping a four-day losing streak. The S&P 500 advanced by 0.88%, the Nasdaq Composite by 1.31%, and the Dow Jones Industrial Average gained 0.38%. This recovery was largely attributed to positive global cues following softer-than-expected US inflation data, which boosted risk appetite and fueled a rally in AI-related stocks.

Asian equities have also started the week on a strong note, tracking the positive momentum from Wall Street. MSCI Inc.'s Asia-Pacific shares saw a 0.5% rise, with technology stocks leading the gains. Japan's Nikkei 225 surged by 1.58%, and South Korea's Kospi jumped 1.83%. China's central bank opted to keep its loan prime rates steady.

In Europe, markets closed higher on Friday, with the STOXX 50 up 0.6% and the STOXX 600 reaching a fresh record, driven by expectations of future Fed rate cuts and a reduced likelihood of ECB rate hikes in 2026.

Crude oil prices are on the rise in early Asian trade this Monday. Brent crude futures increased by 0.73% to $60.91 per barrel, while US West Texas Intermediate (WTI) crude saw a 0.71% gain to $56.92. This uptick is primarily due to escalating geopolitical tensions, particularly reports of the US pursuing Venezuelan oil tankers and potential renewed tensions between Israel and Iran.

Gold prices also witnessed an increase, reaching $4376.92 USD/t.oz on December 22, 2025, marking a 0.79% rise from the previous day and hitting an 8-week high.

It is important to note that global trading volumes are expected to be subdued throughout the week due to the extended Christmas holidays in many major markets.

GIFT Nifty and Domestic Cues

GIFT Nifty is signaling a positive opening for the Indian benchmark indices, aligning with the upbeat global sentiment. It was observed trading near the 26,170 level, up by 139 points or 0.54% from the Nifty futures' previous close. Other reports indicate the GIFT Nifty 50 Index futures trading at 26,177.5 levels, up by 16.5 points at 6:47 AM IST, or 26,035.5 USD, having risen 0.61% in the past 24 hours.

Domestically, Indian benchmark indices concluded Friday's session with significant gains, breaking a four-day losing streak. The Sensex climbed 448 points (0.53%) to close at 84,929.36, and the Nifty 50 advanced 151 points (0.58%) to settle at 25,966.40. This recovery was supported by a stable rupee, positive global cues, and the Bank of Japan's policy outcome. Broader markets also outperformed, with both the BSE Midcap and Smallcap indices rising over 1%. Foreign Portfolio Investors (FPIs) turned net buyers in the last two sessions, further bolstering market sentiment. The Indian rupee strengthened considerably against the US dollar, closing at 89.27 on December 19.

Analysts suggest that the Nifty is likely to remain range-bound between 25,700 and 26,300 for the upcoming week, with a "buy-on-dips" strategy recommended for investors. The India VIX remains low, indicating subdued volatility.

Key Stocks in Focus

Several stocks are expected to be in focus today:

• Jio Financial Services, BEL (Bharat Electronics Ltd), and Asian Paints: These stocks have been recommended for buying, with Jio Financial Services showing signs of a bullish reversal.
• Infosys, Varun Beverages, Tata Steel, Tech Mahindra, and Rites, Shriram Finance: These are also listed as stocks to watch.
• Realty, Auto, Healthcare, and Chemical sectors: These sectors saw strong performance on Friday and could continue to be in focus.
• IT stocks: These are gaining attention due to positive global cues and recent positive results from companies like Accenture.
• InterGlobe Aviation: Will be entering the Sensex today as part of a BSE index reshuffle.
• Canara Robeco AMC: The record date for its interim dividend is today.

Key Events to Watch Today

• India's infrastructure output data: Investors will be closely watching for this release.
• BSE Index Reshuffle: Changes in the Sensex and other BSE indices, including the entry of InterGlobe Aviation, become effective today.
• IPOs: Gujarat Kidney IPO will open for public subscription, along with several SME IPOs including EPW India, Dachepalli Publishers, Shyam Dhani Industries, and Sundrex Oil Company. Neptune Logitek will debut on the BSE SME platform.
• Global Holiday Impact: Trading volumes may be lower globally due to the Christmas holiday period, which could lead to reduced liquidity and potentially higher volatility.

TAGS: Pre-Market, Stock Market, Nifty, Sensex, Market Update

Tags: Pre-Market Stock Market Nifty Sensex Market Update

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