The key Indian stock market indices, Sensex and Nifty 50, are likely to open higher on Thursday, tracking overnight global gains after Nvidia’s earnings sparked a rally in AI chip stocks worldwide.

Asian markets traded in positive territory, with Japan’s Nikkei reclaiming the 50,000 mark, while US markets also rose overnight, driven by strong buying in tech stocks.

However, on Wednesday, Indian equities closed higher as select index heavyweights advanced, helping the Nifty 50 climb back above the 26,000 level.

Domestic Market Recap

On Wednesday, Indian indices closed in the green:

• Sensex soared by 513.45 points (0.61%) to close at 85,186.47
• Nifty 50 moved up by 142.60 points (0.55%) to settle at 26,052.65

Gift Nifty

Gift Nifty was trading near 26,145, around 74 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

The US stocks finished a volatile session higher on Wednesday, lifted by gains in technology shares ahead of Nvidia’s earnings release.

• The Dow Jones Industrial Average gained by 47.03 points (0.10%) to close at 46,138.77.
• S&P 500 up by 24.84 points (0.38%), ending at 6,642.16.
• The Nasdaq Composite was higher by 131.38 points (0.59%), finishing at 22,564.23.

Gold Prices 

Gold prices continued to rise as the metal recovered further from its recent decline, signalling strong underlying demand. Spot gold climbed 0.8% to $4,109.12 an ounce, after gaining 0.3% in the previous session.

Crude Oil Prices

• Brent crude gained 0.38% to $63.73/barrel
• US West Texas Intermediate (WTI) crude was trading 0.39% higher at $59.67/barrel

Overnight Major Global Events Driving Sentiment

1. US Trade Deficit: The US trade deficit narrowed by nearly 24% to $59.6 billion in August, down from $78.2 billion in July. Imports of goods and services fell 5% to $340.4 billion, while exports inched up 0.1% to $280.8 billion.
2. US Fed Minutes: Most US Federal Reserve policymakers supported additional interest rate cuts, though several were not ready to commit to reducing rates at the December meeting, according to the latest Fed minutes. Many officials noted that it would “likely be appropriate” to keep rates unchanged for the rest of the year, reflecting significant divisions within the committee.
3. Japan Bond Yields: Japanese government bonds continued to decline, pushing benchmark yields to a 17-year high. The 10-year JGB yield rose 3 basis points to 1.795%, briefly touching 1.8%, its highest level since June 2008. The two-year yield climbed 2.5 bps to 0.95%, while the five-year yield increased 4 bps to 1.300%. The yen hovered near a 10-month low against the dollar and hit a record low against the euro.
4. China LPR: China kept its benchmark lending rates unchanged for the sixth straight month in November, in line with market expectations. The People’s Bank of China maintained the one-year Loan Prime Rate (LPR) at 3.0% and left the five-year LPR steady at 3.5%.

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