The Sensex and Nifty 50 are set to open sharply higher on Friday, December 12, lifted by strong overnight global cues after the Dow and S&P 500 hit record highs following the US Federal Reserve’s rate cut.

Asian markets tracked Wall Street’s gains, further strengthening the positive outlook for Indian equities.

Moreover, in India, the market ended a three-session losing streak on Thursday, December 11, and bounced back sharply after the Fed cut rates by 25 basis points and signaled one more reduction next year.

Domestic Market Recap

On Thursday, Indian indices closed in the green:

• Sensex slumped by 427 points (0.84%) to close at 84,818.13
• Nifty 50 moved up by 141 points (0.55%) to settle at 25,898.55

Gift Nifty

Gift Nifty was trading near 26,134, around 108 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

The US stocks rose on Thursday, with the Dow and S&P 500 closing at record highs after the Federal Reserve cut interest rates and offered a softer-than-expected policy outlook. The S&P 500 posted its first record finish in over a month as investors shifted into financial and materials stocks amid worries about overheated AI valuations. The Nasdaq slipped, dragged down by tech shares after Oracle issued weak guidance.

• The Dow Jones Industrial Average gained by 646.26 points (1.34%) to close at 48,704.01.
• S&P 500 up by 14.32 points (0.21%), ending at 6,901.00.
• The Nasdaq Composite was higher by 60.30 points (0.25%), finishing at 23,593.86.

Gold Prices

• Spot gold was trading 0.2% lower at $4,277.64 per ounce.
• The US gold futures slumped by 0.1% at $4,307.80.

Overnight Major Global Events Driving Sentiment

1. Trump–Modi Talks: Prime Minister Narendra Modi and U.S. President Donald Trump spoke on Thursday as both sides moved closer to a potential trade agreement. They reviewed progress in the India–US strategic partnership and discussed expanding cooperation in trade, critical technologies, energy, defence and security, according to an official statement.
2. US September trade deficit shrinks: The U.S. trade deficit narrowed sharply in September to its lowest level since 2020. Delayed Commerce Department data showed the gap fell 10.9% to $52.8 billion as Trump’s new tariffs began to kick in. Exports rose 3% to $289.3 billion, while imports increased only 0.6%.