The Indian stock market benchmark indices, Sensex and Nifty 50, will likely open flat on Friday as investors await the Reserve Bank of India’s monetary policy decision and react to overnight muted global cues.

Asian markets traded lower, while US markets ended mixed overnight, even as growing expectations of a US Federal Reserve rate cut supported overall sentiment.

Investors will closely track the RBI policy announcement today. The Monetary Policy Committee (MPC), led by RBI Governor Sanjay Malhotra, is expected to keep the repo rate steady at 5.50%.

However, on Thursday, Indian markets closed higher, ending a four-session losing streak, with the Nifty 50 reclaiming the 26,000 mark.

Domestic Market Recap

On Thursday, Indian indices closed in the green:

• Sensex gained by 158.51 points (0.19%) to close at 85,265.32
• Nifty 50 moved up by 47.75 points (0.18%) to settle at 26,033.75

Gift Nifty

Gift Nifty was trading near 26,177, around 10 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

The US stock market closed mixed on Thursday as investors assessed a fresh labour market report and other economic data, while strong expectations of a Federal Reserve interest-rate cut next week continued to support sentiment.

• The Dow Jones Industrial Average slumped by 31.96 points (0.07%) to close at 47,882.94.
• S&P 500 up by 7.40 points (0.11%), ending at 6,857.12.
• The Nasdaq Composite was higher by 51.04 points (0.22%), finishing at 23,505.14

Gold Prices 

• Spot gold was trading 0.1% lower at $4,203.89 per ounce.
• The US gold futures slumped by 0.2% to $4,233.60.

Crude Oil Prices

• Brent crude gained by 0.09% to $63.32/barrel
• US West Texas Intermediate (WTI) crude was trading 0.07% higher at $59.71/barrel

Overnight Major Global Events Driving Sentiment

1. Sebi Proposals on Options Trading: Sebi has proposed overhauling the way limits on equity index option positions are calculated, shifting from the total contract value method to a framework that more accurately reflects actual risk. Under the new proposal, trading members can hold up to 15% of the total market-wide positions in equity index options on a delta-adjusted basis.
2. Vladimir Putin’s India Visit: Russian President Vladimir Putin has started his two-day visit to India, arriving in Delhi on the evening of 4 December for the 23rd India–Russia Annual Summit. During the visit, he will meet Prime Minister Narendra Modi to discuss a wide range of regional and global issues that matter to both countries.
3. US Jobless Claims: US unemployment claims dropped to their lowest level in more than three years. Initial filings for state jobless benefits fell by 27,000 to a seasonally adjusted 191,000 for the week ending 29 November — the lowest since September 2022.
4. Japanese Bond Yields: Japanese government bonds continued to decline, pushing yields to an 18-year high. The 10-year JGB yield edged up 0.5 basis points to 1.94%, the highest level since July 2007. With a 13.5 bps rise this week, it is heading for the steepest five-day increase since March.

Tired of guessing stocks to trade in daily?
Unicorn Signals empowers you with powerful tools like daily stock scans for Intraday, Swing & Investing, Market Predictions and much more. Download the Unicorn Signals app today and take control of your investments!