India’s benchmark indices, the Sensex and Nifty 50, are set to open flat to slightly lower on Thursday, December 17, extending their recent weakness amid subdued overnight global cues.

Asian markets also traded lower, tracking Wall Street’s fourth consecutive decline ahead of key US inflation data.

However, the Indian equities closed lower for the third straight session on Wednesday as a weak rupee, sustained foreign fund outflows, and delays in the India–US trade agreement weighed on investor sentiment.

Domestic Market Recap

On Wednesday, Indian indices closed in the red:

• Sensex slumped by 120 points (0.14%) to close at 84,559.65
• Nifty 50 moved down by 42 points (0.16%) to settle at 25,818.55

Gift Nifty

Gift Nifty was trading near 25,871, around 15 points lower than the previous Nifty futures close, hinting at a muted start for Indian markets.

Overnight Wall Street Performance

The US stocks fell for a fourth straight session on Wednesday as heavy selling in AI-related shares overshadowed optimism about further interest-rate cuts by the US Federal Reserve.

• The Dow Jones Industrial Average slumped by 228.29 points (0.47%) to close at 47,885.97.
• S&P 500 down by 78.83 points (1.16%), ending at 6,721.43.
• The Nasdaq Composite was lower by 418.14 points (1.81%), finishing at 22,693.32.

Gold Prices

• Spot gold was trading 0.24% lower at $4,331.13 per ounce.
• The US gold futures slumped by 0.28% at $4,361.85.

Crude Oil Prices

• Brent crude soared by 1.54% to $60.60/barrel
• US West Texas Intermediate (WTI) crude was trading 1.70% higher at $56.89/barrel

Overnight Major Global Events Driving Sentiment

1. US Fed Uncertainty: Uncertainty is rising in the US over the timing of the Federal Reserve’s next interest-rate cut and President Donald Trump’s choice to succeed Fed Chair Jerome Powell. Fed Governor Christopher Waller said on Wednesday that the central bank still has scope to lower rates as the labor market shows signs of weakening. However, Atlanta Fed President Raphael Bostic disagreed, stating that last week’s rate cut was unnecessary and that he does not expect any further rate reductions in 2026.

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