Market may open gap down on Dec 20, 2024

20 Dec 2024 , 09:17 AM

Following clues from the GIFT Nifty trading at roughly 23,934.50 this morning, the Indian benchmark indices Sensex and Nifty 50 are probably going to start the day weakly on December 20.

As global market weakness impacted heavily on investor mood, India’s key indices, the Sensex and Nifty, fell more than 1% on December 19, marking their fourth straight session of fall.

The US Federal Reserve’s cautious outlook on rate decreases, which tempered optimism, before the decline. Markets throughout the world were uneasy when the Fed revised its 2025 rate-cut prediction, which had previously called for four rate cuts.

The Nifty declined 1.02%, losing 247.6 points to close at 23,951.25, while the Sensex slid 1.2%, losing 964 points to conclude at 79,218, at the end of trade.

The GIFT Nifty is down, which suggests that the day is off to a bad start. At 7:00 am IST, Nifty futures were trading at 23,934.50.

Early Friday saw Asian stocks move in a narrow range as the Federal Reserve’s hawkish stance continued to pressure US Treasuries and stocks while strengthening the currency.

After the Federal Reserve predicted fewer-than-expected interest rate reduction and stronger inflation next year, US stocks ended Thursday’s trading session little changed, giving up an early recovery after a steep decline the previous day.

Economic statistics supported the Fed’s assessment, with weekly initial jobless claims declining faster than anticipated and the third-quarter GDP revised to indicate a 3.1% increase from the 2.8% rate previously reported.

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