Indian stock market investors are waking up to a changed landscape, influenced by several overnight global and domestic cues. Here are eight key factors impacting market sentiment as of December 4, 2025:
1. Gift Nifty Signals Subdued Start:
Gift Nifty, a precursor to the Indian Nifty 50, is trading at around 26,093, a discount of approximately 43 points from the Nifty futures' previous close. This suggests a potentially negative opening for Indian stock market indices. Previously, on December 2nd, Gift Nifty indicated a flat start for the Indian stock market indices.
2. US Private Payrolls Disappoint:
Data on US private payrolls has come in weaker than expected. This development has increased hopes for a potential rate cut by the Federal Reserve. This could lead to increased liquidity and potentially boost risk assets like stocks.
3. Japanese Bond Yields Surge:
Yields on 10-year Japanese Government Bonds (JGBs) have climbed to 1.88%, marking the highest level since June 2008. Furthermore, the 20-year JGB yield has reached 2.915%, a level unseen since 1999, and the 30-year JGB yield has hit an all-time high of 3.411%. These rising yields in Japan, a major global economy, could influence capital flows and impact bond markets worldwide.
4. Wall Street Performance:
Overnight, the US stock market ended higher, buoyed by the weaker private jobs data which bolstered hopes of a Federal Reserve rate cut. The Dow Jones Industrial Average declined 427.09 points, or 0.90%, to 47,289.33, while the S&P 500 fell 36.46 points, or 0.53%, to end at 6,812.63. The Nasdaq Composite closed 89.76 points, or 0.38%, lower at 23,275.92.
5. Asian Market Cues:
Asian markets are displaying mixed trends. On December 2nd, Asian markets traded mostly higher, despite an overnight fall in Wall Street. Japan's Nikkei 225 rose 0.33%, and the Topix index gained 0.44%. South Korea's Kospi rallied 1.14%, while Kosdaq eased 0.13%. These mixed signals add complexity to the outlook for the Indian market.
6. FII Activity:
On November 13, 2025, FIIs (Foreign Institutional Investors) remained net sellers, but the quantum of selling has decreased in both cash and derivative markets.
7. Technical Levels to Watch:
The Nifty is expected to find support in the range of 25,600 to 26,000.
8. IPO Updates:
The Aequs IPO opened on Wednesday, December 3rd, with the price band set at ₹118 to ₹124 per share. On its opening day, the issue was subscribed 3.55 times, receiving a robust response. The IPO has seen strong oversubscription in the retail segment.
In conclusion, the Indian stock market is likely to react to a blend of domestic and international factors. Investors will be closely monitoring Gift Nifty trends, analyzing the implications of US payroll data and Japanese bond yield movements, and assessing overall global cues for informed decision-making.
