Here's a news article covering the overnight changes in the Indian stock market:
Indian Stock Market Navigates Global Cues and Domestic Developments
The Indian stock market is poised for a relatively flat opening on Friday, December 5, 2025, as it navigates a complex interplay of global cues and domestic developments. Ahead of the Reserve Bank of India's (RBI) monetary policy announcement, market participants are weighing mixed signals from international markets and the potential impact of Russian President Vladimir Putin's ongoing visit to India.
Gift Nifty Signals a Flat Start
The Gift Nifty, a derivative contract traded on the NSE International Exchange (NSE IX) in GIFT City, is indicating a muted opening for Indian benchmark indices. Trading around the 26,177 level, the Gift Nifty is showing a discount of approximately 10 points from the Nifty futures' previous close, suggesting a flat start for the Indian stock market. The Gift Nifty, which replaced the SGX Nifty, serves as a key pre-market indicator for the Nifty 50, reflecting overnight reactions to global news and market sentiment. It is a valuable tool to gauge how international developments might influence the Nifty 50.
Global Market Overview
Asian markets are trading lower, mirroring a subdued session on Wall Street. In the US, stocks ended mixed on Thursday as investors analyzed labor market reports and economic data, balancing these with hopes for a Federal Reserve interest rate cut. The Dow Jones Industrial Average fell 0.07%, while the S&P 500 ended slightly higher. European equity markets traded higher.
RBI Monetary Policy in Focus
Market participants are keenly awaiting the RBI's monetary policy announcement. The Monetary Policy Committee (MPC), led by RBI Governor Sanjay Malhotra, is widely expected to maintain the repo rate unchanged at 5.50%. Any indication of a potential rate cut could act as a catalyst for the market.
Vladimir Putin's India Visit
Russian President Vladimir Putin's two-day state visit to India, which began on December 4, 2025, is also under close observation. The visit, which includes meetings with Prime Minister Narendra Modi, focuses on strengthening economic cooperation, trade, energy, and defense cooperation. India is seeking to narrow its trade deficit with Russia and expand market access for Indian goods such as pharmaceuticals and agricultural products. While the diplomatic relationship between India and Russia remains strong, historical data suggests that high-level state visits have sometimes coincided with market corrections. Strengthening geopolitical ties in New Delhi has, at times, led to risk aversion on Dalal Street.
Gold Prices and Market Sentiment
Gold prices continue to be an important factor influencing market sentiment. Globally, expectations of Federal Reserve interest rate cuts tend to support gold prices, as they reduce yields on bonds and fixed-income assets, prompting investors to shift to gold. Increased liquidity resulting from rate cuts also tends to be favorable for both gold and equities. High gold prices can affect consumer sentiment and buying patterns, with customers potentially favoring lightweight and lower carat jewelry.
Rupee and FII Flows
On Wednesday, the Indian stock market extended its decline for the fourth consecutive session, pressured by a weaker rupee. Persistent Foreign Institutional Investor (FII) outflows have also been a concern. On Thursday, FIIs sold equities worth Rs 3,206.92 crore, while Domestic Institutional Investors (DIIs) purchased stocks valued at Rs 4,730.41 crore.
Thursday's Market Performance
On Thursday, the Indian stock market ended higher, snapping its four-session losing streak. The Sensex rose 158.51 points, or 0.19%, to close at 85,265.32, while the Nifty 50 settled 47.75 points, or 0.18%, higher at 26,033.75.
