Here's a report on the factors influencing the Indian stock market, focusing on overnight changes:
The Indian stock market is expected to start the week cautiously, taking cues from mixed global signals. Several factors have been influencing market sentiment, including trends in the GIFT Nifty, performance of Asian markets, and fluctuations in gold prices.
1. GIFT Nifty Indicates a Muted Start:
GIFT Nifty, formerly known as SGX Nifty, is a dollar-denominated derivatives contract based on the Nifty 50 index and traded on the NSE International Exchange (NSE IX). It serves as an early indicator of how the Indian stock market might open. On December 2nd, 2025, GIFT Nifty was trading near 26,332, around 2 points lower than the previous Nifty futures close, hinting at a lackluster start for Indian markets. Similarly, on December 5th, GIFT Nifty traded around 26,177, a discount of nearly 10 points from Nifty futures' previous close, also suggesting a flat opening for Indian indices.
2. Asian Markets Display Caution:
Asian markets were poised for a cautious start to the week as traders navigated deteriorating China-Japan relations, a heavy slate of central bank decisions and the broader outlook for risk assets heading into next year. On December 5th, Asian markets traded lower following an overnight subdued trading session on Wall Street. Japan's Nikkei 225 index fell 1.26%, while the Topix declined 1.12%. South Korea's Kospi rose 0.12%, while the Kosdaq retreated 0.25%. Hong Kong's Hang Seng Index futures indicated a lower opening.
3. Wall Street Ends Mixed:
Overnight on Wall Street, the US stock market ended lower on Monday, December 1st, as rising Treasury yields put pressure on equities. The Dow Jones Industrial Average slumped by 0.90%, the S&P 500 was down by 0.53%, and the Nasdaq Composite was lower by 0.38%. However, on Thursday, December 4th, the US stock market closed mixed as investors assessed a fresh labor market report and other economic data, while strong expectations of a Federal Reserve interest-rate cut next week continued to support sentiment.
4. Gold Prices Show Slight Decline:
Gold prices experienced a slight dip as investors booked profits after the metal had previously hit a six-week high. Spot gold was trading 0.2% lower at $4,222.93 per ounce, and the US gold futures slumped by 0.4% to $4,256.30. On December 5th, spot gold was trading 0.1% lower at $4,203.89 per ounce, and the US gold futures slumped by 0.2% to $4,233.60. On December 8, 2025, Gold rose to $4,204.09 USD/t.oz, up 0.12% from the previous day.
5. Crude Oil Prices Edge Higher:
On December 5th, Brent crude gained by 0.09% to $63.32/barrel, while US West Texas Intermediate (WTI) crude was trading 0.07% higher at $59.71/barrel.
6. India's Macroeconomic Data:
Recent data indicates that India's industrial production growth slowed to a 13-month low of 0.4% in October. Additionally, India's GST collections dropped to a year-low of Rs 1.70 lakh crore in November.
7. US Economic Data Impact:
The US stock market ended mixed on Thursday as investors weighed a labor market report and other economic data, while elevated hopes for a Federal Reserve interest-rate cut next week supported sentiment.
8. China-Japan Relations:
In Asia, Japanese assets will be in focus on Monday as relations with Beijing cool further after a Chinese fighter aircraft trained fire-control radar on Japanese military jets for the first time.
9. Anticipation of Central Bank Decisions:
Markets were also bracing for policy announcements from central banks spanning Australia to Brazil and the US, just as renewed inflation pressures prompt a reassessment of next year's monetary outlook. The Federal Reserve is still likely to cut interest rates on Wednesday.
10. Domestic Market Performance:
On Thursday, December 4th, the Indian stock market ended higher, snapping its four-session losing streak, with the Nifty 50 closing above 26,000 level. 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.
