Stock Market Update: Indian Markets Set for Strong Start as Fed Cut Improves Global Sentiment

Indian equity benchmarks are expected to open on a positive note on Thursday after three consecutive sessions of declines, supported by improving global sentiment following the US Federal Reserve’s 25-basis-point rate cut.

GIFT Nifty futures, trading near 25,960, signal a higher, which closed at 25,758 on Wednesday. Broader Asian markets opened with gains of around 0.4%, tracking overnight strength in US equities after the Fed announcement.

Fed’s Decision and its Implications for India

Jerome Powell, the Federal Reserve Chairman, avoided committing to any more rate cuts, but he referred to the labor market risk rising, and the necessity for a balanced policy action gave investors some comfort. 

A US rate environment that is softer usually reduces the difference in yields and increases the relative appeal of markets such as India.

However, during the last three days, the domestic indices experienced a dip of almost 1.6% due to continuous foreign selling and the uncertainty regarding India-US trade talks.

Foreign portfolio investors have sold $1.56 billion worth of equities in December, four times November’s outflows, and cumulative selling has reached almost $18 billion for 2025.

Sector Trends 

On December 10, the metals sector was the only notable gainer, rising nearly 0.5% on firm global prices. IT, capital goods, real estate, consumer durables, PSU banks, and private banks saw declines between 0.5% and 1%.

Sensex Outlook

The Sensex is ready for a positive opening after the oversold conditions over the last few sessions. This may support a temporary price rebound.

For intraday traders, 84,400 emerges as the key support level. If the Sensex manages to stay above 84,400, it is likely to attempt a recovery toward the 85,000-85,500 zone. 

Conversely, if the index closes below 84,400, it may invite renewed selling pressure, increasing the possibility of a decline toward 84,000 or even lower levels.

Nifty 50 Outlook 

Analysts expect Nifty 50 to trade within a 25,700-26,200 band. A slip below 25,700 could drag the index toward the 25,500-25,400 support region. 

Upside resistance levels remain at 26,000 and 26,325. Given the current volatility, short-term traders are advised to follow a sell-on-bounce strategy.

Bank Nifty View

Bank Nifty is expected to also stay in a range, consolidating between 58,500 and 60,100. Support areas are set at 58,200-58,600, and resistance is seen at 59,500, with the major barrier being the all-time peak of 60,100.

The experts indicate that the index could keep on consolidating until the global triggers become clearer or there is a shift in FII flows.

Also Read: US Stock Market Today: Global Stocks Hold Steady with Fed Decision and Oracle Results Driving Sentiment