10 Big Overnight Changes Affecting Indian Stocks — From GIFT Nifty to Gold Prices
Discover the top 10 overnight market changes impacting Indian stocks today, from GIFT Nifty trends and Japan’s bond yields to global cues and gold price movements
The Indian stock market is poised for a weak start on Tuesday, with the Sensex and Nifty 50 expected to open lower ahead of the US Federal Reserve’s policy decision due tomorrow. Gift Nifty was trading near the 25,958 mark, showing a discount of about 0.3%.
Asian markets also traded in the red, as investors grew increasingly anxious about how aggressively the Fed may ease policy beyond this week’s widely expected rate cut. While a reduction in rates is anticipated, some strategists warn the Fed’s committee could be sharply divided, heightening uncertainty.
Back home, Indian equities witnessed a sharp sell-off on Monday, 8 December, with losses across sectors amid mixed global cues. The Sensex fell 610 points, or 0.71%, to close at 85,102.69, while the Nifty 50 dropped 226 points, or 0.86%, to end at 25,960.55. The BSE Midcap and Smallcap indices plunged 1.73% and 2.20%, respectively.
Investors saw over ₹7 lakh crore wiped out in a single session, as the total market capitalisation of BSE-listed companies slipped to about ₹463.6 lakh crore, down from ₹471 lakh crore in the previous trading day.
“Currency weakness and continued foreign outflows kept markets cautious, with traders turning defensive ahead of major global policy cues. With limited domestic triggers, all attention now shifts to the U.S. Federal Reserve meeting scheduled this week, where clarity on the interest-rate outlook and liquidity stance will be closely watched. Any policy signal from the Fed could influence currency movements, foreign capital flows, and near-term risk appetite in emerging markets,” said Vikram Kasat, Head Advisory, PL Capital.
Asian shares slipped on Tuesday as traders grew increasingly uneasy about how aggressively the Federal Reserve may ease policy after this week’s widely expected rate cut. MSCI’s index of regional equities dipped 0.2%, with benchmarks in Korea, Japan and Australia opening lower. US stock futures, however, inched higher after the S&P 500 fell 0.3% on Monday, while US Treasuries joined a broader global bond selloff. Australian yields also rose ahead of the Reserve Bank’s policy decision. The caution reflects market nerves ahead of Wednesday’s Fed meeting, where a 25 basis-point cut is broadly anticipated.
Gift Nifty was trading around 25,958 level, a discount of nearly 82 points or 0.3% from the Nifty futures’ previous close, indicating a weak start for the Indian stock market indices.
Wall Street’s major indexes ended lower on Monday, with most S&P 500 sectors slipping into the red, while Treasury yields climbed as investors braced for the Federal Reserve’s monetary policy decision due in two days. The Dow Jones Industrial Average fell 215.67 points, or 0.45%, to 47,739.32. The S&P 500 declined 23.89 points, or 0.35%, to 6,846.51, and the Nasdaq Composite eased 32.22 points, or 0.14%, to 23,545.90.
Among individual movers, Paramount Skydance’s hostile $108.4 billion bid to acquire Warner Bros Discovery drew significant attention as it sought to outbid Netflix. The announcement lifted Warner Bros Discovery shares by 4.4%, while Paramount surged 9%. Netflix, however, dropped 3.4% following the development.
All eyes are on the Federal Reserve’s announcement on Wednesday. Although a rate cut is widely expected, several strategists believe the policy committee may be sharply divided, with some investors suggesting the meeting could be one of the most contentious in years. The Federal Open Market Committee has not seen three or more dissents since 2019, and such occurrences have happened only nine times since 1990.
Investors are also preparing for indications that the easing cycle may be milder than anticipated. According to CME Group’s FedWatch Tool, markets now assign an 87.4% probability to a 25 basis-point cut—a stark shift from earlier, when odds were below 30% before recent remarks from Fed officials dramatically reshaped expectations.
Yields on five-year Japanese government bonds hovered near a 17-year high on Tuesday as investors prepared for a fresh auction and continued to price in the growing likelihood of rate hikes by the Bank of Japan. Market sentiment was further strained by reports of damage from a powerful earthquake that struck northeastern Japan late Monday.
The five-year yield held at 1.445%, after hitting 1.45% on Monday—its highest level since June 2008. The benchmark 10-year yield remained at 1.965%, just under the 18-year peak of 1.97% reached in the previous session, while the 20-year yield inched up 0.5 basis point to a record 2.955%.
President Donald Trump has approved Nvidia Corp. to ship its H200 artificial intelligence chip to China in exchange for a 25% surcharge, opening the door for the world’s most valuable company to potentially reclaim billions of dollars in business from a critical market.
Trump announced the decision on his Truth Social platform, following weeks of discussions with advisers over whether to permit H200 exports. He said he had informed Chinese President Xi Jinping, who responded positively. Trump added that shipments would be limited to “approved customers” and that other chipmakers, including Intel Corp. and Advanced Micro Devices Inc., would also qualify.
Black Friday discounts were not enough to offset a slowdown in UK retail spending as the Labour government’s budget weighed on consumer confidence, the British Retail Consortium reported Tuesday.
Total retail sales rose just 1.4% year-on-year in November, marking the weakest growth since May and falling below the 12-month average. Like-for-like sales increased 1.2%. Robust demand for household appliances and computing products failed to counter sluggish sales of clothing and footwear.
U.S. Treasury yields and the dollar climbed on Monday as traders positioned themselves ahead of this week’s Federal Reserve meeting, where an interest rate cut is widely anticipated. The US 10-year yield hit its highest level since September in Monday’s session, extending bond selling in Europe and Japan and supporting the dollar.
The dollar also strengthened against the yen following news of the earthquake in Japan. Depending on the severity of the damage, the Bank of Japan may be forced to delay the rate hike it had been expected to deliver next week.
Gold held steady on Tuesday as traders looked past an almost certain US interest-rate cut and focused instead on clues about next year’s monetary policy path. Bullion hovered near $4,193 an ounce, after finishing the previous session slightly lower. Treasury yields rose on Monday ahead of several auctions and the Federal Reserve’s rate decision on Wednesday, which could shape expectations for 2026. As of 7:24 a.m. Singapore time, gold was trading at $4,192.69 an ounce, while silver dipped 0.1% to $58.1045. The Bloomberg Dollar Spot Index closed Monday up 0.1%, and both palladium and platinum were little changed.
Oil steadied on Tuesday after posting its sharpest decline in nearly three weeks, as traders awaited fresh data to confirm signs of a growing supply glut. West Texas Intermediate hovered near $59 a barrel after a 2% slide on Monday, while Brent crude settled above $62. The US Energy Information Administration will release its short-term energy outlook later Tuesday, followed by monthly reports from the International Energy Agency and OPEC on Thursday, which are expected to shed more light on the scale of the global oversupply as production continues to outpace soft demand.
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