Cooling US inflation may heat up local markets, GIFT Nifty signals positive open on firm global cues

Nifty, Sensex poised to open on a positive note on December 19.

After four straight sessions of losses, Indian equities may finally find some breathing room today, with early cues pointing to a green start as global markets cheer cooling U.S. inflation.

At 7.40 a.m., the GIFT Nifty was trading at 25,948, up 71 points or 0.27 percent, pointing to a firm start for domestic benchmarks.

Beyond the benchmark indices, capital market stocks - not just the capital markets - are expected to steal the spotlight. ICICI Prudential AMC is set to make its Dalal Street debut today, while SEBI’s latest push to rationalise mutual fund expense ratios is likely to keep the entire space in focus. Asset management and broking stocks had a field day on Thursday as Sebi’s softer-than-feared rejig of mutual fund fees and brokerage caps sent the sector higher.

Global cues

Wall Street bounced back overnight as investors took comfort from signs of cooling inflation, easing concerns around the future path of interest rates.

The tech-heavy Nasdaq Composite led gains, rising 1.4 percent, buoyed by a strong earnings performance from Micron, which sent its shares surging 10 percent. The rebound came a day after AI-related worries had triggered a sharp selloff in technology stocks. The S&P 500 advanced around 0.8 percent, while the Dow Jones Industrial Average added close to 0.2 percent.

Asian markets followed suit, supported by softer U.S. inflation data that strengthened the case for Federal Reserve rate cuts. Indices such as the Nikkei 225 and Kospi edged higher in early trade, though gains remained measured ahead of the Bank of Japan’s policy decision.

Things to watch

Japan is continuing to pour money into Indian companies. Mitsubishi UFJ Financial Group (MUFG) is expected to announce a strategic $4.45 billion investment in Shriram Finance for a 20 percent stake, according to people familiar with the matter. The deal could pave the way for an eventual acquisition, underscoring rising Japanese interest in India’s financial sector.

Accenture reported first-quarter FY26 revenue of $18.7 billion, up 6 percent in dollar terms and 5 percent in local currency, a performance that could offer positive read-throughs for Indian IT services companies.

Separately, U.S. President Donald Trump has signed into law a nearly $1 trillion annual defence policy bill, despite clauses that extend aid to Ukraine and limit the administration’s flexibility on scaling back U.S. defence commitments in Europe.

Derivatives view

Derivatives data points to aggressive call writing at the 25,900 strike, while strong put open interest at 25,700 highlights a clearly defined trading band. A sustained move above 25,900 will be crucial to reignite bullish momentum, while repeated rejection at this level could extend the ongoing consolidation.

Volatility remains muted, with India VIX slipping 1.32 percent to 9.70, signalling complacency and expectations of range-bound action in the near term.

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