Markets poised for positive start as global rally lifts sentiment

Global sentiment strengthened overnight as Wall Street rallied on optimism that the Fed’s policy easing will support growth while inflationary pressures from tariffs continue to fade

After three straight sessions of weakness, Indian equities look set for a firmer opening on December 11, buoyed by a global risk-on mood following the Federal Reserve’s third consecutive rate cut.

Gift Nifty was trading nearly 0.5 percent higher, up 117 points at 25,951, signalling a positive start for domestic benchmarks.

Global sentiment strengthened overnight as Wall Street rallied on optimism that the Fed’s policy easing will support growth while inflationary pressures from tariffs continue to fade. The MSCI Asia Pacific Index climbed 0.5 percent in early trade, tracking gains in the US, where the S&P 500 advanced 0.7 percent—just shy of record highs—and the Russell 2000 surged 1.3 percent to a new peak.

Fed Chair Jerome Powell said the central bank had likely done enough to stabilise employment risks while keeping policy tight enough to control prices. Officials also retained their projection of one rate cut in 2026 and revised their median growth estimates higher. Meanwhile, the Bank of Canada held rates steady, saying the current policy stance remained appropriate amid trade-related uncertainties.

Back home, the market closed weaker on December 10, with the Sensex down 275.01 points, or 0.32 percent, at 84,391.27, and the Nifty slipping 81.65 points to 25,758.

Experts said despite the decline, analysts highlighted that Nifty continues to trade above the rising channel support formed since October. The 20-EMA at 25,955 and 50-EMA at 25,729 remain intact, providing dynamic support. Monday’s intraday movement tested the lower band of the channel, placing the index in a zone where buyers typically reassert themselves.

Analysts said the 25,700 support region remains crucial to maintaining a constructive medium-term structure. A move above 25,860 could revive intraday strength, potentially pushing the index toward 25,950 and the psychological 26,000 mark. A breach below 25,700, however, may lead to a deeper correction toward 25,600–25,400.

Commodities mirrored the improved sentiment. Gold sustained its gains after the Fed decision, silver hit fresh highs, and oil extended its rally after the US seized a sanctioned tanker off Venezuela, raising concerns over potential supply disruptions.

Market watchers noted that with Asian indices firmly in the green and Gift Nifty signalling early strength, Indian equities appear poised for a mildly positive open. Despite recent volatility, the market is seen consolidating after a strong rally rather than reversing trend. Both Nifty and Bank Nifty are positioned at key trendline levels, making today’s session potentially pivotal. Analysts said holding above 25,850 would be essential for Nifty to regain momentum and avoid a deeper retracement.

India continues to outperform global peers, supported by healthy earnings, strong liquidity flows and macroeconomic stability. The tone remains cautiously optimistic, with investors inclined to accumulate on declines as long as structural supports remain intact. Experts added that Nifty’s behavior above 25,850 in the opening hour may set the tone for the day’s trade.