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Market Today

The benchmark Sensex and Nifty indices are likely to open slightly lower on December 22 as trends in the GIFT Nifty indicate a flat to negative start for the broader index with a loss of 26.50 points.

Despite opening lower, the benchmark indices gradually recouped losses and closed with gains on December 21 amid mixed global cues. Broader market indices, which saw sharp selling in the previous session, were in the limelight today.

Investor wealth, reflected by the total market cap of BSE-listed companies, rose by Rs 4.18 lakh crore taking the overall valuation to Rs 354.38 lakh  crore.

The Sensex closed the day up 358.79 points, or 0.51 percent, at 70,865.10, while the Nifty gained 104.90 points, or 0.5 percent, to close at 21,255.05.

The pivot point calculator indicates that the Nifty is likely to see immediate resistance at 21,292 followed by 21,366 and 21,485 levels, while on the lower side, it can take support at 21,054, followed by 20,981 and 20,862 levels.

Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.

GIFT Nifty

Trends in the GIFT Nifty indicate a flat to negative start for the broader index in India, with a loss of 26.50 points or 0.12 percent. The Nifty futures were trading around the 21,393.50 level.

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US Markets

Wall Street ends sharply higher, rebounding with a boost from chips.

US stocks closed higher on Thursday, winning back much of the previous day's losses, as economic data fuelled optimism that the Federal Reserve would ease monetary policy and revived investor risk appetite.

All three major US stock posted gains as chips surged, led by Micron Technology after its better-than-expected quarterly forecast, putting the tech-heavy Nasdaq out front.

The rally gained momentum as the session drew to a close, with the S&P 500 and the Nasdaq surging more than 1 percent.

Data on Thursday showed third-quarter US economic growth was not as robust as originally stated, and cracks are appearing in the tight labour market, which the Fed considers an obstacle to cooling inflation.

The Dow Jones Industrial Average rose 322.35 points, or 0.87 percent, to 37,404.35, the S&P 500 gained 48.4 points, or 1.03 percent, at 4,746.75 and the Nasdaq Composite added 185.92 points, or 1.26 percent, at 14,963.87.

Asian Markets

Asian markets rose heading into the Christmas weekend, with Japan reporting its November inflation numbers and its central releasing minutes of the October monetary policy meeting.

Govt grants one-time exemption to LIC to achieve 25% MPS in 10 yrs

The government has granted a one-time exemption to Life Insurance Corporation of India (LIC) to achieve 25 per cent Minimum Public Shareholding (MPS) within 10 years, the state-owned insurer said on December 21. The country's largest insurer LIC was listed in May 2022. The government had sold over 22.13 crore shares, or a 3.5 per cent stake in LIC, through an Initial Public Offering (IPO).

The government currently holds 96.5 per cent stake in the company. In a stock exchange filing, the state-owned insurer said the Department of Economic Affairs has decided to grant a "one-time exemption to LIC to achieve 25 per cent MPS within 10 years from the date of listing i.e., till May 2032".

RBI to conduct 7-day variable rate repo auction on December 22

The Reserve Bank of India (RBI) on December 21 said it will conduct a seven-day variable rate repo auction for a notified amount of Rs 1.75 lakh crore on December 22.

This announcement came when the liquidity in the banking system was in a huge deficit of around Rs 2.27 lakh crore.

The central bank also said that they have announced a repo auction based on a review of current and evolving liquidity conditions.

The auction will be held between 10:30 am and 11:00 am, and reversal of these funds will take place on December 29.

Oil Prices

Oil prices fell by roughly $1 a barrel on December 21 after Angola said it would exit the Organization of the Petroleum Exporting Countries (OPEC), raising questions about the producer group's efforts to support prices by limiting global supplies.

Brent futures fell 94 cents, or 1.18 percent, to $78.76 a barrel at 12:20 pm. (1720 GMT). US West Texas Intermediate crude dipped 96 cents, or 1.29 percent, to $73.26.

Gold Prices

Gold prices gained on December 21 as US Treasury yields retreated after economic data fuelled expectations for the Federal Reserve to cut interest rates in March next year.

Spot gold was up 0.6 percent at $2,041.27 per ounce, as of 12:35 pm ET (1735 GMT). US gold futures rose 0.3 percent to $2,053.20.

Dollar 

The dollar languished near a more than four-month low on Friday ahead of a reading on a key US inflation gauge due later in the day, which will provide further clarity on how much room the Federal Reserve has to cut interest rates next year.

The greenback hit a five-month trough against the New Zealand dollar and a three-week low against the euro in early Asia trade, resuming its decline after a sudden bout of risk aversion in New York hours on Wednesday led to a selloff in US stocks and a rise in the dollar.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 1,636.19 crore, while domestic institutional investors (DIIs) bought Rs 1,464.70 crore worth of stocks on December 21, provisional data from the National Stock Exchange (NSE) showed.

Stock under F&O ban on NSE

The NSE has added Hindustan Copper to its F&O ban list for December 22, while retaining Ashok Leyland, Balrampur Chini Mills, Delta Corp, India Cements, Manappuram Finance, RBL Bank and SAIL in the list. Indus Towers, National Aluminium Company and Piramal Enterprises were removed from the list.

With inputs from Reuters and other agencies