Indian Stock Market on 11.12.24

On Tuesday, the main Indian stock market index, Sensex, saw a small increase of just 1.59 points. Meanwhile, the Nifty 50, dropped a bit by 8.95 points, which is 0.04%, closing at 24,610.05. Overall, the market didn’t show much movement and ended the day quietly. Looking ahead to Wednesday, the markets might open with little change because global market trends are mixed. On another note, gold prices reached their highest point in two weeks, and the price of crude oil also went up a bit.

The Nifty index now stands just 6% below its peak from September, while the Nifty Smallcap 100 and Nifty Microcap 250 indices have already reached record levels, signaling a return to risk-on sentiment. Morgan Stanley has projected an upside potential of around 14% over the next year, setting a target of 93,000 for the Sensex in its base case scenario.

Analysts foresee strong performance in both domestic and export-driven manufacturing, supported by government incentives and the “China plus one” strategy. The IT services sector is anticipated to continue its positive momentum, buoyed by improved U.S. spending. Additionally, banks may experience some relief as liquidity tightens less following a Reserve Bank of India (RBI) cash reserve ratio (CRR) cut.

The US stock market ended lower overnight, with the Dow Jones down 0.35%, the S&P 500 falling 0.30%, and the Nasdaq Composite easing 0.25%, as tech stocks declined ahead of a key inflation report. Investors are awaiting the US inflation data, which could significantly influence the Federal Reserve’s interest rate decisions.

Asian markets showed modest gains, with Japan’s Nikkei 225 and Topix remaining flat, South Korea’s Kospi rising 0.11%, and Hong Kong’s Hang Seng futures pointing to a higher opening. Japan’s wholesale inflation rose to 3.7% in November, exceeding market expectations and indicating a faster pace of price increases.