Indian Stock Market on 12.12.24

India’s economic indicators presented a mixed picture. CPI-based inflation eased to 5.48% in November, supported by better vegetable supplies. Meanwhile, industrial production hit a three-month high of 3.5% in October, fueled by a festive season boost in consumer goods and garment manufacturing. The Indian rupee faced a setback on Thursday, falling to an all-time low as continuous depreciation pressures and heightened demand for the U.S. dollar in the non-NDF market pulled it down. The rupee hit a bottom of 84.88 before ending a bit higher at 84.8575, still indicating a small decline for the day. The Reserve Bank of India (RBI) is actively offloading dollars in the spot market, aiming to protect the rupee from additional declines.

Mutual funds were actively reorganizing in November, injecting ₹264 billion into the secondary market. The active churn highlights fund managers’ efforts to optimize portfolios, with movements across large, mid, and small-cap stocks adding intrigue for investors tracking the market.

Gold prices soared by ₹500, hitting ₹80,900 per 10 grams, a ₹2,000 leap over three days. Meanwhile, silver joined the rally, climbing ₹700 to ₹97,000 per kg. With retailers and jewellers showing no signs of slowing down, the precious metals market is basking in the glow of strong demand.

Thursday’s opening bell brought a mixed bag for Wall Street. The Dow ticked up a modest 20 points, clinging to optimism at 44,168.66, while the S&P 500 and Nasdaq slid into the red, losing 0.16% and 0.44% respectively. Across the pond, the European Central Bank trimmed its benchmark rate to 3%, signaling concern over waning economic growth and geopolitical uncertainties. While the move is designed to cushion the eurozone’s economy, the shadow of potential U.S. tariffs looms large, adding another layer of complexity to global trade dynamics. Nikkei surged 1.21%, marking its fourth consecutive session of gains. The index closed at a two-month high, buoyed by Wall Street’s momentum and expectations of a Federal Reserve rate cut. For the first time in nearly two months, the Nikkei crossed the 40,000 threshold, showcasing robust investor confidence.