Indian Stock Market on 23.12.24

Monday’s market activity painted a picture of cautious optimism, driven by a glimmer of hope that the U.S. inflation reading might encourage more relaxed policies in the year ahead. Investors also found relief in Washington’s successful avoidance of a government shutdown, adding some temporary stability to the scene. For Indian markets, the day ended on a positive note. The Sensex surged 498.58 points, while the Nifty also saw healthy gains. However, market experts are cautioning that short-term outlooks may still carry a sense of caution. The broader trend is still shaped by global events, and investors are mindful of potential risks ahead. Meanwhile, the S&P 500 keeps its head held high, buoyed by a stable U.S. economy and a stock market hitting new highs. Employment numbers are solid, inflation is inching downward, and business activity continues to show resilience. The dollar has benefited from this, with the currency index rising by 2% this month alone. With the year winding down, trading volumes are likely to stay thin, and the market is looking at what could be a quiet finish. The euro has fallen to its lowest levels in two years and is on track to record its weakest quarter against the dollar since mid-2022. Oil markets are experiencing some upward movement, with Brent crude inching up to $73.07 a barrel, though concerns about Chinese demand and the strong dollar continue to cast a shadow over the sector.