• The Indian stock market opened positively, with the Sensex and Nifty rising ahead of the CPI data release.
• Despite early selling in auto and PSU bank sectors, the overall market trend remained positive.
• In global markets, the S&P 500 and Nasdaq Composite ended higher, while the Dow Jones ended lower.
• The Indian stock market's future trajectory will depend on factors like the CPI data outcome, global market trends, and domestic institutional investors' activities.

The Indian stock market opened on a positive note on Thursday, with investors eagerly awaiting the release of the consumer price index (CPI) data. The Sensex was trading at 81,633.07, up by 106.93 points or 0.13 per cent, while the Nifty was at 24,658.25, having risen by 16.45 points or 0.07 per cent by 9:30 am. Despite some early selling in the auto and PSU bank sectors, the overall market trend remained positive. On the National Stock Exchange (NSE), 1,124 stocks were trading in the green, while 1,065 were in the red.

Market experts have suggested that the market's range-bound consolidation construct is set to continue. They pointed out that the bull run in the US is continuing unabated, with Nasdaq setting a new record and closing above 20,000 the previous day. They also noted that the 'Magnificent Seven' stocks continue their resilience and uptrend despite elevated valuations. The strength of the mother market, which indicates that the global market rally is intact, is a support for other markets, too.

The Nifty Bank was up 65.80 points or 0.12 per cent at 53,457.15. The Nifty Midcap 100 index was trading at 59,381.40 after rising 88.45 points or 0.15 per cent. The Nifty Smallcap 100 index was at 19,704.60 after gaining 47.25 points or 0.24 per cent. In the Sensex pack, Tech Mahindra, Bharti Airtel, TCS, Infosys, M&M, HCL Tech, Axis Bank and SBI were the top gainers. Titan, Tata Motors, Asian Paints, L&T, Tata Steel and Bajaj Finance were the top losers.

Global Market Trends and Investor Activity

In the Asian markets, except Jakarta, the markets of Hong Kong, Bangkok, China, Seoul and Japan were trading in green. In the US stock markets, the S&P 500 and Nasdaq Composite ended 0.82 per cent and 1.77 per cent higher, respectively. The Dow Jones Industrial Average ended 0.22 per cent down on the previous trading day.

Foreign institutional investors (FIIs) sold equities worth Rs 1,012.24 crore on December 11, while domestic institutional investors bought equities worth Rs 2,007.85 crore on the same day. This indicates a shift in the market dynamics, with domestic investors showing more confidence in the market than their foreign counterparts.

The Indian government bond yields ended marginally higher on Wednesday, as traders awaited the inflation data from the world's largest economy and India for further cues on interest rates. The benchmark 10-year yield ended at 6.7171%, compared with its previous close of 6.7073%. U.S. consumer price index (CPI) data is due after Indian market hours on Wednesday, with a Reuters poll predicting inflation likely rose 2.7% year-on-year and 0.3% month-on-month in November.

Market Outlook and Key Factors

Asian markets traded mixed on Thursday following a similar trend overnight on Wall Street after the US October inflation data. Japan's Nikkei 225 rose 0.74%, while the Topix gained 0.58%. Hong Kong's Hang Seng index futures indicated a weak opening. Wall Street US stock market ended mixed on Wednesday after the release of inflation data which was in-line with estimates.

The Indian stock market extended decline for the fifth straight session, dragged by weak global cues, a surge in US dollar index and unabated selling by foreign investors. The US dollar traded near a four-week high versus the euro and also gained against the yen. Dollar rose 0.38% to 142.905 yen, Reuters reported. The euro eased to $1.1007, sticking close to Wednesday's low of $1.1002, the weakest since August 16.

The Indian stock market indices, Sensex and Nifty 50, are expected to open flat on Tuesday amid largely positive global cues. Reliance Industries reported a consolidated net profit of ₹16,563 crore in Q2FY25, registering a 4.7% decline compared to the same quarter last year. Reliance Industries' consolidated revenue from operations in Q2 remained stable at ₹2,35,481 crore. The company's consolidated EBITDA increased 2% YoY to ₹43,934 crore, while EBITDA margin narrowed by 50 bps to 17% from 17.5%, YoY.