The Indian benchmark indices closed almost flat, after early morning gains as the Sensex settled flat at 84,559 and the Nifty fell around 40 points to close over 25,800 at 3:30 PM.
In the 30-share BSE Sensex, among the top gainers were stocks such as the State Bank of India, Infosys, Sun Pharmaceuticals, TCS and Axis Bank. Meanwhile, the laggards included L&T, Hindustan Unilever, Asian Paint, Mahindra and Mahindra and Kotak Bank.
In the broader markets, the Nifty Microcap 250 declined 0.90 per cent. Sectorally, the Nifty Consumer Durables fell 0.96 per cent and the Nifty PSU Bank rose 1.29 per cent.
During early morning trade the Sensex started trade at 84,735.59 or 55 points higher and the Nifty opened trade at 25,871.60, up by more than 11 points at 9:15 AM.
Mixed Signals From US Jobs Data
Uncertainty over the US Federal Reserve’s interest-rate path weighed on global markets after mixed signals from the latest US jobs data. Wall Street closed on a mixed note, while Asian markets remained muted as investors awaited clearer cues.
The S&P 500 slipped 0.24 per cent, marking its third consecutive decline, as markets assessed the delayed release of the November jobs report. The Nasdaq Composite edged up 0.23 per cent, while the Dow Jones Industrial Average fell 0.62 per cent.
US jobs growth rebounded more than expected in November, but the unemployment rate climbed to a four-year high of 4.6 per cent. Investors are now focused on US consumer price inflation data for November, due on Thursday, for further direction.
Fed funds futures continue to price in roughly two US rate cuts next year, with the latest labour market data doing little to alter expectations.
Persistent FII Selling Pressures Markets
On the domestic institutional front, foreign institutional investors (FIIs) were net sellers of equities worth Rs 2,060.76 crore on Tuesday, December 16. In contrast, domestic institutional investors (DIIs) purchased shares worth Rs 770.76 crore, according to exchange data.
Foreign investors have now sold Indian equities for eight straight sessions through Tuesday.
“Persistent FPI selling and weakness in the rupee remain key near-term headwinds, compounded by delays in the conclusion of India-US trade negotiations,” said Ponmudi R, chief executive officer at Enrich Money.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said FII sentiment could turn more favourable over the medium term. “With the ongoing weakening of the AI trade, FIIs are likely to turn buyers in India sometime in 2026. If, along with this, a US-India trade deal happens, FIIs will turn buyers in India. There is a likelihood of rupee strengthening in H1 2026. Therefore, while FII selling is depressing stock prices now, investors should buy in anticipation of a 2026 rally,” he said.
Oil Prices Jump on Venezuela Blockade
Oil prices rose after US President Donald Trump ordered what he described as “a total and complete” blockade of all sanctioned oil tankers entering and leaving Venezuela, escalating geopolitical tensions amid ongoing concerns over demand.
US crude futures climbed 1.3 per cent to $55.97 per barrel, while Brent crude futures rose 1.15 per cent to $59.60 a barrel, trimming steep losses from Tuesday. Oil prices had fallen earlier as prospects of a Russia-Ukraine peace deal strengthened, fuelling expectations that sanctions could be eased.
The move follows the seizure of an oil tanker last week by US forces off Venezuela. The government of President Nicolas Maduro said the latest action was intended to steal the country’s resources.
Venezuela’s oil production has recovered from its 2020 lows but remains well below levels seen decades ago. Tankers loaded nearly 590,000 barrels a day for export last month, compared with global consumption of more than 100 million barrels a day. Most of Venezuela’s crude is exported to China.
The OPEC producer’s flagship Merey crude is commonly used to produce bitumen for road construction in China. Bitumen futures in Shanghai surged as much as 2.8 per cent on Wednesday, the biggest rise since late October, Bloomberg reported.
