Nifty set for soft start as GIFT Nifty slips and Fed signals pause

GIFT Nifty:

GIFT Nifty December 2025 futures was down 14.50 points, indicating a negative opening for the Nifty 50 today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 1,651.06 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,752.31 crore in the Indian equity market on 10 December 2025, provisional data showed.

The FIIs have sold shares worth Rs 14,859.10 crore so far in December. This follows their cash sales of Rs 17,500.31 crore in November and Rs 2,346.89 crore in October.

Global Markets:

Most Asian markets perked up on Thursday, taking their cue from Wall Street's upbeat reaction to the Federal Reserve's third rate cut of the year.

Overnight in the U.S., the Dow Jones Industrial Average climbed 1.1% after the Fed decision, while the S&P 500 added 0.7% and the Nasdaq Composite inched up 0.3%.

The Fed trimmed the Federal Funds rate by 25 basis points to 3.5%-3.75% and hinted that this could be the last cut for a while. At his press briefing, Chair Jerome Powell said the latest move puts the central bank in a comfortable zone on policy.

Alongside the rate call, the Fed also unveiled plans to restart purchases of $40 billion in Treasury bills beginning Friday, nudging short-term yields lower. The policy statement quietly acknowledged a softer labor market, dropping the earlier reference that conditions 'remained low,' a subtle sign that the Fed's attention is tilting more toward supporting growth than fighting inflation.

After the bell, Oracle slid 11% as weak quarterly revenue and a higher spending outlook spooked investors. The selling spilled over to other AI-linked names in extended trade, with Nvidia drifting 1% lower and CoreWeave losing more than 3%.

Domestic Market:

The domestic equity benchmarks slipped for a third straight session on Wednesday, 10 December 2025, ending with modest losses after a volatile day of trade. Indices swung between gains and declines as investors booked profits ahead of the U.S. Federal Reserve's policy decision. The Nifty closed below the 25,800 mark, dragged by consumer durables, IT and financial services stocks.

Global sentiment remained fragile as rising Japanese bond yields and indications of potential BOJ tightening triggered risk-off moves across emerging markets. Focus now shifts to the U.S. Fed meeting, where a 25-bps rate cut is widely expected, though mixed economic signals may curb hopes of aggressive easing in 2026.

Indian market mirrored this caution, weighed down by persistent FII outflows, a weakening rupee and uncertainty surrounding U.S.-India trade negotiations.

The S&P BSE Sensex declined 275.01 points or 0.32% to 84,391.27. The Nifty 50 index fell 81.65 points or 0.32% to 25,758. In the three trading sessions, the Nifty and Sensex declined 1.54% and 1.63%, respectively.