Indian stock markets opened lower on Friday, following a decline in U.S. stocks the previous day. At the opening, the BSE Sensex was down by 157.54 points (0.19%), at 81,132.42, while the Nifty 50 decreased by 53.60 points (0.22%) to 24,495.10.
Market activity is expected to remain cautious due to the lower close on Wall Street and the upcoming Federal Reserve’s Federal Open Market Committee (FOMC) meeting on December 17-18. However, the recent drop in retail inflation for November and the stronger industrial production data for October could offer some support to the markets.
India’s retail inflation for November fell to 5.48%, within the Reserve Bank of India’s target range, mainly due to a decrease in food prices and a favorable high base effect. This has raised hopes for a potential rate cut in the RBI’s upcoming policy review in February. Additionally, industrial production showed signs of recovery, growing 3.5% in October, compared to 3.1% in September.
Despite a significant correction in the markets, particularly in mid- and small-cap stocks, December has been a positive month so far.
