1163: Marketbuzz Podcast with Sudarshan Kumar: Sensex, Nifty 50 likely to maintain its bullish trend on Thursday

On Wednesday, the U.S. stock market experienced a lackluster day with minimal trading volumes, contrasting sharply with India's bullish performance that led to record highs.

The U.S. market closed with marginal gains, setting the stage for its ninth consecutive week of positive momentum.

Major U.S. indices achieved fresh 52-week highs, registering gains ranging from 0.1% to 0.3%. Conversely, India's market saw another day of record highs, propelled by IT and banking stocks. The Nifty surged past 21,600, while the Nifty Bank reached an unprecedented close, largely attributed to HDFC Bank, contributing nearly 50% to its gains.

Despite the upbeat equity movement, Wednesday's market ascent coincided with a notable uptick in India's volatility index, rising 6% to reach its highest level since March. Foreign Institutional Investors (FIIs) played a significant role in this dynamic, with net purchases of nearly ₹3,000 crores, overshadowing the sales figure for Domestic Institutional Investors (DIIs) at ₹200 crores.

As the December series approaches its expiry day, the GIF Nifty indicates a potential record high, currently up by more than 70 points. However, the commodities market experienced an opposing trend, with Brent and WTI Crude reversing previous gains and slipping by 2%. Overnight reports suggest that major logistics companies have resumed shipping via the Red Sea.

Investors are advised to keep a close eye on stocks linked to Nifty Dividend Opportunities 50 (ND C's) for potential inflows (e.g., Bajaj Finance and HDFC Bank) and outflows (e.g., Adani Enterprises, L&T, and Adani Ports) as the market dynamics continue to evolve.