Indian equity markets are likely to open on a cautious note on Wednesday as investors juggle mixed global signals, a sharp slide in the rupee, and key regulatory developments back home. Early trends from GIFT Nifty suggest a flat-to-muted start, with traders staying selective ahead of the SEBI board meeting and ongoing volatility across global markets.
On Tuesday, December 16, benchmark indices ended firmly in the red. The Sensex slipped 533.50 points, or 0.63%, to close at 84,679.86, while the Nifty 50 fell 167.20 points, or 0.64%, to settle at 25,860.10.
Here are the top cues likely to shape Dalal Street today.
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GIFT Nifty signals flat opening
The GIFT Nifty opened Wednesday’s session at 25,928, up just 0.05%. The muted move points to a cautious start for domestic indices as traders wait for clearer direction from global markets and domestic developments.
SEBI board meeting in focus
The Securities and Exchange Board of India (SEBI) is scheduled to hold its board meeting today. One of the key proposals on the agenda is excluding statutory levies from the total expense ratio (TER) charged by mutual funds. The regulator may also review norms related to stock brokers. Any announcement here could impact capital market-related stocks.
Asian markets trade mixed
Asia-Pacific markets showed no clear trend. Japan’s Nikkei 225 slipped 0.14% and the Topix fell 0.37%. South Korea’s Kospi rose 0.5%, while the Kosdaq gained 0.66%. Australia’s S&P/ASX 200 ended 0.21% lower, reflecting cautious regional sentiment.
US markets end mixed overnight
Wall Street closed mixed overnight. The broader market index slipped 0.24% to 6,800.26. The Nasdaq Composite managed a modest gain of 0.23% to 23,111.46, while the Dow Jones fell 302.30 points, or 0.62%, to 48,114.26.
Rupee hits fresh record low
The Indian rupee remained under pressure, slipping past the 91 mark against the US dollar for the first time. On Tuesday, it touched an all-time low of 91.08 before settling slightly higher at 91.03. This marks the fourth consecutive session of record lows and remains a concern for import-heavy sectors.
Dollar index slightly lower
The US Dollar Index (DXY) was marginally down by 0.02% at 98.19 in early trade. A softer dollar usually supports emerging market currencies, but the rupee continues to face domestic and global headwinds.
Crude oil prices mixed
Crude prices were mixed in early trade. US benchmark WTI crude slipped 0.46% to $55.73 per barrel, while Brent crude rose 0.76% to $59.37 per barrel. Energy stocks may react to these moves.
FII selling continues
Foreign Institutional Investors sold Indian equities worth ₹2,382 crore on December 16. In contrast, Domestic Institutional Investors stepped in with purchases worth ₹1,077 crore, offering some support to the market.
Gold prices edge higher
Gold prices in India moved up slightly. On MCX, February 5, 2026 gold futures were trading at ₹1,34,405 per 10 grams. In the international market, gold was hovering near $4,342.40 per ounce, reflecting demand for safe-haven assets.
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Sectoral and group trends
Among sectors, plastics emerged as the top performer in the previous session, gaining 2.24%, followed by fertilisers (up 1.46%), rubber (up 1.30%), and gems and jewellery (up 1.16%).
On the group front, the Patodia Group gained 4.34%, while the Anil Ambani Group rose 2.74%. On the downside, the Manipal Group fell sharply by 5.18%, with Indiabulls and Yash Birla groups also under pressure.
Market outlook for the day
With GIFT Nifty flat, a weak rupee, and mixed global cues, markets may remain range-bound today. Stock-specific action, regulatory updates from SEBI, and currency movement are likely to drive sentiment through the session.
