Opening Bell - Morning Commentary

S&P 500 Hits Record High as Strong GDP Data Fuels Rally; Nifty Consolidates After Sharp Rally

U.S. stocks rose on Tuesday, with the S&P 500 reaching a record close after a series of robust economic data pushed bond yields higher and lifted growth stocks.

The major averages extended their recent gains, with the S&P 500 achieving a new all-time closing high.

The Commerce Department reported that gross domestic product expanded at a 4.3% annualized rate in the third quarter—the fastest pace since Q3 2023 and well above economists' 3.3% forecast—driven by strong consumer spending.

Spot gold surged past the psychological $4,500 per ounce milestone on Wednesday for the first time, propelled by safe-haven demand and rate cut expectations.

Silver touched a fresh all-time high and surged beyond $72. The metal has gained 24% in December alone and 135% year-over-year, reflecting tight supply-demand fundamentals and robust safe-haven flows.

*Oil prices settled higher on Tuesday as investors weighed stronger-than-expected U.S. economic growth against potential supply disruptions from Venezuela and Russia.

The Indian rupee closed flat for the second consecutive session on Tuesday, as year-end rebalancing flows offset intraday weakness.

Following a sharp two-day rally, the Nifty consolidated yesterday, trading within a narrow range on the weekly expiry day.

The index maintains a positive short-term trend with a bullish higher-top, higher-bottom pattern on the daily chart.

The Nifty could extend its advance toward resistance levels at 26,202 and 26,330, while 26,000 is expected to provide near-term support.

Indian markets are poised to open moderately higher on strong global cues.