Stock market today: All you need to know before opening bell on December 2

The domestic equity market is expected to open on a muted note on December 2, taking cues from weak global market sentiment. The GIFT NIFTY futures were trading 40 points lower on Monday morning, suggesting a weak opening for the NIFTY50 index.

Two major factors are expected to remain key drivers for the market opening on December 2.

Slowdown in GDP growth

The country's Q2FY25 GDP growth came in lower than expected at 5.4%, underlining a slowdown in the Indian economy. Amid tight government spending and a high interest rate regime, the key economic indicators show signs of pain for the economy. RBI, in its previous monetary policy, guided for 7% GDP growth for the economy in FY25, which at the current rate seems to be a far-fetched target for the country.

Tariff war

In an overnight X post, the 47th president-elect of the United States of America, Donald Trump, announced he would impose 100% tariffs on BRICS nations that choose to abandon the US dollar and form a new currency independently.

Global markets

The US markets closed higher across the board on Friday after a holiday on Thanksgiving day on Thursday. The NASDAQ and S&P 500 closed 0.8% and 0.5% higher, while the Dow Jones closed 0.4% higher on Thursday. However, the US futures are currently trading 60 points lower on the Dow Jones indices and 35 points lower on NASDAQ on Monday morning.

Asian markets

The Asian markets traded mixed on Monday morning. Japanese indices traded almost flat at 10 points lower, while Chinese and Hong Kong markets remained upbeat on strong growth indicators. The Caixin China General Manufacturing PMI rose to 51.5 in November 2024 from 50.3 in October, surpassing market estimates of 50.5. Following the development, the Shanghai Composite traded almost 1% higher, and Hong Kong’s Hang Seng Index opened 0.7% higher on Monday.

FII & DII Data

The foreign institutional investors remained net sellers for November as well after selling mightily in October. The FII sold nearly ₹45,000 crore worth of Indian equities, while the domestic institutional investors bought ₹44,400 crore worth of equities in November.

Chart check

Both the benchmark indices of NIFTY50 and SENSEX staged a strong pullback on Friday, closing the week above their 20SMA levels and indicating a strong reversal from the lower levels. On a broader basis, the markets have respected their 200 DEMA levels in November. On a monthly basis, both the benchmark indices have formed a hammer pattern, indicating a strong pullback and strength in the market.