On Tuesday, the market opened in the red on the weekly expiry of Nifty. However, the market later recovered from the day’s low. Sensex was trading around 100 points down and Nifty around 30 points down. A neutral trend was seen in the market. Realty and IT indices showed weakness even today. Compared to yesterday’s closing, the Sensex opened 39 points down at 83,207. Nifty opened 5 points down at 25,580. Bank Nifty opened 40 points down at 59,851. In the currency market, the rupee opened 2 paise weaker at 90.93/$.
After a big fall in the markets yesterday, global cues remained mixed today. On one hand, gold and silver have hit new records, reflecting the demand for safe-haven assets, while on the other hand, the fall in US futures and continued selling by FIIs are putting pressure on equity sentiments. Expect more stock-specific action today due to earnings, block deal and IPO activity. Let’s take a look at today’s important market triggers before the open.
GIFT Nifty flat, US futures weak
GIFT Nifty is trading flat near 25,600, which means the Indian market is likely to open flat. Dow futures are down nearly 400 points. US markets were closed yesterday, but weakness in futures today suggests slightly negative global sentiment.
Trump’s statement
Donald Trump has written a letter to the Norwegian Prime Minister expressing his displeasure over not receiving the Nobel Peace Prize. He said the responsibility for peace is no longer theirs and the US wants Greenland. Such statements seem to increase global geopolitical risks, which may increase volatility in the markets.
Selling of FIIs continues, strong support of DIIs
FIIs continued selling for the 10th consecutive day, with net selling of about Rs 5,488 crore. This clearly shows that foreign investors are cautious. In contrast, domestic institutional investors continued buying for a record 99th consecutive day, pumping in around ₹4,200 crore into the market. The market is currently getting its biggest support from DIIs during this decline.
Gold and silver at record high
In the domestic market, silver rose by nearly ₹22,500 to its all-time high of ₹3,10,944 per kg.
Gold also rose by almost ₹3,100 to reach a record high of ₹1,45,770. In the international market, silver also remained close to its all-time high of around $95. Geopolitical tensions and currency fluctuations are leading to strong buying in safe-haven assets, which may impact the metals and jewelery sectors.
Dollar weak, base metals shine
Base metals have recovered due to weakening of the dollar. An increase of 1 to 2.5 percent was observed in copper, aluminium, nickel, lead and zinc. Crude oil remained stable around $64. Selective buying can be seen in metal stocks today.
Results will decide today’s trend
LTIMindtree has delivered strong results, which may lead to selective strength in the IT sector. Havells’ performance was mixed. Oberoi Realty’s results were weaker than expected on all parameters, which may put pressure on real estate stocks. Today, the results of AU Small Finance Bank, Persistent Systems, United Spirits and SRF will be released in the F&O segment.
TRAI’s new digital connectivity rating
Digital connectivity star rating will be introduced to address network problems in large buildings. TRAI Chairman Anil Kumar Lahoti said that this rating will tell consumers about the strength of the network in a building. In future, this may impact the telecom and infrastructure sectors.
Block deal in Aditya Birla Group
Today, block deals worth about ₹390 crore are possible in Aditya Birla Lifestyle and about ₹291 crore in ABFRL. An institutional investor can sell about 3% stake in both the companies at an 8.5% discount. This may put intraday pressure on these shares.
Shadowfax IPO opens today
Shadowfax Technologies’ IPO has opened today. The price band has been fixed at ₹118 to ₹124. Investors interested in logistics and last-mile delivery space will keep an eye on this issue, and there may be increased activity in the IPO segment.