Domestic stock markets had a weak start on Monday (November 3). After this the markets remained sluggish the whole day. The day ended with a lead and ended in the green. Strong buying in banking shares led to a strong rise in Bank Nifty and it closed 41 points higher at 25,763. Sensex closed at 83,978, up 40 points. Bank Nifty closed at 58,101, up 325 points.
However, the market has seen ups and downs at times. India VIX rose more than 4%. Sensex remained around 83,959. Nifty was also trading around 25,760. The realty index rose more than 2.5%. Good gains were also seen in banking stocks, pharma and NBFCs. Auto, FMCG and IT indices declined.
After opening in the morning, major benchmark indices were trading lower. Sensex was down 150 points. Nifty also fell 50 points and went below 25,700. Bank Nifty was trading 30 points higher. However, broader markets appeared to be recovering from the decline. The smallcap index rose 100 points, while the midcap index rose 40-50 points. Good gains were seen in PSU bank, metal and auto indices.
Shriram Finance, Mahindra & Mahindra, Indigo, SBI, ONGC, Apollo Hospitals and Eicher Motors were the top gainers in Nifty 50. Maruti, BEL, Titan, Eternal, Bajaj Finance, Adani Ports, Axis Bank and Dr Reddy were the biggest fallers. If we look at the initial levels, the Sensex fell by 103 points and opened at 83,835. Nifty opened 26 points lower at 25,696. Bank Nifty opened 50 points lower at 57,726 and in the currency market the rupee opened at 88.77 against the dollar.
Last week there was a lot of volatility in the domestic stock market. Heavy selling by foreign investors (FIIs) and strengthening dollar weighed on the markets, but government spending and strong GST collections helped stabilize the sentiment. Today the market direction will depend on domestic and global signals.
US markets closed strongly on Friday after volatility. The Dow Jones Industrial Average rose 40 points, while the Nasdaq gained 150 points. GIFT Nifty fell 50 points to near 25,850, while Dow Futures was trading 125 points higher. Japanese markets will remain closed today.
On Friday, foreign investors (FIIs) sold ₹6,770 crore in the cash market, taking out a total of ₹9,321 crore. In contrast, domestic funds (DIIs) continued their buying for the 46th consecutive day and made significant purchases of ₹7,070 crore. Government data, corporate results and global trends will play a key role in today’s market movements. Amid FII selling and dollar strengthening, DII buying and strong economic data could support sentiment.
Strength on government front
Government expenditure has seen an increase of 40 percent. In the first half of the fiscal year alone, the government has achieved 52 per cent of its capital expenditure target. Fiscal deficit also remained under control at 36.5 percent.
Strong GST collection
GST collection increased by 4.6 percent to ₹1.96 lakh crore in the month of October. Despite the tax rate cuts, this figure reflects the strength of the economy.
Commodity Update
The dollar index is above 99.50, a three-month high. Due to the strengthening of the dollar, gold fell by ₹ 20, while silver weakened by 1 percent. In the domestic market, gold closed below ₹ 1,21,300 and silver closed at ₹ 1,48,400. Crude oil saw a slight rise, Brent closed above $65.
Company results and stocks in focus
BPCL, Bank of Baroda and Phoenix Mills posted strong results. Patanjali Foods delivered good results, while Godrej Consumer was a bit weak. Today the market will keep an eye on the quarterly results of Titan, Bharti Airtel, Power Grid and Tata Consumer.
IPO update
The IPO of Studs Accessories, which has been oversubscribed five times so far, will close today. Anil Singhvi advises risk appetite investors to invest for the long term. Lenskart Solutions’ IPO was oversubscribed on the first day. On the other hand, the Goa government has banned the sale of Ola Electric and suspended the company’s trading certificate due to the complaints. At the same time, ISRO has achieved another historic achievement, it has launched India’s heaviest satellite till date CMS-03, which weighs 4,410 kg, from its Bahubali rocket.
