There was a strong rise in the domestic stock markets on Thursday (23 October). Nifty was trading above 26,000, up 140 points. Sensex also recorded a rise of 600 points. Bank Nifty rose 200 points to its all-time high. The index touched an all-time high of 58,381. Nifty reached a high of 26,066 in early trade. Sensex touched intraday high of 85,160. In the morning Nifty was trading above 26,250 with a strong gain of 350 points. However, in Asian markets Dow futures were down nearly 80 points, while the Nikkei dropped 700 points. Meanwhile, expectations of a rapid improvement in US-India relations have boosted sentiment towards the Indian market.
Positive signs of India-US trade agreement
According to media reports, the US may reduce the tariff on India from 50% to 15-16%. President Trump spoke to Prime Minister Modi on phone and wished him a happy Diwali. He said some “great deals” are in the works between the two countries. It is believed that India is also indicating its intention to reduce its dependence on oil imports from Russia.
Important signals for the market today
US-India trade deal soon: Reports
Gift Nifty above 26250, jumped 350 points
Dow fell 116 points in 2 days, Nasdaq 250 points
Trump warned China, if agreement is not reached, 155% tariff will be imposed
Crude oil jumped 5% and crossed 64
Heavy fall in gold and silver
Foreign institutional investors made purchases for the fifth consecutive day during Muhurat trading.
Nifty futures rise on Colgate and Laurus Labs results, including HUL
Trump increased pressure on China
On the other hand, US-China trade tensions are continuously increasing. Trump has said that if a trade agreement is not reached, he could impose tariffs of up to 155%. He is expected to meet Xi Jinping in South Korea next week. This has increased uncertainty in global markets and led to a decline in US markets. The Dow fell 116 points in two days, while the Nasdaq fell 250 points.
Foreign institutional investors continued buying, domestic investors sold
On the day of Muhurat trading, foreign institutional investors continued their vigorous buying and invested ₹581 crore in the market for the fifth consecutive day. However, domestic investors stopped their buying after 39 days and sold around ₹600 crore.
Sharp rise in crude oil, profit booking in gold and silver
Crude oil prices have surged 5% in two days to above $64 a barrel, fueled by US sanctions on two major Russian oil companies and declining US stockpiles. Heavy profit-booking was also seen in gold and silver – gold fell by ₹6,400 to close at ₹1,21,850, while silver fell by ₹4,800 to close below ₹1,45,600. In the international market too, gold slipped nearly ₹300 below its all-time high.
Today’s stock market views
Based on today’s results, the market will keep an eye on Nifty share HUL. Meanwhile, results from Colgate and Laurus Labs will also be under watch in the F&O. Additionally, the promoter and promoter group will not participate in Infosys’ ₹18,000 crore share buyback. Currently, the promoters hold 13% stake in the company.