On Thursday (October 30), domestic stock markets are getting mixed signals from global markets. The US Federal Reserve, as expected, cut interest rates by 0.25% (one quarter percentage point), bringing rates to a range of 3.75%-4.00%. However, Fed Chairman Jerome Powell expressed doubt over the possibility of further rate cuts at the next meeting, which dampened investors’ enthusiasm. On Wednesday, Nifty closed 118 points higher at 26,053.
The Fed also announced the suspension of liquidity tightening (a bond selling program) from December to increase cash flow into the system. Due to this announcement, there was a sharp rise in the US markets in the initial session, but till the end there was a lot of ups and downs. US markets hit intraday highs yesterday, but then fell back. The Dow Jones Industrial Average slipped nearly 400 points from its new all-time high in intraday trading and closed 75 points lower. The Nasdaq closed at an all-time high, up 130 points. The S&P 500 also hit a new peak, but ultimately closed flat.
Global signals mixed
Following the Federal Reserve policy, GIFT Nifty fell 50 points to around 26,200, while Dow futures are trading around 50 points higher. Global markets are now eyeing the meeting in South Korea today, where former US President Donald Trump and Chinese President Xi Jinping are to meet. Trump has expressed hope for a “good trade deal” with China before this meeting.
Movement of commodities, fluctuations in gold and silver
In the international market, gold remained weak for the fifth consecutive day and fell by $ 20. However, in the domestic market it closed with a gain of Rs 1,100 at Rs 1,20,700 per 10 grams. Silver jumped by Rs 1,900 and crossed Rs 1,46,100. Crude oil prices rose marginally and remained above $64 per barrel. Among base metals, copper rose for the sixth straight day to hit a new all-time high, while zinc climbed for the fourth straight day to a 10-month high.
FII-DII Activity and Domestic Indicators
Foreign institutional investors (FIIs) sold ₹2,540 crore in the cash market in the previous session, recording a net outflow of ₹2,929 crore. In contrast, domestic institutional investors (DIIs) continued buying for the 44th consecutive day and injected a significant amount of ₹5,700 crore into the market.
rain of company results
Corporate earnings season continues. L&T’s results were weaker than expected, but order book jumped strongly. PB Fintech reported strong results, while LIC Housing Finance outperformed expectations. HPCL and BHEL’s operating performance was strong, while SAIL’s results were mixed.
Today, ITC, Cipla and NTPC will declare their quarterly results. Moreover, in the F&O segment, a long list of results from 14 companies including Canara Bank, Bandhan Bank, Union Bank, IIFL Finance, Mphasis and United Spirits will decide the market direction.
Corporate updates and IPO action
Dr. Reddy’s Laboratories suffered a major setback in Canada. The company received a non-compliance notice regarding its weight loss injection product, which led to a massive 8% decline in its ADR. Meanwhile, the IPO of Studs Accessories opens for subscription today. The issue price band has been fixed at ₹557 to ₹585 per share. Orkla India’s IPO was half subscribed on the first day.
