On Tuesday, which was the day of weekly expiry, the stock market opened with a rise. Buying was seen in shares of companies with strong earnings. Sensex was trading up 300 points, while Nifty was up 60 points. Bank Nifty also saw a rise of 260 points. Buying started as soon as the markets opened in companies that had released strong results yesterday.
On Tuesday morning, the day of weekly expiry, domestic stock markets received strong signals from global markets. US markets saw a strong recovery, with the Dow Jones rising 580 points to a new all-time high. The S&P 500 and Russell 2000 also hit new all-time highs, while the Nasdaq closed up 60 points.
However, Dow futures fell nearly 75 points ahead of the release of December inflation data. GIFT Nifty was trading with a gain of about 50 points. In Asian markets, Japan’s Nikkei saw a big rise of around 1700 points on the possibility of early elections.
Talking about domestic institutional activity, foreign investors continued their selling. FIIs sold shares worth ₹3975 crore yesterday, pulling out money from the market for the sixth consecutive day. In contrast, domestic institutional investors remained confident. Domestic funds continued buying for a record 95th day, injecting ₹5,839 crore into the market. GIFT Nifty was trading around 25900, which was up by about 50 points.
What is the update on trade deal?
Today the market’s focus is on possible talks related to India-US trade deal. Although there has been no official confirmation yet, the new US ambassador, Sergio Gore, indicated today that trade deal negotiations are moving forward. Meanwhile, former US President Donald Trump has announced the imposition of a 25% tariff on countries doing business with Iran, which will be effective immediately, although the names of the countries on which this tariff will be applicable have not been disclosed.
Strong rise in gold and silver
A lot of fluctuations are being seen in the commodity market. Silver jumped by Rs 16,000 in a single day to reach a new all-time high of Rs 271,352, while gold also rose by Rs 3200 to reach the level of Rs 142,500 for the first time. In the international market too, gold and silver rose strongly and created new all-time highs. Crude oil also showed strength due to geopolitical tensions, with Brent crude remaining above $64 for the third consecutive day, its highest level in two months.
Base metals have benefited from the weakening of the dollar. Copper rose about 1.5%, while aluminum hit a 4-year high and nickel hit a 16-month high. There is some good news on the macro front. December’s retail inflation was lower than expected. CPI increased from about 0.75% to 1.33%. Inflation of food items has increased, but it still remains in the negative zone.
Focus on quarterly results today
Talking about corporate results, HCL Tech reported good results with strong revenue growth. TCS’s results were largely in line with expectations, but the company’s outlook looks strong. Today, the market will closely watch the results of ICICI Lombard, ICICI Prudential Life and Tata Elxsi in the F&O segment.
