After Thursday’s strength, the market opened strongly on Friday. Sensex was trading up 300 points, while Nifty was up 85 points, trading near 26,000. There was a strong rise in metal stocks. Barring a slight weakness in the IT index, all the sectoral indices were trading in the green. Sensex opened 233 points higher at 85,051. Nifty opened 73 points up at 25,971 and Bank Nifty opened 192 points up at 59,401. In the currency market, the rupee slipped to a new low today, and touched a record low of 90.54/$.
LT, Hindalco, Tata Steel, BEL, UltraTech Cement, Indigo and Axis Bank were among the top gainers in Nifty 50. Meanwhile, Wipro, Infosys, Max Health, Bajaj Auto, Tech Mahindra, HUL, ITC and HCL Tech were among the top losers today. Global signals looked even better for the market. GIFT Nifty was trading near 26,150 with a sharp gain of 135 points. Dow futures were also up 100 points, while Japan’s Nikkei opened with a huge jump of 650 points. The brightness in global markets indicates a strong start for domestic sentiments.
Update on India-US trade deal
The market is also getting relief from the progress on the trade deal between India and the US. After most of the issues were resolved, Prime Minister Narendra Modi spoke to US President Donald Trump on phone. The two leaders reviewed their relations and emphasized their commitment to continue working together for global peace and stability. This positive signal may have an impact on investor expectations.
After the US Fed’s rate cut, the market witnessed a historic rally. The Dow jumped 650 points to reach a lifetime high. The S&P 500 closed at a record high, while the Russell 2000 remained at an all-time high for the fourth consecutive day. Although the Nasdaq recovered from initial weakness and ultimately closed 60 points down, it recovered nearly 300 points during the session.
Commodity market fluctuations
A lot of fluctuations were also seen in the commodity pack. In the domestic market, silver reached a new lifetime high of ₹ 199,220 with a huge gain of ₹ 10,600. In the international market too, silver jumped 4% to a new record high above $64.50. Gold rose by ₹2,900 to close at ₹132,550. Crude oil slipped 1.5% to near $61.
The dollar index remained weak, falling below a two-month low of 98. Base metals appeared to benefit from the fall of the dollar. LME copper hit a lifetime high, zinc jumped 4% to a one-and-a-half-year high, and aluminum also gained about 1%. In terms of fund flows, FIIs sold in the cash market for the 11th consecutive day, although their net buying positions in index and stock futures combined stood at ₹1,025 crore. Meanwhile, domestic funds continued their buying spree for a record 74 days, injecting ₹3,800 crore into the market yesterday.
In the aviation sector, Indigo got some relief. The Aviation Minister indicated that reducing flights would be considered after reviewing the airline’s plans. Indigo CEO will appear before the Directorate General of Civil Aviation (DGCA) today regarding the flight delay. A big step is also expected from the government. The Insurance Amendment Bill is expected to be approved in the cabinet meeting to be held at 1 pm today. With this, there is a possibility of increasing the FDI limit in the insurance sector from 74% to 100% and approval of composite license. This decision can have a big impact on the sector.
IPO market activity
ICICI Prudential AMC’s ₹10,600 crore IPO will open today. Price band is ₹2,061–₹2,165.
Park Medi World’s IPO is closing today and has been almost fully subscribed so far.
Today is the last day of Nephrocare Health Services’ IPO, but till now only 36% has been subscribed. Price band is ₹438–₹460. Anil Singhvi has advised to invest in this IPO for the long term, he says that the stock can double in 2–3 years.
Talking about economic indicators, November’s retail inflation (CPI) data will be released today. Analysts estimate that inflation could rise from a record low of 0.25% to around 0.75%. Overall, due to growth in the global market, weakness in the dollar index, strength in base metals and improvement in domestic indicators, the market can have a strong start today.