Indian stock markets witnessed a strong rally on Thursday after a brief slump. Sensex in particular opened with good gains. Nifty was trading with a gain of 40 points. Buying in stocks like Reliance, SBI, Mahindra & Mahindra and Asian Paints supported the market. The broader market was trading somewhat narrowly ranged.
Global cues, corporate results and heavy selling by foreign institutional investors (FIIs) will decide the market direction. On Tuesday, foreign investors (FIIs) sold a net sum of ₹7,761 crore for the fifth consecutive day, while domestic funds (DIIs) continued their buying and invested ₹1,200 crore for the 48th consecutive day, their longest buying streak in six years. An initial positive trend is expected in the market today due to continued buying by domestic investors and strength in Asian markets like Nikkei. However, a rise in the dollar and bond yields could weigh on global sentiment. Investors may focus on IT, healthcare and consumer stocks today.
Despite a strong recovery, US markets witnessed a slight decline on Tuesday. The Dow Jones closed down 25 points, while the Nasdaq fell 335 points. Gift Nifty was trading near 25,750 in the morning with a slight gain of 30 points. Meanwhile, Dow futures remained subdued, while Nikkei rose more than 600 points. The dollar index rose above 100 for the fifth consecutive day, reaching a five-month high. The yield on US 10-year bonds is above a one-month high of 4.15%.
commodity market situation
Weakness in gold and silver continued. Gold fell by ₹900 to close at ₹1,20,500, while silver fell by ₹100 to close at ₹1,47,400. There was pressure on gold in the international market also. Crude oil fell for the third consecutive day and is now trading below $64.
corporate update
The momentum continues with quarterly earnings. Grasim’s results were better than expected. Sun Pharma’s results were in line with expectations, while InterGlobe Aviation’s (IndiGo) performance was mixed. Hindalco’s subsidiary Novelis had weak results. The fire at its plant in September is expected to have a negative impact of ₹4,800 to ₹5,700 crore on the company’s cash flow. Britannia and Paytm posted strong results. Blue Star and Astral also performed well. Delhivery, Keynes Tech, Auro Pharma, Nuvama and Tube Investments posted mixed results. Indian Hotels, Piramal Pharma and Syngene reported weaker-than-expected results. Key companies presenting results today include Apollo Hospitals, Chola Investments, CG Consumer, Cummins, Amber, MCX and Zydus Life.
Block deal and changes in MSCI
M&M may sell its 3.5% stake in RBL Bank today through a block deal. The floor price of the deal has been set at ₹317 and the total transaction value is likely to be ₹682 crore.
Big changes will also be seen in the MSCI Global Standard Index. Fortis, GE Vernova T&D, One97 Communications (Paytm) and Siemens Energy have been included, while Concor and Tata Elxsi have been excluded. These changes will be effective from the closing date on November 24.
