Domestic stock markets opened with gains on Wednesday (October 15). Sensex recorded a gain of 300 points and Nifty recorded a gain of about 100 points. Bank Nifty recorded a gain of 160 points, indicating a 70% rise. Both Nifty Midcap index and Nifty IT index registered a gain of 300 points. Compared to the previous closing price, Sensex opened 168 points lower at 82,197. Nifty opened 36 points lower at 25,181. Bank Nifty opened 32 points lower at 56,528. In the currency market, the rupee opened 54 paise higher at 88.26/dollar.
Looking at global and domestic cues, a very interesting environment is expected in the Indian stock market today. After yesterday’s sharp decline, investors are keen to see whether domestic buying and overseas cues will support the market. In the morning, GIFT Nifty is trading near 25,280 with a gain of 80 points, indicating an early recovery. Japan’s Nikkei strengthened by 400 points, while the Hong Kong and Shanghai Composite witnessed a slight decline. The strength of GIFT Nifty also indicates initial recovery in domestic markets.
FIIs sold, but domestic funds showed strength
Yesterday, foreign investors (FIIs) witnessed heavy selling, totaling Rs 7,048 crore in cash, index and stock futures. However, domestic institutional investors (DIIs) remained buyers for the 35th consecutive day and bought shares worth about ₹3,700 crore. This shows that local funds are confident in the market and are buying during dips.
The US-China trade war is in the news again, and Trump has issued a new threat
Donald Trump’s threat to China over soybean trade was a major headline in global markets. Trump has warned China that if it does not buy soybeans from the US, all trade with it will be ended. After this statement, there was initial volatility in Asian markets, although later there was some improvement in American markets.
Users in turbulent markets
Amid Trump’s threats and economic concerns, US markets witnessed huge volatility. The Dow Jones Industrial Average jumped 800 points from its daily low to close 200 points higher, while the Nasdaq closed 175 points lower after gaining 500 points. Dow futures are up 50 points this morning, indicating sentiment is slowly stabilizing.
Commodity market: Gold and silver created history, huge fall in crude oil prices
There is a rise in the prices of gold and silver. On MCX, gold hit a record high of ₹1,26,930 per 10 grams, while silver closed at an all-time high of ₹1,62,700 per kg. In the international market too, gold reached a new record of ₹ 4,200 and silver crossed ₹ 52 for the first time. In contrast, crude oil fell 2% to near $62, hitting a five-month low amid expectations of increased supply. Copper fell by 2% and zinc by 2.5% due to rising trade tensions, which may increase pressure on the metals sector.
Corporate Update: Market will keep an eye on results
Quarterly results of companies will decide the direction of the market today. Yesterday, Tech Mahindra reported mixed results, while ICICI Lombard and Persistent Systems reported better-than-expected results. Today, investors will be eyeing results from Axis Bank and HDFC Life, while in the F&O segment, big players like Angel One, HDFC AMC, IRFC, KEI Industries, L&T Finance and Oberoi Realty will also release results.
Macro trigger: IMF boosts confidence in India
The International Monetary Fund (IMF) has expressed confidence in India’s economic growth. The GDP estimate for FY 2024-25 has been raised by 20 basis points to 6.6%. This positive update may soften the sentiment of foreign investors a bit.
early trends
The market is expected to open with a slightly positive trend on the basis of strong Nifty. However, volatility may persist throughout the day due to selling by foreign institutional investors and global uncertainty. Today the focus of investors will be on banking, financial and IT stocks.