Domestic markets opened weak on Friday (21 November). Sensex opened 200 points lower and Nifty 100 points lower. Bank Nifty fell by about 170 points. However, the markets appeared to be slightly above their intraday lows. However, volatility was high as India VIX, a volatility index, jumped more than 13%. There was maximum selling in the metal index. After opening, the markets seemed to calm down a bit, buying was seen in the auto index. Compared to the previous close, the Sensex opened 285 points lower at 85,347. Nifty fell 83 points and opened at 26,109. Bank Nifty opened 213 points lower at 59,116. Rupee opened 3 paise stronger at 88.68/$.
A lot of volatility in global markets, heavy selling in AI stocks and US economic data soured investor sentiment. There is pressure on global cues, but FII and DII buying seems to be providing some relief. The indication of Sensex and Nifty closing at lifetime high yesterday has also boosted investor sentiment today. However, it remains to be seen whether the domestic market will see a new rise or fall amid the global market turmoil.
Turbulence in US market, AI stocks increase tension
A big fall was seen in the US market on Wednesday. The Dow Jones Industrial Average closed 400 points lower, falling 1,100 points from its day’s high. The Nasdaq also fell 1,100 points from its peak to a two-month low, falling 500 points. Heavy selling in AI stocks further soured sentiment. Nvidia, which had a strong start after positive results, fell 8% from its intraday high and ultimately closed 3% lower. The good employment data raised concerns that the Fed may not cut rates soon, putting pressure on tech stocks.
Asian Markets and Gift Nifty Indicators
The impact of global weakness is clearly visible in Asian markets. GIFT Nifty fell 70 points to near 26150, Dow Futures rose 180 points and Nikkei fell 900 points. Mixed signals suggest that there may be volatility in the market in the initial hours.
Gold, Silver and Crude Trends
Weakness is also clearly visible in the international commodity market. In the domestic market, gold has fallen by ₹ 300 to ₹ 1,22,700. Silver has fallen by about ₹1,000 to below ₹1,54,200. Gold is flat in the international market, while silver has declined slightly. Crude oil is sluggish near $63.
Crypto Shock: Bitcoin at lowest level in 7 months
There has been a sharp decline in Bitcoin. It has slipped below $87,000, its lowest level in 7 months. This weakness in the crypto market reflects the growing aversion towards risky assets.
Relief from FII and DII purchases
Amidst the selling in the market, one good relief is that there has been a buying trend from both foreign and domestic investors. For the second consecutive day, FIIs made net purchases of ₹1,354 crore in cash, index and stock futures. Domestic funds invested a record ₹824 crore for the 59th consecutive day. The market is getting strong support from continuous buying of DIIs.
Economy Update: Growth in 8 core sectors at lowest level in 14 months
Growth in 8 core sectors of the country fell to a 14-month low in October, which is the lowest level in 14 months. This recession was caused by a big decline in coal, electricity and natural gas production. This data raises some concerns about economic momentum.
Corporate action: Focus on TCS, AWL and block deals
Big investment in TCS
TPG has announced a $1 billion investment in TCS’s AI data center, Hypervault. This partnership between the two companies will rapidly expand AI infrastructure.
Block Deal in AWL
Block deal worth ₹2,500 crore may happen in AWL Agri business today. Adani Commodities LLP can sell up to 7% of its stake at the floor price of ₹275.
IPO Corner: Capillary Technologies will be listed, Excelsoft’s IPO will close today
Capillary Technologies gets massive subscription of 53 times; Its stock will be listed today. The issue price is ₹577. The IPO of Excelsoft Technologies will close today, which has received almost 7 times subscription so far. Price band is ₹114-₹120.
RBI Governor confident: Trade deal with US will provide relief to CAD
RBI Governor Sanjay Malhotra has expressed hope for a better trade deal with the US. He says that the deal will reduce the pressure on India’s Current Account Deficit (CAD).
