The opening of the stock market on Wednesday was mixed. The market kept oscillating between red and green marks. At 9:25 am, the Sensex was trading at 83,408, down 42 points. Nifty was down 2 points at around 25,721. Bank Nifty also fell by 8 points to around 61,165. This means that the market seemed to be trading flat.
However, the broader market maintained its gains today. Nifty Midcap and Smallcap indices rose 0.4 to 0.5%. India VIX was down 1.7%. Metals were up today, with the index up 1%. PSU Bank, Pharma, FMCG and Healthcare indices also gained. Profit-booking seen in IT stocks. Infosys, HCL Tech and Tech Mahindra were among the top losers on the Nifty 50. Meanwhile, BEL, Eternal, Hindalco, Tata Steel, Max Healthcare and Cipla were up.
In the morning Nifty was trading around 25,770, up by about 30 points. After huge fluctuations yesterday, a good recovery was seen in the US market. The Dow Jones Industrial Average (DJI) closed nearly 350 points above its lowest level of the day, up 30 points. Nasdaq also closed 30 points higher after recovering 325 points. However, Dow futures are trading nearly 50 points lower ahead of the FOMC minutes today.
Sharp fall in gold and silver, global signals weak
Sharp selling was seen in precious metals. Silver fell by ₹11,000 to settle below ₹2,28,800, while gold fell by ₹3,300 to settle below ₹1,51,500. Silver saw a big 5% decline on the COMEX, while gold also fell by nearly $100. This shows that safe haven demand is weakening.
Crude oil prices fall, impact of US-Iran talks
Crude oil prices came under pressure after the news of progress in nuclear deal talks between US and Iran. Brent crude fell nearly 2% to about $67 a barrel. This may provide relief to the oil marketing and aviation sectors.
Weakness in base metals worldwide
Base metals also declined due to global cues. Copper fell about 2%, while nickel closed down about 1.5%. This may put pressure on metal stocks.
Limited action from both FIIs and DIIs, caution in the market
Foreign institutional investors (FIIs) bought ₹995 crore in the cash market, but there was marginal selling of ₹237 crore on an overall basis. Meanwhile, domestic institutional investors (DIIs) made modest purchases of ₹187 crore for the fourth consecutive day. This shows that big investors are adopting a cautious attitude at the moment.
Big agreement between India and France, focus on defense sector
More than 20 agreements were announced during the meeting between Prime Minister Narendra Modi and French President Emmanuel Macron. Both the countries have extended the defense cooperation agreement for the next ten years. This can focus on defense sector companies. A big defense deal was signed between BEL and France’s Safran, under which Hammer missiles will be manufactured in India. Additionally, Tata-Airbus’ H-125 helicopter assembly line was inaugurated, strengthening the Make in India defense theme.
India has a big vision for AI, focus on tech sector
Prime Minister Modi expressed confidence that India will be one of the top three AI superpowers in the world. He said that AI will accelerate the direction of making India a developed country by 2047. Today’s AI Impact Summit and meeting with global CEOs may focus on companies in the tech and AI sector.