Domestic stock markets had a weak start on Monday (November 3). Major benchmark indices declined. Sensex was down 150 points. Nifty also fell 50 points and went below 25,700. Bank Nifty was trading 30 points higher. However, broader markets appeared to be recovering from the decline. The smallcap index rose 100 points, while the midcap index rose 40-50 points. Good gains were seen in PSU Bank, Metal and Auto indices.
Last week, a lot of ups and downs were seen in the domestic stock market. Heavy selling by foreign investors and a strong dollar weighed on the market, but government spending and strong GST collections helped stabilize the sentiment. Today the market direction will depend on domestic and global signals. After volatility on Friday, US markets closed with gains. The Dow Jones Industrial Average rose 40 points, while the Nasdaq gained 150 points. Nifty fell 50 points to near 25,850, while Dow futures were trading 125 points higher. Japanese markets will remain closed today.
On Friday, foreign investors (FIIs) sold ₹6,770 crore in the cash market, withdrawing a net ₹9,321 crore. In contrast, domestic funds (DIIs) continued their buying for the 46th consecutive day and made significant purchases of ₹7,070 crore. Government data, corporate results and global trends will play a key role in today’s market movements. Amid FII selling and dollar strengthening, DII buying and strong economic data could boost market sentiment.
Strength on government front
Government expenditure has seen an increase of 40 percent. In the first half of the fiscal year alone, the government has achieved 52 per cent of its capital expenditure target. Moreover, fiscal deficit remains under control at 36.5 percent.
Strong GST collection
GST collection increased by 4.6 percent to ₹1.96 lakh crore in the month of October. Despite the tax rate cuts, this figure reflects the strength of the economy.
Commodity Update
The dollar index is above 99.50, a three-month high. Gold declined by ₹20, while silver declined by ₹1.00. In the domestic market, gold closed below ₹121,300 and silver at ₹148,400. There was a slight rise in crude oil, Brent closed above ₹65.
Company Results and Noteworthy Shares
BPCL, Bank of Baroda and Phoenix Mills recorded strong results. Patanjali Foods posted good results, while Godrej Consumer was a bit weak. Today the market will keep an eye on the quarterly results of Titan, Bharti Airtel, Power Grid and Tata Consumer.
IPO update
The IPO of Studs Accessories, which has been oversubscribed 5 times so far, will close today. Anil Singhvi advises risk appetite investors to invest for the long term. Lenskart Solutions’ IPO was fully subscribed on the first day. On the other hand, the Goa government has stopped the sale of Ola Electric and suspended the company’s trade certificate following the complaints. Meanwhile, ISRO achieved another historic feat when it launched India’s heaviest satellite ever, the 4,410 kg CMS-03, on its Bahubali rocket.
