On Monday, the stock market started the new week with a strong rise. Domestic stock markets opened on a strong note on Monday after the interim trade agreement between the US and India was finalized. Sensex was trading 400 points up and Nifty 140 points up. The PSU Bank index was up nearly 3%. Metal and IT stocks also witnessed a rise. Barring the FMCG index, all other sectoral indices were trading in the green.
At 09:32, Sensex was trading around 83,500, up 417 points. Nifty was trading around 25,815, up 120 points. Bank Nifty was trading around 60,675, up 555 points. India VIX was up 2%. Mid-cap and small-cap stocks were also up 1 per cent each. Compared to the previous closing price, the Sensex opened 597 points higher at 84,177. Nifty opened 195 points up at 25,888. Bank Nifty opened 685 points up at 60,805 and rupee strengthened by 8 paise at 90.58/$. In Nifty 50, SBI, Titan, Adani Enterprise, Tata Steel, Eternal, Dr Reddy and Hindalco were among the top gainers. Eicher Motors, Max Healthcare, Bajaj Finance, HUL, Nestle, Infosys and ONGC were among the top losers.
The framework of the historic ‘King of All Deals’ between India and the US has been finalized, creating a positive environment in both global and domestic markets. After the trade agreement, there was a tremendous rise in the American markets, and the same effect is visible on GIFT Nifty also. Commodity prices, FII flows and earnings updates will decide the direction of trading today.
Big relief on trade front from King of All Deals
Under the ‘King of All Deals’ framework finalized between India and the US, reciprocal tariffs on Indian products have been reduced from 50% to 18%. Export duty on many products has been reduced to zero. This trade agreement will give India access to the US market worth approximately $30 trillion. Meanwhile, India will buy goods worth about $500 billion from the US in the next five years. Trump has also removed the additional 25% tariff imposed on oil purchases from Russia, which has provided relief to the energy market.
Strong rally in American markets
A strong rally was seen in the American markets due to tech stocks. The Dow jumped 1,200 points, hitting a lifetime high and closing above 50,000 for the first time. After three days of decline, the Nasdaq gained nearly 500 points. Following strong global cues, GIFT Nifty is also trading near 25950, up by about 200 points, while Dow futures are up by about 50 points.
Gold and silver shine, oil and metals update
A lot of movement was also seen in the commodity market. On Friday, silver rose by ₹6000 to close at ₹250,000 in the domestic market, while gold rose by almost ₹3000 to close at ₹155,000. Crude oil fell nearly 1% to below $68. Metals brightened as the dollar weakened, with LME copper up 1% and aluminum up nearly 2.5%.
FII-DII flows will decide today’s direction
FIIs bought shares worth about ₹1950 crore in the cash market. However, including cash, index and stock futures, net selling came to around ₹936 crore. Domestic funds sold shares worth about ₹1,265 crore after four consecutive days of buying. FII and DII flows will be important in deciding the direction of the market today. LIVE TV:
Stock market stir due to results
SBI gave best ever results in Q3. Kalyan Jewelers performed well, and CG Consumer’s results were better than expected. Tata Steel’s performance was mixed, but the outlook was said to be strong. However, the performance of Bosch and Shree Cement was weaker than expected. Today, the market will track the results of Aurobindo Pharma, BSE, Zydus Life and Amber Enterprises in the futures market.
Major Corporate and IPO News
PFC will acquire approximately 53 per cent stake in REC, and the merger has received in-principle approval from the PFC board. The Finance Minister had announced restructuring in the budget. NSE’s IPO has received approval from the board. In an exclusive interview to Zee Business, NSE MD and CEO Ashish Chauhan said that the IPO could come around Diwali. Additionally, Fractal Analytics’ IPO is opening today with a price band of ₹857 to ₹900.
