Sensex opened at 79,611.90, up from its previous close of 79,541.79, and is currently at 79,577.86, reflecting a slight increase of 36.07 points or 0.05 per cent. Meanwhile, the Nifty opened at 24,207.70, above its previous close of 24,199.35, and is trading at 24,214.70, up by 15.35 points or 0.06 per cent as of 9.45 am.

The Federal Reserve on Thursday cut its benchmark interest rate by 25 basis points to a range of 4.5 per cent-4.75 per cent, marking its second reduction, following September’s half-point cut. The Bank of England also reduced rates by a quarter point, only its second cut since 2020.

“Two divergent trends are evident in the market now: one, strength in the global market led by the US and two, weakness in the Indian market. The record setting uptrend in the US market is being driven now by the ‘Trump trade’, expectations of implementation of the promised corporate tax cuts and its positive impact on US corporate earnings,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Foreign Institutional Investors (FIIs) continued their selling streak, offloading equities worth ₹4,888 crore on November 7, while Domestic Institutional Investors (DIIs) purchased equities worth ₹1,786 crore. “After the massive FII selling of ₹113,858 crores in October, FIIs have so far, in November, sold equity for ₹16,445 crores in the cash market,” Vijayakumar added.

Technology stocks led the gains in early trade, with Infosys rising 1.60 per cent, followed by Apollo Hospitals (1.60 per cent), Hindalco (1.47 per cent), Wipro (1.31 per cent), and Tech Mahindra (1.03 per cent). On the flip side, BPCL declined 1.40 per cent, followed by Coal India (-1.27 per cent), Reliance (-1.26 per cent), Trent (-0.93 per cent), and Tata Motors (-0.88 per cent).

In commodities, crude oil futures traded lower as Hurricane Rafael disrupted oil and gas production in the US Gulf of Mexico. January Brent oil futures were at $75.13, down 0.66 per cent, while December crude oil futures on WTI traded at $71.79, down 0.79 per cent at 9.24 am.

Gold and silver prices rebounded from one-month lows following the rate cuts. “Gold is expected to find support at $2,674–$2,655, with resistance at $2,718–$2,735,” noted Rahul Kalantri, VP Commodities at Mehta Equities Ltd.

China’s export data showed improvement, with October exports rising 12.7 per cent year-on-year to $309.06 billion, marking the highest jump since March 2023. However, imports fell by 2.3 per cent, exceeding analysts’ expectations of a 1.5 per cent decline.

Technical analysts remain cautious about the market’s short-term outlook. “Nifty is not able to break sustainably out of the 24000-24500 band. A breach of this band could result in a move in that direction,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

The market volatility index, India VIX, traded at 14.94, up 0.49 per cent from the previous session, indicating persistent uncertainty in the market sentiment. Investors await the conclusion of China’s National People’s Congress, which is expected to announce fiscal stimulus measures to support the world’s second-largest economy.

Published on November 8, 2024