The Indian stock market is in focus this week as investors gear up for key developments. Benchmark indices, Sensex and Nifty 50, are poised to open higher on Thursday, driven by optimism surrounding a potential India-US trade deal.
After a brief pause on Diwali Balipratipada, market participants are carefully tracking global cues and domestic factors that could influence market sentiment heading into the festive season.
Market Performance: Sensex and Nifty 50
The Indian stock market witnessed modest gains during the Diwali Muhurat trading session on Tuesday.
- Sensex closed at 84,426.34, up 62.97 points (0.07%)
- Nifty 50 ended at 25,868.60, higher by 25.45 points (0.10%)
The market was closed on Wednesday, October 22, in observance of Diwali Balipratipada.
The Nifty 50 currently stands at a CY26 forward P/E of 18X, slightly above its long-term average of 17X, indicating limited downside and the possibility of a steady upward movement in the near term.
Key Global Market Cues
Asian Markets
Asian indices opened on a weaker note on Thursday, reflecting overnight losses in the US:
- Japan Nikkei 225 fell 1.28%, Topix down 0.71%
- South Korea Kospi dropped 0.54%, Kosdaq lost 1%
- Hong Kong Hang Seng futures indicated a lower start
These trends underline global investor caution amid US-China trade tensions.
Wall Street
US markets ended lower on Wednesday after mixed corporate earnings:
- Dow Jones fell 334.33 points (-0.71%) to 46,590.41
- S&P 500 dropped 35.95 points (-0.53%) to 6,699.40
- Nasdaq Composite lost 213.27 points (-0.93%) at 22,740.40
Notable stock movements included:
- Netflix down 10.7%, Apple fell 1.64%
- Texas Instruments declined 5.6%, Tesla slipped 3.8% post-market
- Intuitive Surgical surged 13.9%, AMD down 3.28%
Domestic Market Focus: Gift Nifty and Trading Sentiment
Ahead of the Thursday open, Gift Nifty traded around 26,281, a premium of 374 points over Nifty futures’ previous close, signaling a gap-up start for the indices.
Investors are keeping an eye on factors that could shape short-term trends:
- India-US trade talks showing progress
- Global crude oil and gold prices
- US-China trade tensions impacting risk appetite
India-US Trade Deal Developments
Recent reports suggest India and the US are close to finalizing a trade deal, potentially cutting tariffs on Indian exports to 15%-16% from 50%.
- Energy and agriculture sectors are key negotiation areas
- India may gradually reduce Russian oil imports, aligning with US objectives
Impact of US Sanctions on Russian Oil
The US imposed sanctions on Rosneft and Lukoil, citing their stance on Ukraine.
- This move has caused crude oil prices to rise:
- Brent crude up 2.54% at $64.18/barrel
- WTI crude gained 2.58% at $59.93/barrel
- Gold prices edged down for the third consecutive day, hovering around $4,090/oz, marking a 6% drop from recent highs.
Key Takeaways for Investors
While markets are influenced by global uncertainty, domestic optimism around trade and festive season activity is visible:
- Positive start for Sensex and Nifty 50 on Thursday
- Global cues like US-China tensions and crude oil sanctions will continue impacting short-term sentiment
- India-US trade deal can potentially boost exports and market confidence
Summary
The Indian stock market is navigating a mix of domestic optimism and global caution. With Diwali Muhurat trading gains and promising signs from India-US trade discussions, investors are keeping a watchful eye on market openings and global cues.
Indices in focus: Sensex, Nifty 50
Key drivers: Trade deal news, crude oil sanctions, global market trends
Trading sentiment: Cautiously optimistic, gap-up opening likely
Easy & quick
Leave A Comment?