Market Commentary - Pre-Session
GIFT Nifty signals positive start As on : 23-Oct-23  08:36

The GIFT Nifty futures trading indicates a potential 50-point rise in the Nifty 50 index at the market opening today.

As the earnings season intensifies, it will have a significant influence on the direction of the market. Investors will closely follow the financial performance of companies, which will provide insights into the overall health and outlook of various sectors. Additionally, global cues and developments in international markets will also impact the market trend. However, it's worth noting that this week is shorter than usual due to public holiday on Tuesday on account of Dussehra.

Global Markets:

The US Dow Jones index futures were up 27 points, indicating a weak opening in the US stocks today.

Asian stocks fell for a fourth day today after a selloff in US markets deepened Friday. The prices of gold and crude oil also went down, and the value of the Japanese currency, yen, briefly weakened against the dollar, crossing the 150 mark. The decrease in gold and crude oil prices was influenced by traders closely monitoring the geopolitical situation in the Middle East.

Although there have been some positive developments, like two American hostages being released and aid being delivered to Gaza, there is still a risk of more conflict between Israel and Hamas, and there's concern that it could spread to involve other countries in the region.

On Friday, the US markets experienced significant declines, with the 10-year US treasury yield reaching its highest level since 2007. The S&P 500, Dow, and Nasdaq all experienced losses of varying degrees. Investors will be closely watching upcoming earnings reports and economic data releases. These factors are expected to have a significant impact on how the market moves in the future.

Domestic Equity Market:

The domestic stock market declined for the third consecutive day on Friday, amid negative global cues. Factors contributing to this volatility include a surge in oil prices, rising U.S. bonds yields, geopolitical tensions in the Middle East, and hints of further interest rate hikes by the U.S. Federal Reserve. The Nifty settled below the 19,550 mark. Barring the Nifty Private Bank index, all the sectoral indices on the NSE ended in the red. Oil & gas and consumer durables stocks witnessed major selling. The barometer index, the S&P BSE Sensex shed 231.62 points or 0.35% to 65,397.62. The Nifty 50 index lost 82.05 points or 0.42% to 19,542.65.

Foreign portfolio investors (FPIs) bought shares worth Rs 456.21 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 8.53 crore in the Indian equity market on 20 October 2023, provisional data showed.

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