Market Commentary - Pre-Session
Market may open on firm note As on : 29-Nov-23  08:39

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could rise 24 points at the opening bell.

Global markets:

Overseas, Asian stocks are trading lower as investors assess comments from the U.S. Federal Reserve board members and digest Australia?s October inflation figures.

Australia?s weighted inflation rate for October slowed more than expected, coming in at 4.9%. This was also lower than the 5.6% seen in September. The overall inflation rate stood at 4.8%, its lowest level since January 2022.

On Tuesday, Federal Reserve Governor Christopher Waller said he was growing more confident that policy was in a place now to bring inflation back under control. However, he maintained that inflation was still too high. Waller also said the Fed might start lowering rates if inflation continues to ease over the next three to five months. In contrast, Governor Michelle Bowman said more rate hikes will likely be needed as evolving dynamics keep inflation elevated.

US stocks rose Tuesday, resuming their November rally, as comments from a Federal Reserve official raised hope that the central bank may not need to raise interest rates further.

Investors will focus this week on the Fed's preferred measure of inflation on Thursday and euro zone consumer inflation figures for further clarity on the where inflation is headed. Fed Chair Jerome Powell is due to speak on Friday. His words will be scrutinized by traders to gauge where rates may head.

Domestic markets:

Back home, the domestic benchmark indices made a strong rebound on Tuesday following two days of mild declines, driven by buying in oil & gas, power, auto, and metal sectors. However, defensives like pharma and FMCG shares corrected. The barometer index, the S&P BSE Sensex jumped 204.16 points or 0.31% to 66,174.20. The Nifty 50 index added 95 points or 0.48% to 19,889.70.

Foreign portfolio investors (FPIs) bought shares worth Rs 783.82 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,324.98 crore in the Indian equity market on 28 November, provisional data showed.

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