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Stock Market Today, November 4: The domestic equity markets opened higher on Wednesday, extending their winning streak after four straight days of rally, even as softer crude oil prices and signs of improving foreign investor participation are providing support. Buying in FMCG, banking and select heavyweight stocks supported the market, while IT shares remained under pressure.
At 9:22 am, the Sensex climbed 312.60 points, or 0.41%, to 77,230.45, while the Nifty advanced 91 points, or 0.38%, to 23,901.85.
The positive trade followed a strong session on Tuesday, when the Sensex surged 1,225.07 points, or 1.62%, to settle at 76,917.85. The Nifty rallied 370.05 points, or 1.58%, to close at 23,810.85. Both benchmarks had gained for four consecutive
sessions, supported by a correction in crude oil prices from recent highs and renewed foreign fund inflows.
Sectoral indices: FMCG, financial stocks lead
Sectoral indices largely traded in positive territory in early deals, with FMCG stocks leading the gains. The Nifty FMCG index jumped 1.48%, while Nifty Cement gained 0.96%. Nifty Financial Services 25/50 advanced 0.67%, and Nifty Financial Services rose 0.64%.
The Nifty Healthcare index gained 0.45%, Nifty Private Bank advanced 0.43%, and Nifty Auto climbed 0.42%.
However, the Nifty IT index declined 0.57%, while Nifty Metal slipped 0.18%.
Among Sensex constituents, ITC led the gains, rising 3.05%. SBI advanced 1.41%, while HDFC Bank gained 1.35%. Adani Ports, BEL and M&M were also among the notable gainers. On the losing side, Power Grid declined 0.98%, followed by TCS, which fell 0.97%. Bharti Airtel, Eternal, HCL Technologies, Hindalco and Infosys also traded lower.
India VIX rises
India VIX, a gauge of expected market volatility, rose 2.06% to 16.05, indicating some increase in market nervousness despite the positive trend in benchmark indices.
Crude oil prices
Oil prices slipped in early trade on Wednesday as investors awaited the results of the US midterm elections and their potential impact on peace talks in the Middle East, even after industry data showed US crude stocks unexpectedly fell last week. Brent futures fell 26 cents, or 0.25%, to $103.34 a barrel by 0157 GMT. US West Texas Intermediate crude futures fell 53 cents, or 0.55%, to $95.56.
V K Vijayakumar, chief investment strategist at Geojit Investments Ltd, said, “There is a distinct change in the market mood now. This has changed the market construct, too. The principal factor that has changed the market mood is the sudden reversal of the FII stance towards India. The sustained selling by FIIs have been weighing on the market for the last two years. This is changing now. In five out of the last six trading days, FIIs have been buyers in the market. They bought stocks for Rs 18,661 crore.”
The buying volume is increasing. Good corporate earnings and the attractive valuations in large-caps is providing the fundamental support to the rally. Weakening of the AI trade also has facilitated the return of the FIIs, he added.
“Even though the market revival can have a widespread character, this rally is likely to be led by the large-caps which have the potential to attract big FII flows. The rally can be strong and can sustain since there will be short covering in many large-caps. Leading financials have more room to move up,” Vijayakumar said.
He added that attention of the market today will be on the US election outcome. If the Democrats win both the House and the Senate, Trump will become a lame duck president who will be forced to use his veto power frequently. This can create even constitutional crisis with bad consequences for the US market. Perhaps India might gain from this confusion.
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