GIFT NIFTY futures indicate that the Indian stock market will open lower on Thursday, October 29, as crude oil prices hover around $115 per barrel. This suggests a gap down opening for the Indian equity benchmarks, reflecting concerns about rising crude prices and mixed global market signals.
- GIFT NIFTY futures dropped 96 points to 22,682 ahead of market open.
- Brent crude oil prices remain near $115 per barrel, influencing market sentiment.
- Foreign institutional investors bought shares worth ₹871.83 crore on Wednesday.
- Domestic institutional investors purchased shares worth ₹643.35 crore on Wednesday.
- About 150 companies are scheduled to announce their September quarter results today.
Why is GIFT NIFTY hinting at a gap down opening?
GIFT NIFTY futures, traded at GIFT City in Gandhinagar, dropped 96 points to 22,682 on Wednesday, signaling a likely lower opening for the Indian equity markets on Thursday. This decline is largely influenced by the rise in crude oil prices, which hovered around $115 per barrel. Higher crude prices often increase costs for many sectors, leading to cautious investor sentiment.
How did Indian equity indices perform on Wednesday?
On Wednesday, October 28, the Indian equity indices closed lower. The NIFTY50 index fell by 0.2%, or 50 points, ending at 22,698.85 compared to the previous close of 22,749.75. The SENSEX also declined, pressured by selling in IT stocks and other heavyweight companies. Rising crude oil prices above $116 per barrel added to the negative sentiment.
What was the global market scenario?
Asian markets showed mixed performance. Japan's Nikkei rose by 0.32%, Hong Kong's Hang Seng increased by 0.2%, while China's Shanghai Composite declined by 0.62%, and South Korea's KOSPI dropped 2.13%. In the US, the Dow Jones Industrial Average increased by 0.19%, the S&P 500 gained 0.28%, and Nasdaq rose 0.27% overnight.
Notably, Alphabet's shares fell 10% in after-hours trading due to heavy cash burn, wiping nearly $400 billion off its market value. This caused Nasdaq futures to fall by 1%. Conversely, Microsoft exceeded forecasts with strong cash flows, lifting its shares by 3%.
What was the activity of institutional investors?
Foreign institutional investors (FIIs) bought shares worth ₹871.83 crore on Wednesday, while domestic institutional investors (DIIs) purchased shares worth ₹643.35 crore. This combined buying activity suggests that institutional investors remain interested in the market despite short-term volatility.
Which companies are announcing results today?
Approximately 150 companies are scheduled to announce their September quarter results today. Some notable names include Asian Paints, Coal India (CIL), Trent Ltd, InterGlobe Aviation (IndiGo), Laurus Labs, Ambuja Cements, Godrej Consumer Products, Welspun Corp, and Apar Industries.
Other companies reporting results include Motilal Oswal Financial Services (MOFSL), Suzlon Energy, Milky Mist Dairy Food, MTAR Technologies, Firstsource Solutions, Deepak Nitrite, Vedanta Power, Vedanta Oil and Gas, and Computer Age Management Services (CAMS).
