On Friday, November 21, equity benchmark indices — the Sensex and Nifty 50 — are expected to open lower, following a decline in global markets.
Trends on the GIFT Nifty indicate a negative start, with the index trading 39 points lower at 26,179 around 7:26 AM.
In early trade, the majority of the Asian markets traded lower, while the US stock market slipped overnight, weighed down by selling in technology stocks.
On the domestic front, India’s core sector recorded no year-on-year growth in October, its slowest performance in over a year. Output had risen 3.3% in September and 6.5% in August (revised), while September 2024 had seen a 2.4% expansion.
On Thursday, November 20, Foreign Institutional Investors (FIIs) were net buyers, buying equities worth ₹283.65 crore. Domestic Institutional Investors (DIIs) continued their positive stance, buying equities worth ₹824.46 crore, marking their 20th consecutive session of net inflows.
Indian equity benchmark indices closed higher on Thursday, November 20, with both the Nifty 50 and Sensex gaining over 0.50% and hitting fresh 52-week highs. However, the Nifty 50 was unable to reclaim its September 2024 all-time high. The up move was supported largely by heavyweight stocks such as HDFC Bank and Reliance Industries. The Nifty 50 ended 139.50 points higher at 26,192.15, while the Sensex gained 446.21 points to close at 85,632.68. Both indices now stand about 0.32% below their record peaks, and India VIX rose over 1%, moving above the 12 level.
Sectoral performance was mixed, with 6 out of 11 major indices closing in the red. Nifty Financial Services, Auto, Bank, Energy, FMCG, and Metal ended in positive territory, while Realty, Pharma, PSU Bank, and Media declined. The Nifty IT index closed nearly unchanged. In the broader market, the Nifty Midcap 100 ended with gains, whereas the Nifty Smallcap 100 slipped, reflecting a mixed trend across market segments.
The US markets slipped on Thursday after an early uptick lost momentum, with tech stocks giving up gains despite Nvidia’s strong earnings. The Dow Jones closed 386.51 points lower at 45,752.26, the S&P 500 dropped 103.40 points to 6,538.76, and the Nasdaq ended down 486.18 points at 22,078.05.
Major technology names also came under pressure. Nvidia shares fell 3.15%, AMD tumbled 7.84%, Amazon declined 2.49%, Microsoft eased 1.6%, Intel slipped 4.42%, Palantir dropped 5.85%, and Tesla was down 2.21%.
Fresh labour data showed that US nonfarm payrolls rose by 119,000 in September, recovering from a revised decline of 4,000 in August. The unemployment rate climbed to 4.4% from 4.3%, the highest level in four years, though mid-November layoff trends signalled stability.
In Asia, Japan’s factory activity continued to shrink, with the November flash Manufacturing PMI at 48.8, marking the fifth straight month below the 50 mark.
The dollar headed for its strongest week in more than a month, with the dollar index hovering near a 5-and-a-half-month high at 100.20.
Gold prices held steady following a mixed US employment report, offering limited clarity on potential Federal Reserve rate cuts. Spot gold edged up 0.1% to $4,082.90 per ounce.
Crude oil slipped after Ukrainian President Volodymyr Zelenskiy signalled willingness to work on a peace roadmap. Brent crude eased 0.66% to $62.97 a barrel, and WTI futures were down 0.69% at $58.59.
Disclaimer: The article is for informational purposes only and not investment advice.
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