On Monday, October 20, equity benchmark indices Sensex and Nifty 50 are expected to open with a gap-up, tracking gains in global markets. The focus will be on the quarterly earnings of Reliance Industries, HDFC Bank, and ICICI Bank, which were announced over the weekend.
Trends on the GIFT Nifty indicate a firm start for Indian equities, as the index was trading 234 points higher at 25,990 around 7:44 AM.
In early trade, Asian markets were trading in the green, led by gains in Japanese stocks, while US markets also ended higher last week.
During the truncated week, investors will monitor key market triggers such as developments in the US-India trade discussions, the next batch of Q2 corporate results, foreign portfolio investment (FPI) flows, and crucial domestic as well as global macroeconomic data.
Meanwhile, Union Commerce minister Piyush Goyal said that talks regarding the proposed India-US Bilateral Trade Agreement are “progressing in a cordial manner,” and that there is “no agreement until interests of the nation - India's farmers, India's fishermen, India's MSME sector are fully addressed.”
On Friday, October 17, Foreign Institutional Investors (FIIs) emerged as net buyers, buying equities worth ₹308.98 crore for the 3rd consecutive trading session.
Domestic Institutional Investors (DIIs) were buyers on Thursday. DIIs bought equities worth ₹1,526.61 crore, marking their 38th consecutive session of net buying.
On Friday, October 17, Indian equity benchmarks extended gains for the third straight session, with the Nifty 50 and Sensex hitting one-year highs led by Reliance and ICICI Bank. The Nifty 50 rose 124.55 points (0.49%) to 25,709.85, while the Sensex gained 484.53 points (0.58%) to 83,952.19. India VIX climbed nearly 7%, indicating higher volatility expectations.
For the week, both indices advanced 1.7%, marking their strongest weekly gain in 16 weeks and three consecutive weeks of positive closing. Among sectors, six of eleven ended higher, with Bank Nifty and Nifty Financial Services touching lifetime highs. In contrast, the Nifty IT index fell 1.63%, dragged by Wipro and Infosys on margin concerns, while the broader Midcap and Smallcap indices ended in negative territory.
On Friday, the US stock market closed higher, after President Donald Trump confirmed that in-person trade discussions with Chinese President Xi Jinping were still proceeding.
The Dow Jones Industrial Average advanced 238 points, or 0.52%, while the S&P 500 and Nasdaq Composite each climbed about 0.53% and 0.52%, respectively.
Volatility eased, with the VIX falling over 15%, after President Donald Trump struck a more conciliatory tone toward China, saying from the White House, “I think we’re doing very well” and “I think we’re getting along with China.”
US President Donald Trump stated that the proposed 100% tariffs on Chinese imports would not be sustainable in the long run. He added that he expects relations with China to remain positive when he meets President Xi Jinping in South Korea in the coming two weeks.
China has maintained its benchmark lending rates for the fifth straight month in October. The one-year Loan Prime Rate remains at 3.0%, while the five-year LPR continues to stand at 3.5%.
Gold edges lower amid signs of easing in US-China trade tensions, which would diminish the safe-haven appeal of the precious metal. President Trump said in a television interview that the U.S. is "going to do fine with China." Trump also said the additional 100% levy on imports from China that he has threatened to introduce at the start of November wasn't sustainable. Spot gold is 0.1% lower at $4,245.39/oz.
The dollar index which tracks the US currency against six of its counterparts, headed for a 0.43% slide last week, although it was flat on Monday at 98.53.
WTI crude oil futures dropped to $57.3 per barrel and Brent crude oil futures dropped to $61.1 per barrel on Monday, hovering near six-month lows, as concerns over a global supply glut continued to weigh on prices.
Disclaimer: The article is for informational purposes only and not investment advice.
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