On Monday, November 17, equity benchmark indices — the Sensex and Nifty 50 — are expected to open higher on Monday, as sentiment improved after the BJP-led NDA won a resounding victory in the Bihar elections, which is likely to add stability to the coalition government at the Centre.
Trends on the GIFT Nifty indicate a positive start, with the index trading 47 points higher at 26,009 around 7:16 AM.
Progress in India US-India Trade Deal
India and the US are close to finalising a bilateral trade deal expected to be announced by the end of November, with Washington set to withdraw penalty tariffs after resolving the Russian oil issue.
As part of the agreement, India will open its market to duty-free imports of US soyabean, corn, and select dairy products, while both sides work on finalising reciprocal tariff rates in the 12–15% or 15–19% range for industrial and agricultural goods. India plans to use imported US corn for ethanol production and will allow limited dairy imports under strict conditions.
Most product-related issues have been settled, and the deal aims to ease trade frictions that escalated after the US imposed 50% tariffs on certain Indian exports.
This week, market participants will watch out for key stock market triggers, including developments in the India-US trade deal, flow of foreign funds, trends in gold prices, and other key global and domestic macroeconomic data.
In early Asian trade, the majority of Asian markets traded mixed, while the US stock market also ended mixed last week, with the Nasdaq closing higher led by gains in tech stocks.
In India, the Bihar Assembly election delivered a sweeping win for the NDA alliance, which secured 202 out of 243 seats, while the Mahagathbandhan managed 35.
On Friday, November 14, Foreign Institutional Investors (FIIs) were net sellers, selling equities worth ₹4,968.22 crore. Domestic Institutional Investors (DIIs) continued their positive stance, buying equities worth ₹8,461.47 crore, marking their 16th consecutive session of net inflows.
Indian equity benchmarks recovered from intraday losses on Friday, November 14, and closed in the green for the fifth straight session, supported by gains in State Bank of India and Axis Bank. The Nifty 50 rose 36 points to 25,915.15, while the Sensex added 84.11 points to 84,562.78. Both indices remain about 1.4 per cent below their record highs, while India VIX slipped nearly 2 per cent. Sentiment improved after indications that the National Democratic Alliance (NDA) is set to retain power in Bihar.
For the week, the Nifty 50 broke its two-week losing streak and gained 1.64 per cent, marking its second-best weekly close, with all five trading sessions ending in the green. Sector performance was mixed, with seven of eleven indices advancing. IT stocks slipped around 1 per cent after hawkish US Fed commentary, although the Nifty IT index still gained 3.37 per cent for the week. PSU Bank, Pharma, FMCG, Financial Services, Banking, Energy, Media, and Realty indices also posted gains, while broader markets outperformed, led by gains in the Nifty Midcap 100 and Nifty Smallcap 100 indices.
US stocks ended on a mixed note as concerns grew that the Federal Reserve might delay a rate cut in December. The Dow Jones Industrial Average slipped 0.65% to 47,147.48, while the S&P 500 closed almost flat, down 0.05% at 6,734.11. The Nasdaq managed a 0.13% uptick, finishing at 22,900.59. Over the week, the Dow added 0.3%, the S&P 500 inched up 0.1%, and the Nasdaq posted a 0.5% decline.
In global developments, President Donald Trump signed an executive order easing tariffs on several imported agricultural products such as beef, coffee, coconuts, and avocados—items not produced in sufficient quantities within the US.
On trade ties with China, Treasury Secretary Scott Bessent said a rare earths agreement could be finalized by Thanksgiving. This follows a framework deal in which the US agreed not to impose 100% tariffs on Chinese goods, and China paused its plan for export licensing of key rare earth minerals and magnets.
Trump also noted that Republicans are working on legislation to penalise any nation trading with Russia and suggested that Iran could be added to the list of targets.
Japan reported its first GDP contraction in six quarters, recording an annualised decline of 1.8% for July–September, smaller than market expectations of a 2.5% drop. The previous quarter had shown revised growth of 2.3%.
In cryptocurrencies, Bitcoin surrendered its year-to-date gains, slipping below the $93,714 mark on Sunday—its closing level from last December. This fall comes after the token’s record surge to $126,251 on October 6. Bitcoin later trimmed losses and hovered near $95,000.
Gold prices traded higher, halting two days of losses. Gold rates rose 0.3% to $4,097.22 an ounce.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.07% to 99.34
Disclaimer: The article is for informational purposes only and not investment advice.
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