On Thursday, November 27, equity benchmark indices — the Sensex and Nifty 50 — are expected to open higher, tracking gains in global markets.
Trends on the GIFT Nifty indicate the Nifty is likely to hit a fresh all-time high on Thursday, with the index trading 51 points higher at 26,440 around 7:26 AM.
In early trade, Asian shares followed Wall Street higher as a global equities rally extended, fueled by rising expectations for Federal Reserve interest-rate cuts.
Indian equities bounced back strongly after three consecutive sessions of losses, with the Nifty rising to 26,205, coming close to its record level and logging its sharpest single-day gain in five months.
The overall market environment appears supportive, backed by a better Q3 demand setup, expectations of increased capex activity, and the possibility of rate cuts from the RBI and the US Fed, which together could help the index move beyond its previous all-time high.
On Wednesday, November 26, Foreign Institutional Investors (FIIs) were net buyers, buying equities worth ₹4,778.03 crore. Domestic Institutional Investors (DIIs) continued their positive stance, buying equities worth ₹6,247.93 crore, marking their 24th consecutive session of net inflows.
Indian equity benchmark indices snapped their three-day losing streak on Wednesday, with the Sensex rising over 1,000 points and the Nifty climbing more than 300 points to close at 85,609.51 and 26,205.30. The Nifty 50 logged its strongest single-day gain in six months, supported by major contributions from HDFC Bank, Reliance Industries, ICICI Bank, and Infosys.
Market sentiment strengthened on expectations of a possible US Federal Reserve rate cut in December, optimism around a potential US–India trade agreement, net FII buying worth ₹4,778.03 crore, and a sharp decline in crude oil prices amid reports of a revised Ukraine–Russia peace proposal.
All sectoral indices ended in the green, led by strong buying interest across the broader market. The Nifty Metal index gained over 2%, while the Nifty Energy index rose 1.74%. The broader indices also advanced, with the Nifty Midcap and Small-cap 100 posting their best single-day gains since early September, each rising more than 1%.
Wall Street continued its upward momentum on Wednesday, supported by renewed gains in technology stocks and growing expectations of an interest rate cut by the US Federal Reserve in December. The improving sentiment encouraged investors to step up buying ahead of the Thanksgiving holiday.
The US markets advanced further, with the Dow closing at 47,427.12 after gaining 314.67 points or 0.67%, while the S&P 500 settled at 6,812.61, up 46.73 points or 0.69%. The Nasdaq also moved higher, adding 189.10 points or 0.82% to finish at 23,214.69.
The dollar index fell below 99.5 on Thursday, sliding for the fourth straight session to its lowest level in almost two weeks, pressured by growing expectations of further Federal Reserve rate cuts.
Gold prices held their ground on Thursday after touching their highest level in over a week in the prior session. Traders continued to assess the chances of a potential U.S. interest rate cut in December, even as mixed comments from the Federal Reserve created uncertainty. Spot gold was trading down by 0.31% to $4,149.73 per ounce.
Brent crude oil futures fell below $63 per barrel, and WTI crude oil futures fell toward $58 per barrel on Thursday, reversing part of the more than 1% gain from the previous session, as investors continued to seek clarity on supply amid ongoing Russia-Ukraine peace efforts.
A US presidential envoy is heading to Russia next week for talks, and a breakthrough could lift sanctions on Russian crude.
Still, there are doubts the discussions will yield a deal soon, and many expect that even if one emerges, it will take time for Russian shipments to increase.
Disclaimer: The article is for informational purposes only and not investment advice.
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