As the Indian stock market opens on November 4, 2024, several significant developments over the weekend are expected to influence trading. From global cues to domestic factors, here are eight key changes that could impact market sentiment today.
1. Gift Nifty Indicates a Tepid Start
The Gift Nifty was trading around 24,313, reflecting a discount of nearly 70 points from the previous Nifty futures close. This suggests a negative start for Indian stock market indices, indicating cautious investor sentiment as the market opens.
2. Mixed Performance in Asian Markets
Asian markets exhibited mixed performance as investors reacted to last week’s gains on Wall Street. While South Korea’s Kospi gained 0.96% and the Kosdaq rallied 2.24%, Japan’s markets were closed for a holiday, and Hong Kong’s Hang Seng index futures indicated a lower opening.
3. US Nonfarm Payrolls Data Impact
The release of the US Nonfarm Payrolls data showed hiring advanced at the slowest pace since 2020, with only 12,000 jobs added in October against expectations of 113,000. The unemployment rate remained steady at 4.1%, leading to speculation that the Federal Reserve may cut rates by 25 basis points in November.
4. US Stock Market Performance
The US stock market ended higher last week, buoyed by strong earnings from Amazon. The Dow Jones Industrial Average gained 288.73 points (0.69%), while the S&P 500 rose by 23.35 points (0.41%). This positive momentum may provide some support for Indian markets today.
5. Foreign Portfolio Investor (FPI) Outflows
FPI outflows reached a record high in October, with net sales of approximately ₹94,017 crore in Indian equities. This trend of selling may continue to weigh on market sentiment as investors remain cautious amid high valuations.
6. Oil Prices on the Rise
Crude oil prices have increased following OPEC’s decision to delay its planned December production increase by one month. Brent crude rose by 1.55% to $74.23 per barrel, while US West Texas Intermediate (WTI) gained 1.63% to $70.62. Rising oil prices could impact inflation and consumer spending in India.
7. Geopolitical Tensions Persist
Ongoing geopolitical tensions in the Middle East continue to create uncertainty in global markets, which may spill over into Indian trading today. Investors will be closely monitoring developments that could affect oil prices and overall market stability.
8. Upcoming Economic Events
This week is crucial for market participants as they await key economic events, including:
- The outcome of the US Presidential Elections
- The US Federal Reserve’s interest rate decision
- Further updates on Q2 earnings from various sectors
- Trends in crude oil prices and foreign fund flows
Conclusion
As investors prepare for today’s trading session, these eight key changes highlight the complexities and uncertainties facing the Indian stock market. With mixed signals from global markets and significant domestic factors at play, traders are advised to stay informed and exercise caution in their investment decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and do not reflect the views of Mint or any affiliated entities. We advise investors to consult with certified experts before making any investment decisions.
