Indian Stock Market Braces for Cautious Opening
The Indian stock market benchmark indices, Sensex and Nifty 50, are anticipated to commence trading on a flat note this Thursday, reflecting mixed signals from global markets. This comes after three consecutive sessions of robust gains that saw the Nifty 50 reclaim the significant 25,850 level.
Domestic Market Performance and Expert Outlook
On Wednesday, domestic equities extended their winning streak, closing sharply higher. The Sensex surged by 595.19 points, or 0.71%, to settle at 84,466.51. Similarly, the Nifty 50 climbed 180.85 points, or 0.70%, to conclude at 25,875.80.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd., expressed optimism about the market's trajectory. "We expect markets to maintain their positive bias, supported by the ongoing earnings season, constructive progress on the India–US trade deal, and improving global cues," he stated.
Global Market Influences and Key Indicators
Asian markets presented a mostly positive picture early Thursday. Japan's Nikkei 225 advanced 0.42%, while the Topix index rose 0.62% to achieve a record high. However, signals from Gift Nifty suggested a potential weak start for Indian indices, trading around the 25,955 level, indicating a discount of nearly 30 points from Nifty futures' previous close.
On Wall Street, the Dow Jones Industrial Average achieved a record-high close for the second consecutive day, gaining 0.68% to reach 48,254.82. In contrast, the Nasdaq closed 0.26% lower at 23,406.46, with notable declines in Tesla, Amazon, and Palantir stocks.
Economic Developments and Policy Updates
Domestically, India's retail inflation data revealed a dramatic plunge to 0.25% in October, down from 1.44% in the previous month and significantly lower than the 6.21% recorded in October 2024.
In a significant move to boost exports, the Union Cabinet approved the introduction of the Credit Guarantee Scheme for Exporters (CGSE). This initiative will provide 100% credit guarantee coverage for additional credit facilities up to ₹20,000 crore to eligible exporters, including MSMEs.
Internationally, the US House of Representatives passed a short-term funding bill to end the longest government shutdown in history. Meanwhile, Federal Reserve officials indicated a cautious approach toward additional monetary easing, citing concerns about elevated inflation.
Commodity markets showed mixed trends, with gold prices rising 1.7% to $4,197.43 an ounce, while crude oil prices extended declines due to surplus worries, with Brent crude falling to $62.42 a barrel.
