Indian Markets Set for Bullish Start
The Indian stock market is gearing up for a positive opening on Wednesday, with benchmark indices Sensex and Nifty 50 expected to open higher. This optimistic trend follows largely positive global market signals and growing expectations surrounding India-US trade deal negotiations.
Global Market Influences
Asian markets showed strength during early trading hours, with Japan's Nikkei 225 gaining 0.21% and South Korea's Kospi advancing 0.29%. The positive momentum in Asian markets came despite a mixed performance on Wall Street overnight.
The Gift Nifty was trading around 25,955 level, indicating a significant premium of nearly 144 points from the Nifty futures' previous close. This strongly suggests a gap-up opening for Indian stock market indices.
In the United States, the Dow Jones Industrial Average achieved a record high close, rallying 1.18% to 47,927.96. However, the technology-focused Nasdaq closed 0.25% lower at 23,468.30, reflecting a divided market sentiment.
Domestic Market Performance and Expert Views
On Tuesday, the Indian stock market extended its gains for the second consecutive session, closing with substantial increases. The Sensex surged 335.97 points, or 0.40%, to settle at 83,871.32, while the Nifty 50 climbed 120.60 points, or 0.47%, to reach 25,694.95.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, emphasized that the near-term market direction will depend heavily on the ongoing earnings season and progress in US-India trade discussions. He noted that any positive developments on the trade front could significantly boost investor sentiment and support overall market momentum.
Key Domestic and International Developments
US President Donald Trump announced that his administration plans to reduce the high tariffs imposed against India, noting that New Delhi has stopped purchasing Russian oil. Trump also indicated that Washington is close to reaching a fair deal with New Delhi, adding momentum to trade optimism.
In domestic political developments, Bihar exit polls forecast a return to power for the NDA, projecting a clear majority with 130–160 seats. The Mahagathbandhan is expected to secure only 70–100 seats. The final election results for the 243-seat Bihar legislative assembly will be announced on November 14.
The Union Government's net direct tax collection showed robust growth, recording a 7% year-on-year increase to over ₹12.92 lakh crore till November 10 this fiscal year. This compares favorably with the approximately ₹12.08 lakh crore collected during the same period last year.
On the global economic front, US employment data revealed that companies shed 11,250 jobs per week on average in the four weeks ended October 25, indicating a slowdown in the labor market during the second half of October.
Commodity Market Movements
Gold prices continued their upward trajectory for the fourth consecutive session, supported by a weaker US dollar and expectations of the US government reopening. Spot gold price rose 0.4% to $4,142.70 per ounce.
Meanwhile, crude oil prices experienced a slight decline after three days of gains. Brent crude oil fell 0.11% to $65.09 a barrel, while US West Texas Intermediate crude futures declined 0.10% to $60.97.
The US dollar showed weakness against a basket of currencies, trading near its lowest level in more than a week at 99.46. The euro remained steady at $1.1586, while sterling traded at $1.3149.
