GIFT Nifty Indicates Steady Start For The Indian Stock Market Today

Mumbai, October 31: The Indian stock market and all the included indices are expected to open on a steady-to-cautious note today. The muted opening is indicated by Gift Nifty, which is trading marginally lower at 0.07%, or 19.50 points, at 26,022.50. Until now, the index has traded within a range of 26,069.50 and 26,014.50.

Sensex and Nifty Closed in the Red Yesterday

Yesterday, on October 30, both Sensex and Nifty ended the day in the red. Sensex fell by 592.67 points, or 0.70%, to 84,404.46, while Nifty declined 176.05 points, or 0.68%, to 25,877.85. One of the main reasons for the sharp decline was the announcement by the Federal Reserve to cut its benchmark interest rate by 25 basis points to 3.75%-4%. Investors reacted cautiously, resulting in an overall negative sentiment throughout the trading session yesterday.

FIIs Continued to Sell But Saw Strong Support From DIIs

Yesterday, Foreign Institutional Investors (FIIs) were net sellers and sold Indian equities worth ₹3,077.59 crore net. However, the sale by FIIs were somewhat offset by strong buying by Domestic Institutional Investors, who bought Indian equities worth ₹2,469.34 crore net.

US Markets Ended Mixed While Asian Markets Open Muted

Overnight, US market ended on a mixed note as investors became cautious after the Federal Reserve rate cut. However, some positive sentiment was seen due to US tech companies posting strong financials. Nvidia became a $5 trillion company for the first time, while Alphabet recorded a $100 billion quarterly revenue for the first time in history. The Dow Jones Industrial Average fell 0.23%, the S&P 500 fell 0.99%, and the Nasdaq Composite declined 1.57%.

Asian markets started the day on a muted note. While Japan’s Topix rose 1%, Hang Seng futures were down 0.3%.

Steady Yet Cautious Opening Expected Today

As indicated by Gifty Nifty, the Indian stock market is expected to open on a steady yet cautious tone today. Global signals, along with institutional flows are signalling that the stock market may start the day flat, but may stabilise in the later hours. Investors will be keenly watching Q2 earnings, trade development among US, China, and Russia, along with other intraday factors for trading cues.

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