Gift Nifty Points to Higher Open for Sensex, Nifty on Friday

Mumbai, October 29: Gift Nifty futures point to a higher opening for the Sensex and Nifty 50 on Friday, with the near-month contract at a premium of about 93 points. The Indian indices rebounded sharply on Thursday, with the Sensex up 1.24 per cent and the Nifty 1.05 per cent, as the US Federal Reserve’s decision to hold interest rates and upbeat corporate earnings lifted sentiment. 

The near-month November Gift Nifty contract was trading at 23,030.00 in evening trade, down 12.50 points or 0.05 per cent from its previous close. Against the Nifty 50’s close of 22,936.75, the contract is at a premium of 93.25 points, or 0.41 per cent. The December contract was unchanged at 23,121.50, a premium of 184.75 points, or 0.81 per cent. 

The November contract opened at 22,820 and fell to a low of 22,643 in early morning trade. It began to recover as Indian markets opened at 9:15 am and kept climbing through the session, touching a high of 23,093 in the late afternoon. 

The bounce follows a rough spell, with both indices having fallen in six of the previous eight sessions on worries over crude, inflation and the rupee. On Friday, traders will track oil and any word from Tehran, which is expected to answer a new Qatari peace proposal by the end of the week. 

Asian Stocks 

Asian stocks were mostly lower on Thursday, with Shenzhen the weakest as it slid 2.92 per cent, or 334.98 points, to 11,138.20. South Korea’s Kospi fell 1.24 per cent to 5,937.66, Taiwan’s benchmark lost 1.42 per cent to 46,368.33 and Shanghai declined 0.82 per cent to 3,651.43. Hong Kong’s Hang Seng eased 0.59 per cent to 22,958.65, while Thailand, Malaysia and Singapore also ended lower. Japan’s Nikkei 225 bucked the trend with a 1.10 per cent gain to 64,659.47 and Australia’s ASX 200 rose 0.50 per cent to 8,891.80. 

Iran War 

Qatari mediators handed Iran a new draft deal to end the war on Sunday, with a seven-day timeline for confidence-building steps, and Tehran is expected to respond by the end of the week, Reuters reported. A senior Iranian official, however, denied that a fresh proposal had been presented and called Qatar’s ideas unacceptable, even as Foreign Minister Abbas Araqchi said Iran was still giving diplomacy a chance. Iranian state media said the Strait of Hormuz could reopen within four to five days if the US lifts its naval blockade of Iranian ports. US President Donald Trump said on Wednesday he could not rule out fresh strikes after the US midterm elections on November 3. 

Oil Prices 

Oil prices eased on Thursday but stayed far above USD 100 a barrel as the Hormuz standoff kept supply worries alive. Brent crude traded at USD 114.11 per barrel, down USD 1.21 or 1.05 per cent, while West Texas Intermediate (WTI) fell USD 1.28, or 1.25 per cent, to USD 101.56. India imports most of its crude, so costlier oil widens the import bill, weighs on the rupee and feeds inflation. 

Thursday’s Close 

Indian equity benchmarks rebounded sharply on Thursday as the Fed’s decision to hold rates and upbeat earnings outweighed worries over high crude prices and geopolitical tensions. The Sensex surged 905.01 points, or 1.24 per cent, to 74,151.04, while the Nifty 50 gained 237.90 points, or 1.05 per cent, to 22,936.75. Breadth was positive, with 2,443 shares advancing, 1,615 declining and 127 unchanged, and the midcap and smallcap indices each rose around 1 per cent. 

Adani Ports, Adani Enterprises, Kotak Mahindra Bank, Power Grid Corporation and Eternal featured among the biggest Nifty 50 gainers. Trent, Bajaj Auto, Maruti Suzuki, SBI Life Insurance and Hindalco Industries were among the key laggards. Adani Ports jumped 6.3 per cent to a near four-month high after reporting higher quarterly profit and raising its operating profit guidance, while Adani Enterprises gained 5.2 per cent after its earnings. Power Grid and NTPC rose 3.4 per cent and 2.2 per cent, respectively. 

Sources

• nseix.com
• Gift Nifty
• NSE data
• Reuters
• CBS News
• CNBC
• OilPrice.com