GIFT Nifty Points to Soft Start; FIIs and DIIs Continue Buying Spree After Market Rally

Mumbai, October 17: The Indian stock market and all the included indices are expected to open on a positive yet cautious note today. This positive yet cautious tone is indicated by Gift Nifty, which is up marginally by 0.01%, or 2.50 points, and is trading at 25,603.50. Until now, the index has traded within a range of 25,623.50 and 25,493.

Sensex and Nifty Finished Strong Yesterday

On Thursday, the Indian stock market continued its positive run for the second straight session. The Nifty 50 closed 261.75 points, or 1.03% higher at 25,585.30, while the BSE Sensex surged by 862.23 points, or 1.04%, to close at 83,467.66. The rally was mainly due to strong demand in stocks related to sectors such as banking, auto, and energy stocks. Furthermore, the BSE Midcap index also rose 0.3% and the Smallcap index added 0.4%.

US Markets Lower While Asian Markets Open Weaker

Overnight, global markets were mainly mixed. US markets closed lower due to cautiousness about regional banks and trade tensions with China. The Dow Jones fell by 0.65%, the S&P 500 declined 0.63%, and the Nasdaq slipped by 0.47%.

Asian markets have also opened weaker, with Japan’s Topix down 0.8% and Australia’s S&P/ASX 200 slipping 0.3%. Futures for Europe’s Euro Stoxx 50 opened flat with a 0.6% decline. In the bond market, the US 10-year Treasury yield slipped to 3.95%, on expectations that the Federal Reserve may cut interest rates later this month.

Gold Continues Rally While Crude Oil Price Slips

In the global markets, gold continued its record-breaking rally, trading above $4,300 per ounce. This was its best weekly performance in 17 years. However, Crude oil prices fell and are nearing a weekly loss. This was caused by reports suggesting a possible meeting between the U.S. President Donald Trump and Russian President Vladimir Putin to discuss the conflict in Ukraine.

In the currency market, most Asian currencies gained against the U.S. dollar, except for the Indonesian Rupiah and the Thai Baht. The Indian rupee increased for the second day in a row, closing at ₹87.87 per USD. This was helped by foreign investment inflows and a weaker dollar.

FIIs Net Buyers While DIIs Provide Support

Yesterday, Foreign Institutional Investors (FIIs) were net buyers of ₹997 crore, while Domestic Institutional Investors (DIIs) provided support with even stronger inflows, purchasing ₹4,076 crore worth of Indian equities.

Positive Opening Expected With Caution

As indicated by Gift Nifty, and supported by institutional flows, the stock market is expected to open on a positive note. The positive sentiment is also due to today being the last trading day before Diwali, excluding the Muhurat Trading session on the 21st. However, investors will be cautious based on the interest rate cut expectations and other intraday factors.

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