Gift Nifty Signals Flat Open for Sensex, Nifty on Wednesday

Mumbai, October 27: Gift Nifty futures point to a flat opening for the Sensex and Nifty 50 on Wednesday, with the contract trading slightly below the Nifty’s Tuesday close. The Indian indices ended almost unchanged on Tuesday, with the Sensex down 0.01 per cent and the Nifty 0.02 per cent, as elevated crude prices and the US Federal Reserve’s policy decision, due on Wednesday in the US, kept investors cautious. 

The near-month Gift Nifty contract was trading at 22,749.50, up 105 points or 0.46 per cent from its previous close of 22,644.50, in afternoon trade on Tuesday. Against the Nifty 50’s Tuesday close of 22,749.75, the contract is at a discount of 0.25 point. The November contract was at 22,756.00, down 56 points or 0.25 per cent, a premium of 6.25 points, or 0.03 per cent, to the Nifty’s close. 

The contract opened at 22,672.50 and held near 22,670 through the pre-market hours. A sharp rally then lifted it past 22,740 as Indian trading began, and it touched a high of 22,843 before sliding to a low of 22,630.50 and recovering to 22,749.50 by the afternoon. 

The US Federal Reserve’s two-day meeting opened on Tuesday, with a decision due on Wednesday in the US, after the Indian session ends, so the reaction will reach Indian markets only on Thursday. Traders are largely pricing in a pause, but investors are watching for a hawkish tone, since higher US interest rates could strengthen the dollar and reduce the appeal of Indian equities. 

Asian Stocks 

Asian markets ended mixed on Tuesday, with South Korea’s Kospi surging 3.09 per cent, or 168.87 points, to 5,638.34 and Japan’s Nikkei 225 climbing 1.73 per cent, or 1,078.72 points, to 63,268.37. Chinese markets sold off, as the Shenzhen index lost 2.5 per cent to 11,245.73 and the Shanghai Composite fell 1.33 per cent to 3,648.30, while Hong Kong’s Hang Seng slipped 0.73 per cent, or 170.49 points, to 23,041.32. Australia’s ASX 200 added 0.46 per cent to 8,850.10, Malaysia rose 0.47 per cent and Taiwan gained 0.12 per cent. Thailand’s SET index lost 0.25 per cent to 1,575.02, Singapore’s Straits Times eased 0.35 per cent to 5,397.03 and New Zealand’s NZX 50 declined 0.39 per cent to 13,680.27. 

Oil Prices 

Oil prices were choppy on Tuesday, with hopes of diplomacy in the Middle East offsetting fresh attacks by Yemen’s Houthi group on Saudi Arabia. Brent crude traded at USD 115.95 per barrel, up USD 0.14 or 0.12 per cent, while West Texas Intermediate (WTI) gained USD 0.48, or 0.47 per cent, to USD 102.24, and Murban crude slipped 0.28 per cent to USD 117.67. Brent remains close to a six-month high after topping USD 117 last week, its highest since April, as Iranian attacks on tankers near the Strait of Hormuz kept flows through the waterway at about 60 per cent of normal levels. Prices had dipped about 1 per cent earlier after Saudi, Turkish and Pakistani officials met Iranian leaders in Tehran on Monday and agreed to keep talking. India depends heavily on imported crude, so costlier oil widens the import bill, feeds inflation and squeezes corporate margins. 

Tuesday’s Close 

Indian equity indices ended almost flat on Tuesday, October 27, as gains in pharmaceutical, realty and media stocks offset losses in information technology, oil and gas, and private bank shares on a volatile expiry day. The Sensex declined 8.08 points, or 0.01 per cent, to 73,598.67, while the Nifty 50 fell 3.45 points, or 0.02 per cent, to 22,749.75. 

Broader markets outperformed, with the Nifty Midcap index rising 1 per cent and the Smallcap index surging 2.7 per cent, while breadth was positive at 2,807 advancing stocks against 1,334 decliners and 179 unchanged. Tata Consumer Products, Bharti Airtel, Trent, BSE Ltd and Power Grid Corporation led the Nifty 50 gainers, while Grasim Industries, State Bank of India, Coal India, TCS and Asian Paints led the losers, as the Media index climbed 3.6 per cent and the Realty and Pharma indices gained about 2 per cent each. 

Sources

• Gift Nifty
• NSE data
• Reuters
• CNB
• OilPrice.com