Gift Nifty Signals Strong Open for Sensex, Nifty as Wall Street Surges; Asia Mixed

Mumbai, November 5: Gift Nifty futures point to a gap-up opening for the Sensex and Nifty 50 on Thursday, with the contract at a premium of about 341 points to the Nifty’s close. The signal extends a five-session rally, led by Wall Street, though Asian markets are mixed and investors are cautious about US policy after the Democrats’ win. 

The near-month Gift Nifty contract was at 24,302.00 at 7.33 am, down 72 points, or 0.30 per cent, from its previous close of 24,374.00. Against the Nifty 50’s close of 23,960.60, that is a premium of 341.40 points, or 1.42 per cent. The signal puts the Nifty on course to open above the 24,300 mark. 

Wall Street is the main support. The Dow Jones Industrial Average jumped 3.03 per cent and the S&P 500 gained 1.58 per cent, while the VIX fell 20.26 per cent to 16.61. Brent crude at USD 94.09 adds to the cheer. 

Asia is mixed. Hong Kong’s Hang Seng rose 3.29 per cent, but South Korea’s Kospi fell 3.30 per cent and Taiwan 1.50 per cent. 

US policy is the open question. Democrats have won control of Congress, which can constrain President Donald Trump’s military options on Iran and may influence tariff and trade talks with India. Investors are playing it safe. 

Oil Prices 

Oil prices eased on Thursday morning, extending the slide from Friday’s six-month high. Brent crude fell USD 0.53, or 0.56 per cent, to USD 94.09 per barrel, about 20 per cent below USD 118, while West Texas Intermediate (WTI) dropped USD 0.78, or 0.89 per cent, to USD 87.34. Murban crude was quoted at USD 100.89, down 1.24 per cent on Wednesday’s data. 

Asian Stocks 

Asian stocks were mixed on Thursday morning, with gains in Hong Kong and Australia offset by falls in South Korea and Taiwan. Hong Kong’s Hang Seng jumped 3.29 per cent to 24,706.84, Australia’s ASX 200 rose 1.86 per cent to 8,998.70 and New Zealand’s NZX 50 gained 1.95 per cent to 14,051.90. Shenzhen added 2.13 per cent to 11,577.22 and Singapore’s Straits Times rose 0.51 per cent to 5,295.36. South Korea’s Kospi fell 3.30 per cent to 5,496.31, Taiwan lost 1.50 per cent to 42,306.21 and Japan’s Nikkei slipped 0.44 per cent to 61,913.51. 

US Markets 

Wall Street surged on Wednesday after Democrats won control of Congress. The Dow Jones Industrial Average jumped 1,569.40 points, or 3.03 per cent, to 53,356.12, the S&P 500 gained 1.58 per cent to 7,688.62 and the Nasdaq Composite rose 1.44 per cent to 25,736.51. The Russell 2000 rose 1.58 per cent and the VIX fell 20.26 per cent to 16.61. 

Iran War 

The war on Iran, which began with US-Israeli strikes on February 28, has reached a turning point, with a weakened Trump facing a choice between a negotiated exit and a riskier escalation, Reuters reported. Two sources close to Gulf government circles said Trump now has a greater incentive to seek a deal and that a full-scale assault looks less likely, as China steps up efforts to broker a settlement. In Tehran, Supreme Leader Mojtaba Khamenei warned against any inclination towards submission, and Iranian sources said the country remains on high alert for a possible US strike. Gulf analysts warned of a risk of miscalculation, and a Hezbollah official said the chances of escalation and de-escalation may be equal. 

Wednesday’s Close 

The Sensex rose 383.55 points, or 0.50 per cent, to 77,301.40, while the Nifty 50 gained 149.75 points, or 0.63 per cent, to 23,960.60, a fifth straight gain and the longest winning streak in nearly five months. Breadth was positive, with 2,948 shares advancing, 1,260 declining and 170 unchanged, and the Nifty Midcap index rose 1.3 per cent and the Nifty Smallcap index 2 per cent. Nifty Media surged about 5 per cent, Nifty Metal and Nifty Realty gained about 2 per cent each and Nifty IT fell about 1.5 per cent. Bharat Electronics, Titan, Adani Enterprises, Jio Financial Services and Max Healthcare led the Nifty gainers, while TCS, Infosys, HCL Technologies, Coal India and BSE Limited were the major laggards. 

Sources

• nseindia.com
• Gift Nift
• NSE data
• BSE data
• Reuters
• CNBC
• OilPrice.com