Shares Surge At Pre-Open Signalling A Positive Start After Mega Rally 

Mumbai, November 3: Indian shares surged at pre open signalling a positive start after a mega rally powered by Reliance Industries in the previous session. 

Nifty 50 rose 0.7% and Sensex advanced 0.9% at pre open. 

The Nifty 50 and BSE Sensex rallied 1.7% on Monday, closing at their highest levels in more than five weeks and eight weeks, respectively, after Reliance reported better than expected earnings.  

Provisional NSE data showed foreign portfolio investors (FPIs) were net buyers on Monday, purchasing shares worth Rs 3,115 crore. Domestic institutional investors (DIIs), however, were net sellers, offloading equities worth Rs 392 crore.  

Among stocks, Marico will be in focus after reporting quarterly profit above market expectations, aided by lower copra costs and resilient demand.  

Dr Reddy’s Laboratories said the US Food and Drug Administration (FDA) had granted tentative approval to its generic version of a new HIV prevention drug.  

Granules India reported a nearly 40% year-on-year increase in September-quarter profit, supported by new product launches and robust sales of key medicines in overseas markets, which offset higher production costs. 

Asia Weak 

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.13%, weighed down by losses across regional technology stocks. South Korea’s Kospi declined 2.7%, while Taiwan’s Taiex shed 1.9%. Hong Kong’s Hang Seng Index bucked the regional trend, edging 0.4% higher. Japanese markets remained closed for a holiday. 

Wall Street Mixed 

US stock futures were largely flat in Asian trading after Wall Street ended Monday’s session on a mixed note, with technology stocks bearing the brunt of selling pressure amid concerns over corporate earnings and the sustainability of heavy investments in artificial intelligence. 

The S&P 500 declined 0.51% to close at 7,541.40, while the Nasdaq Composite dropped 1.07% to settle at 25,164.32. The Dow Jones Industrial Average outperformed, gaining 0.41% to end at 51,983.98. 

Apple shares fell 2.8% in after-hours trading after the iPhone maker projected lower gross margins for the crucial holiday quarter, citing rising memory-chip costs. Its outlook for services revenue growth also disappointed investors. 

Concerns over the scale and financing of AI investments continued to weigh on sentiment. Oracle shares tumbled nearly 9% after the company disclosed plans to raise $20 billion through debt and equity offerings, while AMD and Intel also faced selling pressure. 

Crude Oil Prices Stabilise After Sharp Decline 

Oil prices steadied in Asian trading after plunging more than 7% on Monday, as hopes of a diplomatic breakthrough between the US and Iran eased concerns over potential disruptions to crude supplies from the Middle East. 

Brent crude futures were last trading 0.3% higher at $105.1 per barrel, recovering some ground after the previous session’s steep decline. Prices had slumped following reports of discussions between Iranian and Qatari officials over a possible agreement to end the conflict. 

However, geopolitical uncertainty persisted amid reports of a US military strike on Iran’s Qeshm Island in the Strait of Hormuz, keeping concerns over regional supply disruptions alive. 

For Indian markets, the sharp correction in crude prices offers some respite, given the country’s dependence on imported energy and the implications of elevated oil prices for inflation, the rupee and corporate profitability. However, prices remaining above the $100-a-barrel threshold continue to pose a macroeconomic challenge. 

Source

• Exchanges