Strong opening seen on the back of positive global cues
The stock markets in India are expected to kick-off the new month on an optimistic note as cues from Asian peers are strong and Wall Street's robust close overnight. A positive trend in the SGX Nifty index future, which was trading at 10,424, up by 38 points, also indicated positive opening. On the earnings front, among Nifty 50 companies, Hindustan Petroleum Corporation and HDFC will release their results today. Going forward, important data to watch out would be Nikkei India Manufacturing PMI for October. In a boost to the Modi government, India moved to the 77th rank on World Bank’s annual ranking of ease of doing business. On other hand, the core sector growth for the month of September slowed down to 4.3 per cent, the lowest in the last four months.
Majority of the Asian markets have kicked off the month of November on a cheerful note following the strong close on Wall Street. Hong Kong’s Hang Seng has climbed 1.55 per cent and China’s Shanghai Composite index has gained 1.11 per cent, while Japanese stock market Nikkei 225 has slipped 0.72 per cent.
Back home, key indices traded under pressure during early deals, however, the indices recovered smartly and ended the day with strong gains of 1.85 per cent for Nifty and 1.63 per cent for BSE Sensex. The broader market indices NSE Mid-cap and Small-cap too ended with healthy gains of 1.92 and 1.42 per cent, respectively. On the sectoral front, barring Nifty Metals, which ended down by 1.08 per cent, all other sectoral indices ended the day in the green, with Nifty IT, Nifty PSU Bank and Nifty Pharma being the top gainers.
The US equities rose sharply on Wednesday, putting together the first two days' win in a row in a down and volatile October. The strength on Wall Street was seen on the back of positive reaction to the latest batch of earnings from big companies and market participants also getting a shot in the arm with a report from payroll processor ADP showing stronger-than-expected private sector job growth in the month of October. The Dow Jones Industrial Average jumped about a per cent; the S&P 500 surged 1.1 per cent gain and the tech-heavy Nasdaq rose about 2 per cent.
The European markets rallied higher on the final trading session of the month as market participants cheered a strong set of earnings reports. The DAX of Germany increased 1.42 per cent; the CAC of France soared 2.31 per cent and the UK’s FTSE 100 gained 1.31 per cent. On the data front, euro zone inflation accelerated to a near six-year high to 2.2 per cent in October.