Last Updated:
GIFT Nifty trades at 23,705, down 55 points or 0.23%, at around 7:51 am, signalling a mildly negative opening for the Nifty and the Sensex.
Gift Nifty Today.
The domestic equity markets are likely to open on a cautious note on Wednesday, November 4, after a sharp four-session rally, with investors likely to pause and book profits following the recent surge. GIFT Nifty was trading lower in early deals, indicating a potentially subdued start for domestic benchmarks.
GIFT Nifty was trading at 23,705, down 55 points or 0.23%, at around 7:51 am, signalling a mildly negative opening for the Nifty and the Sensex.
The market will now look for fresh triggers to sustain the recovery, with global cues, foreign institutional investor (FII) flows and movements in crude oil prices likely to influence sentiment.
Despite the possibility of near-term consolidation, improving foreign investor participation and softer crude oil prices could provide some support to domestic equities.
Ponmudi R, CEO of Enrich Money, said Indian equities could witness some consolidation after the sharp rally, as investors assess whether the recent recovery can sustain.
“Indian equities may see some consolidation after a sharp four-session rally, with investors likely to lock in profits as the market assesses the sustainability of the recent rebound,” Ponmudi said.
However, he pointed to easing crude oil prices as a positive factor for the domestic market.
“WTI crude has stabilised around $96–$97 a barrel, offering some relief from energy-cost pressures and partly easing concerns over imported inflation and India’s external balances,” he added.
Lower crude oil prices are particularly important for India, given its dependence on imported energy and the potential impact of elevated oil prices on inflation, the current account deficit and corporate margins.
Foreign investor activity will remain another key factor for the market on Wednesday. After sustained selling pressure through October and the preceding months, signs of improving foreign investor participation have offered some encouragement.
Ponmudi said the improvement in foreign investor flows could signal an easing of the persistent selling pressure that had weighed on domestic equities.
“Foreign investor flows are also showing signs of a turnaround, suggesting a possible easing of the sustained selling pressure that had weighed on domestic markets through much of October and the preceding months,” he said.
He added that improving foreign flows, easing energy prices and optimism surrounding tax-policy developments could help support domestic market sentiment.
After four consecutive sessions of strong gains, investors may remain cautious and selective, with some profit-booking possible at higher levels.
According to Ponmudi, the market’s near-term direction will depend on global cues and the sustainability of foreign investor participation.
“Even so, after the recent advance, markets may remain selective and vulnerable to bouts of profit-booking, with global cues and the direction of foreign flows likely to influence trading in the near term,” he said.
Market participants will therefore track whether buying interest continues in heavyweight stocks and whether the recent recovery broadens across sectors.
In the previous session on Tuesday, benchmark indices Sensex and Nifty continued their winning streak for the fourth day in a row, ending nearly 2 per cent higher, amid a correction in crude oil prices from their recent highs and renewed foreign fund inflows. The 30-share BSE Sensex jumped 1,225.07 points, or 1.62 per cent, to settle at the day’s high of 76,917.85. The 50-share NSE Nifty rallied 370.05 points, or 1.58 per cent, to end at the day’s high of 23,810.85.
Global Cues
Prediction markets signalled growing expectations of a Democratic sweep of the US Congress, with more than $1.48 billion wagered on the midterm elections in a fresh test for the novel markets.
Futures for the S&P 500 slid 0.8% while Nasdaq futures fell 1.8%. The yield on the benchmark US 10-year Treasury note fell 6 basis points to 4.906%.
Tuesday’s outcome could hold broad implications for market-sensitive areas including the AI dead-centre buildout, the US fiscal outlook, defence spending and regulation in areas such as healthcare, banking and cryptocurrencies.
In Asia, stocks reversed earlier gains to trade lower as investors brushed off strong earnings from chipmaker AMD that appeared to ease some concerns over the durability of the AI trade.
The forecast and market-beating third-quarter results offered a strong counterpoint to mounting fears that the AI boom is losing steam after rival Intel issued a weak outlook last week.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5%. South Korea’s KOSPI slid 1.6% while Japan’s Nikkei fell 3% after returning from a holiday.
In the oil market, prices were choppy on Wednesday after sliding to a four-week low in the previous session as investors weighed talks to end the wars in Ukraine and Iran against worries that recent attacks in both conflicts could further disrupt supplies.
The effective blockade of the critical Strait of Hormuz that links the Gulf to world markets, previously a conduit for 20% of global oil supplies, has redrawn energy flows, stoked inflationary worries and upended the global rates outlook.
In currencies, the dollar slid broadly against major currencies. The euro rose 0.4% to $1.1239, while sterling firmed 0.37% to $1.3464. That left the dollar index 0.32% lower at 101.39.
Quick Answers
Ask News18The GIFT Nifty was trading lower down 55 points at 23,705, signalling a cautious, mildly negative opening for domestic benchmarks like the Nifty and Sensex following a four-session rally and potential profit-booking.
Ask News18About the Author
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, w…Read More
November 04, 2026, 08:03 IST
Read More
Source link
[ad_3]
