Feedback | Tuesday, November 05, 2024

28/10/24 | 10:24 am | BSE Sensex | Nifty 50

Nifty, Sensex begin week with gains; market uncertainty likely to persist until US election results

Indian stock markets opened the week with modest gains after last week’s 2.5% decline across both key indices. The Nifty 50 index opened at 24,251.10, marking an increase of 70.30 points or 0.29%, while the BSE Sensex gained 251.38 points, starting the day at 79,653.67, reflecting a 0.32% rise.

According to market experts, the outlook remains uncertain, with continued foreign institutional investor (FII) selling adding pressure to Indian markets. Banking and market analyst Ajay Bagga said that October has seen an unprecedented outflow from FIIs, with net sales of ₹102,000 crore in secondary markets. FIIs invested only ₹17,000 crore in primary markets, marking this as the highest monthly outflow in absolute terms. Given that this week is also the monthly expiry week, Bagga warned of potential increased volatility ahead.

Looking at the global context, the upcoming U.S. Presidential Election on November 5 is also a key factor affecting investor sentiment. “The U.S. elections are too close to call, and, as in 2020, the result could hinge on narrow margins in swing states. This will likely lead to ongoing market uncertainty until final results are announced,” Bagga added.

Among sectoral indices on the National Stock Exchange, all opened with gains except for the Nifty IT, which saw a slight decline of 0.6%. Nifty Financial Services led sectoral growth with a 0.6% increase. In the Nifty 50 index, ICICI Bank emerged as the top gainer after releasing its quarterly results, while JSW Steel recorded the biggest loss.

Quarterly results from several prominent companies are expected today, including Bharti Airtel, Sun Pharma, Adani Power, Suzlon Energy, Ambuja Cements, Punjab National Bank, and JSW Infrastructure.

In other Asian markets, Japan’s Nikkei index rose by 1.43%, while South Korea’s KOSPI index saw a 0.86% increase. In contrast, Hong Kong’s Hang Seng and Taiwan’s Weighted indices registered minor declines, reflecting mixed investor sentiment across the region.

(ANI)

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