As the budget announcement approaches, market uncertainty and volatility are increasing. The expiration of January F&O contracts today could also contribute to market fluctuations. The US Federal Reserve (Fed) did not change interest rates, as the market had anticipated.
Company results have shown only disappointing growth, and foreign investors continue to sell off stocks. The dollar index is climbing, which is weakening the rupee, while crude oil prices are falling, albeit at a slow pace.
In the derivatives market, the GIFT Nifty closed at 23,113.00 on Wednesday night and rose to 23,153 this morning, suggesting that the Indian market will likely open with a modest gain today. European markets ended with positive gains on Wednesday, with Daimler Trucks and Volvo posting better-than-expected results. The Dutch chip manufacturer also reported strong growth.
The Fed’s monetary policy committee meeting is ongoing, with a decision expected on Thursday. While many had previously concluded that there would be no rate cut this time, some are beginning to believe that President Trump's pressure tactics may succeed. Luxury goods giants LVMH and Kering saw their stocks decline.
In the US, Nvidia shares dropped 4 percent after the Trump administration indicated that it would impose restrictions on the export of Nvidia chips and GPUs to China. The stock has lost 13 percent this week.
Microsoft shares fell 5 percent due to higher losses in its cloud business, with warnings of worse performance in the next quarter.
IBM shares rose 10 percent after better-than-expected fourth-quarter earnings.
Tesla shares increased by 4 percent despite disappointing results, as auto sales fell by 8 percent.
Meta Platforms exceeded estimates with a 21 percent increase in revenue and a 49 percent rise in profit, causing its stock to rise.
The Dow Jones Industrial Average dropped 136.83 points (0.31 percent), closing at 44,713.52 on Wednesday. The S&P 500 index fell by 28.39 points (0.47 percent), ending at 6,039.31, while the Nasdaq Composite Index decreased by 101.26 points (0.51 percent), closing at 19,632.32. US futures are up today, with the Dow Jones up 0.25 percent, the S&P 500 up 0.37 percent, and the Nasdaq up 0.60 percent.
The US 10-year bond yield rose to 4.541 percent, as the market speculates about a potential rate cut following the Fed’s decision. Asian markets are showing mixed movements today. The Nikkei initially rose but then fell, while the Australian market increased by 0.40 percent.
The relief rally continues, although uncertainties persist in the Indian market. On Wednesday, the Nifty rose by 205.85 points (0.90 percent), closing at 23,163.10, while the Sensex increased by 631.55 points (0.83 percent), finishing at 76,532.96. The Bank Nifty rose by 299.10 points (0.61 percent), closing at 49,165.95. The Midcap index jumped by 2.31 percent (1189.40 points), closing at 52,718.85, while the Smallcap index surged by 3.32 percent (532.05 points), ending at 16,540.55.
Foreign investors sold a net amount of ₹2,586.43 crore in the cash market on Wednesday, while domestic funds and financial institutions bought a net amount of ₹1,792.71 crore. Foreign investors have sold shares worth ₹81,602.72 crore so far this month.
The broader market's volatility tilted to the upside after a few days of weakness. On the BSE, 2,692 stocks advanced, while 1,032 declined. On the NSE, 2,311 stocks gained, and 528 stocks fell.
Despite the market's two-day rally, the underlying weakness remains unchanged. The Nifty may find short-term support at 23,030 and 22,970 today, with 23,190 and 23,240 acting as resistance levels.
On the results front, Adani Enterprises, Abhishek Ports, L&T, Bajaj Finserv, GAIL, PB Fintech, Biocon, Dabur, Jindal Steel, Kalyan Jewellers, Dr. Lal Pathlabs, Naveen Fluorine, Prestige Estates, and others are set to announce their third-quarter results today.
Tata Motors reported a modest 2.7 percent increase in revenue, but operating profit fell by 15 percent, and net profit declined by 22.4 percent. Profit margins dropped from 13.9 to 11.5 percent.
Bajaj Finance’s interest income grew by 23 percent, but profit increased by just 18 percent.
JK Paper’s net profit plunged by 73 percent, while revenue decreased by 4.4 percent.
Brigade Enterprises saw a 222 percent surge in net profit, with revenue rising by 24.7 percent.
Quess Corporation posted a 14 percent increase in revenue and a 34 percent rise in profit.
Raymond's third-quarter revenue grew by 40.6 percent, and profit rose by 74.8 percent.
In the commodities market, gold prices dipped slightly after the Fed's decision not to alter interest rates. Gold fell by $5.20 per ounce to close at $2,758.80 on Wednesday, though it edged up to $2,760 this morning. In Kerala, gold prices rose by ₹680 per pound, setting a new record of ₹60,760. Silver prices increased to $30.83 per ounce.
The dollar index continues to climb. Yesterday, it closed at 108.00, but this morning, it dropped slightly to 107.89. The rupee weakened again, with the dollar rising by two paise to ₹86.54. The Reserve Bank of India’s recent measures have alleviated some of the volatility in the market.
Crude oil prices fell by more than 1 percent yesterday. Brent crude closed at $76.58, while WTI stood at $72.82 and UAE’s Murban crude at $78.48.
Cryptocurrencies saw slight gains yesterday, with Bitcoin nearing $104,100 and Ether climbing to $3,130.
Industrial metals showed mixed movements. Copper rose by 0.93 percent to $8,943.80 per tonne, aluminium gained 1.55 percent to $2,619.65, tin increased by 0.49 percent, and lead rose marginally by 0.03 percent. However, zinc fell by 0.52 percent, and nickel dropped by 0.07 percent.
Sensex 30: 76,532.96 (+0.83%)
Nifty50: 23,163.10 (+0.90%)
Bank Nifty: 49,165.95 (+0.61%)
Midcap 100: 52,718.85 (+2.31%)
Smallcap 100: 16,540.55 (+3.32%)
Dow Jones: 44,713.52 (-0.31%)
S&P 500: 6,039.31 (-0.47%)
Nasdaq: 19,632.32 (-0.51%)
Dollar (₹): ₹86.54 (+₹0.02)
Dollar Index: 108.00 (+0.13)
Gold (ounce): $2,758.80 (-$5.20)
Gold (pound): ₹60,760 (+₹680.00)
Crude (Brent) Oil: $76.94 (-$0.55)