After eight consecutive days of decline, the Indian market surged on Wednesday, lifting investor sentiment across all sectors. Following the holiday, expectations are that the market may continue its upward momentum when it reopens today. However, some investment experts caution that there are no clear signals to sustain a prolonged rally. The gains in US and European markets yesterday lifted Asian indices this morning, while US futures are also trading higher.
Another positive factor for India is the fall in crude oil prices below 65 dollars. In the derivatives market, Gift Nifty closed at 24,950.50 on Wednesday night and is hovering around the same level this morning, suggesting that Indian equities may open with modest gains.
European shares surged once again on Thursday. However, UK indices, which had reached record highs, eventually closed lower. Automobile and semiconductor stocks led the advance, with Stellantis, the parent company of Jeep, Chrysler and Fiat, jumping 8.3 per cent.
Despite the ongoing government shutdown, US markets touched record highs yesterday as all three major indices closed at new peaks. Continuous investments in the artificial intelligence sector have been driving this momentum. Nvidia climbed another one per cent, although some analysts voiced concerns about the company investing in its own clients and suppliers. Still, investment banks remain confident that the stock will rise further. Investors also anticipate that the government shutdown may end by the weekend. Comments by US Treasury Secretary Scott Besant, warning that the shutdown could dampen GDP growth, had little impact. President Trump remarked that the stalemate could help oust the Democrats, further politicising the situation.
Meanwhile, Tesla came under pressure after Elon Musk urged his followers on X to boycott Netflix for showcasing a series portraying a transgender character as inspirational. Though the move did not trigger widespread reaction, Netflix shares slipped 0.71 per cent while Tesla’s stock tumbled 5.11 per cent. Despite a seven per cent rise in Tesla’s third-quarter car sales, expectations of weaker sales in the fourth quarter due to the withdrawal of tax incentives weighed heavily. Ford Motors, by contrast, posted a 30 per cent surge in its electric vehicle segment, raising concerns about Tesla’s competitiveness.
On Thursday, the Dow Jones Industrial Average gained 78.62 points (0.17 per cent) to close at 46,519.72. The S&P 500 advanced 4.15 points (0.06 per cent) to finish at 6,715.35, while the Nasdaq Composite rose 88.89 points (0.39 per cent) to 22,844.05. US futures are currently in positive territory, with the Dow up 0.10 per cent, the S&P 500 higher by 0.14 per cent and the Nasdaq advancing 0.19 per cent.
Asian markets opened higher this morning. Japan’s Nikkei climbed 1.5 per cent, Australia’s ASX gained 0.25 per cent, while Chinese and South Korean markets remain shut for holidays.
Back in India, the market rallied nearly one per cent on Wednesday, snapping its losing streak. The Reserve Bank’s policy announcement, despite no rate cuts, brought optimism to investors. Nifty now finds support at 24,675 and 24,605, while facing resistance near 24,870 and 24,935.
Corporate news drew attention as Abu Dhabi’s International Holding Company (IHC) announced plans to acquire Saman Capital, formerly Indiabulls Housing Finance, by investing 8,850 crore rupees (100 crore dollars) for a 41.2 per cent stake. An open offer for an additional 26 per cent will follow, with IHC gaining majority representation on the board. Interestingly, shares of Saman Capital, which have surged 26 per cent over the past six sessions, were priced to IHC at a 17 per cent discount from Wednesday’s market price of 139 rupees.
CSB Bank, based in Thrissur, reported robust growth in September with deposits rising 25 per cent to 39,651 crore rupees and loans up 29 per cent to 34,730 crore rupees. Gold loans grew 37 per cent to 16,457 crore rupees. In the auto sector, Tata Motors, Maruti Suzuki, Hero MotoCorp, Royal Enfield (Eicher), TVS Motor, and Hyundai are expected to remain in focus following strong September sales. Tata Motors surged 5.7 per cent, overtaking rivals to become the second-largest carmaker by sales. Maruti’s domestic sales fell 6.3 per cent, but exports soared 52 per cent. Eicher’s sales jumped 43 per cent, Hero posted a five per cent rise in domestic sales while doubling exports, and TVS recorded a 12 per cent monthly increase with quarterly sales up 22 per cent.
United Spirits gained relief as the High Court quashed a 443 crore rupee levy imposed by Maharashtra’s Water Resources Department, ordering a reassessment. Meanwhile, V-Mart Retail reported a 22 per cent jump in September-quarter sales.
Gold, which had surged close to 3,900 dollars per ounce on fears surrounding the US government shutdown, slipped on Thursday as investors booked profits. Hawkish comments from a Federal Reserve governor also accelerated the correction. Spot gold, which touched 3,896 dollars, dropped to 3,821 before recovering to close at 3,857.50. It briefly climbed to 3,864.70 this morning.
In Kerala, the price of 22-carat gold fell by 400 rupees per sovereign, reaching 87,040 rupees. Silver closed at 46.99 dollars per ounce. Industrial metals continued to rally, with copper up 1.86 per cent to 10,454.30 dollars per tonne, aluminium gaining 0.49 per cent, and other base metals also strengthening.
On the commodities side, rubber prices tumbled 1.12 per cent to 168.10 cents per kilogram, cocoa slipped 3.48 per cent to 6,443 dollars per tonne, while coffee eased 1.09 per cent. Tea rose 0.71 per cent, and palm oil advanced 1.37 per cent.
The dollar index climbed to 97.85 on Thursday and reached 97.89 this morning. The euro slipped to 1.1725 dollars, the pound to 1.344, while the yen weakened to 147.12 per dollar. US bond yields declined, with the 10-year Treasury yield dropping to 4.086 per cent. The Indian rupee strengthened notably on Wednesday, closing at 88.69 against the dollar, but the stronger dollar index may weigh on it today.
Crude oil prices fell further on weak industrial growth and rising inventories across countries. Brent crude closed at 64.11 dollars after a two per cent fall, slipping below the 65-dollar mark, though it rebounded slightly to 64.35 this morning. WTI traded at 60.71 dollars, while Murban crude stood at 65.50. Natural gas prices dropped by another one per cent.
Cryptocurrencies surged on Thursday as investors turned to digital assets amid US government uncertainties. Bitcoin spiked 3.5 per cent to reach 121,109 dollars before easing to 120,500. Ether jumped five per cent to 4,520, while Solana surged six per cent to 235 before trimming gains.