Iran has continued its attacks in the Strait of Hormuz, while the Iran-backed Houthi rebels have stepped up strikes in Saudi Arabia, keeping geopolitical tensions elevated and pushing crude oil prices higher.
Global markets are awaiting the US Federal Reserve's interest rate decision later tonight. The dollar index has strengthened, putting pressure on the euro and Japanese yen.
Gift Nifty, which closed at 22,749.50 in Tuesday night's derivatives trading at GIFT City, slipped to 22,635 on Wednesday morning. The movement indicates that Indian equities could open significantly lower despite gains across major Asian markets.
The US Federal Reserve's Federal Open Market Committee (FOMC) concludes its meeting on Wednesday, with the interest rate decision expected around midnight Indian time. Markets overwhelmingly expect the Fed to leave rates unchanged. The CME FedWatch tool indicates a 93.4% probability of no change.
The European Central Bank will announce its policy decision on Thursday, followed by the Bank of Japan on Friday. Neither central bank is expected to raise interest rates this month.
US equities continued their upward momentum on Tuesday, with renewed investor interest in semiconductor stocks lifting the Nasdaq Composite by more than 1%.
Shares of Broadcom, Micron and AMD gained around 5% each. Fintech company SoFi Technologies surged 13.42% after reporting strong quarterly results and raising its revenue outlook.
Boeing, however, plunged 10.69% following its announcement that it would not increase production of the 737 MAX 10 aircraft.
The Dow Jones Industrial Average gained 15.99 points, or 0.03%, to close at 52,377.57. The S&P 500 advanced 45.83 points, or 0.60%, to 7,722.60, while the Nasdaq Composite climbed 308.43 points, or 1.18%, to 26,477.81.
US stock futures showed mixed movements on Wednesday morning. Dow futures declined 77 points, or 0.15%, while S&P 500 futures gained four points, or 0.03%. Nasdaq futures were up 57 points, or 0.19%.
Indian companies listed through American Depositary Receipts (ADRs) witnessed mixed trading in New York on Tuesday.
HDFC Bank ADRs declined 1.61% during regular trading but recovered 0.23% in subsequent trading to reach $21.41.
ICICI Bank ADRs fell 1.23% during the regular session before gaining 0.28% in subsequent trading to $29.
Infosys ADRs dropped 2.57% during regular trading and were subsequently down 0.49% at $12.05.
Wipro ADRs declined 2.39% during the regular session before remaining unchanged in subsequent trading at $2.04.
European equity markets extended their gains on Tuesday, supported by continued buying in information technology services companies.
However, concerns over challenges facing the retail sector weighed on the UK's FTSE index, limiting the broader market's advance.
Major Asian markets traded higher on Wednesday, led by a sharp rally in South Korean technology stocks.
South Korea's Kospi index surged 5% after semiconductor giant SK Hynix reported record third-quarter results. The company's revenue increased 32%, while profit rose 38%. SK Hynix shares gained 5%, while Samsung Electronics jumped 6.5%.
Japan's Nikkei advanced 1.4%, Taiwan's benchmark index gained 1.6%, and China's Shanghai Composite rose 0.80%.
The rally in Asian markets contrasted with the weakness indicated by Gift Nifty, reflecting continued concerns over India's exposure to elevated crude oil prices.
Indian equities ended Tuesday's volatile session almost unchanged, even as broader market indices registered substantial gains.
The Nifty Smallcap 100 surged 2.69%, while the Nifty Midcap 100 advanced 1%, indicating renewed buying interest beyond frontline stocks. Information technology services stocks remained under pressure.
Defence stocks gained after the government approved defence procurement proposals worth ₹2.12 lakh crore. The defence sector index advanced 1.82%.
Media, automobiles, pharmaceuticals, real estate, healthcare, capital markets, tourism and consumer durables recorded strong gains.
Banking and financial services stocks, however, ended lower.
Market breadth remained positive. On the BSE, 2,904 stocks advanced while 1,427 declined. On the NSE, 2,451 stocks gained against 1,092 that ended lower.
Foreign institutional investors (FIIs) were significant net buyers, purchasing equities worth ₹4,240.39 crore in the cash market. Domestic institutional investors (DIIs) recorded net sales of ₹1,250.03 crore.
Sensex declined 8.08 points, or 0.01%, to 73,598.67.
Nifty 50 slipped 3.45 points, or 0.02%, to 22,749.75.
Bank Nifty fell 391.80 points, or 0.72%, to 53,974.90.
Nifty Midcap 100 gained 564.50 points, or 1%, to 57,029.90.
Nifty Smallcap 100 surged 483.70 points, or 2.69%, to 18,468.70.
Jio Platforms is scheduled to make its stock market debut on Wednesday following its record initial public offering. The stock reportedly commands a grey market premium of around ₹250, indicating expectations of a listing above the issue price.
Jio controls nearly 50% of India's wireless broadband market. Analysts expect the company to offer attractive long-term growth opportunities, although its listing performance will depend on market conditions and investor demand.
The board of Reliance Industries will meet on Friday to consider a proposal to issue non-convertible debentures (NCDs). The company is also scheduled to announce its September-quarter financial results on the same day.
United Breweries reported a 190% surge in profit, supported by strong demand for premium beer brands. Overall sales volume increased 16%, while premium beer sales grew 38%.
Heineken Silver and Kingfisher Ultra were among the major contributors to growth. Revenue increased 24%, while the profit margin improved by 4.8 percentage points.
Steel Authority of India Limited (SAIL) reported a 19.8% increase in revenue, while net profit surged 318.1%. However, earnings remained below analysts' expectations despite a significant improvement in operating margins.
Raymond Realty reported a 7.4% increase in second-quarter revenue, while net profit declined 11.8%. Operating profit and margins improved during the quarter. The value of bookings nearly doubled, rising 98%.
Indus Towers reported a 4% rise in second-quarter revenue, while net profit declined 2.5%.
Tata Capital recorded a 20.7% increase in second-quarter revenue, while net profit jumped 51.32%. Its loan book expanded 26% to ₹3.08 lakh crore, reflecting continued growth in lending operations.
Gold extended its gains on Tuesday as easing concerns over interest rates and a temporary decline in crude oil prices supported the precious metal. International gold prices rose $43.10, or 1.07%, to close at $4,061.30 per troy ounce.
On Wednesday morning, gold briefly climbed to $4,071 before retreating to around $4,054. In Kerala, the price of 22-carat gold increased ₹400 on Tuesday to ₹1,05,080 per sovereign of eight grams.
Silver closed at $54.55 per ounce. Other precious metal prices were:
Platinum: $1,538 per ounce
Palladium: $1,019 per ounce
Rhodium: $8,625 per ounce
International rubber prices weakened as the strengthening US dollar weighed on the commodity. In Bangkok, RSS-1 rubber declined to $286.75 per quintal, while RSS-3 slipped to $283.35 per quintal.
In contrast, rubber prices continued to increase in Kerala, with RSS-4 rising to ₹29,500 per quintal. The divergence highlights the different pricing pressures affecting international and domestic rubber markets.
Industrial metal prices rose on Tuesday, with nickel being the notable exception. Copper gained 0.86% to $14,625 per tonne, while aluminium advanced 1.53% to $3,087 per tonne. Tin, lead and zinc also registered gains, while nickel prices declined.
Agricultural commodity prices witnessed mixed movements. Cocoa advanced 1.35% to close at $5,564.18 per tonne. Arabica coffee declined 2.27% to $2.94 per pound. Palm oil fell 1.84% to 4,701 Malaysian ringgit per tonne.
The US dollar continued its upward movement on Tuesday, with the dollar index closing at 102.32. It strengthened further to 102.38 on Wednesday morning.
The euro traded at $1.1123, while the British pound stood at $1.3301. The Japanese yen weakened to 157.91 against the dollar. The Chinese yuan remained at 6.67 per dollar.
Meanwhile, the yield on the benchmark US 10-year Treasury note rose to 5.02% on Wednesday morning. Higher US bond yields and a stronger dollar could continue to influence global capital flows, particularly in emerging markets.
The Indian rupee strengthened marginally on Tuesday, with the dollar declining eight paise to close at ₹95.11. The Reserve Bank of India remained active in the foreign exchange market.
In offshore forward trading on Wednesday morning, the dollar initially climbed to ₹95.23 before easing to ₹95.11. The rupee could face renewed pressure if the dollar index continues to strengthen, particularly against the backdrop of elevated crude oil prices.
The Chinese yuan declined to ₹14.26, while the euro weakened to ₹105.87.
Crude oil prices rebounded sharply on Wednesday morning as continuing geopolitical tensions in the Middle East revived concerns over global oil supplies.
Brent crude had declined 1.67% on Tuesday to close at $113.88 per barrel. However, the benchmark recovered its losses on Wednesday morning, climbing to $115.59 per barrel.
West Texas Intermediate (WTI) crude traded at $101.13 per barrel.
Continued attacks around the Strait of Hormuz and Saudi Arabia remain major risks to oil supplies.
For India, which depends heavily on imported crude oil, sustained high prices could increase the import bill, add to inflationary pressures and weigh on the rupee.
Major cryptocurrencies rebounded on Wednesday morning following recent volatility. Bitcoin climbed above $80,650, while Ethereum traded above $2,340. Solana also recovered, moving past the $101 mark.
(Tuesday, October 27)
Sensex: 73,598.67 (−0.01%)
Nifty 50: 22,749.75 (−0.02%)
Bank Nifty: 53,974.90 (−0.72%)
Nifty Midcap 100: 57,029.90 (+1.00%)
Nifty Smallcap 100: 18,468.70 (+2.69%)
Dow Jones: 52,377.57 (+0.03%)
S&P 500: 7,722.60 (+0.60%)
Nasdaq Composite: 26,477.81 (+1.18%)
US dollar: ₹95.11 (−₹0.08)
Gold (per ounce): $4,061.30 (+$43.10)
Gold (per sovereign): ₹1,05,080 (+₹400)
Brent crude (per barrel): $113.88 (−$1.93)
