Market unenthusiastic; Q2 earnings disappoint; gold rises

The market is showing signs of instability, with recent trends lacking strong catalysts for movement. The second quarter earnings have been underwhelming, particularly with concerns around Bajaj Auto’s low profitability. There are also fears that bank results may disappoint expectations, while IT sector outlook remains cautious. A marginal increase in exports for September provides limited comfort, although a decrease in trade deficit due to reduced imports is noted.

In the U.S., the markets reached record highs yesterday, but futures indicate a downward trend today. The Dow Jones closed at 43,077.70, gaining 337.28 points (0.79%), while the S&P 500 rose 27.21 points (0.47%) to 5,842.47. The Nasdaq increased by 51.49 points (0.28%) to 18,367.08. U.S. futures are lower this morning, reflecting slight declines across major indexes.

Asian markets displayed mixed results; Japan’s market fell, while Australia saw a 1% gain amid investor anticipation of new housing sector packages in China. The Chinese market experienced initial gains but later fluctuated.

Indian market

The Indian market opened with minor losses and experienced increased volatility before narrowing losses as major stocks like Reliance rallied towards the end of the session. The Gift Nifty closed at 25,070 on Wednesday, dropping to 25,030 this morning, suggesting a modest opening loss today.

Notable stock movements included a 5% decline for Cochin Shipyard as a 5% share offer for sale commenced, with a floor price set at Rs 1,540. Hyundai Motor India's IPO application rates are low, with only 42% applications received as the final day approaches. BSE Ltd shares fell by 5.41% following a downgrade from Jefferies.

In contrast, asset management company stocks surged, gaining between 5% and 12%. South Indian Bank saw a 6.5% increase following an 18% rise in net profit. Foreign investors made substantial net sales of Rs 3,435.94 crore in the cash market, bringing October's total foreign sales to a record Rs 67,310.80 crore.

On the broader market front, the Sensex closed down 318.76 points (0.39%) at 81,501.36, while the Nifty fell by 86.05 points (0.34%) to 24,971.30. The Bank Nifty dropped 104.95 points (0.20%) to 51,801.05. The mid-cap index closed slightly up by 0.24%, while the small-cap index remained stable.

Gold rises

Gold continues to rise, bolstered by expectations of a potential interest rate cut in November, reaching a high of $2,685.42 recently. The Indian rupee showed slight improvement but may face pressure due to a strengthening dollar. Crude oil prices have stabilized, and cryptocurrency values are also on the rise, with Bitcoin exceeding $67,700.

Market analysts are closely monitoring support levels at 24,920 and 24,880 for Nifty, with resistance at 25,060 and 25,100.

Market indicators:

- Sensex: 81,501.36 (-0.39%)
- Nifty50: 24,971.30 (-0.34%)
- Bank Nifty: 51,801.05 (-0.20%)
- Mid Cap 100: 59,451.85 (+0.24%)
- Small Cap 100: 19,304.90 (+0.01%)
- Dow Jones: 43,077.70 (+0.79%)
- S&P 500: 5,842.47 (+0.47%)
- Nasdaq: 18,367.08 (-1.01%)
- Dollar ($): ₹84.00 (-₹0.04)
- Dollar Index: 103.59 (+0.29)
- Gold (oz): $2,675.20 (+$12.30)
- Gold (Pavan): ₹57,120 (+₹360)
- Brent Crude: $74.22 (-$0.03)