Stock market in flux as inflation data due today

The excitement from Donald Trump's victory continues to drive the US stock market, with indices hitting new highs. The Dow Jones, for example, closed at a record 44,293.13 on Monday, rising 0.69%. Similarly, the S&P 500 and Nasdaq also ended the day on positive notes, up by 0.10% and 0.06%, respectively.

Global markets

European markets mirrored this optimism, with the DAX index in Germany climbing 1.21%, despite some political uncertainty. However, the mood in Asia has been more cautious. While Japan’s Nikkei index rose by more than half a percent, South Korea saw a decline of 1.25%, and Australia’s market also closed lower.

The broader Asian markets are showing mixed signals, reflecting concerns about slower economic recovery, particularly in China, where industrial activity has yet to pick up significantly.

Indian market

India's retail inflation data is expected to be released later today, with forecasts suggesting that the October inflation could rise to around 7%, up from 5.5% in September. This increase is mainly attributed to a sharp rise in vegetable prices, which have put pressure on the overall cost of living. Meanwhile, the Indian stock market ended the day with little change.

The Nifty 50 closed down by just 0.03%, while the Sensex gained a marginal 0.01%. The banking and IT sectors showed some resilience, but other sectors remained under pressure. Despite the positive performance of specific stocks, the broader market faced challenges, with mid-cap and small-cap stocks suffering losses.

Foreign investors continued to pull out funds, further weighing on market sentiment. In terms of corporate earnings, results for the second quarter remained disappointing, adding to the uncertainty.

Gold update

On the commodities front, gold prices continued to slide, largely due to the strengthening US dollar. Gold fell by 2.4% on Monday, settling at $2,620.10 per ounce. Silver also took a hit, dropping by over 2%, while crude oil prices saw a slight decline.

Brent crude oil closed at $71.94, down by $1.93, as market expectations of a cooling in geopolitical tensions in the Middle East, combined with weak demand from China, put pressure on prices.

Despite the rising dollar, the Indian rupee held steady against the US dollar, ending the day at ₹84.39, up by just one paisa. The rupee is largely following the movements of other major currencies, including the Chinese yuan.

In the world of cryptocurrencies, there was a significant surge following reports that the Trump administration may endorse digital currencies. Bitcoin soared to a new all-time high of nearly $90,000 before settling back slightly. This marks a 30% gain over the past week, and predictions suggest Bitcoin could potentially hit $200,000 if Trump's government supports it further. Meanwhile, other cryptocurrencies like Ether saw a slight dip but are still holding strong.

The Indian stock market also saw some notable stock-specific movements on Monday. Federal Bank’s share price reached a record high, and Kitex Garments also posted strong gains. However, stocks like UPL, Asian Paints, and Balrampur Chini were hit hard, all falling by more than 8% due to poor quarterly results.

On the other hand, Biocon shares surged by 8.5% after the company received approval from the US FDA for its biologics unit. Meanwhile, foreign institutional investors made a net sale of ₹2,306.88 crore in the cash market, though domestic funds stepped in to buy shares worth ₹2,026.63 crore.

The market remains cautious, and the support levels for Nifty are now around 24,000 to 23,800, while resistance has dropped from 24,500 to 24,300.

Market indicators

- Sensex: 79,496.15 (+0.01%)  
- Nifty: 24,141.30 (-0.03%)  
- Bank Nifty: 51,876.75 (+0.61%)  
- Midcap 100: 55,853.75 (-0.88%)  
- Smallcap 100: 18,225.15 (-1.20%)  
- Dow Jones: 44,293.13 (+0.69%)  
- S&P 500: 6,001.35 (+0.10%)  
- Nasdaq: 19,298.76 (+0.06%)  
- Dollar (INR): ₹84.39 (+₹0.01)  
- Dollar Index: 105.54 (+0.51%)  
- Gold (oz): $2,620.10 (-$64.60)  
- Gold (Pavan): ₹57,760 (-₹440)  
- Brent Crude Oil: $71.94 (-$1.93)