Donald Trump is set to be sworn in as the 47th President of the United States tonight, and the world is eagerly awaiting his actions, particularly his potential decisions on increasing tariffs on imports and expelling illegal immigrants, as previously stated. This uncertainty is causing fluctuations across various markets.
Not only stocks, but also the US dollar, crude oil, gold, cryptocurrencies, and bond prices are experiencing volatility due to the prevailing ambiguity.
So far, the third-quarter results have been rather underwhelming. Reliance’s results are an exception, showing an increase in profits, but it’s believed that the "Reliance effect" will diminish as more results come in. Weakness is anticipated in the banking, NBFC, and IT sectors, and there are no signs of foreign selling letting up.
In the derivatives market, the Gift Nifty closed at 23,293 on Friday night. This morning, it dipped to 23,237, suggesting that the Indian market is likely to open in the red today.
European markets saw significant gains on Friday. Bloomberg reported that Glencore, a mining company, has entered merger talks with Rio Tinto, which stirred the markets.
US markets also experienced a positive day on Friday, with the Dow Jones, S&P 500, and Nasdaq all posting substantial gains. Nvidia and Tesla both rose by 3% each. The Dow gained 3.7% over the week, the S&P 500 rose 2.9%, and the Nasdaq increased by 2.5%.
On Friday, the Dow Jones Industrial Average rose 334.70 points (0.78%) to 43,487.83, the S&P 500 climbed 59.32 points (1.00%) to 5,996.66, and the Nasdaq Composite gained 291.91 points (1.51%) to 19,630.20.
However, US futures are slightly lower today. The Dow is down 0.11%, the S&P 500 is down 0.16%, and the Nasdaq is down 0.22%.
The yield on the US 10-year Treasury bond stands at 4.623%, indicating that the market believes inflation risks have subsided.
Asian markets opened higher this morning. The Nikkei in Japan rose by 1%, and Chinese markets also saw gains.
The Indian markets were down on Friday. Foreign investors continued their heavy selling, with the Sensex and Nifty each dropping by 1% last week. The Bank Nifty fell by 0.4%, and the IT index lost more than 5%.
On Friday, the Nifty closed 108.60 points (0.47%) lower at 23,203.20, while the Sensex lost 423.49 points (0.55%) to end at 76,619.33. The Bank Nifty dropped by 738.10 points (1.50%) to close at 48,540.60. The Midcap index rose by 0.23%, ending at 54,607.65, while the Smallcap index rose by 0.16%, closing at 17,672.05.
Foreign investors sold a net Rs 3,318.06 crore in the cash market on Friday. Meanwhile, domestic funds and financial institutions bought Rs 2,572.88 crore. Foreign selling has totalled Rs 46,576.06 crore so far this month.
The broader market showed a slight bias towards the upside. On the BSE, 1,991 stocks advanced, while 1,955 stocks declined. On the NSE, 1,472 stocks advanced, and 1,338 stocks declined.
The Nifty maintained support at 23,200 yesterday, but overall market sentiment remains bearish. For a move upwards, the index needs to rise above 23,400. In the short term, the Nifty could find support at 23,120 and 23,005 today, while resistance may be at 23,275 and 23,390.
Several companies are set to announce their third-quarter results today, including Paytm, Zomato, Oberoi Realty, Suntec Realty, APL Apollo Tubes, Dixon Technologies, Central Bank of India, IDBI Bank, Indian Overseas Bank, IRFC, and Newgen Software.
Wipro’s third-quarter revenue rose by 0.4%, while operating profit increased by 4.5%. However, the revenue growth expectation was just 1%. Wipro's US ADR fell by 2.6% on Friday. Infosys ADR also fell for the second consecutive day.
Tech Mahindra’s revenue for the third quarter fell slightly, with net profit dropping by 21%.
Kotak Mahindra Bank saw a 9.8% increase in net interest income, and its net profit rose by 10%. Provisions, however, grew by 37.1%.
RBL Bank’s net interest income increased by 3%, but its net profit plummeted by 86%, with provisions rising by 160%.
Jio Financial's revenue increased by 6%, though its net profit only grew by 0.3%.
Seshasai Paper’s third-quarter revenue dropped by 8.9%, while net profit fell by 75.9%.
Supreme Petrochem reported a 5.4% growth in net profit, with revenue increasing by 18.3%.
Indian Hotels saw a 29% increase in revenue, and net profit rose by 32.6%.
The Gujarat Pollution Control Board has ordered the closure of Camlin Fine Sciences' Bharuch unit for failing to meet pollution norms.
Hyundai Motor has held initial discussions with TVS Motor about collaborating on the production of electric three-wheelers and micro four-wheelers. The plan involves manufacturing TVS vehicles using Hyundai's design and technology.
International markets are speculating that if Donald Trump proceeds with his earlier statements, gold prices could reach record highs within days.
Price targets for gold are set at $3,200, while silver could reach $38. However, gold prices have fallen recently due to ongoing policy uncertainty. Gold closed at $2,703.00 per ounce on Friday, a decline of $12.60. This morning, it slipped further to $2,697.
In Kerala, the price of gold rose by Rs 480 per ounce on Friday, reaching Rs 59,600, but fell by Rs 120 to Rs 59,480 on Saturday.
The price of silver dropped to $30.27 per ounce.
The dollar strengthened significantly on Friday. The dollar index closed at 109.35, but this morning it eased to 109.27. The rupee fell on Friday, with the dollar closing at Rs 86.61. The dollar is expected to rise again today.
Crude oil prices experienced a slight drop. On Friday, Brent crude was trading at $80.79, but this morning it rose to $81.22 before falling to $80.93. WTI crude is priced at $78.00, and UAE's Murban crude stands at $83.75.
Cryptocurrencies experienced fluctuations. Bitcoin surged past 105,700 before falling back. It is currently trading near 101,000. Ether fell to $3,200. However, many crypto enthusiasts believe that prices will rise again this week, with speculation that Trump may take steps towards legalising cryptocurrencies.
Industrial metals showed mixed results on Friday. Copper fell by 0.45% to $9,081.72 per tonne, while aluminium rose by 1.79% to $2,684.30. Tin dropped by 0.43%, but zinc rose by 2.09%, lead increased by 0.71%, and nickel gained 1.13%.
Sensex 30: 76,619.33 (-0.55%)
Nifty50: 23,203.20 (-0.47%)
Bank Nifty: 48,540.60 (-1.50%)
Midcap 100: 54,607.65 (+0.23%)
Smallcap 100: 17,672.05 (+0.16%)
Dow Jones: 43,487.83 (+0.78%)
S&P 500: 5,996.66 (+1.00%)
Nasdaq: 19,630.20 (+1.51%)
Dollar ($): ₹86.61 (+₹0.06)
Dollar Index: 109.35 (+0.39)
Gold (ounce): $2,703.00 (-$12.60)
Gold (India): ₹59,600 (+₹480.00) [Saturday ₹59,480 (-₹120.00)]
Crude Oil (Brent): $80.79 (-$0.56)
