Bulls in control as foreign funds pour in; gold surges

The Indian stock market is riding high as foreign funds pour in, pushing indices towards new targets. Despite sluggish performances in Western markets on Friday and a slow start in Asia this morning, bullish sentiment remains strong. The Nifty and Sensex are on track to set new milestones, driven by active foreign and retail investors.

In the US, key economic data, including GDP figures and PMI (puchasing managers' index), which is an indicator for the manufacturing and services sectors, are expected this week. In India, September's manufacturing data is due today, following a dip in August.

In the derivatives market, Gift Nifty closed at 25,832.5 on Friday night and surged to 25,920 this morning, suggesting that the Indian market will open with solid gains.

Global market scenario

On Friday, European markets ended with steep losses, erasing the previous day's gains. Mercedes shares initially dropped by as much as 8% due to declining Chinese demand, dragging other automakers down with it. Technology stocks also saw a downturn.

US markets showed mixed movements on Friday, with the Dow rising slightly to a record close, while the S&P and Nasdaq finished lower due to profit-booking but still ended the week on a positive note. The Dow Jones gained 38.17 points (0.09%) to close at 42,063.36. The S&P 500 fell by 11.09 points (0.19%) to 5702.55, while Nasdaq dropped 65.60 points (0.36%) to 17,948.32. US futures pointed upwards this morning, with the Dow up 0.14%, S&P 0.28%, and Nasdaq 0.54%.

Semiconductor giant Intel saw an 11% jump last week after months of decline, with a 54% drop for the year to date. Reports of a potential Qualcomm acquisition pushed Intel shares higher, though neither company confirmed the news. Apollo Global, an investment firm, is reportedly preparing to invest $5 billion in Intel, aiding its CEO Pat Gelsinger's revitalisation plan.

The yield on US 10-year bonds fell to 3.741%, while Asian markets remained muted today. Japanese markets were closed, and Australian markets declined ahead of a monetary policy announcement tomorrow.

Indian markets 

India’s stock market, which surged on Thursday, posted substantial gains on Friday. Indices climbed over 1.5% as foreign investors returned with significant buy orders. Foreign institutional investors (FIIs) bought shares worth ₹14,064.05 crore, while domestic institutions added ₹4,427.08 crore to their portfolios.

Both Sensex and Nifty hit record highs, with Sensex reaching 84,694.46 and Nifty climbing to 25,849.25. Over the past week, Sensex gained 2%, and Nifty rose 1.7%.

On Friday, 1,853 stocks rose on the NSE, while 924 declined. On the BSE, 2,383 stocks advanced, and 1,572 declined.

Sensex closed up by 1,359.51 points (1.63%) at 84,544.31, and Nifty gained 375.15 points (1.48%) to finish at 25,790.95. Bank Nifty climbed 755.60 points (1.42%) to close at 53,793.20. The midcap index rose 1.44%, and the smallcap index increased by 0.98%.

All sectors saw gains, with the realty index leading at 3.05%. Cochin Shipyard, Mazagon Dock, and Garden Reach shares surged by 10%, 7.42%, and 9.65%, respectively. Rail stocks, including RVNL, IRFC, and Ircon, posted gains of up to 6.82%. Defence stocks like HAL, BHEL, BEL, and BDL also rallied, with BSE shares up by 6.65%.

55,000 cr investment in Vodafone Idea 

Vodafone Idea made a notable return with key announcements, pledging ₹55,000 crore in investments. The company secured a ₹30,000 crore deal with Nokia, Samsung, and Ericsson to boost 4G and 5G network infrastructure.

The market's bullish sentiment is strengthening, with bulls eyeing 26,000 for Nifty and 87,000 for Sensex. For today, Nifty has support at 25,525 and 25,430, with resistance at 25,830 and 25,950.

Gold breaks above $2,600

After some volatility following an interest rate cut, gold surged again, crossing $2,600 per ounce. It closed at $2,622.40 on Friday, holding at $2,622 this morning, with the December futures price hitting $2,645. As profit-booking sets in, the price may see a slight dip.

In Kerala, gold prices rose by ₹480 per sovereign on Friday to reach ₹55,080, climbing another ₹600 on Saturday to hit a new high of ₹55,680. This surge has surpassed previous records, tempered only slightly by the rupee's strength.

Silver climbed to $31.15 per ounce, while the US dollar index closed at 100.72, rising to 100.82 this morning.

The Indian rupee strengthened on Friday, with the dollar slipping by 12 paise to close at ₹83.56.

Crude oil prices dipped slightly on Friday but are climbing again today. Brent crude closed at $74.72 and rose to $75.06 this morning before easing back to $74.82. WTI is at $71.31, while UAE Murban crude is at $74.57.

Cryptocurrencies continue to rally, with Bitcoin priced at $63,700 and Ethereum above $2,600.

Industrial metals ended Friday with mixed results. Copper rose by 0.06% to $9,393.80 per tonne, while aluminium fell by 2.14% to $2,484.85. Nickel increased by 0.42%, tin by 0.71%, while zinc and lead fell by 1.04% and 0.63%, respectively.

Market indicators (September 20)

Sensex: 84,544.31 (+1.63%)
Nifty 50: 25,790.95 (+1.48%)
Bank Nifty: 53,793.20 (+1.42%)
Midcap 100: 60,208.80 (+1.44%)
Smallcap 100: 19,332.15 (+0.98%)
Dow Jones: 42,063.36 (+0.09%)
S&P 500: 5702.55 (-0.19%)
Nasdaq: 17,948.32 (-0.36%)
Dollar ($): ₹83.56 (-₹0.12)
Dollar index: 100.72 (+0.11)
Gold (ounce): $2,622.40 (+$36.30)
Gold (sovereign): ₹55,680 (+₹600)
Crude (Brent) oil: $74.72 (-$0.16).