Bulls rewrite records as global cues turn positive; gold rides high

Indian equity markets ended Wednesday on a high, with both the Sensex and Nifty closing at record levels. The Sensex breached the 85,000 mark, while the Nifty crossed 26,000, despite earlier losses in the session. Mid-cap and small-cap stocks, however, faced a sharp sell-off. Optimism remains strong among the bulls, backed by positive global cues.

In the derivatives market, Gift Nifty closed at 26,035 on Wednesday night and opened higher at 26,060 this morning, signalling a strong start for Indian markets.

Global market scenario

European markets closed lower as the initial optimism around China's stimulus measures waned. Investors are sceptical about the effectiveness of these efforts. Meanwhile, tensions are escalating between Italy and Germany over Unicredit’s bid to acquire Germany’s Commerzbank, stoking Eurosceptic sentiment in Germany.

US markets saw a broad decline, with the Dow Jones dropping over 300 points on Wednesday. A dip in new home sales for August and weaker consumer confidence led to renewed recession fears. The Nasdaq barely managed to end in the green, buoyed by semiconductor stocks. Micron surged 14% after issuing stronger-than-expected earnings, while Nvidia climbed 2.5%, pushing its market capitalisation beyond $3 trillion.

The Dow Jones closed 293.47 points lower (0.70%) at 41,914.75, while the S&P 500 fell 10.67 points (0.19%) to 5722.26. The Nasdaq inched up by 7.68 points (0.04%) to 18,082.21. US futures this morning indicate a positive opening, with the Dow up 0.10%, the S&P 500 rising 0.25%, and the Nasdaq gaining 0.49%.

The US 10-year Treasury yield declined to 3.785%.

Asian markets opened higher today, with Japan’s Nikkei rising 1.75% and China’s indices gaining on stimulus hopes. Markets in Australia and South Korea also traded in the green.

Indian markets

In India, yesterday’s market rally was driven by a late-hour surge, pushing the indices to new closing highs. While selling pressure was evident, particularly in midcap and smallcap stocks, bulls remained firmly in control. Retail investors appear to be pulling out of smallcap stocks, contributing to the declines in that segment.

Foreign investors continued their selling spree, offloading ₹973.94 crore in the cash market. Domestic institutional investors bought ₹1,778.99 crore worth of equities.

The Sensex hit a record high of 85,247.42, and the Nifty touched 26,032.80 during intraday trading. On the NSE, 1,198 stocks advanced, while 1,596 declined. On the BSE, 1,711 stocks rose, and 2,243 fell.

The Sensex ended 255.83 points higher (0.30%) at 85,169.87, while the Nifty rose 63.75 points (0.25%) to close at 26,004.15. Bank Nifty gained 133.05 points (0.25%) to settle at 54,101.65.

The midcap index fell 0.63% to close at 60,465.15, while the smallcap index ended 0.42% lower at 19,357.75.

PSU banks, IT, FMCG, consumer durables, and auto sectors underperformed, while media, realty, metals, financial services, and pharma sectors posted gains.

Easy Trip shares plunged 20% after one of its promoters offloaded a 10% stake, triggering a massive sell-off. PB Fintech tumbled more than 6% as the company announced plans to enter the healthcare sector, with intentions to build its own hospital chain.

Shares of Dabur fell over 5% following a downgrade by UBS, while AstraZeneca, which had rallied earlier, declined 4.5%. Zee Entertainment surged over 6% after receiving positive reports from brokerages.

The bullish sentiment remains intact, with the Nifty expected to test the 26,200–26,300 range if it holds above 26,000 today. Key support levels for the day are seen at 25,910 and 25,870, with resistance at 26,035 and 26,070.

Gold prices stay elevated

Gold prices eased slightly on Wednesday following profit-taking. The metal closed at $2,657.70 per ounce, but bounced back to $2,660 in early trade today. The December futures briefly touched $2,694.90 per ounce. In Kerala, gold prices surged by ₹480 to hit a record high of ₹56,480 per sovereign.

Silver closed at $31.87 per ounce, showing little movement. The dollar index climbed to 100.91 yesterday, reaching 100.94 this morning. The Indian rupee appreciated slightly, with the dollar trading ₹0.09 lower at ₹83.58.

Crude oil declines

Crude oil prices continued their downtrend as concerns grew over the effectiveness of China’s stimulus measures, coupled with the smooth resumption of Libyan oil exports. Brent crude fell 1.5% to close at $73.46 per barrel, and WTI traded at $69.74. UAE’s Murban crude closed at $73.60 per barrel.

Cryptocurrencies dip

Bitcoin fell below $63,000, while Ether remained above $2,570 in early trade.

Industrial metals close mixed

Copper prices rose 0.17% to $9,618 per tonne, while aluminium slipped 0.68% to $2,538.25. Nickel climbed 0.76%, zinc by 0.49%, while tin and lead fell by 0.77% and 0.29%, respectively.

Market indicators

Sensex 30: 85,169.87 +0.30%
Nifty 50: 26,004.15 +0.25%
Bank Nifty: 54,101.65 +0.25%
Mid Cap 100: 60,465.15 -0.63%
Small Cap 100: 19,357.75 -0.42%
Dow Jones 30: 41,914.75 -0.70%
S&P 500: 5722.26 -0.19%
Nasdaq: 18,082.21 +0.04%
Dollar (₹): 83.59 -₹0.08
Dollar Index: 100.91 +0.44
Gold (oz): $2,657.70 -$3.30
Gold (sov): ₹56,480 +₹480
Crude (Brent): $73.46 -$1.71