Markets bullish; Sensex and Nifty aiming for further highs today

The stock markets continue their bullish streak, aiming for further gains today. With the monthly F&O settlement completed yesterday, the October series begins today. Many investors faced losses during the September series, which may affect market sentiment. Strong selling pressure is expected during early trading.

Global cues remain positive, with US and European markets posting significant gains yesterday. Asian markets are also trading higher today, with China's announcement of further stimulus measures pushing industrial metals upward. Crude oil, however, declined by 3%.

In the derivatives market, Gift Nifty closed at 26,376 on Thursday night but dropped slightly to 26,340 this morning. Indian markets are expected to open with modest gains, according to this indicator.

Global markets post gains 

European markets surged on Thursday, rising over 1% on the back of hopes for expanded Chinese stimulus measures. LVMH and Kering jumped by nearly 10%. The US markets followed suit, with positive economic data providing a boost. GDP growth for the second quarter was confirmed at 3%, and weekly unemployment claims dropped significantly, indicating a healthy US economy.

The Dow Jones gained 260.36 points (0.62%) to close at 42,175.11, while the S&P 500 rose by 23.11 points (0.40%) to end at 5745.37. The Nasdaq increased by 108.09 points (0.60%) to close at 18,190.29, with the S&P 500 setting a new intra-day and closing record.

Chipmaker Micron surged 15% after announcing that business expectations would exceed previous estimates.

US futures are showing slight dips this morning. The Dow is down by 0.04%, the S&P by 0.03%, and the Nasdaq by 0.05%. Meanwhile, 10-year US Treasury bond yields slipped to 3.79%.

Asian markets are trading higher today, with Japan’s Nikkei up by 1%. China's announcement of further stimulus measures continues to lift market sentiment.

Indian market scenario 

Indian markets started flat yesterday but saw a significant rally in the afternoon, with indices reaching new intra-day and closing records. The Sensex climbed to 85,930.43, while the Nifty reached 26,250.90. Midcap stocks, though down in the morning, recovered in the final hour to end with modest gains. Smallcap stocks continued their decline.

Foreign investors were net buyers yesterday, with FII inflows into the cash market at ₹629.96 crore. Domestic funds and institutions purchased ₹2405.12 crore worth of stocks.

On the NSE, 1210 stocks advanced while 1589 declined. On the BSE, 1643 stocks rose, and 2243 fell. The Sensex rose 666.25 points (0.78%) to close at 85,836.12, and Nifty gained 211.90 points (0.81%) to end at 26,216.05. Bank Nifty closed 0.51% higher, adding 273.70 points to end at 54,375.35.

The midcap index inched up by 0.01% to 60,469.15, while the small cap index fell by 0.50% to 19,261.30. Auto, metal, PSU banks, FMCG, IT, and financials led the rally.

Easy Trip shares, which had dropped significantly the previous day, surged by 7% yesterday. Hyundai’s IPO valuation prompted brokerages to raise their price targets for Maruti Suzuki.

Artham Investment and Infrastructure Ltd. and Mahi Madhusoodan Keil bought a 47% stake in Prataap Snacks from private equity investors, triggering an open offer. Prataap Snacks shares surged 20%. The company, based in Madhya Pradesh, owns the Diamond brand of snacks, with its original promoters holding just a 17% stake.

Bullish sentiment continues to strengthen. Analysts predict that Nifty could climb to the 26,300-26,500 range today, with strong support at 26,000.

Market indicators on September 26

• Sensex: 85,836.12 (+0.78%)
• Nifty 50: 26,216.15 (+0.81%)
• Bank Nifty: 54,375.35 (+0.51%)
• Midcap 100: 60,469.15 (+0.01%)
• Smallcap 100: 19,261.30 (-0.50%)
• Dow Jones 30: 42,175.11 (+0.62%)
• S&P 500: 5745.37 (+0.40%)
• Nasdaq: 18,190.29 (+0.60%)
• Dollar: ₹83.64 (+₹0.06)
• Dollar index: 100.52 (-0.39%)
• Gold (ounce): $2674.50 (+$16.80)
• Gold (sovereign): ₹56,480 (+₹00)
• Brent crude oil: $71.60 (-$1.86)

Gold retreats on profit-booking, crude oil falls

Gold prices eased from their record highs yesterday due to profit-booking, with gold reaching $2685 per ounce before closing at $2674.50. This morning, it traded at $2670. In Kerala, gold remained steady at ₹56,480 per sovereign. Silver dropped slightly, closing at $31.84 per ounce.

The dollar index fell to 100.52 yesterday but rose slightly to 100.69 this morning. The Indian rupee weakened, with the dollar rising by six paise to close at ₹83.64.

Crude oil prices continued their decline, dropping by 5% over the past two days. Brent crude closed at $71.60 yesterday, while WTI settled at $67.28 and UAE’s Murban crude at $71.74.

Cryptocurrencies surge

Cryptocurrencies rallied yesterday, with Bitcoin climbing above $65,220 and Ethereum crossing $2630.

Industrial metals rise sharply

Most industrial metals surged yesterday, except nickel. Copper jumped 3.40% to reach $9944.67 per tonne, aluminium gained 2.89% to $2611.50 per tonne, zinc rose by 2.74%, tin by 0.53%, and lead by 2.78%. Nickel fell by 0.1%.