Markets under pressure, but sentiment intact; gold price soars

After setting new records, Indian stock market indices ended flat with minimal gains and losses yesterday, but the bullish sentiment remains intact. However, selling pressure is expected to persist in the market today. Global cues from Asian markets are negative, and US futures are also trading lower. Crude oil prices have crossed $75 per barrel, while gold continues its upward momentum.

Gift Nifty closed at 25,929.5 on Tuesday night in the derivatives market and opened slightly lower at 25,925 this morning, indicating that the Indian markets may open on a minor decline today.

Global market scenario

European markets closed higher on Tuesday, driven by stimulus measures announced by China. Metals and mining companies benefited from this boost, as China reduced interest rates and increased bank loan accessibility.

The US markets recovered from an intraday dip to close with slight gains, with the Dow Jones and S&P 500 rewriting records. The Conference Board’s Consumer Confidence Index dropped to 98.7 in September, down from 105.6 in August, but the market largely shrugged off this decline. (The Consumer Confidence survey reflects prevailing business conditions and likely developments for the months ahead. This monthly report details consumer attitudes, buying intentions, vacation plans, and consumer expectations for inflation, stock prices, and interest rates.)

The Dow Jones closed 83.57 points higher (+0.20%) at 42,208.22, while the S&P 500 gained 14.36 points (+0.25%) to finish at 5732.93. The Nasdaq climbed 100.25 points (+0.56%) to close at 18,074.52.

US futures are in the red this morning, with the Dow down by 0.23%, S&P 500 by 0.19%, and Nasdaq by 0.22%. US 10-year Treasury yields remain steady at 3.732%.

Asian markets are mixed today. Japan's Nikkei opened with slight gains but later slipped, while China’s yuan appreciated following the stimulus package. Hong Kong stocks rallied by more than 3%.

Indian markets volatile 

Yesterday, Indian stock markets saw volatility amid selling pressure, with the Nifty ending with marginal gains and the Sensex dipping slightly, both correcting earlier record highs. Foreign investors were net sellers, offloading ₹2,784.14 crore in the cash market, while domestic institutions bought shares worth ₹3,868.31 crore.

The Sensex hit an all-time high of 85,163.23, and the Nifty climbed to 26,011.55. The Nifty closed at a record high, even as the broader market struggled with negative breadth—1,355 stocks advanced while 1,441 declined on the NSE.

The Sensex ended the day down 14.57 points (-0.02%) at 84,914.04, while the Nifty closed 1.35 points higher (+0.01%) at 25,940.40. The Bank Nifty dropped by 137.20 points (-0.25%) to 53,968.60. The mid-cap index gained 0.23% to close at 60,850.80, while the small-cap index declined by 0.56% to 19,440.05.

China gives metal stocks a boost  

Metals led the gainers, as China’s stimulus is expected to strengthen the metal industry. Notable gainers included NALCO (+6.64%), Tata Steel (+4.32%), Hindalco (+4.12%), and NMDC (+4.04%), with the metal index rising by 2.97%.

AstraZeneca Pharma surged 18% after receiving approval to sell its cancer drug Durvalumab in India. Firstsource shares jumped 8% following its acquisition of UK-based Ascentos.

The bullish outlook in Indian markets remains strong, with Nifty finding solid support at 25,800. However, significant resistance is expected at 26,000 and 26,200 levels. For today, Nifty is supported at 25,900 and 25,870, with hurdles at 25,995 and 26,025.

Gold prices surge

Gold prices continued their upward march yesterday, reaching $2,662 per ounce before closing at $2,661. This morning, gold is trading at $2,658, while December futures touched $2,686.

In Kerala, gold prices set a new record, rising by ₹160 per sovereign to ₹56,000. Prices are expected to rise further today.

Silver also saw gains, with prices climbing to $32.14 per ounce.

Currency and commodities

The dollar index weakened, dropping from 101 to 100.47 yesterday, and further declining to 100.27 this morning. The Indian rupee weakened against the dollar, closing at ₹83.67, up by 12 paise.

Crude oil prices extended their rally, supported by China’s stimulus. Brent crude closed at $75.17 yesterday and rose to $75.23 this morning. WTI crude is at $71.60, and UAE’s Murban crude is trading at $75.06.

Cryptocurrencies and metals

Cryptocurrencies surged, with Bitcoin reaching $64,400 and Ethereum trading above $2,650.

In response to China’s stimulus, industrial metals rallied. Copper gained 2.01% to $9,601.75 per tonne, aluminium rose 2.46% to $2,555.75, while nickel, tin, zinc, and lead also posted gains.

Market Indicators (as of September 24)
Sensex 30: 84,914.04 (-0.02%)
Nifty 50: 25,940.40 (+0.01%)
Bank Nifty: 53,968.60 (-0.25%)
Mid Cap 100: 60,850.80 (+0.23%)
Small Cap 100: 19,440.05 (-0.56%)
Dow Jones 30: 42,208.22 (+0.20%)
S&P 500: 5732.93 (+0.25%)
Nasdaq: 18,074.30 (+0.56%)
Dollar ($): ₹83.67 (+₹0.12)
Dollar Index: 100.47 (-0.38)
Gold (per ounce): $2,661.00 (+$32.60)
Gold (per sovereign): ₹56,000 (+₹160)
Crude (Brent) Oil: $75.17 (+$1.27)