Stock Market Today, 5 November: GIFT Nifty Signals Gap-Up Open as Brent Slides Below $100 After US Midterms
GIFT Nifty was up over 300 points before the bell after the Dow jumped 3% overnight and Brent crude fell below $100 for the first time since October, on bets that a Democratic Congress speeds an end to the West Asia conflict.
Indian shares looked set for a strong start on Thursday, 5 November, after a sharp overnight rally on Wall Street and a steep fall in oil prices following the Democratic sweep of the US Congress.
Pre-market signals
GIFT Nifty futures were trading around 24,270-24,310 between 8 am and 8:45 am IST, roughly 300-340 points higher, pointing to a gap-up opening for the Nifty 50. On Wednesday the Nifty had closed 149.75 points (0.63 per cent) higher at 23,960.60, its fifth gain in a row, while the Sensex rose 383.55 points (0.50 per cent) to 77,301.40. Mid- and small-cap stocks did even better, with the Nifty Midcap 100 up 1.55 per cent and the Smallcap 100 up 2 per cent; metal and realty shares led the gains, while IT lagged.
Why markets are cheering
Brent crude for January delivery fell below $100 a barrel for the first time since October, slipping to about $93 on Thursday morning after an 8 per cent drop in the previous session. Investors are betting that the Democratic victory in both houses of Congress will hasten an end to the West Asia conflict. Lower crude is especially good news for India, which imports most of its oil.
In New York the Dow Jones Industrial Average jumped 3.03 per cent to 53,356.12, the S&P 500 rose 1.58 per cent and the Nasdaq Composite added 1.44 per cent. European markets also rallied, with London’s FTSE 100 up 1.79 per cent. Gold and silver futures moved higher too.
What to watch today
- Technical levels: 24,000 on the Nifty, close to its 200-day moving average, is the first hurdle, followed by 24,200. Support is seen at 23,700 and then 23,500.
- Foreign money: Foreign portfolio investors have bought about $821 million of Indian shares so far in November.
- Stocks in focus: Titan, Bharti Airtel, BSE, Nykaa (FSN E-Commerce), Dabur India and Adani Power, along with quarterly results from several large companies.
- Listing: Bombay Coated & Special Steels is scheduled to make its market debut.
This article is for information only and is not investment advice.
Featured image: Photo: Niyantha Shekhar, CC BY 2.0, via Wikimedia Commons.
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