Indian benchmark indices opened the first week of November on a cautious and weak note, diverging from the overall bullish trend that characterized the previous month.
Sensex Opens on Weak Note
The BSE Sensex opened the session at 83,788, down 150 points or 0.18%, while the Nifty50 opened lower at 25,663, slipping 59 points or 0.23%.
This early weakness was primarily attributed to heavy selling pressure observed in IT and private banking stocks. Contrary to the trend in the frontline indices, the broader market was resilient, with the Nifty Midcap index remaining flat, while the Smallcap index managed to post a decent gain of 0.5% in early trade.
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Global Markets Post Strong Gains in October
This domestic weakness comes against a background of strong global performance in October, with the US market seeing a major, tech-led rally.
Over the last month, the major US indices continued higher: the S&P 500 was up 2.3%, and the Dow Jones Industrial Average added 2.5%, while the NASDAQ Composite rose 4.7% to lead the pack.
Earnings Season Boosts Sentiment
Helping drive this solid performance has been a strong corporate earnings season, with mega-cap technology and AI-related shares performing well on the back of some very upbeat forecasts; for example, Amazon. Secondly, the recent Federal Reserve decision to cut interest rates though cautioning that future cuts were not certain was seen as supportive to the equity market. The S&P 500 closed 0.26% higher on Friday, and the Nasdaq climbed 0.61%, while the Dow Jones was also higher, buoyed by Amazon optimism.
PMI Data in Focus
Domestically, the final version of the HSBC Manufacturing PMI for October will give investors critical insight into the momentum in the Indian economy, which may provide a directional cue for the market.
Across Asia, the morning session was mixed, with South Korea’s Kospi rising 1.04%, while Australia’s S&P/ASX 200 fell 0.40%. Japan’s markets remained closed for a public holiday, leaving a patchy start to the trading week as markets readjust from October’s technology-driven peaks into November’s new dataset landscape.
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