Global and Domestic Cues Point to a Negative Open for Indian Markets

Pre-Market Update at 7:40 AM: Equity benchmark indices, the Sensex and Nifty 50, are expected to open lower on Tuesday, November 18, as global markets show weakness. Trends on the GIFT Nifty indicate a negative start, with the index trading 25 points lower at 26,005 around 7:05 AM.

The initial phase of the India–US bilateral trade agreement is close to finalisation. As per a government official quoted by PTI, this phase is expected to address the 50 per cent tariffs imposed on Indian products during the Trump administration and also respond to US concerns regarding market access.

India’s unemployment rate for individuals aged 15 and above remained stable at 5.2 per cent in October. Rural unemployment eased from 4.6 per cent to 4.4 per cent, while urban unemployment increased slightly from 6.8 per cent to 7 per cent. India’s exports fell 11.8 per cent to USD 34.38 billion in October due to higher US tariffs. Imports rose 16.63 per cent to USD 76.06 billion, driven by increased purchases of gold, silver, fertilisers, cotton raw/waste, and sulphur, expanding the trade deficit to a record USD 41.68 billion.

Foreign Institutional Investors (FIIs) were net buyers on Monday, November 17, purchasing equities worth Rs 442.17 crore. Domestic Institutional Investors (DIIs) continued their buying streak for the 17th straight session, with net purchases worth Rs 1,465.86 crore.

On Monday, Indian equity markets extended their winning streak for the sixth consecutive session. The Nifty 50 rose 103.40 points (0.40 per cent) to 26,013.45, while the Sensex climbed 388.17 points (0.46 per cent) to 84,950.95. Both indices remain just 1 per cent below their record highs. Lower India VIX, which slipped nearly 1.5 per cent to below 12, supported sentiment. Financial stocks led the gains, with the Nifty PSU Bank index rising over 1 per cent and the Bank Nifty hitting a new all-time high with a 0.76 per cent gain. Broader markets also closed higher.

In the US, markets closed sharply lower on Monday as technology stocks declined ahead of Nvidia’s Quarterly Results and key US jobs data. The Dow Jones fell 557.24 points (1.18 per cent) to 46,590.24. The S&P 500 dropped 61.70 points (0.92 per cent) to 6,672.41, while the Nasdaq Composite slipped 192.51 points (0.84 per cent) to 22,708.08. Additionally, the UN Security Council approved a US-backed resolution supporting President Donald Trump’s proposal for ending the Gaza conflict and deploying an international stabilisation force.

The dollar strengthened, pushing the yen to a nine-month low. The dollar index rose 0.2 per cent to 99.545. Gold continued its downward trend for the fourth straight session due to a stronger dollar and reduced expectations of a Federal Reserve rate cut. Spot gold fell 0.1 per cent to USD 4,038.43 per ounce, while US gold futures dropped 0.9 per cent to USD 4,037.50 per ounce. Crude oil prices remained stable, with Brent crude down 0.37 per cent at USD 63.96 per barrel and WTI crude dipping 0.38 per cent to USD 59.68 per barrel.

For today, SAIL will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.