Indian Benchmark Indices Edge Higher as IT Index Jumps 2.8% and Infosys Rises 3.7%

Market Update at 12:30 PM: Indian benchmark indices Nifty 50 and Sensex inched up by 0.2 per cent each on Wednesday, supported mainly by buying interest in large technology stocks. The IT index gained 2.8 per cent as Infosys rose 3.7 per cent ahead of the opening of its Rs 180 billion (USD 2.03 billion) share buyback scheduled on November 20. The strength in the IT basket helped offset selling pressure across the broader market.

Despite the gains in technology stocks, most of the major sectoral indices ended lower, indicating limited participation across sectors. Mid-Caps remained flat, while Small-Caps slipped 0.4 per cent, signalling cautious sentiment among investors. 

Asian equities were largely subdued as investors focused on chipmaker Nvidia’s upcoming earnings and uncertainty surrounding the possibility of a U.S. rate cut in December. The minutes of the U.S. Federal Reserve’s October meeting, due later today, along with U.S. September jobs data expected this week, are likely to provide further clarity on the interest rate outlook.

Among individual stocks, Indian stockbroker Groww saw a sharp correction, falling 10 per cent due to profit booking. The stock had surged 88.8 per cent over the past five sessions since its listing last week.

Market Update at 10:30 AM: Indian shares opened little changed on Wednesday as overall sentiment remained subdued across global markets. Investors awaited fresh domestic triggers following recent gains in benchmark indices. The Nifty 50 was up 0.03 per cent at 25,918.10, while the BSE Sensex slipped 0.03 per cent to 84,643.78 at 9:15 a.m. IST. The broader CNX Midcap and CNX Smallcap indices were flat in early trade, indicating muted activity in the broader market.

The Nifty 50 had declined 0.4 per cent on Wednesday, breaking its six-session winning streak during which it gained about 2 per cent. The index currently trades 1.4 per cent below its record high touched in September 2024. Market participants are tracking domestic cues to assess whether the recent momentum can resume.

Globally, sentiment remained weak. US stocks dropped overnight amid valuation concerns, while Asian markets stayed muted after a sharp correction seen in the previous session. The cautious global environment contributed to the restrained start for Indian equities, even as traders monitored developments across USD markets and regional indices.

Pre-Market Update at 7:40 AM: Equity benchmark indices, the Sensex and Nifty 50, are expected to begin on a tepid note on Wednesday, November 19, as global sentiment remains weak. Trends on the GIFT Nifty showed a positive start, with the index trading 39 points higher at 25,950 around 7:22 AM.

On the India–US trade front, Commerce Minister Piyush Goyal stated that bilateral ties continue to strengthen across multiple sectors. He added that talks on the proposed trade agreement are progressing, while emphasising that India will only consider a deal that remains balanced and aligned with national interests.

Asian markets traded lower in early hours, mirroring the overnight performance of US equities. The S&P 500 ended its fourth consecutive day in decline, marking its longest losing streak in three months.

FIIs were net sellers on Tuesday, November 18, offloading equities worth Rs 728.82 crore. DIIs continued their positive stance, purchasing equities worth Rs 6,156.83 crore and marking their 17th straight session of net buying.

Indian markets closed lower on Tuesday, snapping a six-day winning run. The Nifty 50 fell 103.40 points or 0.40 per cent to 25,910.05, while the Sensex dropped 277.93 points or 0.33 per cent to 84,673.02. Both indices remain around 1.4 per cent below their record highs. India VIX gained more than 2.5 per cent to move above the 12 mark. All eleven sectoral indices ended in the red, with the Nifty Metal index slipping 1.11 per cent and Nifty IT falling 1.2 per cent. Broader markets, including the Nifty Midcap 100 and Nifty Smallcap 100, also closed lower.

In the US, technology stocks faced broad selling pressure on Tuesday. The Dow Jones Industrial Average slipped 498.50 points or 1.07 per cent to 46,091.74. The S&P 500 lost 55.09 points or 0.83 per cent to close at 6,617.32, while the Nasdaq Composite fell 275.23 points or 1.21 per cent to 22,432.85. Major technology names such as Nvidia, Microsoft, Amazon, AMD, Home Depot, Cloudflare, CrowdStrike and Tesla witnessed declines.

The USD remained firm against the yen after touching a 9.5-month high, making gold costlier for holders of other currencies. Gold prices remained steady as investors awaited the Federal Reserve meeting minutes and key US jobs data. Spot gold held at USD 4,069.44 per ounce, while US gold futures for December delivery edged 0.1 per cent higher to USD 4,069.50 per ounce.

Crude oil prices traded lower on Wednesday. Brent crude slipped 0.54 per cent to USD 64.54 a barrel, and WTI declined 0.54 per cent to USD 60.41 a barrel.

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

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