Indian Benchmark Indices Edge Up as Earnings Outlook Improves

Market Update at 10:10 AM: India’s equity benchmarks opened higher on Monday as the broader earnings outlook continued to support sentiment, even as a decline in Tata Motors Passenger Vehicles (TMPV) limited overall gains. The Nifty 50 rose 0.16 per cent to 25,952.6, while the BSE Sensex gained 0.2 per cent to 84,727.75 at 9:20 a.m. IST.

A total of 14 out of 16 major sectors advanced in early trade. Broader indices also moved higher, with Smallcap rising 0.5 per cent and Mid-Caps climbing 0.4 per cent. Both Nifty and Sensex had gained around 1.6 per cent last week as improving corporate earnings and a key state election result supported buying interest. The Nifty 50 now trades 1.2 per cent below its all-time high of 26,277.37 recorded in September 2024.

Tata Motors Passenger Vehicles fell 5 per cent after the company cut its fiscal year 2026 margin forecast for Jaguar Land Rover, weighing on auto sector sentiment.

Across Asia, markets were muted after Japan reported its first economic contraction in six quarters, partly due to the impact of U.S. tariffs. Additionally, fading expectations of a U.S. rate cut in December, following hawkish comments from Federal Reserve policymakers, limited global risk appetite.

Pre-Market Update at 7:40 AM: Equity benchmark indices Nifty 50 and Sensex are expected to open higher on Monday, November 17, as market sentiment improved after the NDA secured a strong victory in the Bihar Assembly elections. The win is seen as adding stability to the coalition government at the Centre. Trends on the GIFT Nifty showed a positive start, with the index trading 47 points higher at 26,009 around 7:16 AM.

This week, investors will track key triggers such as the FOMC meeting minutes, progress in the India–US trade discussions, foreign fund flows, gold price trends, and other global and domestic macroeconomic cues. Asian markets opened mixed, while US markets ended last week on a mixed note, with the Nasdaq closing slightly higher on support from technology stocks.

In the Bihar elections, the NDA secured 202 out of 243 seats, while the Mahagathbandhan won 35. The outcome supported domestic sentiment and is expected to guide early trade on Monday.

On Friday, November 14, FIIs were net sellers, offloading equities worth Rs 4,968.22 crore, while DIIs continued their buying streak for the 16th straight session with net purchases of Rs 8,461.47 crore.

Benchmark indices recovered from Intraday losses on Friday and closed in the green for the fifth consecutive session, supported by gains in State Bank of India and Axis Bank. The Nifty 50 ended 36 points higher at 25,915.15, and the Sensex added 84.11 points to close at 84,562.78. Both indices remain about 1.4 per cent below their record highs. India VIX slipped nearly 2 per cent as sentiment improved after clarity on the Bihar election outcome.

For the week, the Nifty 50 gained 1.64 per cent, snapping a two-week losing streak, with all five sessions closing in the green. Sector performance was mixed. IT stocks declined around 1 per cent on hawkish US Fed commentary, although the Nifty IT index still gained 3.37 per cent for the week. PSU Banks, Pharma, FMCG, Banking, Financial Services, Energy, Media, and Realty indices posted weekly gains. Broader markets outperformed, with strength seen in the Nifty Midcap 100 and Nifty Smallcap 100.

US markets closed mixed as uncertainty rose over whether the Federal Reserve will delay a December rate cut. The Dow Jones fell 0.65 per cent to 47,147.48, the S&P 500 slipped 0.05 per cent to 6,734.11, while the Nasdaq inched up 0.13 per cent to 22,900.59. For the week, the Dow gained 0.3 per cent, the S&P 500 added 0.1 per cent, and the Nasdaq declined 0.5 per cent.

President Donald Trump signed an executive order easing tariffs on imported items such as beef, coffee, coconuts, and avocados. These products are not produced in sufficient quantities within the US, making the tariff relief a supportive step for importers.

US Treasury Secretary Scott Bessent said a rare earths agreement with China could be finalised by Thanksgiving. Earlier, the US agreed not to impose 100 per cent tariffs on Chinese goods, while China paused export licensing plans for key rare earth minerals and magnets.

Trump stated that Republicans are working on legislation to penalise countries trading with Russia and suggested that Iran may also be included in future sanctions.

Japan recorded its first GDP contraction in six quarters with an annualised decline of 1.8 per cent for July–September, better than expectations of a 2.5 per cent fall. The previous quarter had shown revised growth of 2.3 per cent.

Bitcoin dropped below USD 93,714 on Sunday, erasing its year-to-date gains after hitting a record of USD 126,251 on October 6. It later recovered slightly and traded near USD 95,000.

Gold prices edged higher by 0.3 per cent to USD 4,097.22 per ounce, halting a two-day decline.

The dollar index rose 0.07 per cent to 99.34 as it strengthened against currencies such as the yen and the euro.

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

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