Nifty and Sensex May See Cautious Opening

Pre-Market Update at 7:40 AM: On Monday, November 3, equity benchmark indices — Sensex and Nifty 50 — are expected to open on a muted note amid mixed global cues. As of 7:13 AM, the GIFT Nifty was down 40 points at 25,878, indicating a soft start for the Nifty 50. With no major domestic or global triggers, investor sentiment is likely to be influenced by quarterly earnings announcements and trade-related updates.

Asian markets traded lower in early deals on Tuesday, while U.S. indices ended mixed overnight, supported by gains in technology stocks that pushed the Nasdaq and S&P 500 higher.

Foreign Institutional Investors (FIIs) were net sellers on November 3, offloading equities worth Rs 1,883.78 crore, while Domestic Institutional Investors (DIIs) maintained their buying momentum with net purchases of Rs 3,516.36 crore, marking their eighth consecutive session of inflows.

On the same day, Indian equity benchmarks ended higher, snapping a two-day losing streak as investors reacted positively to Q2 results. The Nifty 50 rose 41.25 points, or 0.16 per cent, to close at 25,763, while the Sensex gained 39.78 points, or 0.05 per cent, to settle at 83,978.49. Both indices remain around 2 per cent below their record highs, with India VIX climbing over 4 per cent.

Sectorally, nine of eleven indices advanced, led by a 1.92 per cent surge in the Nifty PSU Bank index, extending last week’s 4.7 per cent rally following reports of a possible increase in foreign investment limits. Broader markets outperformed as the Nifty Midcap and Smallcap indices also closed higher.

In the US, the Dow Jones Industrial Average fell 226.19 points, or 0.48 per cent, to 47,336.68, while the S&P 500 added 11.77 points, or 0.17 per cent, to 6,851.97. The Nasdaq gained 109.77 points, or 0.46 per cent, to 23,834.72. The ISM reported that U.S. manufacturing contracted for an eighth straight month, with the manufacturing PMI falling to 48.7 in October from 49.1 in September.

Japan’s manufacturing activity also weakened, with the S&P Global Japan Manufacturing PMI dropping to 48.2 in October from 48.5 in September, marking its lowest level since March 2024.

Meanwhile, the U.S. dollar index held near a three-month high, rising 0.1 per cent to 99.99. Gold prices remained steady, trading just below USD 4,000 per ounce as investors evaluated Federal Reserve comments for hints on future rate actions. Spot gold was last seen at USD 3,996.32 per ounce.

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