Sensex, Nifty Likely to Open Higher; Defence Stocks in Focus

Pre-Market Update at 7:35 AM: Equity benchmark indices Sensex and Nifty 50 are expected to start positively on Friday, October 24, supported by upbeat global cues and optimism surrounding a possible India-US trade deal. Trends on the GIFT Nifty indicate a firm opening, with the index trading 19 points higher at 26,030 around 7:17 AM.

In early trade, Asian markets moved higher, mirroring overnight gains on Wall Street. US stocks rallied as news of an upcoming meeting between US President Donald Trump and Chinese President Xi Jinping lifted sentiment.

Back home, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, cleared procurement proposals worth Rs 79,000 crore for the Indian Armed Forces. The approvals include the Nag Missile System (Tracked) Mk-II (NAMIS), Ground-Based Mobile ELINT System (GBMES), and High Mobility Vehicles (HMVs) with Material Handling Cranes for the Indian Army, putting defence stocks in focus.

Key companies announcing their Q2 FY26 earnings today include SBI Life Insurance Company, Dr Reddys Laboratories, SBI Cards & Payment Services, COFORGE, ITC Hotels, Aditya Birla Sun Life AMC, eClerx Services, Supreme Petrochem, and Latent View Analytics.

On Thursday, October 23, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 1,165.94 crore after five consecutive sessions of buying. Domestic Institutional Investors (DIIs) remained net buyers for the 40th straight session, purchasing shares worth Rs 3,893.73 crore.

Indian equities extended their gains for the sixth consecutive session on Thursday. The Nifty 50 closed at 25,891.40, up 0.09 per cent, while the Sensex rose 0.15 per cent to 84,556.40. Both indices remain around 1.5 per cent below their record highs, even as India VIX increased 3.5 per cent.

The rally was led by IT stocks on hopes of a US trade deal and better earnings. The Bank Nifty hit a fresh all-time high of 58,555.15 before closing marginally lower, while the Nifty IT index gained 2.2 per cent, driven by a 3.8 per cent rise in Infosys. Textile and shrimp exporters also advanced amid expectations of lower US tariffs. However, midcap and smallcap indices underperformed the benchmarks.

On Wall Street, major indices closed higher on Thursday. The Dow Jones Industrial Average gained 144.20 points (0.31 per cent) to 46,734.61, the S&P 500 rose 39.03 points (0.58 per cent) to 6,738.43, and the Nasdaq Composite advanced 201.40 points (0.89 per cent) to 22,941.80.

The White House confirmed that Donald Trump will meet Xi Jinping next week during his Asia visit, a development that eased trade concerns. Meanwhile, Russian President Vladimir Putin said Moscow would not yield to external pressure and warned of strong retaliation if Russian territory faced deep strikes.

In the US, weekly jobless claims rose to 232,000 from 220,000 in the previous week. Japan’s core inflation increased 2.9 per cent year-on-year in September, above the Bank of Japan’s 2 per cent target, while its Manufacturing PMI slipped to 48.3 from 48.5, indicating contraction in factory activity.

Gold prices edged higher, with spot gold trading at USD 4,130.43 per ounce, up 0.1 per cent. Crude oil prices fell slightly, with Brent crude down 0.30 per cent at USD 65.79 and US WTI crude easing 0.26 per cent to USD 61.63, though both remained set for weekly gains.

For today, Sammaan Capital and RBL Bank will remain on the F&O ban list.

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