GIFT Nifty Signals Opening Above 23,000 for Nifty; Jio’s Mega IPO Opens Today

Indian equity benchmark indices are likely to open on a firm note on Wednesday, October 21, supported by positive global cues and growing optimism over the India-US trade agreement. Market sentiment received a boost after US Secretary of State Marco Rubio indicated that the two countries were close to finalising a trade deal, with only a few issues remaining to be resolved.

Adding to the positive sentiment, the Dow Jones gained over 1 per cent in overnight trade, while Asian markets also traded higher. Reflecting these developments, GIFT Nifty was trading at 23,021.50 as of 6:59 AM IST, up 132.55 points, or 0.58 per cent, compared with the previous Nifty 50 close of 22,888.95, indicating a gap-up opening for domestic equities.

Key Triggers to Watch for Indian Markets

India-US Trade Pact Nears Technical Completion

US Secretary of State Marco Rubio said negotiations on an India-US trade agreement were down to technical details and that a deal could be concluded within weeks rather than months. He also indicated that the agreement should provide better tariff rates.

The development could improve visibility for export-oriented sectors, including IT services, pharmaceuticals, textiles and engineering goods, if a trade agreement is concluded with more competitive tariff treatment.

Busy Primary Market Calendar

Jio Platforms’ ₹30,213 crore public issue opens today and closes on October 23. The issue, priced at ₹1,065-1,119 per share, is set to be India’s largest IPO and brings the spotlight on telecom, digital-services valuations and primary-market liquidity.

Paras Healthcare’s ₹1,450 crore IPO also opens today at a price band of ₹660-693 per share. The company had raised ₹652.5 crore from anchor investors. The issue comprises a fresh issue of ₹500 crore and an offer for sale of ₹950 crore.

HD Fire Protect is scheduled to list on the BSE and NSE today after its ₹712.13 crore offer-for-sale IPO was subscribed 131.70 times. The listing will be tracked as another indicator of appetite for new equity issues.

Earnings Calendar Remains Active

Quarterly Results are due today from Eternal, Aditya Birla Sun Life AMC, Adani Green Energy, Indian Hotels, KEI Industries, Mahindra & Mahindra Financial Services, PC Jeweller, SRF and Vishal Mega Mart. The announcements could lead to company-specific moves across consumer internet, renewable energy, hospitality, financial services, chemicals and retail.

Global Market Cues

US markets ended mostly in the green in the previous session, with the Dow Jones gaining 1.02 per cent to 52,495.88, while the S&P 500 rose 0.28% to 7,712.57. The Nasdaq was largely unchanged, slipping 0.02% to 26,424.82.

European markets closed modestly lower in the previous session. The FTSE 100 fell 0.29%, the DAX declined 0.06% and France’s CAC 40 dropped 0.38%.

On Wednesday, Asian markets were trading in green with Jakarta Composting and KOSPI jumped up to 5.35 per cent and Nikkei 225 was up by 1.33 per cent.

Crude Oil Prices at USD 110

Crude oil prices remained elevated as investors assessed conflicting reports over diplomatic progress between the US and Iran. Amid the uncertainty, oil prices resumed their upward movement, with Brent crude rising 0.71 per cent to trade above USD 110 per barrel, while WTI crude hovered around USD 99 per barrel.

Higher crude prices are a key macro consideration for India, given the country’s oil-import dependence. They may also be relevant for oil marketing companies, aviation, paints, chemicals, Logistics and consumer-facing businesses, while upstream oil producers could see a different impact.

Gold, Dollar and US Yields

Gold was trading at USD 4,118.18, down 0.15 per cent, while silver declined 0.50 per cent to USD 57.69.

The Dollar Index was marginally higher at 101.80.

The US 10-year Treasury yield rose by 0.019 percentage points to 5.134%. Movements in US yields are generally monitored for their implications for global risk appetite and equity valuations.

Institutional Flows: FIIs and DIIs

Foreign institutional investors were net sellers of Rs 1,148.64 crore on October 19, while domestic institutional investors were net buyers of Rs 3,201.19 crore.

Indian Market Ended in Red on Monday

The Nifty 50 fell 257.20 points, or 1.11 per cent, to close at 22,888.95.  The Sensex declined 876.37 points, or 1.17 per cent, to close at 73,852.90. India VIX rose 5.05 per cent to 14.77.

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