Opening Bell: Nifty 50, Sensex Trade in Narrow Range; IT Stocks Outperform as Broader Markets Decline

Market Update at 09:30 AM: The Nifty 50 and the Sensex traded in a narrow range as investors assessed sharp losses in global equity markets and a rise in crude oil prices.

As of 9:21 AM, the Sensex gained 128.64 points or 0.16 per cent to 79,438.65, while the Nifty 50 declined 15.30 points or 0.06 per cent to 24,521.30.

Among the Nifty 50 constituents, Hindalco Industries, Shriram Finance and Asian Paints were the Top Losers.

In the broader markets, selling pressure was more pronounced, with the Nifty MidCap 100 and Nifty SmallCap 100 declining 1.2 per cent and 1.67 per cent, respectively.

Sector-wise, the Nifty IT index gained 1 per cent, outperforming other sectoral indices. Unwinding of positions in global AI-linked stocks supported sentiment towards domestic IT shares. Meanwhile, Nifty Metal, Nifty Realty, Nifty PSU Bank and Nifty Oil and Gas underperformed.

Pre-Market Update at 8:00 AM: GIFT Nifty was trading at 24,412.50 at 7:01 AM IST on November 6, indicating a weak start for domestic equities. It was down 124.10 points, or 0.51 per cent, compared with the previous Nifty 50 close of 24,536.60. The subdued indication follows a sharp overnight sell-off on Wall Street, led by technology stocks, after domestic benchmarks registered a strong rally in the previous session. Crude oil prices near USD 99 per barrel and developments following the U.S. midterm elections are also likely to remain in focus.

Wall Street witnessed a broad-based sell-off, with technology and AI-linked stocks facing significant pressure. The Nasdaq plunged 5.52 per cent, while the S&P 500 declined 4.36 per cent and the Dow Jones Industrial Average fell 3.44 per cent. The sharp correction has dented global risk appetite and could keep Indian technology and other high-beta growth stocks under pressure following Thursday's strong domestic-market advance.

Developments following the U.S. midterm elections will also remain on investors' radar. Democrats won control of both the U.S. Senate and House, according to reported results. The outcome could influence the policy backdrop for trade, fiscal measures and technology regulation. These developments may have implications for exporters, IT companies, pharmaceutical stocks and global cyclicals, depending on the direction of U.S. policy and overseas risk appetite.

On the regulatory front, SEBI has reviewed the accredited-investor framework, allowing alternative investment funds, specialised investment funds and portfolio managers to certify eligible accredited investors. The certification will remain valid for three years within the same corporate group. SEBI also issued measures covering net settlement of funds for mutual-fund-scheme cash-market transactions and revised limits related to underlying-exposure requirements for currency-derivatives contracts. These changes are relevant for Mutual Funds, alternative investments, portfolio management services, brokers, exchanges and other market intermediaries.

In the primary market, Johnsoncab Electricals, Vectras Enprocon, HGS India and Maxwell Engineering Solutions are scheduled to list on the exchanges today. Their debut will provide a fresh indication of investor appetite and liquidity in the SME segment.

Global markets presented mixed signals in early Asian trade. Japan's Nikkei declined 6.33 per cent to 57,211.09, while Hong Kong's Hang Seng gained 3.67 per cent to 24,796.98. The Shanghai Composite was marginally higher by 0.10 per cent at 3,689.91. In the previous session, European markets also ended mixed, with the FTSE 100 and Germany's DAX declining 0.43 per cent each, while France's CAC 40 advanced 0.34 per cent.

Brent crude was trading at USD 99.24 per barrel as of 7:02 AM IST on November 6, down 0.07 per cent. WTI crude stood at USD 91.97 per barrel, up 0.09 per cent. With India being a major crude oil importer, elevated prices remain an important factor for oil marketing companies, aviation firms and businesses with significant energy-input exposure.

In the precious metals market, gold was trading at USD 4,065.78, down 0.52 per cent, while silver gained 0.11 per cent to USD 51.83. The Dollar Index was marginally higher at 101.60, while the Indian rupee traded around Rs 94.47 against the U.S. dollar, strengthening 0.17 per cent. The U.S. 10-year Treasury yield stood at 4.83 per cent, lower by 0.005 percentage point. Movements in the dollar and U.S. bond yields will remain important for global equity valuations and foreign portfolio investment flows.

Institutional activity remained notable in the latest available session. Foreign institutional investors (FIIs) were net buyers of Indian equities worth Rs 14,974.68 crore, while domestic institutional investors (DIIs) were net sellers worth Rs 10,444.54 crore. The sizeable foreign buying contrasted with domestic institutional selling, although the latest global volatility could influence overseas investment flows in the coming sessions.

In the previous trading session on November 5, the Nifty 50 rallied 576 points, or 2.40 per cent, to close at 24,536.60. The index touched an Intraday high of 24,579.90 and a low of 24,296.30. The BSE Sensex advanced 2,008.61 points, or 2.60 per cent, to settle at 79,310.01, after touching an intraday high of 79,470.03 and a low of 78,520.56. India VIX increased 2.57 per cent to 15.58, indicating higher expected market volatility. The rise in India VIX does not indicate market direction but reflects an increase in volatility expectations following the sharp domestic rally and global equity sell-off.

Among stocks to watch, Bharti Airtel reported a 31 per cent year-on-year (YoY) increase in consolidated net profit to Rs 8,888 crore for Q2 FY27. Revenue from operations rose 17 per cent to Rs 60,878 crore. India mobile average revenue per user (ARPU) increased to Rs 271. The company added 1.2 million postpaid customers and 2.9 million smartphone data customers. However, the reported profit was below the cited estimate.

Titan Company reported a more than doubling of its Q2 FY27 net profit, which increased 114 per cent YoY to Rs 2,393 crore. Total income rose 14 per cent to Rs 21,430 crore. The company reported consolidated operating growth of around 25 per cent YoY, supported by resilient jewellery demand and a strong quarter in its watches business.

Oil and Natural Gas Corporation (ONGC) reported a 47 per cent YoY increase in consolidated profit after Tax to Rs 18,535 crore for Q2 FY27. The company also declared an interim Dividend of Rs 8 per share. The earnings performance and dividend announcement are significant developments for the upstream oil and gas major and the broader energy public-sector undertaking (PSU) segment.

Britannia Industries posted an approximately 11 per cent YoY increase in consolidated net profit to Rs 726 crore. Revenue from operations advanced 15.6 per cent to Rs 5,597.79 crore, providing an update on growth and input-cost trends in the packaged-foods business.

Glenmark Pharmaceuticals reported a 56 per cent YoY decline in consolidated net profit to Rs 264 crore for Q2 FY27. Revenue fell to Rs 4,247 crore from Rs 6,047 crore in the corresponding period last year. The sharp decline in both profit and revenue makes the results an important development for the pharmaceutical company.

Godfrey Phillips India reported a 37 per cent YoY decline in net profit to Rs 190 crore, despite revenue more than doubling to Rs 4,198 crore. The company attributed the pressure on profitability to higher cigarette taxation.

Paras Healthcare, in its first Quarterly Results following its listing, reported a net profit of Rs 40.35 crore compared with Rs 12.38 crore in the corresponding period last year. Revenue from operations stood at Rs 510.89 crore, while total expenses were Rs 463.12 crore.

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

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