Pre-Market Update: GIFT Nifty Signals Cautious Start as Brent Crude Stays Above $100

Pre-Market Update at 7:45 AM: GIFT Nifty indicated a cautious start for domestic equities on November 4, trading at 23,732, down 37points from the previous close and down 78.85 points from the previous Nifty 50 close. At 7:01 AM IST, the index was down 28 points, or 0.12 per cent, signalling a subdued opening.

The indication follows a strong domestic market session on Tuesday, when the Nifty 50 gained 370.05 points, or 1.58 per cent, to close at 23,810.85. The Sensex advanced 1,225.07 points, or 1.62 per cent, to settle at 76,917.85. Meanwhile, Brent crude remained above USD 100 per barrel, while Asian markets traded mixed in early deals.

Stronger-than-expected September U.S. jobs data and uncertainty surrounding the U.S. midterm-election results kept Treasury yields and global risk appetite in focus. Higher U.S. yields can tighten global financial conditions and influence emerging-market flows, particularly across financial, IT and other rate-sensitive sectors.

The U.S. 10-year Treasury yield stood at 4.915 per cent, down 0.059 percentage points from its previous reading. The Dollar Index was at 101.448, down 0.41 per cent, while the Indian rupee traded around Rs 94.73 against the U.S. dollar.

Capital-market earnings also remain in focus. The National Stock Exchange (NSE) reported a 23 per cent YoY increase in consolidated Q2 FY27 profit to Rs 2,578 crore, while revenue increased 9 per cent YoY. The performance provides an indication of transaction activity and participation in the capital markets. Meanwhile, BSE is scheduled to consider its September-quarter results on November 4, with investors tracking its operating performance and transaction trends.

In another regulatory development, the Securities and Exchange Board of India (SEBI) imposed aggregate penalties of Rs 40 lakh on four entities, including Woodstock Broking and Marfatia Stock Broking, in a front-running case involving trades conducted between April 2021 and March 2022. The order brings compliance, surveillance and governance standards across the broking and Mutual Fund ecosystem into focus.

Global markets presented a mixed picture. In the U.S., the Dow Jones Industrial Average declined 0.38 per cent to 51,786.72, while the S&P 500 gained 0.36 per cent to 7,568.92. The Nasdaq Composite advanced 0.83 per cent to 25,372.01.

Asian markets were mixed in early trade on November 4. Japan's Nikkei declined 2.10 per cent to 61,759.25, while the Shanghai Composite fell 0.82 per cent to 3,608.10. In contrast, Hong Kong's Hang Seng advanced 0.57 per cent to 23,525.97.

European markets ended the previous session lower. The FTSE 100 declined 1.14 per cent, Germany's DAX fell 0.45 per cent and France's CAC 40 lost 0.34 per cent.

Crude oil prices remained an important factor for the domestic market. As of 7:02 AM IST on November 4, Brent crude traded at USD 103.70 per barrel, down 0.54 per cent, while West Texas Intermediate (WTI) crude was at USD 96.85 per barrel, down 0.92 per cent. Brent crude remaining above the USD 100 mark is likely to remain a key consideration for Indian equities, given India's dependence on crude oil imports.

Among precious metals, gold gained 0.56 per cent to USD 3,951.94, while silver advanced 0.38 per cent to USD 49.97. The gains came alongside a decline in the Dollar Index.

Institutional activity also remained in focus. Foreign institutional investors (FIIs) were net buyers of Rs 6,836.81 crore in the latest reported session, while domestic institutional investors (DIIs) were net sellers of Rs 3,678.85 crore. The divergence between foreign buying and domestic selling followed the sharp rally in benchmark indices. Investors may track these flows alongside currency movements and global market trends.

In the previous trading session, the Nifty 50 closed at 23,810.85, its Intraday high, gaining 1.58 per cent. The index traded between 23,482.80 and 23,810.85 during the session. The Sensex also settled at its session high of 76,917.85, gaining 1,225.07 points, or 1.62 per cent. Meanwhile, India VIX increased 1.42 per cent to 15.72, indicating a rise in expected market volatility.

Among stocks, Multi Commodity Exchange of India (MCX) reported a 130 per cent YoY increase in consolidated Q2 net profit to Rs 454.57 crore. Revenue increased 114 per cent YoY, while EBITDA surged 151 per cent, accompanied by an expansion in margins. The earnings performance makes the exchange an important stock to track during the session.

Utkarsh Small Finance Bank reported a net loss of Rs 70 crore in Q2, marking its sixth consecutive quarterly loss. Operating profit stood at Rs 85 crore, while provisions amounted to Rs 166 crore. Gross NPA improved marginally to 5.96 per cent, and the gross loan portfolio increased 7.5 per cent YoY to Rs 20,062 crore.

Nexus Select Trust reported an 8 per cent YoY increase in Q2 net operating income to Rs 504 crore. Consumption across its retail assets grew 13 per cent. The REIT declared a distribution of Rs 359 crore and maintained a 100 per cent payout for the 13th consecutive quarter.

Bata India reported a 30.4 per cent YoY increase in Q2 net profit to approximately Rs 18 crore. Revenue from operations increased 7.54 per cent YoY to Rs 861.78 crore. The company cited higher average selling prices while also highlighting rising input costs and wage revisions.

Happiest Minds Technologies reported a 15.12 per cent YoY increase in consolidated Q2 net profit to Rs 62 crore, while revenue from operations rose 12.5 per cent to Rs 645 crore. The company declared an interim Dividend of Rs 3.05 per share and recorded an exceptional charge related to its proposed merger with ITC Infotech.

Emcure Pharmaceuticals reported consolidated Q2 net profit of Rs 325.06 crore. Revenue increased to Rs 2,820.47 crore from Rs 2,269.82 crore in the corresponding quarter of the previous year. International operations grew 34 per cent, while domestic revenue increased 11.1 per cent.

Minda Corporation posted a 68.2 per cent YoY increase in consolidated Q2 net profit to Rs 143 crore. Revenue from operations advanced 42.6 per cent to Rs 2,189 crore. Electric vehicle-related products accounted for approximately 35 per cent of the company's new order wins during the quarter.

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

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