Pre-Market Update: GIFT Nifty Surges Over 300 Points, Signals Strong Opening; Lower Crude and Global Rally Lift Sentiment

Pre-Market Update at 7:45 AM: GIFT Nifty was trading at 24,331.5, up 370.9 points or 1.55 per cent from the previous Nifty 50 close, indicating a firm start for domestic equities on November 5. The indicator was trading at 7:01 AM IST, following a strong overnight rally across U.S. and European equity markets.

The Nifty 50 had ended the previous session 149.75 points higher at 23,960.6, while the Sensex gained 383.55 points to close at 77,301.4. Lower crude oil prices, declining U.S. Treasury yields and improved global risk appetite are likely to influence market sentiment at the opening.

Global equities rallied following the Democratic sweep in the U.S. midterm elections. The Dow Jones Industrial Average advanced 3.03 per cent, while the S&P 500 and Nasdaq gained 1.58 per cent and 1.44 per cent, respectively. European markets also ended strongly, with Germany's DAX rising 2.22 per cent, France's CAC 40 gaining 1.96 per cent and the FTSE 100 advancing 1.79 per cent. The improvement in global risk appetite, alongside lower crude prices, could provide a supportive backdrop for Indian equities.

Brent crude was trading at USD 94.30 per barrel as of 7:02 AM IST, down 0.33 per cent, while WTI crude stood at USD 88.29 per barrel, declining 0.68 per cent. Lower oil prices are significant for India, a major oil importer, as they can ease concerns around inflation, the current account deficit and fuel-import costs. Oil marketing companies, aviation, Logistics, paints, tyres and consumer-facing sectors could remain in focus, while upstream oil and gas companies may also attract attention.

Indian government bonds recorded their sharpest rally since April as crude prices declined following the U.S. election outcome. The movement in bond yields could remain relevant for rate-sensitive sectors such as Banks, NBFCs, Real Estate, automobiles and consumer durables, given the relationship between oil prices and the domestic inflation outlook.

Meanwhile, SEBI has constituted a working group to review the Innovators Growth Platform framework. The review could have implications for the broader capital-markets ecosystem, including growth companies, merchant bankers, exchange operators and potential issuers exploring listing and capital-raising opportunities.

On Wall Street, the Dow surged 3.03 per cent to close at 53,356.12. The S&P 500 ended at 7,688.62, while the Nasdaq settled at 25,736.51. Asian markets were mixed in early trade, with Japan's Nikkei declining 0.67 per cent, while Hong Kong's Hang Seng advanced 1.67 per cent and China's Shanghai Composite gained 2.16 per cent.

In commodities, gold rose 1.16 per cent to USD 4,108.46, while silver gained 0.70 per cent to USD 52.61. The gains in precious metals came alongside a softer U.S. dollar. The Dollar Index stood at 101.265, down 0.30 per cent, while the Indian rupee traded around Rs 94.53 against the U.S. dollar, with USD/INR declining 0.11 per cent. The U.S. 10-year Treasury yield eased 2.9 basis points to 4.86 per cent, a development that could support global risk appetite and equity valuations.

Institutional activity remained another important factor. Foreign institutional investors (FIIs) were net buyers of Indian equities worth Rs 7,284.03 crore in the latest available session, while domestic institutional investors (DIIs) were net sellers worth Rs 3,712.23 crore. The figures indicate substantial foreign buying against domestic selling during the session, although single-session flows do not necessarily indicate a sustained trend.

In the previous trading session on November 4, the Nifty 50 gained 0.63 per cent to close at 23,960.6. The index moved between 23,696.15 and 23,960.6, ending at its Intraday high. The Sensex advanced 0.50 per cent to settle at 77,301.4 after trading between 76,604.85 and 77,396.04. India VIX declined 3.44 per cent to 15.18, indicating easing volatility expectations, although the movement alone does not signal the market's direction.

Among stocks to watch, BSE reported strong Q2FY27 consolidated results, with net profit rising 44.9 per cent year-on-year to Rs 809.15 crore from Rs 558.43 crore. Revenue increased 34 per cent, keeping the exchange and broader capital-markets theme in focus.

Dabur India reported an 11.7 per cent year-on-year increase in Q2FY27 net profit to Rs 505.5 crore. Revenue rose 11.6 per cent to Rs 3,563.1 crore. The FMCG company also declared an interim Dividend of Rs 3.50 per share.

FSN E-Commerce Ventures, which operates Nykaa, reported a 207 per cent year-on-year rise in Q2FY27 net profit to Rs 101 crore. Revenue increased 28 per cent to Rs 3,006 crore. The company also announced plans to acquire an 82 per cent stake in Simply Nam.

Lenskart Solutions reported a 122.1 per cent year-on-year increase in Q2FY27 net profit to Rs 227.08 crore. Revenue from operations rose 35.7 per cent to Rs 2,845.03 crore, while product margin improved to 64 per cent from 63.4 per cent. The company added 165 stores during the quarter, taking its active store count to 3,624.

Allcargo Terminals reported an 85.8 per cent year-on-year rise in consolidated net profit to Rs 21 crore for Q2FY27. Operational revenue increased 22 per cent, while EBITDA margin improved to 23.6 per cent.

Aptus Value Housing Finance reported an 18 per cent increase in quarterly net profit to Rs 267 crore. Total income rose to Rs 634 crore from Rs 554 crore, while interest income increased to Rs 551 crore from Rs 472 crore.

Keystone Realtors reported a near ten-fold increase in consolidated Q2FY27 net profit to Rs 100.75 crore, supported by its share of profits from joint ventures. However, total income declined year-on-year.

Titan Company is scheduled to announce its September-quarter results today. Investors will monitor its commentary on jewellery demand, margins and discretionary consumption trends, which could provide cues for the broader consumer-discretionary and jewellery-retail sectors.

Bombay Coated & Special Steels is also scheduled to make its stock market debut today at an issue price of Rs 82 per share. Its listing performance could provide a fresh indication of investor appetite in the SME primary market.

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

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