GIFT NIFTY futures hint negative open on November 4; key things to know before stock market opens

Indian equity market indices are set to witness a turbulent trading session on Wednesday, November 4, as investors focus on the weak momentum from Asian markets, buying sentiment among foreign investors, lower crude oil prices, and a pullback in US Treasury yields.

During the morning hours on Wednesday, the GIFT NIFTY futures (November contract) were trading 2% higher at around 23,710.50 level, indicating the potential for the NIFTY50 to open around 100 points lower than their previous closing levels due to the mixed cues for Indian equities.

NSE data showed that the NIFTY50 ended 1.58% or 370 points higher at 23,810.85 points after the trading session on Tuesday, in comparison to 23,440.80 points at the previous equity market close.

The BSE SENSEX closed 1.62% or 1,225 points higher at 76,917.85 points after Tuesday’s market, compared to 75,692.78 points at the previous stock market close, as per the exchange data.

So far this week, the Indian stock market indices have delivered massive gains to investors, powered by the quarterly earnings momentum, improved sentiment of Indian equities among FIIs, and the sharp pullback in crude oil prices in the global market.

With a winding-down AI trade on Wall Street and Asian markets, equity investors are keeping a close watch on geopolitical sentiment in hopes of any indication of a potential end to the conflict in West Asia, while focusing on emerging markets like India.

On Wednesday, the key focus of investors will remain on oil prices, US Treasury yields, and the momentum cues from Asian markets, along with the results of the US Midterm Elections, which were conducted on Tuesday, November 3.

Key things to track before market open

Oil eases back to $106/bbl

After a marginal flare-up during the trading session on Tuesday, the global crude oil benchmark Brent prices eased down to near $106 per barrel (bbl) levels during the early trading session on Wednesday, India time.

TradingView data showed that Brent crude oil prices were trading around 1.3% lower at $106.9 per bbl as of 7:38 am (IST), in comparison to $108.28 per bbl at the previous commodity market close.

In the last trading session, investors were focused on reports that the United States carried out a covert attack on some Iranian territory, in turn increasing risk sentiment amid the US Midterm Elections.

However, local media reports on November 4 suggest that Qatar is ‘bridging the gap’ between the United States and Iran, continuing its efforts to bring the two nations in conflict together to exchange peace proposals.

The report said that both sides have demonstrated commitment to the negotiating track and are reviewing the proposals put forward.

Asian markets today

Equity market indices in Asia were largely trading in negative territory on Wednesday, November 4, as global investors continued exercising their selling pressure amid the looming concerns about artificial intelligence (AI) technology and Japan’s manufacturing growth slowing down to a seven-month low.

Japan’s Nikkei 225 crashed on Wednesday’s market, trading 3.2% lower; Hang Seng was down 0.34%; Shanghai Composite was down 0.24%; KOSPI was down 1.44%; and Singapore’s FTSE lost 1.12% as of the morning hours.

₹6,836 crore worth of FII inflows

NSE data showed that Foreign institutional investors (FIIs) are maintaining their buying streak in Indian equities, purchasing around ₹6,836.81 crore worth of capital market assets in a single day on Tuesday’s market.

However, the domestic investors also maintained their selling streak, shedding around ₹3,678.85 crore worth of capital market assets in a single day on November 3.

Dented sentiment in the developed markets and the rout in tech and AI stocks are powering the massive FII interest in Indian equities this week, with investors looking for a lower-risk profile than the downtrend in major markets.

Wall Street recap

US stock market indices ended on a mixed note as investors focused on the Midterm Election polling amid a rebound in crude oil prices, elevated US Treasury yields, and reports of US attacks in West Asia on Tuesday, November 3.

MarketWatch data showed that the Dow Jones Industrial Average ended 0.38% lower at 51,786.72 points after Tuesday’s market, in comparison to 51,983.98 points at the previous equity market close.

In contrast, the S&P 500 index closed 0.36% higher at 7,568.92 points after the trading session on Nov. 3, compared to 7,541.40 points at the previous US equity market close, as per the exchange data.

The tech-heavy Nasdaq 100 index snapped its losing streak, closing 0.68% higher at 28,180.26 points after a multi-day selloff, in comparison to 27,989.82 points at the previous Wall Street close.