Wed Oct 23 09:12:54 UTC 2024: On Wednesday, Indian equity benchmarks opened mixed as foreign institutional investor (FII) selling continued alongside rising US Treasury yields. The Sensex started at 79,921.13 and the Nifty at 24,378.15. Bajaj Finance led early gains, up 2.85%, followed by Bajaj Finserv and Bajaj Auto, which increased by 1.51% and 1.45%, respectively. In contrast, Shriram Finance was the top loser, down 2.17%, with Power Grid and NTPC also declining over 1.5%.
Market volatility is anticipated as FII selling has exceeded ₹86,000 crore this month, marking the highest withdrawal in four years. The International Monetary Fund has maintained India’s growth forecast at 7% for FY25 and 6.5% for FY26, noting a decline in GDP growth from 8.2% in 2023 to 7% in 2024 due to post-pandemic demand exhaustion.
Rising US bond yields, reaching 4.2%, are pressuring markets, and U.S. stocks are reacting negatively to disappointing news from major companies coupled with anticipated slower Federal Reserve rate cuts. Technical analysts recommend caution, suggesting the market has become oversold, with a potential bounce expected in the 24,756-24,832 range.
In commodities, gold reached a new record at $2,742.08 an ounce, and silver surpassed ₹100,000 on the MCX for the first time, driven by uncertainty related to U.S. elections and the BRICS nations’ push towards de-dollarization. Crude oil prices fell slightly, with Brent futures at $71.62, down 0.17%, after U.S. inventory data indicated an increase for the week ending October 18.
Key earnings reports from Hindustan Unilever, Bajaj Finserv, and SBI Life Insurance are expected today, which could impact market trends.
First Piper 