Fri Nov 08 23:58:02 UTC 2024: ## Indian Markets Show Slight Gains Despite FII Selling, US Rate Cuts Boost Global Sentiment

**Mumbai, November 8** – Indian stock markets opened marginally higher on Wednesday, with the Sensex gaining 36.07 points or 0.05% to 79,577.86 and the Nifty rising 15.35 points or 0.06% to 24,214.70. This comes despite continued selling by foreign institutional investors (FIIs), who offloaded ₹4,888 crore worth of equities on Tuesday.

The slight uptick in the Indian market can be attributed to positive global sentiment driven by recent rate cuts from the Federal Reserve and the Bank of England. The US Federal Reserve reduced its benchmark interest rate by 25 basis points to a range of 4.5%-4.75%, marking its second reduction in recent months. The Bank of England also lowered rates by a quarter point, only its second cut since 2020.

“Two divergent trends are evident in the market now: one, strength in the global market led by the US and two, weakness in the Indian market,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He attributed the US market’s record-setting uptrend to the “Trump trade” and expectations of corporate tax cuts.

Despite the positive global sentiment, FIIs have continued their selling spree in India, offloading a total of ₹16,445 crore in equities so far this month. Domestic Institutional Investors (DIIs) have been buying equities, offsetting some of the FII selling pressure.

Technology stocks led the gains in early trade, with Infosys rising 1.60%, followed by Apollo Hospitals, Hindalco, Wipro, and Tech Mahindra. On the other hand, BPCL, Coal India, Reliance, Trent, and Tata Motors experienced losses.

Crude oil futures traded lower due to disruptions in oil and gas production in the US Gulf of Mexico caused by Hurricane Rafael. Gold and silver prices rebounded from recent lows following the rate cuts.

China’s export data showed improvement, with October exports rising 12.7% year-on-year. However, imports fell by 2.3%.

Technical analysts remain cautious about the short-term market outlook, with the Nifty struggling to break out of the 24,000-24,500 band. Investors are awaiting the conclusion of China’s National People’s Congress, where fiscal stimulus measures are expected to be announced.

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