Mumbai (Maharashtra) [India], October 16 (ANI): The Indian share market opened on a positive note on Thursday, supported by optimism over a possible India-US trade deal expected in November.
However, experts cautioned that the markets are currently in an overbought zone and may witness some correction in the near term.
The Nifty 50 index opened at 25,394.90, gaining 71.35 points or 0.28 per cent, while the BSE Sensex started the day at 82,794.79, up by 189.36 points or 0.23 per cent.
Market sentiment remained upbeat amid growing expectations of a breakthrough in the upcoming trade discussions between India and the United States.
Ajay Bagga, Banking and Market Expert, told ANI, “Indian markets are overbought and may see some correction. However, a huge catalyst is working, with a trade team from India in the US and expectations of a November trade deal rising. That would boost market sentiment immensely. Overall, Indian markets are pointing to a positive start, but the positioning is nearing an overbought level, so we may see some amount of profit-taking here.”
He added that markets are also keeping a close watch on international developments. “Trump has made a claim that in a call with him, PM Modi has assured the US that India will stop buying Russian oil. So markets will await any denial or confirmation of this, as it could have a bearing on the trade deal finalisation,” Bagga said.
Among the sectoral indices on the NSE, all sectors opened in positive territory. Nifty Auto rose 0.28 per cent, Nifty Media gained 0.46 per cent, Nifty PSU Bank added 0.28 per cent, and Nifty Realty jumped 0.60 per cent.
A host of companies are set to announce their second-quarter earnings today, including Infosys, Wipro, Nestle India, Jio Financial Services, LTIMindtree, Indian Bank, Waaree Energies, Indian Overseas Bank, JSW Infrastructure, Metro Brands, Punjab and Sind Bank, and Kajaria Ceramics.
Meanwhile, Rubicon Research will make its stock market debut on Thursday. The pharmaceutical company’s IPO was subscribed 109.35 times on day three. The IPO, open from October 9 to October 13, was priced between Rs 461 and Rs 485 per share, raising Rs 1,377.50 crore in total.
On the global front, the US government shutdown has entered its 15th day, while US-China trade tensions continue. However, the ongoing earnings season in the US has been encouraging, and a Fed rate cut is expected on October 29.
The US markets closed mixed, with the S&P 500 and Nasdaq ending higher, while the Dow Jones recorded a slight decline.
Across Asia, most markets traded in the green, except Hong Kong’s Hang Seng and Singapore’s Straits Times, which were marginally lower. Japan’s Nikkei 225 surged 0.9 per cent, Taiwan’s Weighted Index rose 0.98 per cent, and South Korea’s KOSPI gained 1.88 per cent. (ANI)
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