Udabur Investment：Indian stock markets open lower as tech rally in US fails to lift sentiment

Indian benchmark indices, Sensex and Nifty, opened lower on Wednesday despite a strong showing by US technology stocks, with pharmaceutical companies leading the decline in early trade. The BSE Sensex opened at 80,237.85 and was trading at 80,152.36, down 216.67 points or 0.27 per cent at 9.40 AMUdabur Investment. The NSE Nifty started at 24,371.45 and traded at 24,414.50, declining 52.35 points or 0.21 per cent from its previous close.

The pharmaceutical sector faced significant selling pressure, with Cipla dropping 3.97 per cent, Dr Reddy’s Laboratories falling 3.21 per cent, and Sun Pharmaceuticals declining 2.73 per cent. Among other major losers were Shriram Finance, down 1.58 per cent, and SBI Life, which fell 1.50 per cent.

Defense and auto stocks showed strength, with Bharat Electronics Limited (BEL) leading the gainers, up 2.52 per cent. Maruti Suzuki rose 2.29 per cent, followed by Bajaj Auto at 1.09 per centSimla Investment. Coal India and IndusInd Bank also gained 0.83 per cent and 0.76 per cent respectively.

“In the near term, the market will be influenced by two factors - one positive and the other negative. The positive is the sharp decline in FII selling to just ₹548 crore yesterday,” said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He added that “the consensus earnings estimates are likely to be revised down by most brokerages” as Q2 earnings indicate softness in FY25 earnings.

Foreign Institutional Investors (FIIs) sold equities worth ₹548.69 crore on October 29, while Domestic Institutional Investors (DIIs) bought equities worth ₹730.13 crore, indicating continued domestic support for the market.

The banking sector, particularly PSU banks, showed resilience after strong quarterly results. “Market sentiment is expected to remain positive, buoyed by key drivers such as short covering ahead of the October F&O expiry, value buying, easing geopolitical tensions in the Middle East, a sharp drop in oil prices below $67.50, and strong Q2 results from PSU banks like SBI, ICICI Bank, and Bandhan Bank,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

Technical analysts remain cautiously optimisticNew Delhi Wealth Management. “The Nifty experienced gains over two consecutive trading sessions, showcasing a notable recovery fueled by robust buying in BFSI stocks,” noted Ameya Ranadive, Senior Technical Analyst at StoxBox. He identified 24,630 as an immediate resistance level.

Global markets presented a mixed picture, with US markets closing mostly higher on TuesdayPune Stock. The Nasdaq Composite reached its 28th record close of the year. Asian markets showed varied performance, with the Nikkei climbing while the Hang Seng declined.

The market’s immediate focus remains on the upcoming Federal Reserve decision, with all 111 economists in a Reuters poll expecting a 25 basis points rate cut on November 7, followed by another quarter-percentage-point move in December.

The India VIX, which measures market volatility, traded at 14.5150, up 1.57 per cent from the previous session, suggesting some cautiousness among market participants ahead of the monthly F&O expiry.

Agra Investment