Shares may rise on bargain hunting

GIFT Nifty:

The GIFT Nifty November futures contract is trading 37 points higher, suggesting a positive opening for the Nifty 50. After Monday's deep fall, investors may seek value-buying opportunities in the Indian stock market.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 4,329.79 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,936.08 crore in the Indian equity market on 4 November 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 5876.97 crore (so far) in the secondary market during November 2024. This follows their sale of shares worth Rs 113858.81 crore in October 2024.

Global Markets:

The Dow Jones index futures were up 40 points, indicating a positive opening in the US stocks today.

Asian shares were mixed on Tuesday as investors remained cautious ahead of the closely watched U.S. presidential election later in the day. Chinese markets were buoyed by strong business activity data. Investors are also closely monitoring the meeting of China's National People's Congress this week, anticipating further clues on fiscal spending.

Regional markets took a neutral stance following a negative session on Wall Street. The S&P 500 declined 0.28%, the NASDAQ Composite fell 0.33% and the Dow Jones Industrial Average dropped 0.61%.

The US Federal Reserve's meeting is scheduled for this week, with a 25 basis point rate cut widely expected, following a 50 basis point cut in September.

Third-quarter earnings have delivered mixed results, with a slew of middling big-tech earnings reported last week. Berkshire Hathaway Inc. fell 2% after missing operating earnings estimates. In contrast, data software firm Palantir Technologies Inc. rallied nearly 13% in after-market trading as its earnings surpassed expectations.

Dollar Tree Inc. rose 6.3% after announcing that CEO Rick Dreiling would resign, and Chief Operating Officer Michael Creedon Jr. would take over on an interim basis.

Domestic Market:

The domestic equity benchmarks plunged on Monday, with the Nifty50 index closing below the crucial 24,000 level. All sectoral indices on the NSE ended the day in the red, signaling a broad-based sell-off. The realty, oil & gas, and media sectors were particularly hard-hit. The market downturn was attributed to multiple factors, including the upcoming US presidential election, the Fed's monetary policy announcement, weak US jobs data, and a combination of weak quarterly earnings reports and ongoing geopolitical tensions. The S&P BSE Sensex, tanked 941.88 points or 1.18% to 78,782.24. The Nifty 50 index dropped 309 points or 1.27% to 23,995.35.

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