Market today: Wall Street hits record as Trump wins, US Fed decision eyed

After cheering Trump's victory, focus will now shift to US Fed's policy decision. Meanwhile, September quarter results and macroeconomic data will also be eyed

Share market today: After Republican Donald Trump triumphs in the race for the White House, all attention is now shifted to the Federal Reserve policy decision scheduled later in the day. Fed is widely expected to ease the benchmark interest rate by 25 basis points (bps). 

 

Rejoicing Trump's victory, the US markets closed at record highs. The Dow Jones was up 3.57 per cent, S&P 500 up 2.53 per cent, and the Nasdaq Composite up 2.95 per cent. However, the US futures are currently trading flat.

 

Meanwhile, Asian markets are trading lower. At the last count, China's mainline CSI 300 was down 0.92 per cent, Shanghai was flat with a negative bias, Japan's Nikkei was down over 0.77 per cent.

 

Domestic cues

Indian shares are also expected to open lower amid mixed global cues and F&O expiry. Around 6:50 AM, GIFT Nifty futures were down 141. points at 24,446.

 

In the previous session, the BSE Sensex ended higher by 901.5 points or 1.13 per cent at 80,378.13. Similarly, NSE Nifty50 settled at 24,484.05, up 270.74 points or 1.12 per cent. 

 

That apart, investors also eye the September quarter results to be released by Cochin Shipyard, Bajaj Electricals, IRCON International, Lupin, M&M and others.

 

They will also react to the Q2 outcome of Power Grid, Tata Steel, Apollo Hospitals, Jindal Steel & Power and other companies released on Wednesday. 

 

In the primary market, the initial public offering (IPO) of Swiggy was subscribed 12 per cent on day 1. The high net worth individual (HNI) portion of the issue was subscribed 6 per cent, retail investors subscribed 54 per cent, and employees subscribed 74 per cent. The retail quota for the IPO is set at only 10 per cent, compared to the typical 35 per cent. Meanwhile, 75 per cent of the shares are reserved for QIBs, which must secure full subscription for the IPO to succeed.

 

On the economic front, the headline Purchasing Managers' Index (PMI) figure, released by HSBC and compiled by S&P Global, improved to 58.5 in October from 57.7 in September. 

MSCI rejig 

As per reports, MSCI added five Indian stocks to its global standard index for emerging markets in the November review. The changes will come into effect from close of November 25. The rejig upgraded Kalyan Jewellers India Ltd., Voltas Ltd., and Bombay Stock Exchange Ltd. from small cap segment to mid-cap segment of the MSCI Emerging Markets I. 

 

Shriram Finance, TVS Motor Co. and CG Power & Industrial were upgraded to MSCI India Large Cap Index from mid cap, while no stocks were removed from the index.

 

The rejig also saw weight increases for HDFC Bank Ltd., Voltas, Kalyan Jewellers India, Bombay Stock Exchange, Oberoi Realty, Alkem Laboratories, Samvardhana Motherson Ltd., Tata Power Co., JSW Energy Ltd., and IndiGo airline operator Interglobe Aviation Ltd.

Business Standard BFSI Summit 

The Business Standard BFSI Insight Summit enters its second day. The event will see panel discussions and fireside chats among a host of notable experts and market leaders. Among them are Anish Tawakley, Co-CIO Equity, ICICI Prudential MF; Mahendra Kumar Jajoo, CIO - Fixed Income, Mirae Asset Investment Managers; Prashant Jain, CIO, 3P Investment Managers; and Sunil Singhania, Founder, Abakkus Asset Manager. You can catch all the live updates here.

 

Here's today's full schedule: https://bs-bfsi.com/schedule/2024

 

Plus, here's a rundown of what the panilists discussed on the first day of the event: BS BFSI Day 1 Wrap: Positives outweigh negatives in economy, says RBI guv

Global cues

Apart from US Fed's decision on interest rate cut, investors will also monitor September quarter results.

 

On the data front, US initial jobless claims for November will be eyed.

 

In the Asia-Pacific region, Japan's real wages, a key indicator of consumer purchasing power, fell 0.1 per cent in September, labour ministry data showed, compared with a revised 0.8 per cent drop in August.

 

As per reports, the Bank of Japan's (BOJ) meeting minutes revealed that many BOJ policymakers agreed the economy was making progress in meeting the necessary conditions for raising interest rates further. 

 

The central bank is expected to raise short-term borrowing costs - currently at 0.25 per cent- to 1.5 per cent or 2 per cent by the end of Governor Kazuo Ueda's term in April 2028. 

 

On the data front, China's trade data for October will be eyed. 

Here's how analysts view today's (November 7) trading session

Jatin Gedia, research analyst, Sharekhan 

On the daily charts, the Nifty has violated the lower top lower bottom formation on the daily charts suggesting a trend reversal. The daily momentum indicator has a positive crossover which is a buy signal. Thus, both price and momentum indicator suggests that the upmove is likely to continue towards 24,756 – 25,000 which coincide with the 40 day average and the 38.2 per cent fibonacci retracement level and 25000 has the highest concentration on the Call side. Thus, any intraday dips or pullbacks towards 24400 – 24350 should be used as an opportunity to go long.

 

Nifty Bank has taken a back seat while the Nifty IT index takes the lead. Undertone for Nifty Bank remains positive. There is a gap area in the range 52,800 – 52,900 which is acting as a resistance which once crossed can lead to a upmove towards 53,500. On the downside, crucial support is placed at 51,760– 51,700 zone.

 

Aditya Agarwal, head of derivatives & technical analysis, Sanctum Wealth

Nifty has closed near it's resistance zone of 24,500 and a close above that can trigger another round of short covering that can drive it towards 24,700 in short term. On lower side, the index will find immediate support around 24,360/24,280 levels.

 

Nifty Bank consolidated in narrow band of 200 points for most part of the day and finally closed around 52,300. On higher side, it has stiff resistance between 52,500-52,600 and a close above that can take it towards 53,200/53,600 levels. Structure for Nifty Bank is positive and dip towards 52,000/51,740 can be used to initiate fresh longs.

 

Jigar S Patel, senior manager - technical research analyst, Anand Rathi Shares and Stock Brokers

Moving forward, a break above 24,600 could pave the way to the 25,000 mark for Nifty, with 24,000 acting as support and 24,600 as resistance.

FII, DII update: How much did FIIs, and DIIs buy or sell on November 6?

As per NSE data, Foreign Institutional Investors (FII) were net sellers of Indian equities worth Rs 4,445.59 crore. 

 

Conversely, the DII's were net buyers of equities worth Rs 4,889.33 crore.