FIRST TRADE: Indian stocks open weak; Sensex down 203 points, Nifty down 0.41% to 24,204
EARLY TRADE (November 4, 2024): Indian stocks in Monday’s trading despite positive Asian markets opened in the red. Earlier, the Nifty was down 0.41 percent or 100.1 points at 24,204.25, while the BSE 30-share Sensex was down 0.25 percent or 202.92 points at 79,521.2.
The drag came amid pressure to sell across the board, with consumer durables and oil and gas heading for top sellers with cuts of more than 1 percent each.
Meanwhile, the Bank Nifty in a volatile session after gains of around 19 per cent in the last Samvat traded lower by 0.5 per cent.
Broader markets underperformed headline indexes with the Nify Smallcap 100 index down more than 1 percent.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “Over the next few days the global markets will be focused on the US presidential election and there may be a near-term volatility in response to the election outcome.”
However, this may be temporary and economic fundamentals such as US growth, inflation and Fed action will have an impact on the stock market, he added.
Currently, the Indian market is facing the brunt of slowing income growth. The Nifty’s EPS growth as indicated by Q2 results may fall below 10 percent in FY25 which will make current estimates of around 24 times FY25 estimated earnings difficult to sustain, Vijaykumar noted.
Focus stocks
Default stocks:
Auto stocks will remain firm after October sales data from automakersincluding M&M, Maruti Suzuki, and Hero MotoCorp, among others.
Sun Pharma:
The big pharma stock will also gain momentum as a recent US court ruling caused a delay in the launch of its new drug, LEQSELVITM (deuruxolitinib).
Asian markets
Meanwhile, Asian shares in Monday’s trading were trading mostly in the green as investors awaited further measures to revive China’s finances at an upcoming meeting of China’s top policymakers later this week. Trading volume, however, remained thin due to a market holiday in Japan.
