Summary of this article
D-street is expected to react to the movement of Asian indices on November 19
Asian indices traded mixed in early trade on November 19
Other factors such as announcements related to the India-US trade deal and commodity prices are also likely to impact the market.
Stock Market Cues: On November 19, D-street is expected to react to several cues such as changes in commodity prices, the movement of Asian indices, tech-stock selloffs in the US market and recent statements regarding the progress of the India US trade deal.
On November 18, the headline indices ended a six session winning streak as the Sensex and the Nifty closed in the red zone. The Nifty 50 finished the session lower at 25,910.05 down by 0.4 per cent and Sensex closed lower by 0.33 per cent. Here’s a look at some of the key cues which are expected to impact investor sentiment today:
Asian Indices Trade Mixed
On November 19, major Asian indices traded mixed following declines in the US market. One of the most major cues for this movement were rising concerns regarding the valuation of artificial intelligence companies which led to tech-stocks trading under pressure.
In the early hours of November 19, Japan’s Nikkei 225 traded higher by 0.75 per cent after starting the session in the green. The gains seen today followed the declines in the index led by semiconductor testing equipment maker Advantest. Other Asian indices such as South Korea’s KOSPI and China’s Shanghai Composite traded higher by 0.06 and 0.18 per cent respectively at the time of writing. However, Hong Kong’s Hang Seng index traded lower by 0.06 per cent in early trade.
Gift Nifty
The Gift Nifty opened lower and continued to decline before the market opened. In early trade the Gift Nifty traded around 25,946 down by 0.05 per cent. The movement of the Gift Nifty indicates a muted to negative start for the benchmark indices on November 19.
US Market Indices
US market indices extended a multi-day decline on November 18. The decline was largely led by continued anxiety around high valuations of Artificial Intelligence (AI) stocks, economic and policy uncertainty following the delayed release of economic data and lack of clarity regarding further rate cuts this year by the US Federal Reserve. Key Wall Street indices such as the S&P 500, Nasdaq Composite and the Dow Jones Industrial Average finished lower by 0.83 per cent, 1.21 per cent and 1.07 per cent respectively.
India-US Trade Deal
D-street is likely to be positively impacted by new developments related to the India-US trade deal. Piyush Goyal, the Union commerce minister, spoke at the Indo-American Chamber event and said that the India-US partnership continues to remain strong and is expanding across sectors. He added that the negotiations are still progressing on the trade deal front and a trade deal that is fair, balanced, and protects national interests will be signed.
FII Outflows
Foreign institutional investors turned net sellers of Indian equities on November 18 as they pared their holdings in Indian equities to the tune of Rs 728.82 crore. Domestic institutional investor (DII) buying remained robust as DIIs purchased equities worth Rs 6,156.83 crore.
Crude Oil Prices On November 19
Crude oil prices slipped in the early hours of November 19, the price of Brent Crude remained around $64.73 down by $0.18 or 0.28 per cent and the price of West Texas Intermediate crude remained around $60.58 down by $0.16 or 0.26 per cent.
Gold Rate Today
Physical gold prices dipped in the morning hours of November 19, the price of 24 karat gold remained around Rs 12,365 per gram, the price of 22 karat gold was around Rs 11,334 per gram and the price of 18 karat remained around Rs 9,273 per gram.
