Indian stock markets opened on a cautious note on Wednesday, with investors awaiting the outcome of the high-stakes meeting between U.S. President Donald Trump and Chinese President Xi Jinping. Despite the subdued start, analysts expect domestic indices to touch new all-time highs in the coming weeks.
The NSE Nifty 50 opened at 25,984.40, down 69.50 points or 0.27 per cent, while the BSE Sensex began at 84,754.92, slipping 242.21 points or 0.28 per cent.
Market expert Ajay Bagga said that while global developments are keeping Indian markets on edge, the outlook remains optimistic. “Nifty may hit a new all-time high in the next couple of weeks, ending 13 months of negative returns. Earnings have bottomed out, and sectors such as financials, power, industrials, and autos could drive the next growth phase,” he said.
Bagga noted that foreign portfolio investors (FPIs) have reduced their net short positions from 94 per cent to 80 per cent but remain largely bearish at the index level. “With the possibility of a U.S.-India trade deal now ruled out and the Bihar elections acting as a mini-referendum on the coalition government’s stability, volatility is likely to continue through mid-November,” he added.
In the broader market, the Nifty 100 slipped 0.18 per cent, while Nifty Midcap 100 gained 0.24 per cent and Nifty Smallcap 100 rose 0.17 per cent. Among NSE sectoral indices, Nifty IT was down 0.05 per cent, Auto gained 0.23 per cent, while Metal, Pharma, and Consumer Durables traded lower.
Globally, all eyes are on the Xi-Trump Summit, which comes shortly after the U.S. Federal Reserve’s decision to cut interest rates and announce the end of Quantitative Tightening (QT) from December 1. Fed Chair Jerome Powell’s hawkish remarks led to a modest decline in U.S. markets and a rise in Treasury yields, signalling that a December rate cut is not guaranteed. The Bank of Japan and European Central Bank are expected to maintain their current policy rates.
In the IPO segment, Studds Accessories — a Faridabad-based manufacturer of two-wheeler helmets and motorcycle accessories — opened its ₹455.49 crore public issue today, priced between ₹557 and ₹585 per share. Meanwhile, Orkla India, known for its diverse food products portfolio, saw its IPO subscribed to 79 per cent on the first day, led by institutional investors with 1.53 times subscription.
On the commodities front, Manav Modi, Analyst for Precious Metals Research at Motilal Oswal Financial Services, said gold prices weakened slightly after a rebound in the U.S. Dollar index and Treasury yields. “Governor Powell’s comments on inflation and the labour market have added to cautious sentiment. Focus now shifts to the Trump-Xi meeting in South Korea later today,” he said.
-ANI