Indian Markets snapped four day losing streak; Broader markets outperformed

Wall Street Ends Higher as Anthropic IPO Filing Fuels AI Optimism

MUMBAI, 27 OCTOBER: Wall Street began the week on a firm footing, with the Dow Jones Industrial Average rising 146 points, or 0.3%. The S&P 500 gained 0.7%, while the Nasdaq Composite advanced 0.8%, led by technology shares.

The artificial-intelligence theme received a fresh boost after Anthropic filed for an initial public offering on the Nasdaq. Semiconductor stocks rallied sharply, with the iShares Semiconductor ETF (SOXX) rising nearly 3%. Nvidia gained 2.4%, Micron 3%, Broadcom 2.3% and AMD 2.8%.

US Treasury yields remained largely unchanged, with the 10-year yield closing just below 5%.

Oil prices edged lower after reports that officials from Saudi Arabia, Turkey and Pakistan met Iranian counterparts as part of efforts to ease regional tensions and support negotiations to reopen the Strait of Hormuz. West Texas Intermediate futures slipped to nearly $101 per barrel, while Brent crude declined to $109.50 per barrel.

Investor attention now shifts to a heavy corporate-earnings calendar and the Federal Reserve’s policy meeting. The Federal Reserve is expected to keep interest rates unchanged when it releases its policy statement on Wednesday. The US central bank is widely expected to hold rates steady, with fed-funds futures pricing a 90% probability that the target range will remain at 3.75%–4%. Markets will, however, look for clues on a possible rate hike in December. Wall Street is also monitoring the November 3 US midterm elections, which will determine control of Congress.

Asian markets are trading mostly higher today following Wall Street’s rally after Anthropic filed for an initial public offering (IPO) and renewed investor appetite for AI related stocks. South Korea’s Kospi and Japan’s Nikkei 225 trading with gains of 2% and 4% respectively while Hong Kong’s Hang Seng trading with minor losses.

Coming to our markets, Nifty snapped a four-session losing streak, gaining 153 points to close at 22,753. It was a highly volatile session, with the index swinging in both directions through first part of the session. The bulls regained control in the second half, driving a recovery of over 200 points from the mid-session low and pushing the index to finish near the day’s high.

Market breadth strengthened, with the BSE advance–decline ratio climbing sharply to 1.21, signalling renewed buying interest in mid- and small-cap stocks following last week’s steep correction.

The Indian rupee fell for a third straight session, losing 25 paise to close at 95.19 against the US dollar, pressured by weaker Asian currencies and rising domestic bond yields. With three key central-bank decisions due this week, currency volatility is likely to remain elevated.

Six Nifty constituents—Bajaj Auto, Cipla, Larsen & Toubro, Maruti Suzuki, SBI Life Insurance and Tata Steel—are scheduled to report their quarterly results today.

Nifty successfully defended Friday’s low of 22,372 yesterday and staged an intraday reversal. The short-term trend would turn bullish on a sustained move above 22,800. Above this level, the index could extend its recovery toward the next resistance of 23,175. Conversely, a break below 22,372 could resume the downward move, opening the door for a decline toward the 22,100–22,200 support band.

Price action over the next three sessions is likely to be shaped by derivative expiries—NSE today and BSE on Thursday—along with key central-bank policy decisions due this week.

After yesterday’s sharp pullback rally, the Nifty is likely to open on a subdued note, tracking mixed Asian market cues.

Report by: Mr. Nandish Shah – Deputy Vice President, HDFC Securities

(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing)

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