Indian Stock Market Opens in Red Amid Global Cues - Read Now

The Indian stock market began trading in the red on Thursday, October 31, as the global cues and market volatility before the much-awaited Diwali 2024 Muhurat trading session on November 1 were reflected in the performance of the benchmark indices BSE Sensex and Nifty50. At the market opening, the Sensex slipped more than 100 points to trade at 79,834.53 while Nifty50 traded at the 24,300 mark at 24,323.95 down by 17 points.

Indian Market Trends and Support Levels
Indian markets, which have been facing pressure due to the ongoing global market volatility largely triggered by the U.S. presidential elections scheduled for November 5, are likely to see short-term volatility continuing, said Siddhartha Khemka, Head of Research at Motilal Oswal Wealth Management. However, he added that lower levels should support the index and stability in the following sessions is likely.

According to Hrishikesh Yedve of Asit C. Mehta Investment Intermediates, a crucial support to the Nifty50 index is observed around 24,070 levels. Should the index remain above 24,500, it can reach up to levels of 24,600-24,700. Investors are advised to take advantage of buying opportunities at this juncture should the index dip to such a level.

Global Market Cues and Key Drivers
In addition, worldwide trends led to a closing of U.S. markets lower, and that caused the drop because the stocks of chips declined dramatically while Microsoft and Meta reported that both companies beat expectations in revenue. Asian markets opened weaker today as well and represent negativity in the U.S. markets, combined with increasing oil prices because of a greater-than-expected inventory decline, contributing to the environment of the Indian market.

The recent interest rate cut by the Bank of Japan has already further dented the stability of the Japanese currency. The Indian front witnessed the rupee close at 84.08 against the dollar today on the back of a spurt in foreigners' net short positions from Rs 1.32 lakh crore to Rs 1.22 lakh crore. The FPI had sold shares worth Rs 4,613 crore but DIIs had bought equity worth Rs 4,518 crore.

On 1 November 2024, Diwali Muhurat trading will be done, which will symbolically begin for new investments in the stock market. However, today is like any other regular trading day according to the schedule. But some of the stocks which are traded under F&O restriction are PNB, RBL Bank, Indiamart, and IDFC First Bank as those have crossed 95% of market-wide position limits of their stocks, which enhanced volatility in those stocks.

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