Markets likely to get positive start tracking overnight gains on Wall Street

Indian markets, in a highly volatile session, ended flat on Monday as global cues were mixed but oil extended steep declines from Friday, helping ease concerns around twin deficits. Today, markets are likely to get positive start tracking overnight gains on Wall Street. Overnight fall in crude oil prices also likely to support domestic sentiments. Oil prices fell on Monday after China’s stimulus plan disappointed investors seeking fuel demand growth in the world’s second-biggest oil consumer and as the U.S. dollar edged higher. Sentiments will get boost as net direct tax collection grew 15.41 per cent to Rs 12.11 lakh crore between April 1 and November 10. This includes net corporate tax of Rs 5.10 lakh crore and non-corporate taxes (including taxes paid by individuals, HUFs, firms) of Rs 6.62 lakh crore. Other taxes (which include Equalisation Levy and gift tax) worth Rs 35,923 crore were mopped up. Traders may take note of Minister of External Affairs Dr S Jaishankar’s statement that by 2030 India-Russia bilateral trade will cross $100 billion. Besides, investors will be looking ahead to the October inflation figures and industrial production data for September to be out later in the day. As per a private report, consumer price inflation in India is expected to have risen to 5.81 per cent in October - a 14-month high - due to a surge in vegetable and edible oil prices. However, some cautiousness may come amid sustained foreign fund outflows. Foreign institutional investors (FIIs) offloaded shares of Rs 2,307 crore, on November 11. Telecom stocks will be in focus with report that telecom sector regulator Trai is likely to finalise its recommendation on proposed rules related to spectrum allocation for satellite communications by December 15. There will be some reaction in pharma stocks as a report by market research body Pharmarack showed that the Indian Pharma Market (IPM) registered a 6.1 per cent value growth in October 2024 with major therapies showing positive value growth. Meanwhile, FSN E-Commerce Ventures (Nykaa), Hyundai Motor India, Zydus Lifesciences, Bosch, General Insurance Corporation of India, Ashoka Buildcon, Cello World, CESC, EIH, Finolex Cables, Samvardhana Motherson International, Natco Pharma, Sula Vineyards, Sunteck Realty and others will announce their September quarter earnings today.

The US markets ended higher on Monday by holding on to gains from the surge in stocks that followed Donald Trump's US election victory. Asian markets are trading mostly in red on Tuesday, as investors approached trading cautiously, even amid a strong rally on Wall Street.

Back home, Monday turned out to be a volatile session, with Sensex and Nifty closing near their neutral lines, tracking mixed cues from global markets as investors weighed the potential impact of Trump's protectionist policies on the global economy. Following a weak start, markets gained momentum in late morning deals, as some support came after Moody’s Ratings said with Donald Trump set to become the next US president after the recently closely contested president polls, India and other Asian countries are expected to benefit due to rising US-China tensions and potential investment restrictions in strategic sectors. Besides, the QS World University Rankings: Asia 2025 edition highlighted India's impressive upward trajectory in higher education across the continent. India boasts two institutions within the top 50 and seven in the top 100 of the QS Asia Rankings 2025, with the Indian Institute of Technology Delhi (IITD) leading at 44th place. Trade remained positive for the most part of the trading session, as domestic sentiments were positive, after Union Finance and Corporate Minister, Nirmala Sitharaman said that the Ministry of Micro, Small and Medium Enterprises (MSMEs) will get collateral-free loans of upto Rs 100 crore through a new credit assessment model by PSU banks. But, indices failed to hold gains during the last hours of the trade and closed flat, as traders were cautious ahead of key macroeconomic data i.e. Index of Industrial Production (IIP) and Consumer price index (CPI), which going to be out on November 12. Investors were concerned as a private report stated that India’s retail inflation, based on the Consumer Price Index (CPI), likely rose to a 14-month high of 5.9% in October primarily due to a sharp rise in the prices of vegetables and edible oils.  Some cautiousness came after data shared by the Reserve Bank of India (RBI) showed that India's foreign exchange reserves dipped by $2.6 billion to $682.13 billion as of November 01. Finally, the BSE Sensex rose 9.83 points or 0.01% to 79,496.15, and the CNX Nifty was down by 6.90 points or 0.03% to 24,141.30.