Nifty, Sensex open cautious on day of Trump-Xi meet; Experts expect new highs

The domestic stock markets opened on a cautious note on the day of the crucial meeting between US President Donald Trump and Chinese President Xi Jinping with experts expecting Indian markets to touch new alltime highs in the coming weeksThe Nifty 50 index opened at 2598440 with a marginal dip of 6950 points or 027 per cent while the BSE Sensex opened at 8475492 down 24221 points or 028 per centExperts noted that despite the cautious start Nifty could hit a new alltime high in the next couple of weeks ending 13 months of negative returns Market sentiment is supported by expectations that earnings have bottomed out and that sectors such as financials power industrials and autos will lead the next phase of growthAjay Bagga Banking and Market Expert told ANI Indian markets are treading water on the back of the global developments Nifty may hit a new alltime high in the next couple of weeks ending 13 months of negative returns Earnings have bottomed out and expectations are that financials power industrials and autos could lead the markets hereon Like in the June expiry where FPIs bought a massive amount on the expiry day only to sell off the next day October expirys massive buying was followed up with a 2000 crore plus sell off to start the new seriesHe added Though FPIs have cut their net short positions from 94 per cent to 80 per cent they remain largely bearish at the index levels With the catalyst of a USIndia trade deal being ruled as a distant possibility by the Indian government and with Bihar elections being a minireferendum on the stability of the coalition government at the federal level expect volatility through midNovember at leastIn the broader market Nifty 100 declined by 018 per cent while Nifty Midcap 100 was up by 024 per cent and Nifty Smallcap 100 also gained 017 per centAmong the sectoral indices on NSE Nifty IT was down by 005 per cent Auto was up by 023 per cent while Metal Pharma and Consumer Durables were under pressureGlobally all eyes are on the XiTrump Summit The US Federal Reserve cut rates as expected with Chair Jerome Powell announcing the end of Quantitative Tightening QT from December 1 Powells remarks were seen as hawkish leading to a slight fall in US markets and a rise in Treasury yieldsHe emphasized that a December rate cut was far from a foregone conclusion which did not sit well with complacent markets The Bank of Japan BOJ and European Central Bank ECB are expected to hold rates for nowChina ahead of the summit seeks stability respect and recognition of its interests in Taiwan and the South China Sea along with an end to the trade war Analysts noted that while the US aims to regain its lost manufacturing strength China appears prepared to wait out the negotiationsIn the IPO segment two major issues are in focus Studds Accessories a Faridabadbased manufacturer of twowheeler helmets and motorcycle accessories is set to open its Rs 45549 crore IPO today The issue is entirely an offerforsale OFS with a price band of Rs 557 to Rs 585 per shareMeanwhile Orkla India which offers a diverse range of food products including snacks beverages and desserts saw its public issue subscribed to 79 per cent on day one The bids were led by institutional investors 153 times retail investors 90 per cent and QIBs 2 per centOn the commodities front Manav Modi Analyst Precious Metals Research Motilal Oswal Financial Services said Gold price languished after a slight pullback in yesterdays session following a mixed Fed meeting and recovery in the Dollar index and Yields With the rate cut Governor Powell announced to put an end of QT by Dec 1 and raised concerns regarding rising inflation and the labour market Focus now shifts to US President Trumps meeting with Chinese leader Xi Jinping in South Korea later in the dayAs global cues dominate sentiment Indian markets are expected to remain volatile but optimistic with analysts seeing potential for a rally in the coming weeksThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoeverThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever