Stock Market Update: Sensex, Nifty rise led by realty stocks, rupee up against USD

Summary: Nifty, Sensex were trading in the green led by realty stocks while other Asian markets also edged higher. Rupee also rose against the US dollar amid a weakening US economy.

The Indian stock market was up for the third consecutive day with Nifty up 80 points at 19,318 while the Sensex jumped 280 points trading at 64,644 level. This was led by global markets wherein the US markets including Dow Jones, Nasdaq and S&P advancing 5-6 percent each last week.

Almost all sectoral indices were trading in the green up between 0.5 percent to 1.5 percent each barring the PSU Bank index which was trading in the red, down 1 percent.

The top sectoral gainer was the realty index which added over 1.5 percent led by Brigade Enterprises which jumped over 4 percent followed by Prestige Estates, Godrej Properties, Phoenix Mills and Mahindra Lifespace.

Rupee positive against USD on Fed rate cut hopes

The Indian currency traded positively against the US dollar after weaker US non-farm payroll data indicating a weakening economy. This has resulted in expectation that the US Federal Reserve might be ending its rate hike, resulting in the boost to the Indian rupee.

“This year’s better-than-expected US supply-side performance raises hopes for a soft landing,” said Bruce Kasman, head of economic research at JP Morgan.

“By encouraging disinflation, strong productivity and labour supply gains might allow for job growth and low inflation to coexist,” he added. “This, in turn, would open the path for early Fed easing.”

Futures markets swung to imply a 90 percent chance the Fed was done hiking, and an 86 percent chance the first policy easing would come as soon as June, according to a Reuters report.

Asian markets stay positive

All Asian indices were trading on a robust note with Kospi up over 4 percent followed by Nikkei adding over 2 percent. The other gainers included Hang Seng which added over a percent. Gift Nifty was also trading in the green at 19,439 level.

Oil prices edge higher

Oil prices edged up on November 6, 2023 as top exporters Saudi Arabia and Russia said they would stick to extra voluntary oil output cuts until the end of the year, keeping supply tight, while investors watched out for tougher US sanctions on Iranian oil.

Brent crude futures rose 35 cents, or 0.41 percent, to $84.89 a barrel by 0400 GMT while US West Texas Intermediate crude was at $80.92 a barrel, up 41 cents, or 0.51 percent.

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