Market Commentary - Pre-Session
10-Nov-2025 08:31
GIFT Nifty trades in the green on optimism over potential end to US government shutdown
GIFT Nifty:
GIFT Nifty September 2025 futures were trading with a gain of 102.00 points (or 0.40%) in early trade, suggesting a green opening for the Nifty 50 today.
Institutional Flows:
Foreign portfolio investors (FPIs) bought shares worth Rs 4,581.34 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 6,674.77 crore in the Indian equity market on 07 November 2025, provisional data showed.
Global Markets:
Asia-Pacific markets advanced on Monday amid renewed optimism that the prolonged U.S. government shutdown could soon end.
On Sunday, the U.S. Senate moved closer to voting on a bill to reopen the federal government, following encouraging bipartisan discussions led by Senate Majority Leader John Thune.
The record-long shutdown has weighed heavily on the U.S. economy, leaving federal employees across critical sectors'from aviation to defense'unpaid, while the Federal Reserve operates with limited economic data.
White House economic adviser Kevin Hassett reportedly warned that if the impasse persists, fourth-quarter GDP could turn negative. Supporting this concern, U.S. consumer sentiment fell to a near three-and-a-half-year low in early November.
In Asia, investors digested stronger-than-expected inflation data from China, where October's headline CPI rose 0.2% year-on-year, while producer prices declined 2.1%.
Meanwhile, minutes from the Bank of Japan's October meeting signaled that conditions for a rate hike have almost been met, though policymakers remained cautious about underlying inflation trends.
On Friday stateside in the U.S., the Nasdaq Composite continued to fall, but the Dow Jones Industrial Average and S&P 500 inched into positive territory after Senate Minority Leader Chuck Schumer offered up a new plan to Republicans that would enable the record-breaking U.S. government shutdown to end.
The tech-heavy index shed 0.21% to finish at 23,004.54. In contrast, the S&P 500 and the Dow Jones Industrial Average inched into the green. The broad-based index gained 0.13% to close at 6,728.80, while the 30-stock index added 74.80 points, or 0.16%, to settle at 46,987.10.
A survey from the University of Michigan revealed Friday that consumer sentiment in the country has neared its lowest level ever. The data comes just a day after firm Challenger, Gray & Christmas reported that layoff announcements in October reached their highest level for the month in 22 years.
Domestic Market:
The domestic equity benchmarks closed marginally lower on Friday, marking their third straight session of losses. Weak global cues and persistent foreign fund outflows weighed on sentiment. The lack of strong domestic triggers also kept investors cautious.
The session began on a subdued note, but steady buying in select heavyweights helped the index pare losses through the day. It eventually settled near the 25,500 mark. Sectorally, consumer durables, IT, and FMCG stocks came under pressure, while metals, PSU banks, and auto counters saw renewed buying interest.
The S&P BSE Sensex, declined 94.73 points or 0.11% to 83,216.28. The Nifty 50 index fell 17.40 points or 0.07% to 25,492.30. In three trading sessions, Sensex and Nifty declined 0.91% and 1.05%, respectively.
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