Nifty opens in red, Sensex in green amid consolidation as India-EU talks to resolve FTA issues intensify

New Delhi [India], November 4 (ANI): Domestic markets continued to remain in the consolidation phase on Monday as both benchmark indices opened on a flat note, showing mixed trends.

The Nifty opened in the red, while the Sensex started the day in the green, reflecting cautious investor sentiment.

The Nifty 50 index opened at 25,744.75, down by 18.60 points or 0.07 per cent, whereas the BSE Sensex began the session at 84,000.64, gaining 22.15 points or 0.03 per cent.

Market experts said that although the outlook is improving, the upward momentum remains weak as the indices struggle to surpass previous all-time highs.

A senior team of negotiators from the European Union (EU) is in New Delhi from November 3 to 7 for negotiations with the Indian counterparts on the proposed India-EU Free Trade Agreement (FTA). The engagements aim to resolve key outstanding issues and advance the agreement toward a balanced and equitable framework that benefits both sides.

Ajay Bagga, Banking and Market Expert, told ANI, "Some progress on the EU-India FTA will be a boost to market sentiments. Earnings have been better than expected and select pockets from PSU banks to metals are in favour for now. But a clear upwards momentum is lacking in Indian markets with selling happening as markets try to surpass their previous all-time highs. FPI flows have been negative for the last four days and the rupee is near its all-time lows on a stronger dollar and pressure from outflows."

He added that Indian markets are attempting to break past resistance levels but are being weighed down by foreign outflows and global factors.

Meanwhile, global cues also played a role in keeping investor sentiment mixed. The U.S. markets witnessed a similar trend, with the AI-driven rally continuing to push select technology stocks higher while the broader markets remained in consolidation mode.

Bagga noted that the ongoing U.S. government shutdown is affecting vulnerable segments of the economy, as funding for food stamps and aid programs diminishes.

In the primary market, IPO activity remained strong. Despite high valuation concerns, Lenskart Solutions, the eyewear retailer, saw its public issue subscribed 2.02 times on day 2. Institutional investors led the bids with 1.89 times subscription, followed by retail investors at 3.33 times and QIBs at 1.64 times.

Billionbrains Garage Ventures Ltd. (Groww) is also set to open its IPO on November 4. The issue size is Rs 6,632.30 crore, including a fresh issue of Rs 1,060 crore and an offer for sale worth Rs 5,572.30 crore. The price band has been fixed between Rs 95 and Rs 100 per share.

On the commodities front, gold prices began November on a positive note.

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said, "Gold prices began November on a positive note, gaining Rs 200 initially and extending up to Rs 800 at Rs 1,22,150 per 10 grams on the MCX, supported by a weaker rupee and Comex gold holding above USD 4,010." He added that the ongoing U.S. government shutdown, which is limiting key data releases, has shifted focus to Manufacturing and Non-Manufacturing PMI readings.

Key corporate results due for the day include Aditya Birla Fashion and Retail, Adani Ports and Special Economic Zone, Apollo Micro Systems, Berger Paints India, Escorts Kubota, Mahindra & Mahindra, One 97 Communications, State Bank of India, and Suzlon Energy. (ANI)

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