Indian equity benchmarks extended
their gains for third straight day and settled with gains of over a percent on
Monday, tracking gains in Asian equities and a fall in oil prices. Markets
started the week on a robust note amid steady foreign flows. Foreign institutional
investors (FIIs) net bought shares worth Rs 1,568.75 crore on 28 October,
according to the provisional data available on the NSE. Sentiments got a boost
as Union Minister for Commerce and Industry Piyush Goyal said that foreign
trade would become a truly defining feature that would help India become a $30
trillion economy in the Amrit Kaal. Some support also came with a private
report that India is expected to surpass its tax collection goal by more than
Rs 2 lakh crore ($24.3 billion) in the current fiscal year. Key gauges added
gains in late afternoon session, taking support from the Prime Minister
Narendra Modi's statement that India has become a major manufacturing hub and a
new saga of economic reforms is being written in the country as his government's
policies are stable, predictable and futuristic. Traders overlooked data
released by Reserve Bank of India showing that India's foreign exchange (forex)
reserves declined $3.8 billion to $524.5 billion for the week ending October
21. Reserves are at their lowest levels since July 2020. Since last year,
reserves have declined by $115 billion. Meanwhile, Union finance minister
Nirmala Sitharaman has asked states to adopt a multi-modal approach and ensure
logistics did not become a burden on exporters. She said the PM Gati Shakti was
a beautiful protocol with which a synergy could be brought in. She also said
the commerce ministry was working on getting an export policy that would help
the exporters by giving them incentives and promoting many things. Finally, the
BSE Sensex rose 786.74 points or 1.31% to 60,746.59 and the CNX Nifty was up by
225.40 points or 1.27% to 18,012.20.
The US markets ended lower on
Monday as traders looked ahead to the Federal Reserve's policy announcement due
on Wednesday. The Fed, which is set to meet on Tuesday and Wednesday, is widely
expected to raise interest rate by another 75 basis points - its fourth
straight rate hike - to fight soaring inflation. Meanwhile, traders continued
to react to recent quarterly earnings updates from big-name companies. Among
the prominent losers in the session was Apple Inc (AAPL), which drifted down
more than 1.5 percent on reports the production of the company's iPhones could
drop by around 30 percent next month. A surge in Covid-19 curbs in China is
cited as the reason for the likely drop in production. Amazon Inc, Microsoft
Corp and Alphabet Inc shed about 1 percent, 1.6 percent, and 1.8 percent,
respectively. Shares of Meta Platforms Inc plunged more than 6 percent. Intel
(INTC) lost about 2.2 percent. Coco-Cola (KO), American Express (AXP) and Amgen
(AMGN) lost 1.25 to 1.4 percent. On the economic data front, a report from the
Institute for Supply Management (ISM) showed the Chicago PMI in the US dropped
to 45.20 points in October from 45.70 points in September of 2022. The reading
was the lowest since June of 2020.
Crude oil futures ended lower on
Monday amid concerns about the outlook for energy demand from China following
imposition of severe curbs in several places in the country due to a surge in
Covid-19 cases. Further, a rise in oil output in the US, and a firm dollar
weighed as well on crude oil prices. According to the data released by the
government, oil output in the US rose to nearly 12 million barrels per day in
August, the highest since the pandemic. Benchmark crude oil futures for
December delivery fell $1.37 or about 1.6 percent at $86.53 a barrel on the New
York Mercantile Exchange. Brent crude for January delivery dropped $1.12 or
about 1.19 percent to settle at $92.65 (Provisional) a barrel on London's
Intercontinental Exchange.
Extending losses for the second
straight session, Indian rupee ended considerably lower against dollar on
Monday, on account of sustained dollar demand from importers and banks. Traders
were worried as data released by Reserve Bank of India showed India's foreign
exchange (forex) reserves declined $3.8 billion to $524.5 billion for the week
ending October 21. Reserves are at their lowest levels since July 2020. Since
last year, reserves have declined by $115 billion. Further, a broad strengthening
of the US dollar put pressure on the home currency. On the global front, dollar
advanced on Monday, regaining some ground lost earlier in the month, at the
start of a week packed with data releases and central bank rate setting
meetings, including by the Bank of England and the Federal Reserve. Finally,
the rupee ended at 82.81 (Provisional), weaker by 34 paisa from its previous
close of 82.47 on Friday.
The FIIs as per Monday's data
were net buyers in equity segment, while net sellers in debt segment. In equity
segment, the gross buying was of Rs 7318.14 crore against gross selling of Rs
5740.37 crore, while in the debt segment, the gross purchase was of Rs 723.22
crore against gross selling of Rs 2707.80 crore. Besides, in the hybrid
segment, the gross buying was of Rs 21.87 crore against gross selling of Rs
23.62 crore.
The US markets ended lower on
Monday as investor focus turned to the Federal Reserve's policy meeting this
week. Asian markets are trading in green on Tuesday ahead of Australia's
central bank decision and the results of a private survey on Chinese factory
activity. Indian markets extended their gains into third straight day on Monday
as global markets bounced back. Today, markets are likely to start new month on
optimistic note supported by steady foreign flows coupled with drop in crude
oil prices. Foreign institutional investors (FIIs) net bought shares worth Rs
4,178.61 crore on October 31, according to the provisional data available on the
NSE. Sentiments will get a boost as production of eight infrastructure
industries that comprise the core sector recovered to grow at 7.9 per cent in
September - a three-month high - owing to a favourable base and double-digit
growth in output of fertilisers, cement, and electricity. Some support will
come as Chief Economic Adviser V Anantha Nageswaran said India is expected to
clock better growth than IMF's projections next year aided by enhanced capital
formation. Recently, the International Monetary Fund (IMF) projected 6.8 per
cent real growth for this year and 6.1 per cent for next year for India.
However, there may be some cautiousness as data released by the Controller
General of Accounts showed that the Central government's fiscal deficit widened
to Rs 6.20 lakh crore in April-September, accounting for 37.3 percent of the
full-year target. Traders may be concerned as the government data showed that
retail inflation for industrial workers rose to 6.49 per cent in September from
5.85 per cent in August 2022 mainly due to higher prices of certain food items.
There will be some reaction in edible oil industry stocks with a private report
that India increased the base import prices of crude and refined palm oil and
crude soya oil, following a surge in prices in the global market. Sugar stocks
will be in focus as cooperative body NFCSFL data showed that sugar production
in India, the world's major producer, fell 14.73 per cent year on year to 4.05
lakh tonnes in the first month of the 2022-23 marketing season. There will be
some reaction in gold industry stocks as the World Gold Council (WGC) said
India's gold consumption in the months of October to December could fall by
around a quarter from a year ago as inflation depresses rural demand. Auto
stocks will be in limelight reacting to their monthly sales numbers to be out
from today. Investors await more of financial results from India Inc for
domestic cues, with Adani Ports, Tech Mahindra and Nykaa due to post their
earnings later in the day.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,012.20
|
17,933.80
|
18,056.70
|
BSE
Sensex
|
60,746.59
|
60,400.14
|
60,939.88
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
387.15
|
101.10
|
100.21
|
102.06
|
NTPC
|
242.33
|
173.45
|
170.34
|
175.29
|
ITC
|
138.25
|
348.95
|
345.64
|
351.39
|
Tata Motors
|
99.28
|
412.15
|
410.40
|
415.10
|
State Bank of India
|
98.94
|
573.50
|
568.79
|
577.84
|
Tata Steel has acquired 1,56,12,802 equity shares of Rs 10 each at an issue price of Rs 12.81 per share of Tata Steel Advanced Materials, for an amount aggregating to around Rs 20 crore.
L&T's Power Transmission & Distribution business has secured multiple EPC orders in the current quarter to build Transmission Lines and Substations in the Kingdom of Saudi Arabia.
Hero MotoCorp has registered a healthy double-digit retail growth of 20% over the corresponding festive period of FY22.
Hindustan Unilever's Pureit has launched its new range - Pureit Vital Series, a new range of RO + UV + Minerals based water purifiers with FiltraPower Technology.