Indian equity markets pared most
of their losses but ended in negative territory on Monday tracking weakness in
the global market. Markets started the week with nearly half a percent cut, as
traders were anxious as the Reserve Bank of India's (RBI) weekly statistical
supplement showed that India's foreign exchange reserves fell to $532.66
billion in the week through Sept. 30, their lowest level since July 2020.
Sentiments remained downbeat as private report projected a sharp moderation in
India's growth rate for FY24 to 5.2 percent as compared to FY23, saying Indian
policymakers are 'misplaced' about their optimism on the country's growth
prospects. Traders took note of Union Finance Secretary T V Somanathan's
statement that India has a nano demographic window to achieve developed country
status, and if it misses, it may not reach there. He said the country has to
grow at a rate of 8-8.5 per cent to reach developed country status. However,
markets managed to trim most of their losses in late afternoon deals, taking
support from Economic Advisory Council to the Prime Minister (EAC-PM) member
Sanjeev Sanyal's statement that India will perhaps emerge as the strongest
major economy with 7 per cent growth rate in FY23, amid fears of the world
slipping into recession. Some support also came after the Central Board of
Direct Taxes (CBDT) has said that gross collection of tax on corporate and
individual earnings jumped nearly 24 percent so far in the current fiscal year
that started on April 1, 2022. Besides, after withdrawing over Rs 7,600 crore
last month, foreign investors have resumed buying Indian stocks and have
invested more than Rs 2,400 crore in the domestic equity markets in the first
week of October. But, key gauges ended lower amid reports that exporters are
keeping their fingers crossed due to visible recessionary trends in the
European Union (EU) as it could affect demand for domestic goods in that market
in the coming months. Finally, the BSE Sensex fell 200.18 points or 0.34% to
57,991.11 and the CNX Nifty was down by 73.65 points or 0.43% to 17,241.00.
The US markets ended in red on
Monday as worries about interest rate hikes and slowing growth continued to
weigh on sentiment. Further, the
declines also came as private report warned that the US would likely fall into
a recession in 2023, and that it may not be just a mild economic contraction as
some economists have projected. Investors were also cautious ahead of key
earnings and inflation reports this week that will shed new light on the US
economy. September Producer Price Index data comes Wednesday and Consumer Price
report is scheduled for Thursday. Besides, Technology stocks dropped on Biden
administration's decision to impose export controls on China. Washington
published a set of export controls that limit companies selling advanced
computing semiconductors and manufacturing equipment to China. Shares of
Qualcomm Inc. fell more than 5 percent. Nvidia ended lower by about 4 percent,
and Advanced Micro Devices shed about 1 percent. Micron Technology Inc. shares
drifted down 2.89 percent. Microsoft and Intel both shed more than 2 percent.
Salesforce.com, Walt Disney and Chevron also ended sharply lower. However,
Walgreens Boots Alliance gained nearly 5 percent. Merck climbed 3.3 percent.
Boeing, Amgen, 3M, McDonalds and Caterpillar posted sharp to moderate gains.
Crude oil futures ended lower on
Monday as data from China raised concerns about the outlook for energy demand
outweighed uncertainty about supply. Services activity in China during
September contracted for the first time in four months as COVID containment measures
hit demand and business confidence. The Caixin services purchasing managers'
index (PMI) fell to 49.3 from 55.0 in August. Rising tension between Washington
and Beijing following the Biden administration announcing new export controls
targeting Chinese companies hurt as well. Meanwhile, Chinese cities are
imposing fresh lockdowns and travel restrictions after the number of new daily
Covid-19 cases tripled during a weeklong holiday. Benchmark crude oil futures
for November delivery fell $1.51 or 1.6 percent at $91.13 a barrel on the New
York Mercantile Exchange. Brent crude for December delivery dropped $1.94 or
about 1.95 percent to settle at $95.98 (Provisional) a barrel on London's
Intercontinental Exchange.
Indian rupee ended at a fresh
lifetime low against the US dollar on Monday due to elevated crude oil prices.
Traders were concerned as the Reserve Bank of India's (RBI) weekly statistical
supplement showed that India's foreign exchange reserves fell to $532.66
billion in the week through Sept. 30, their lowest level since July 2020.
Traders failed to took support with Economic Advisory Council to the Prime
Minister (EAC-PM) member Sanjeev Sanyal's statement that India will perhaps
emerge as the strongest major economy with 7 per cent growth rate in FY23, amid
fears of the world slipping into recession. On the global front, Sterling slid
versus the dollar on Monday after Friday's strong U.S. labour market data
supported bets the Federal Reserve will keep raising rates aggressively. Finally,
the rupee ended at 82.40 (Provisional), weaker by 10 paisa from its previous
close of 82.30 on Friday.
The FIIs as per Monday's data
were net sellers in equity segment, while net buyers in debt segment. In equity
segment, the gross buying was of Rs 3411.06 crore against gross selling of Rs
7319.14 crore, while in the debt segment, the gross purchase was of Rs 3592.90
crore against gross selling of Rs 3135.95 crore. Besides, in the hybrid
segment, the gross buying was of Rs 1.77 crore against gross selling of Rs
19.03 crore.
The US markets ended lower on
Monday after a quiet session to open a news-jammed week filled with major
economic reports and corporate earnings. Asian markets are trading mostly in
red on Tuesday as investors weighed the impact of new US rules on chipmaker TSMC.
Indian markets ended lower for the second straight session on Monday, in tandem
with a bearish trend overseas coupled with the rupee slipping to another
all-time low against the dollar amid foreign fund outflows. Today, the start of
session is likely to be cautious following weakness in global peers and amid
rising geopolitical tensions in Europe. Traders will be concerned with a
private report that India's retail inflation accelerated to a five month high
of 7.30% in September due to surging food prices, staying well above the
Reserve Bank of India's (RBI) upper tolerance band for a ninth month. Some
cautiousness will come as foreign institutional investors (FIIs) turned net
sellers to the tune of Rs 2,139.02 crore on October 10, as per provisional data
available on the NSE. However, some support may come as Prime Minister Narendra
Modi said that inflation in the country is much lower than that in developed
countries. He said Compared to developed countries, inflation is quite low, for
example the British are witnessing the worst inflation in the last 50 years,
Americans are facing highest inflation of the last 45 years, interest rates are
very high... compared to those countries, the nation's inflation is low because
buoyant economy, our country's economy is very vibrant. Traders may take note
of report that the government is planning to launch 7-8 production-linked
incentive (PLI) schemes in the next round soon in a bid to further expand the
coverage across critical manufacturing sectors, stimulate economic growth and
spur job creation. There will be some buzz in auto stocks as the Federation of
Automobile Dealers Associations (FADA) said in a major boost to the automobile
sector and in a sign of recovery, retail vehicle sales this Navratri were up 57
per cent to 539,227 units, from 342,459 units during the Covid-hit 2021-22.
Overall sales were 27 per cent higher than Navratri 2020 and 16 per cent above
the pre-pandemic 2019 season. Banking stocks will be in focus after the Reserve
Bank of India (RBI) said that a bank loan rating by rating agencies not having
lenders' names won't be considered for capital computation by banks. Such loans
will have to be treated by banks as unrated and they will assign risk weights
to them. There will be some reaction in insurance industry stocks as Debasish
Panda, chairman, Insurance Regulatory and Development Council of India said the
Indian insurance sector, which is growing at 11 per cent CAGR for the last five
years, the momentum is expected to continue and could lead India to become the
sixth largest market globally, from ten now. Investors will keep an eye on
earnings as they look for hints of an economic downturn.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,241.00
|
17,110.41
|
17,325.86
|
BSE
Sensex
|
57,991.11
|
57,529.53
|
58,288.86
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
366.41
|
103.15
|
101.70
|
104.05
|
Tata Motors
|
329.15
|
396.55
|
391.94
|
402.29
|
Axis Bank
|
141.07
|
778.70
|
756.24
|
789.94
|
Power Grid Corporation of India
|
126.26
|
209.00
|
207.05
|
211.45
|
Coal India
|
108.51
|
229.25
|
226.56
|
231.96
|
Tata Motors Group global wholesales in Q2FY23, including Jaguar Land Rover, were at 3,35,976 nos., higher by 33%, as compared to Q2FY22.
Power Grid Corporation of India's subsidiary -- Power Grid Bhind Guna Transmission has successfully commissioned the transmission system in Madhya Pradesh.
HCL Technologies has unveiled expansion plans in Mexico at its 14-year anniversary celebration in Guadalajara.
Tech Mahindra has entered into a strategic partnership with Altice Labs, an innovation center of Altice Group for telecommunications industry.