Indian equity benchmarks ended
the sluggish day of trade with losses of around one and half percent on
Tuesday, following weakness in global peers and amid rising geopolitical
tensions in Europe. Markets started the session on pessimistic note and
gradually drifted lower as the session progressed amid subdued foreign flows. 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. Traders
remained cautious 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. Sentiments also weighed on by a private report stating
that a number of rating agencies, domestic banks, and groups have pared the
forecast for India's economic growth. Key gauges witnessed heavy selling
pressure in late afternoon session as market participants awaited September's
retail inflation data, due to be released on Wednesday. Traders overlooked Prime
Minister Narendra Modi's statement 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. Even better-than-expected Q2 performance from TCS, and a proposed
share buyback plan by Infosys failed to cheer investor sentiment. Meanwhile,
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. Finally, the BSE Sensex fell 843.79 points or 1.46% to 57,147.32 and
the CNX Nifty was down by 257.45 points or 1.49% to 16,983.55.
The US markets ended mostly lower
on Tuesday with indications from the Bank of England that it would support the
country's bond market for just three more days adding to market jitters late in
the session. Further, weakness also prevailed in the markets as in its latest
World Economic Outlook Report, the IMF has lowered the global growth projection
for next year and warned that the world economy is set to witness more pain
next year. The global lender cut the growth projection for next year to 2.7%
from 3.3%, while it retained the outlook for this year at 3.2% after a 6%
expansion in 2021. This is the weakest growth profile since 2001 except for the
global financial crisis and the acute phase of the COVID-19 pandemic and
reflects significant slowdowns for the largest economies. Meanwhile, investors
looked ahead to U.S. inflation data, minutes from the Fed's September meeting
and reports on retail sales and consumer sentiment due this week, for more
insights into policymakers' view of where inflation stands and the outlook for
the future path of interest rates. Stock specific developments, Meta Platforms
share shed more than 4 percent following a rating downgrade due to challenging
microeconomic environment. JP Morgan Chase dropped 2.8 percent. Salesforce.com,
Goldman Sachs, Walt Disney, Visa, Microsoft and Verizon lost 1.2 to 2.2
percent.
Crude oil futures ended lower
with cut of two percent on Tuesday, on concerns about outlook for energy demand
amid rising possibility of a global recession. World Bank President David
Malpass and International Monetary Fund Managing Director Kristalina Georgieva
both warned of recession risks, raising concerns over global demand. Further, a
surge in Covid-19 cases in China, and fears of further monetary policy
tightening also weighed. Benchmark crude oil futures for November delivery fell
$1.78 or 2 percent at $89.35 a barrel on the New York Mercantile Exchange.
Brent crude for December delivery dropped $1.90 or about 2 percent to settle at
$94.29 a barrel on London's Intercontinental Exchange.
Reversing previous session
drubbing, Indian rupee appreciated significantly against dollar on Tuesday.
Traders found support with report stating that the UAE is aiming trade with
India to cross $100 billion-mark over the next 2-3 years. The Indo-UAE trade
stood at $73 billion in FY22, which got a major fillip since the two nations
signed the comprehensive economic partnership agreement (CEPA) on May 1, 2022.
Traders took a note of reports U.S. President Joe Biden pledged to Ukraine
President Volodomyr Zelenskiy that the United States will provide Ukraine with
advanced air systems after a devastating missile barrage from Russia. On the
global front, U.S. dollar edged back toward September's multi-year highs on
Tuesday as worries about rising interest rates and geopolitical tensions
unsettled investors, while the yen hovered near the level that prompted last
month's intervention. Finally, the rupee ended at 82.21 (Provisional), stronger
by 19 paisa from its previous close of 82.40 on Monday.
The FIIs as per Tuesday's data
were net sellers in both equity and debt segment. In equity segment, the gross
buying was of Rs 4936.96 crore against gross selling of Rs 5702.01 crore, while
in the debt segment, the gross purchase was of Rs 98.47 crore against gross
selling of Rs 274.70 crore. Besides, in the hybrid segment, the gross buying
was of Rs 1.31 crore against gross selling of Rs 11.25 crore.
The US markets ended mostly lower
on Tuesday with indications from the Bank of England that it would support the
country's bond market for just three more days adding to market jitters late in
the session. Asian markets are trading mostly in red on Wednesday amid concerns
over the global economy and ahead of the Bank of Korea's rate decision. Indian
markets closed in red for a third straight day on Tuesday amid weakness across
global peers. Today, start of the session is likely to be flat-to-positive amid
falling crude oil prices, but persistent worries over economic growth-inflation
dynamics and renewed geopolitical tensions following attacks by Russia on major
Ukrainian cities may limit upside. Some support will come as Finance Minister
Nirmala Sitharaman exuded confidence on India's relative and absolute growth
performance in the rest of the decade and forecast the country's growth rate to
be around 7 per cent this financial year, amidst reports of a global recession
and downgrading of growth rates of almost all major economies. However, traders
may be concerned as the International Monetary Fund (IMF) in its annual World
Economic Outlook report said outlook for India is growth of 6.8 per cent in
2022 - a 0.6 percentage point downgrade since the July forecast, reflecting a
weaker-than-expected outturn in the second quarter and more subdued external
demand. Pierre-Olivier Gourinchas, Chief Economist of the IMF said India's
economy is doing fairly well, but additional monetary tightening is required.
Also, foreign institutional investors (FIIs) turned net sellers to the tune of
Rs 4,612.67 crore on October 11, as per provisional data available on the NSE.
Meanwhile, traders will be eyeing in industrial growth and retail inflation
data to be out later in the day for more cues. As per a private report, India's
retail inflation for September is likely to stay elevated. Railways related
stocks will be in focus with a private report that the railways' passenger
revenue in the period between April 1 and October 8 was around Rs 33,476 crore,
an increase of 92 per cent over the corresponding period last year. The Indian
Railways' passenger revenue on originating basis during the April 1-October 8
period last year was Rs 17,394 crore. There will be some reaction in aviation
industry stocks as global airlines' grouping IATA said India is a key aviation
market for the Asia Pacific region as well as the rest of the world and is
expected to see robust air travel demand, amid the country's domestic air
passenger traffic inching towards pre-COVID levels. Moreover, Investors awaited
quarterly results of IT majors Wipro and HCL Tech due later in the day for
domestic cues.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
16,983.55
|
16,868.64
|
17,180.14
|
BSE
Sensex
|
57,147.32
|
56,789.30
|
57,766.42
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
410.83
|
100.00
|
98.65
|
102.50
|
IndusInd Bank
|
216.64
|
1,164.80
|
1,145.89
|
1,199.84
|
Coal India
|
191.54
|
224.50
|
222.01
|
228.96
|
Axis Bank
|
159.53
|
785.00
|
774.50
|
795.50
|
Tata Motors
|
146.41
|
391.75
|
388.86
|
397.06
|
Adani Ports and Special Economic Zones has received approvals from NCLT Ahmedabad and NCLT Hyderabad for acquiring the remaining 58.1% stake in Gangavaram Port through the composite scheme of arrangement.
Cipla's Indore Oral Solid Dosage plant has been designated by the World Economic Forum as an Advanced Fourth Industrial Revolution Lighthouse.
Bajaj Auto has bought back over 64 lakh shares from public shareholders for Rs 2,499.97 crore under its share buyback exercise.
Hero MotoCorp's emerging mobility brand -- VIDA has commenced reservations for its first electric vehicle, the VIDA V1, from October 10, 2022.