Indian equity benchmarks
continued their gaining momentum for the second consecutive day and ended with
gains of over half a percent on Wednesday backed by buying across a majority of
sectors, with stocks from the Telecom, Basic Materials and Auto sectors being
the biggest movers. Markets made a positive start and stayed in green for whole
day, as traders took support with the Ministry of Finance stating that India's
gross direct tax collection increased by 17.95 per cent on the year to Rs 11.07
lakh crore in the period from April 1 to October 9. Sentiments remained
positive in late afternoon deals, as traders took support with private report
stating that World Bank group's India-born chief economist Indermit Gill is
upbeat on India's focus on infrastructure, digital public goods and overall
economic management. Traders remained optimistic as Prime Minister Narendra
Modi said that India is a global bright spot, a powerhouse of growth and
innovation. Investors found support after former economic affairs secretary
Atanu Chakraborty said that India is expected to become a $30-trillion economy
by 2050 pushed by robust consumption and exports. Adding to the optimism, the
Minister of Petroleum & Natural Gas and Housing & Urban Affairs,
Hardeep Singh Puri highlighted the fast progress made by India in green and
clean energy sector and said India's energy demand will continue to provide
fuel for future economic growth and is bound to grow exponentially in the
coming years. Finally, the BSE Sensex rose 393.69 points or 0.60% to 66,473.05
and the CNX Nifty was up by 121.50 points or 0.62% to 19,811.35.
The US markets ended in green on
Wednesday as treasury yields saw further downside. Treasuries have recently
benefited from their appeal as a safe haven amid the deadly conflict between
Hamas and Israel. Traders largely shrugged off a Labor Department report
showing producer prices in the U.S. increased by slightly more than expected in
the month of September. The Labor Department said its producer price index for
final demand climbed by 0.5 percent in September after advancing by 0.7 percent
in August. Street had expected prices to rise by 0.4 percent. The producer
price growth was partly due to a continued surge in energy prices, which spiked
by 3.3 percent in September after skyrocketing by 10.3 percent in August. The
report also said the annual rate of producer price growth accelerated to 2.2
percent in September from a revised 2.0 percent in August. Street had expected
the pace of price growth to come in unchanged compared to the 1.6 percent
originally reported for the previous month. However, upside remained limited as
the Labor Department is scheduled to release its more closely watched report on
consumer price inflation in the month of September. On the sectoral front, Gold
stocks turned in a strong performance on the day, resulting in a 2.3 percent
jump by the NYSE Arca Gold Bugs Index. The strength among gold stocks came amid
an increase by the price of the precious metal, with gold for December delivery
climbing $12 to $1,887.30 an ounce.
Crude oil futures ended sharply
lower on Wednesday as Saudi Arabia's pledge to help stabilise the market outweighed
concerns about supply disruptions amid the tensions in the Middle East. A
private report said oil firm Saudi Aramco told at least four refiners in North
Asia that it would supply them with the full contractual volumes nominated for
November. Meanwhile, the Energy Information Administration (EIA) said in a
monthly report that global oil inventories will likely fall by 200,000 bpd in
the second half of 2023 due to voluntary output cuts from Saudi Arabia and
reduced production among OPEC+ countries. Benchmark crude oil futures for
November delivery fell $2.48 or about 2.9 percent to settle at $83.49 a barrel
on the New York Mercantile Exchange. Brent crude for December delivery dropped
$1.83 or about 2.1 percent to settle at $86.48 a barrel on London's
Intercontinental Exchange.
Indian Rupee ended higher against
the US dollar on Wednesday amid robust buying in domestic equities and a weak
American currency overseas. Traders took encouragement with Ministry of
Finance's statement that India's gross direct tax collection increased by 17.95
per cent on the year to Rs 11.07 lakh crore in the period from April 1 to
October 9. On the global front, the pound held steady on Wednesday, recovering
some stability after an intensely volatile week that has been dominated by
safe-haven flows on the back of violence in Israel and by a sudden shift in
expectations for interest rates. Finally, the rupee ended at 83.20
(Provisional), stronger by 5 paise from its previous close of 83.25 on Tuesday.
The FIIs as per Wednesday's data
were net sellers in equity segment, while they were net buyers in debt segment.
In equity segment, the gross buying was of Rs 8083.49 crore against gross
selling of Rs 8987.70 crore, while in the debt segment, the gross purchase was
of Rs 978.03 crore with gross sales of Rs 465.53 crore. Besides, in the hybrid
segment, the gross buying was of Rs 4.84 crore against gross selling of Rs 7.79
crore.
The US markets ended higher on
Wednesday after the FOMC's September meeting minutes showed the Fed is poised
to proceed carefully on interest rate decision going forward. Asian markets are
trading in green on Thursday following overnight gains on Wall Street. Indian
markets ended with solid gains for a second session on Wednesday as traders
continued to set aside fears related to the Israel-Palestine conflict. Today,
markets are likely to get flat-to-positive start ahead of the key inflation
data in India and the US. There are expectations that the India's inflation
eased in the month of September. Also, market participants awaiting the
industrial growth data to be out later in the day. Investors are likely to keep
eye on IT stocks after as TCS' Q2 profit beat estimates and Infosys and HCL
Technologies are scheduled to announce Q2 earnings today. Some support will
come as India and the United Kingdom (UK) are likely to sign a Foreign Trade
Agreement (FTA) by the end of October as both parties aim to iron out
differences on key issues, including rules of origin and visas for Indian
professionals. However, traders may be concerned as according to the latest
estimates by the International Monetary Fund (IMF) in its Fiscal Monitor report
India's debt-to-GDP ratio is projected to peak at 82.3 per cent in FY25, and
then it may gradually ease to touch 80.5 per cent in FY29. Traders may take
note of report that Petroleum and Natural Gas Minister Hardeep Singh Puri
warned surging oil prices could hinder the economic recovery of many nations by
curbing demand. Meanwhile, the government has decided to hold off introducing
the production-linked incentive (PLI) scheme for additional sectors until it
verifies the efficacy of existing initiatives. Steel industry stocks will be in
focus with a private report that strong demand in the domestic market, coupled
with an increase in raw material prices, is pushing up steel prices. There will
be some reaction in sugar industry stocks with a private report that the Indian
government is likely to restrict sugar exports after poor monsoon rains.
Aviation industry stocks will be in limelight with a private report that
average daily domestic traffic increased by 1.65 per cent month-on-month
(M-o-M) to 408,906 in September.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
19,811.35
|
19,765.80
|
19,848.05
|
BSE
Sensex
|
66,473.05
|
66,317.84
|
66,610.21
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Steel
|
244.56
|
124.95
|
124.34
|
125.94
|
HDFC
Bank
|
156.67
|
1542.00
|
1532.95
|
1546.60
|
NTPC
|
143.13
|
238.40
|
236.36
|
240.06
|
State
Bank of India
|
142.20
|
588.90
|
585.34
|
594.74
|
Coal
India
|
123.21
|
301.30
|
298.84
|
304.39
|
- Wipro has subscribed 9.95% equity
share in FPEL Ujwal on October 10, 2023, with objective to enhance the
proportion of usage of renewable energy for its offices in Karnataka.
- Axis Bank and Fibe, India's
leading Fintech, have partnered to launch India's first-ever numberless credit
card for tech-savvy Gen Zs.
- Larsen & Toubro's Hydrocarbon
Business has secured a Letter of Intent for a Mega onshore project from a
prestigious client in the Middle East.
- Mahindra & Mahindra's
subsidiary -- Mahindra Last Mile Mobility has received the first tranche of Rs
300 crore from the International Finance Corporation.