Indian equity benchmarks ended
higher with gains over a percent on Friday led by gains in IT, Banking and TECK
stocks amid positive cues in the global market. Key gauges made a gap up start
and stayed in green for whole day, as traders took some support from Union
Finance Minister Nirmala Sitharaman's statement that India is setting the
global benchmarks on the digital front and that there is a sense of confidence
in the country that it will be able to face geopolitical and economic
uncertainties and still perform. Some support also came with S&P Global
Ratings' statement that growth in large Asia Pacific economies like China,
India and Indonesia will be less affected as their economies are more domestically
oriented. Traders took a note of World Bank President David Malpass' statement
that India has taken good advantage of digitisation to create social protection
programmes that reach the poor, noting that the country can do a lot more on
the administrative side to create efficiencies. Sentiments remained up-beat in
afternoon deals, after India's inflation based on wholesale price index (WPI)
eased further to 10.7% in the month of September 2022 as against 12.41% in
August 2022. But, September is the 18th consecutive month of double-digit WPI
inflation, primarily contributed by rise in prices of mineral oils, food
articles, crude petroleum & natural gas, chemicals & chemical products,
basic metals, electricity, textiles etc. as compared to the corresponding month
of the previous year. However, key gauges trimmed some gains in late afternoon
deals, as some concern came with provisional data available on the NSE showed
that foreign institutional investors (FIIs) net sold shares worth Rs 1,636.43
crore on October 13. Some concern also came as India failed to unseat the UK
and missed being the fifth-largest economy by $10 billion in 2021-22. It'll
have to wait another year before it gets that coveted spot in 2022-23,
overtaking the UK by $27 billion. Finally, the BSE Sensex rose 684.64 points or
1.20% to 57,919.97 and the CNX Nifty was up by 171.35 points or 1.01% to
17,185.70.
The US markets ended sharply
lower on Friday with the tech-heavy Nasdaq plunging to its lowest closing level
in over two years. Selling pressure emerged in the markets as traders turned
concerned with a report from the University of Michigan showing a rebound in
inflation expectations in the month of October. One-year inflation expectations
climbed to 5.1 in October after dropping to a one-year low of 4.7 in September,
while five-year inflation expectations increased to 2.9 percent in October
after falling to 2.7 percent in September. On the sectoral front, Semiconductor
stocks moved sharply lower over the course of the session, dragging the Philadelphia
Semiconductor Index down by 4.5 percent to a two-year closing low. Substantial
weakness was also visible among steel stocks, as reflected by the 4.3 percent
nosedive by the NYSE Arca Steel Index. A steep drop by the price of crude oil
also weighed on energy stocks. Meanwhile, traders were also reacting to
earnings news from several big-name financial companies, with JPMorgan Chase
(JPM) posting a strong gain after reporting third quarter results that beat
analyst estimates on both the top and bottom lines. Shares of Wells Fargo (WFC)
also move to upside after the company reported better than expected third
quarter revenues. On the other hand, shares of Morgan Stanley (MS) moved
notably lower after the investment bank reported third quarter results that
missed street estimates. Investors also remained cautious ahead of reports on
industrial production, housing starts, and existing home sales to be out in
next week.
Crude oil futures closed
significantly lower on Friday as worries over global economic downturn
continued to plague the demand outlook. A downward revision in the
International Energy Agency's (IEA) oil demand forecast and recent data from
the U.S. Energy Information Administration that showed crude inventories grew
by 9.9 million barrels last week weighted down on the oil prices. The IEA cut
its oil demand forecast for this year and next and warned that OPEC and its
allies' plan last week to cut output could tip the global economy into
recession. A stronger dollar also added pressure on oil prices. Meanwhile, a
report from Baker Hughes today said the number of oil rigs increased by 8 to
610 this week. Benchmark crude oil futures for November delivery fell $3.50 or
3.9 percent at $85.61 a barrel on the New York Mercantile Exchange. Brent crude
for December delivery declined $2.94 or about 3.1 percent to settle at $91.63
(Provisional) a barrel on London's Intercontinental Exchange.
Indian rupee concluded weaker
against dollar on Friday on account of continued dollar demand from importers
and banks. Domestic sentiments got hit after private equity investments plunged
77.5 per cent to $3.84 billion in the September quarter, reflecting the overall
decline in funds flows into startups especially since the Ukraine war. Traders
ignored reports that India's inflation based on the Wholesale Price Index (WPI)
crashed to an 18-month low of 10.7 percent in September. WPI inflation was
12.41 percent in August. In September 2021, it stood at 11.80 percent. On the global front, Dollar edged higher on
Friday after dropping the previous day despite U.S. inflation accelerating,
helping it hit a 32-year peak against Japan's yen. Finally, the rupee ended at
82.35 (Provisional), weaker by 11 paisa from its previous close of 82.24 on
Thursday.
The FIIs as per Friday's data
were net sellers in both equity and debt segment. In equity segment, the gross
buying was of Rs 5134.83 crore against gross selling of Rs 6241.46 crore, while
in the debt segment, the gross purchase was of Rs 122.61 crore against gross
selling of Rs 152.15 crore. Besides, in the hybrid segment, the gross buying
was of Rs 2.85 crore against gross selling of Rs 6.77 crore.
The US markets ended lower on
Friday, following the short covering in the previous session, as worsening
inflation expectations kept intact worries that the Fed's aggressive rate hike
path could trigger a recession. Asian markets are trading in red on Monday as
recession fears weigh in over expectations of continued tighten monetary
policies around the world. Indian markets finished more than one percent higher
on Friday led by across-the-board buying. Today, start of new week is likely to
be in red tracking sell-off in the global markets. Traders will be concerned as
foreign institutional investors (FIIs) have net sold shares worth Rs 1,011.23
crore on October 14, according to the provisional data available on the NSE.
However, some respite may come later in the day as Finance Minister Nirmala
Sitharaman said the Indian economy will stay on course despite global headwinds
and is projected to grow at seven per cent in fiscal 2022-23, and attributed
this to the conducive domestic policy environment and focus on key structural
reforms. She also reiterated that the inflation rate, which is hovering over 7
per cent in India, is at a manageable level compared to where some other
countries are at present. Some suprot may also come with a private report that
India's focus on reforms and economic growth will result in foreign direct
investment (FDI) of $475 billion in the next five years as most multinational
companies (MNCs) see India as an attractive investment destination for their
global expansion. Traders may take note of the data released by the commerce
ministry showing that the country's exports rose by 4.82% to $35.45 billion in
September, even as the trade deficit widened to $25.71 billion. The trade
deficit in September 2021 was $22.47 billion. Also, Union minister of commerce
and industry Piyush Goyal said India will achieve the target for exports of $2
trillion by 2030 despite global headwinds. Moreover, the Reserve Bank of
India's (RBI) weekly statistical supplement showed that India's foreign
exchange reserves rose to $532.87 billion in the week through October 7. The
country's reserves rose by $204 million from the previous week, the first
increase since the week ended July 29. Power industry stocks will be in focus
with a private report that aggregate losses of power distribution utilities or
discoms increased by 66 per cent to Rs 50,281 crore in 2020-21 as compared to
the previous year. There will be some reaction in oil industry stocks as Union
Petroleum and Urban Affairs Minister Hardeep Singh Puri said Indian petroleum
industry is at the cusp of opportunity and will be able to produce 25 per cent
of its crude oil demand by 2030. Coal industry stocks will be in limelight as
Union coal minister Pralhad Joshi said that the country will stop import of
thermal coal by 2024-25. The minister expressed his concern that that the
country has to import coal despite having adequate domestic resource of the
fuel. Meanwhile, Electronics Mart will make its debut on the bourses today.
Besides, investors awaited more of financial results from India Inc for
domestic cues.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,185.70
|
17,120.79
|
17,299.59
|
BSE
Sensex
|
57,919.97
|
57,700.42
|
58,287.31
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
324.56
|
100.10
|
99.06
|
101.96
|
Power Grid Corporation of India
|
175.23
|
212.65
|
210.14
|
216.59
|
Infosys
|
149.90
|
1474.25
|
1,463.00
|
1,489.75
|
Wipro
|
139.32
|
377.30
|
373.20
|
384.45
|
Oil & Natural Gas Corporation
|
132.05
|
127.60
|
125.50
|
131.25
|
Coal India has signed a MoU with the Rajasthan Vidyut Utpadan Nigam to set up a 1,190-MW solar power plant in Bikaner district of Rajasthan.
Infosys has received an approval to purchase assets of Channel Bridge Software Labs.
Bharti Airtel has launched the Always On IoT connectivity solution in India at the Indian Mobile Congress.
Maruti Suzuki India has launched the S-CNG variant of the adventurous and dynamic S-Presso.