Indian equity benchmarks bounced
back on Tuesday after three days of fall, led by buying in Utilities, Power and
Energy stocks. Indian bourses started
the session on a strong note and remained in range bound move till the end, on
the back of optimism over the ongoing Q2 earnings despite concerns about the
Middle East and subdued start by the IT sector.
Sentiments got a boost with a survey by industry body FICCI stating that
India's economic growth is expected at 6.3 per cent during 2023-24 on the back
of good health of the financial sector and uptick in private investment even as
downside risks remain. Traders took some support with the Ministry of External
Affairs (MEA) stating that the inaugural India-UK 2+2 foreign and defence
dialogue on October 16 saw the two sides focusing on ways to boost cooperation
in a range of key areas such as trade and investment, defence, critical
technologies, civil aviation, health and energy. However, key gauges pared some
gains in late afternoon deals, as some concern came with a private report
stating that unemployment rates continue to remain high among people qualified
with diploma or degree, though some progress has been made in the last five
years. It said there's a notable gap between job opportunities and those
seeking jobs, which might take time to narrow. Some pessimism also came with a
private report that a sharp decline in tomato prices may have caused the
headline CPI (Consumer Price Index) inflation to plunge to 5.02% in September
from 6.83% in August, but risks to food prices still persist. As per the
report, an erratic monsoon and low reservoir levels are likely to have
moderately adverse impact on yields of several crops, including paddy, pulses,
oilseeds, and spices, which may keep inflationary pressures elevated in the
near-term. But, markets managed to end
the session higher amid recovery in global markets. Finally, the BSE Sensex
rose 261.16 points or 0.39% to 66,428.09 and the CNX Nifty was up by 79.75
points or 0.40% to 19,811.50.
The US markets ended mostly lower
on Tuesday as the Israel-Hamas war is continuing, President Jo Biden is
planning to visit Israel on Wednesday. Biden's visits is considered as a show
of support to Israel. U.S. marine rapid forces are approaching the region.
Meanwhile, Gaza is suffering from a water and power crisis. Investors digested
the data on U.S. retail sales and industrial production, and continued to track
the developments on the geopolitical front. Data showing a bigger than expected
increase in U.S. retail sales in the month of September raised concerns the
Federal Reserve will keep interest rates higher for longer, and might even
announce a hike in rates this year. Higher bond yields hurt as well. On the
economic data front, data showed U.S. retail sales advanced 0.7 percent
month-on-month in September, following an upwardly revised 0.8 percent in
August. On yearly basis, retail sales increased 3.8 percent in September, the
highest in seven months. In August, retail sales increased by an upwardly
revised 2.9 percent. Industrial production in the U.S. went up 0.3 percent
month-over-month in September, beating expectations of a flat reading.
Manufacturing output, which accounts for 78 percent of total production, rose
0.4 percent, above forecasts of a 0.1 percent increase, after a 0.1 percent
fall in the previous month.
Crude oil futures ended flat on
Tuesday as investors continued to track the developments on the geopolitical
front and weighing the outlook for global demand and supply. Meanwhile, market
participants were awaiting U.S. President Joe Biden's visit to Israel on
Wednesday. Biden is visiting Israel to show solidarity and try to influence the
conduct of its war against Hamas. Besides, investors were also awaiting weekly
oil reports from the American Petroleum Institute (API) and U.S. Energy
Information Administration (EIA). Benchmark crude oil futures for November
delivery settled flat at $86.66 a barrel on the New York Mercantile Exchange.
Brent crude for December delivery added $0.25 or about 0.27 percent to settle
at $89.90 a barrel on London's Intercontinental Exchange.
Indian rupee ended higher against
dollar on Tuesday amid a positive trend in domestic equities. Traders got
support after industry body FICCI stated that India's economic growth is
expected at 6.3 per cent during 2023-24 on the back of good health of the
financial sector and uptick in private investment even as downside risks
remain. The street paid no heed towards a private report stating that a sharp
decline in tomato prices may have caused the headline CPI (Consumer Price
Index) inflation to plunge to 5.02% in September from 6.83% in August, but risks
to food prices still persist. On the global front, sterling fell on Tuesday
after data showed that growth in British workers' regular pay slowed from a
previous record high and job vacancies also declined, with a softer labour
market boosting the chance the Bank of England (BoE) will hold rates unchanged.
Finally, the rupee ended at 83.25 (Provisional), higher by 2 paise from its
previous close of 83.27 on Monday.
The FIIs as per Tuesday's data
were net sellers in equity segment, while they were buyers in debt segment. In
equity segment, the gross buying was of Rs 7195.03 crore against gross selling
of Rs 7587.88 crore, while in the debt segment, the gross purchase was of Rs 645.00
crore with gross sales of Rs 133.47 crore. Besides, in the hybrid segment, the
gross buying was of Rs 4.43 crore against gross selling of Rs 6.50 crore.
The US markets ended mostly in
red on Tuesday as encouraging retail sales and industrial production data along
with better-than-expected earnings from Bank of America and Goldman Sachs
revived Fed rate hike fears. Asian markets are trading mixed on Wednesday
following escalation of tensions in the Middle East. Besides, China's Q3 GDP
grew better-than-expected at 4.9 per cent. Indian markets snapped their
three-day losing run on Tuesday as firm global cues supported the sentiment.
Today, domestic indices are likely to get cautious start in the backdrop of a
fresh spike in US bond yields and Crude oil prices. Traders will be concerned
after a huge explosion at a Gaza hospital derailed the diplomatic efforts led
by the U.S. to mobilize support for Israel's right to defend itself. Israel
blamed a failed missile from militant group Palestinian Islamic Jihad for the
blast, which killed about 500 people. Some cautiousness will come as ratings
agency ICRA said borrowing costs for state governments and union territories
are expected to increase in the second half of Financial Year 2023-24 (FY24) on
rising bond yields and widening of spreads up to 15 basis points. It added the
rise in spreads for state government bonds over government of India bonds
(G-sec) is likely to be pronounced in the fourth quarter of FY24. However,
foreign fund inflows likely to aid sentiments. According to the provisional
data available on the NSE, foreign institutional investors (FII) purchased
shares worth net Rs 263.68 crore on October 17, 2023. Traders may take note of
report that the Centre announced a cut on the windfall tax on petroleum crude,
aviation turbine fuel, and diesel. As per a government notification, the
special additional excise duty (SAED) on crude petroleum has now been reduced
to Rs 9,050 per tonne from Rs 12,100 per tonne, effective October 18. The
Centre had raised the windfall tax on petroleum crude to Rs 12,100 per tonne
from Rs 10,000 per tonne on September 30. Infrastructure related stocks will be
in focus as CRISIL said India's investments in infrastructure will rise to Rs
143 trillion between financial years 2024 and 2030. The rating agency said it
will be more than twice the Rs 67 trillion spent in the past seven financial
years. Meanwhile, Bajaj Auto, Bandhan Bank, IndusInd Bank, LTIMindtree and
Wipro are few of the prominent companies scheduled to announce September
quarter earnings today.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
19,811.50
|
19,774.85
|
19,848.95
|
BSE
Sensex
|
66,428.09
|
66,304.90
|
66,555.54
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Steel
|
242.42
|
127.75
|
126.99
|
128.54
|
Power
Grid
|
193.78
|
207.25
|
203.56
|
209.96
|
HDFC
Bank
|
164.51
|
1542.50
|
1533.09
|
1553.84
|
State
Bank of India
|
107.65
|
576.70
|
574.69
|
579.34
|
Tata
Motors
|
102.64
|
656.00
|
650.14
|
666.39
|
Bajaj Finance has entered into a binding term sheet with Pennant Technologies, 2023, for acquisition up to 26% equity stake in Pennant.
Titan Company has received approval for raising of funds through issuance of rated, listed, redeemable, unsecured NCDs on private placement basis, for an amount up to Rs 2,500 crore.
Grasim Industries has received an approval for raising of funds not exceeding Rs 4,000 crore by way of a rights issue to the eligible equity shareholders as on the record date.
Hero MotoCorp has commenced deliveries of Harley-Davidson X440 across the country from October 15, 2023.