Extending losses for the fourth-straight session, Indian equity benchmarks ended in deep red on Monday amid weak trends in global markets in view of heightened tensions in the Middle East. Crude oil quoting above $90 a barrel mark also played spoilsport for the markets. After the flat start, markets gradually inched lower and settled around the day's lows as traders got anxious with the Reserve Bank of India's data (October 2023 bulletin) stating that net foreign direct investment (FDI) in India, inflows minus outflows, declined sharply in April-August this year to $2.99 billion from $18.03 billion in the same period last year on moderation in global activities and a rise in repatriation. Traders got anxious with Shashanka Bhide, one of the three external members on the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC), stating that trade-related measures to improve domestic supply can help cool down food inflation only in the short run. Traders took a note of Jayanth Varma, one of the three external members on the RBI's MPC stating that the Indian economy may have to face above-target inflation for a few more quarters so that growth is not adversely affected.  Traders overlooked Finance Minister Nirmala Sitharman's statement that the government is mindful of the fiscal deficit management and will ensure the burden of servicing debt is not passed on to next generation. She said the government is looking at the ways in which it can bring down the overall debt. The street also paid no heed towards the Retirement fund body, Employees' Provident Fund Organisation's (EPFO) latest Provisional Estimate of Net Payroll data report showing that India created 1699140 new jobs in the month of August 2023 as against revised figure of 1686224 in July 2023. Finally, the BSE Sensex fell 825.74 points or 1.26% to 64,571.88 and the CNX Nifty was down by 260.90 points or 1.34% to 19,281.75.

The US markets ended higher on Tuesday, with Dow Jones Industrial Average settling over 200 points. The strength on markets reflected a positive reaction to the latest batch of earnings news, as a number of big-name companies reported better than expected quarterly results. Shares of General Electric moved sharply higher after the conglomerate reported third quarter results that exceeded street estimates and raised its full-year guidance. Diversified manufacturer 3M Co. (MMM) also saw notable strength after reporting better than expected third quarter results and boosting its full-year profit forecast. Shares of Coca-Cola also showed a strong move to the upside after the beverage giant reported third quarter results that beat expectations and raised its full-year forecast. On the sectoral front, computer hardware stocks saw substantial strength on the day, with the NYSE Arca Computer Hardware Index surging by 3.1 percent after ending the previous session at its lowest closing level in almost five months. Computer peripherals maker Logitech (LOGI) led the sector higher after reporting better than expected fiscal second quarter results and raising its full-year guidance. Significant strength was also visible among steel stocks, as reflected by the 2.6 percent jump by the NYSE Arca Steel Index. The index is bouncing off a four-month closing low. Telecom stocks also turned in a strong performance, driving the NYSE Arca North American Telecom Index up by 2.2 percent.

Crude oil futures ended sharply lower with cut of over two percent on Tuesday on concerns about the outlook for energy demand after data showed contraction in Australian and Japanese business activity in the month of October. Meanwhile, Eurozone business activity contracted as well this month. UK's private sector activity contracted and a measure of German consumer confidence weakened, raising concerns over fuel demand. Further, the dollar's rally weighed as well on oil prices. Benchmark crude oil futures for December delivery fell $1.75 or 2.1 percent to settle at $83.74 a barrel on the New York Mercantile Exchange. Brent crude for December delivery declined $1.76 or 2 percent to settle at $88.07 a barrel on London's Intercontinental Exchange.

Indian rupee ended lower on Monday due to sharp losses in local stock markets and US bond yields surging to 5 per cent. Traders were worried as the Reserve Bank of India's data (October 2023 bulletin) stated that net foreign direct investment (FDI) in India, inflows minus outflows, declined sharply in April-August this year to $2.99 billion from $18.03 billion in the same period last year on moderation in global activities and a rise in repatriation. On the global front, Russian rouble strengthened against the dollar on Monday to a near six-week high, extending the strong gains made late last week with the support of high oil prices and exporters' preparations for month-end tax payments. Finally, the rupee ended at 83.18 (Provisional), weaker by 6 paise from its previous close of 83.12 on Friday.

The FIIs as per Monday's data were net buyers in both equity and debt segments. In equity segment, the gross buying was of Rs 14939.91 crore against gross selling of Rs 13138.31 crore, while in the debt segment, the gross purchase was of Rs 830.07 crore with gross sales of Rs 166.95 crore. Besides, in the hybrid segment, the gross buying was of Rs 14.40 crore against gross selling of Rs 13.92 crore.

The US markets ended higher on Tuesday as a spate of solid corporate earnings and upbeat forecasts stoked investor risk appetite and sparked a broad rally. Asian markets are trading mostly in green on Wednesday following overnight gains on Wall Street. Indian markets extended their losses for a fourth successive session on Monday, as rising bond yields, geopolitical tensions, inflation concerns and the outlook for interest rates continued to hurt investors' sentiment. Markets were closed on Tuesday on account of Dussehra. Today, domestic indices are likely to open in green amid positive cues from the US overnight, and retreating oil prices. Foreign fund inflows likely to aid domestic sentiments. According to the provisional data available on the NSE, foreign institutional investors (FII) added shares worth net Rs 252.25 crore on October 23, 2023. Traders will be taking encouragement as a finance ministry report said India will remain the fastest-growing major economy in the world in 2023-24 fiscal on the back of strong domestic fundamentals and benign inflation expectations. The report emphasised that India's macroeconomic outlook for fiscal 2023-24 is bright and is solidly underpinned by strong domestic fundamentals. Some support will come as S&P Global Market Intelligence said in its latest issue of PMI that India, the world's fifth largest economy in the world, is likely to overtake Japan to become the world's third-largest economy with a GDP of $7.3 trillion by 2030. After two years of rapid economic growth in 2021 and 2022, the Indian economy has continued to show sustained strong growth during the 2023 calendar year. Sugar industry related stocks will be in focus with a private report that lower cane availability is expected to reduce sugar production by 3-4 per cent, which will trigger a price rise. Sugar prices are likely to rise 2-3 per cent in the backdrop of weak supply and strong demand. There will be some reaction in mineral related stocks as India's mineral output increased by 12.3 per cent in the month of August as compared to the same month a year ago. According to provisional data from the Indian Bureau of Mines (IBM), the index of mineral production of the mining and quarrying sector for the month of August 2023 at 111.9, is 12.3 per cent higher as compared to the level in the month of August 2022. Investors will be keeping close eye on earnings from Indian Inc. for more directional cues.

Support and Resistance: NSE (Nifty) and BSE (Sensex)

Nifty Top volumes

• Tata Motors has unveiled two state-of-the-art & new-age R&D facilities for meeting its mission of offering sustainable mobility solutions. 
• Power Grid Corporation has received approval for an investment of Rs 119.95 crore for electricity transmission project Eastern Region Expansion Scheme- XXXVII (ERES-XXXVII). 
• Central Pollution Control Board has fined Bharat Petroleum Corporation for not installing pollution control devices at their petrol pumps. 
• Bharti Airtel has extended 5G coverage to all 14 districts of Kerala empowering 1.7 million customers to enjoy the power of 5G, within 1 year of the launch of Airtel 5G Plus.