Indian equity benchmarks ended in
red for second straight session on Thursday weighed by weak global sentiment as
the US Fed raised interest rates by another 75 basis points. Key gauges made a
negative start as traders got anxious after an IMF official said that the Asia
Pacific region is facing three main risks, including due to global financial
tightening and a slowdown in China. Shanaka Jayanath Peiris, Division Chief of
Regional Studies Division, Asia Pacific Department at the IMF, also said that
currencies in the region have depreciated sharply while public debt ratios have
increased. However, markets reversed opening losses and were trading flat with
a positive bias in morning deals, after a private survey showed that activity
in India's dominant services industry gathered pace in October despite high inflationary
pressures, underpinned by robust domestic demand, leading to the second fastest
hiring pace in over three years. The S&P Global India services Purchasing
Managers' Index (INPMIS=ECI) edged up to 55.1 in October from September's
six-month low of 54.3, above the 50-mark that separates expansion from
contraction for a fifteenth month. But, buying proved short-lived as the
benchmarks eventually slipped back into red, and ended with a minor losses as
participants were keenly watching out for the Reserve Bank of India's monetary
policy committee (MPC) meet to be scheduled later in the day. However, losses
were limited as some optimism remained among traders with PHD Chamber of
Commerce and Industry (PHDCCI) stating that deceleration in the wholesale price
index (WPI) inflation will continue and it will have a significant impact on
the price corrections in the retail inflation; Consumer Price Index (CPI)
inflation is expected to soften below 6 per cent by December 2022. It mentioned
calibrated steps by the government and RBI would be crucial to bring down
inflation in the targeted trajectory along with maintaining economic growth at
around 7 per cent in the current financial year 2022-23. Traders also took a
note of report that Governor Shaktikanta Das has said the Reserve Bank of India
wishes to concentrate on inflation in the same way as Arjuna focussed on
hitting the eye of a revolving fish in the epic Mahabharata. Finally, the BSE
Sensex fell 69.68 points or 0.11% to 60,836.41 and the CNX Nifty was down by
30.15 points or 0.17% to 18,052.70.
The US markets ended lower on
Thursday, magnifying their previous session's losses, as slowing growth and
rising interest rates dampened investors sentiment. The fourth straight
75-basis point interest rate hike by the Federal Reserve, and comments from the
central bank Chair Jerome Powell that signaled more interest rate hikes in the
coming months rendered the mood bearish. Meanwhile, investors also digested the
latest batch of economic data and looked ahead to the crucial non-farm payroll
data, due on Friday. Stock specific development, Apple Inc was down more than 3
percent. Visa, American Express, Home Depot, Walt Disney and Cisco Systems are
down 2 to 2.5 percent. Amazon Inc ended lower by 3 percent, Alphabet dropped
about 4 percent, and Meta Platforms drifted down 1.8 percent. On the economic
data front, data from the Commerce Department showed the US trade gap widened
to a three-month high of $73.3 billion in September, up from a downwardly
revised $65.7 billion in August. Exports were down 1.1 percent at $258 million,
while imports increased by 1.5 percent to $331.3 million in the month. Data
released by the Labor Department showed jobless claims fell by 1,000 to 217,000
in the week ended October 27th. Data from Markit Economics showed the S&P
Global US Composite PMI was revised higher to 48.2 in October 2022 from a
preliminary estimate of 47.3, compared with September's 49.5.
Crude oil futures ended lower on
Thursday on concerns about the outlook for energy demand after China imposed
fresh restrictions in several places following a surge in coronavirus cases in
the country. China affirmed that a zero-tolerance approach continues to be the
overall strategy in tackling Covid-19. Further, the dollar's sharp uptick
following hawkish comments from the Federal Reserve weighed as well on crude
oil prices. Benchmark crude oil futures for December delivery fell $1.83 or
about 2 percent at $88.17 a barrel on the New York Mercantile Exchange. Brent
crude for January delivery dropped $1.40 or about 1.47 percent to settle at
$94.76 (Provisional) a barrel on London's Intercontinental Exchange.
Indian rupee tumbled against
dollar on Thursday after the US Federal Reserve raised interest rates and
maintained a hawkish stance. Traders were concerned after Shanaka Jayanath
Peiris, Division Chief of Regional Studies Division, Asia Pacific Department at
the IMF said that the Asia Pacific region is facing three main risks, including
due to global financial tightening and a slowdown in China. Peiris also said
that currencies in the region have depreciated sharply while public debt ratios
have increased. Besides, Reserve Bank of India's monetary policy committee
(MPC) meet to be scheduled later in the day. On the global front, Sterling slid
against the dollar on Thursday after the Federal Reserve jacked up interest
rates again, and as traders awaited the latest decision from the Bank of
England (BoE). The greenback rose along with U.S. bond yields after Fed Chair
Jerome Powell signalled that interest rates were likely to have to rise higher
than expected to crush inflation. Finally, the rupee ended at 82.90
(Provisional), weaker by 10 paisa from its previous close of 82.80 on Wednesday.
The FIIs as per Thursday's data
were net buyers in equity segment, while net sellers in debt segment. In equity
segment, the gross buying was of Rs 7615.22 crore against gross selling of Rs
6223.59 crore, while in the debt segment, the gross purchase was of Rs 41.64
crore against gross selling of Rs 435.78 crore. Besides, in the hybrid segment,
the gross buying was of Rs 45.21 crore against gross selling of Rs 36.51 crore.
The US markets ended lower on
Thursday as Treasury yields again rose to multiyear highs amid investors looked
ahead to a closely watched job market report from the government that could
influence the Federal Reserve's next move in its fight to bring down inflation.
Asian markets were trading mostly in red on Friday on concerns over the outlook
for interest rates. Indian benchmarks ended in red on Thursday as traders were
cautious after US central bank Federal Reserve continued raising key interest
rates in its fight against the multi-decade high inflation. Today, markets are
likely to make cautious start amid weak global cues. However, some support may
come later in the day as Finance Minister Nirmala Sitharaman said India offers
policy stability, transparency and consultative process of governance to
incubate investment. The sentiment may also get some boost as Prime Minister
Narendra Modi said loans worth Rs 20 lakh crore have been disbursed so far
under the Centre's MUDRA scheme to provide self-employment opportunities to the
youth, and added that Maharashtra was one of its major beneficiaries.
Meanwhile, External Affairs Ministry Spokesperson Arindam Bagchi said India is
working sincerely with the UK for finalisation of the proposed free trade
agreement, after Prime Minister Narendra Modi and his British counterpart Rishi
Sunak agreed on the early conclusion of the deal. Traders may take note of
report that the Reserve Bank‘s rate setting panel met on Thursday to discuss
and draft a report for the government on why it failed to keep retail inflation
below the target of 6 per cent for three consecutive quarters since January
this year. It was the first time since the monetary policy framework came into
effect in 2016 that RBI had to give an explanation to the government. Reserve
Bank of India governor Shaktikanta Das sought to allay concerns that the
Monetary Policy Committee's explanation to the government on breaching of the
inflation target would not be made public. Das asserted the RBI was not
authorised to reveal the contents because this was privileged information, but
transparency would not be compromised as the contents of the letter would be
made known at some point. There will some buzz in coal related stocks as the
Union Ministry of Coal launched a new round of coal mine auction for commercial
purposes with the largest-ever basket of 141 mines. Of this, 71 are new mines,
62 from earlier tranches of commercial auctions, and eight being offered as a
second attempt of the last round of commercial auctions that did not receive
bids.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,052.70
|
17,972.50
|
18,119.60
|
BSE
Sensex
|
60,836.41
|
60,549.57
|
61,058.80
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
391.10
|
101.95
|
100.49
|
102.94
|
State Bank Of India
|
175.57
|
584.15
|
572.11
|
592.06
|
NTPC
|
167.19
|
178.30
|
176.41
|
181.01
|
TATA MOTORS
|
109.87
|
416.30
|
412.76
|
421.56
|
ITC
|
107.36
|
354.15
|
351.94
|
357.44
|
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Bharti Airtel has launched its cutting edge Airtel 5G Plus services at the new Terminal of the Kempegowda International Airport, Bengaluru.
Maruti Suzuki India has crossed 2.5 crore cumulative production mark.