Snapping the two-day winning
streak, Indian equity benchmarks ended flat with negative bias in the volatile
session on Thursday largely due to selling in IT, TECK and Realty stocks. Key
gauges made a slightly positive start but soon turned volatile as investors
remained on sidelines ahead of Consumer Price Index (CPI) or retail inflation
and Index of Industrial Production (IIP) data to be out later in the day for
more directional cues. Sentiments remained cautious as the International Monetary
Fund's Deputy Director, Fiscal Affairs Department, Ruud de Mooij said that
India has a high debt like that of China but the risks associated with it are
not as great as that of its northern neighbour. Some concern came as Petroleum
and Natural Gas Minister Hardeep Singh Puri warned surging oil prices could
hinder the economic recovery of many nations by curbing demand. Some
cautiousness also came in as provisional data from the National Stock Exchange
(NSE) showed foreign institutional investors (FII) offloaded shares worth Rs
421.77 crore on October 11. Markets remained in lackluster mood in late
afternoon deals, as traders' body CAIT flagged the 'inordinate delay' in the
roll-out of a national e-commerce policy and consumer protection rules, saying
the delay in their implementation has provided an opportunity to certain
foreign e-commerce players to damage domestic retail trade. However, losses
remained capped as some support came 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. Traders also took a note of Federation of
Indian Export Organisations' (FIEO) study stating that aggressive marketing
strategy including support from the government can help Indian businesses tap
$112 billion export potential in ten countries like the US and UK in three
years. It said that to tap this potential, a proper strategy is required.
Finally, the BSE Sensex fell 64.66 points or 0.10% to 66,408.39 and the CNX
Nifty was down by 17.35 points or 0.09% to 19,794.00.
The US markets ended lower on
Thursday after the Labor Department released a report showing U.S. consumer
prices rose by slightly more than expected in the month of September. The Labor
Department said its consumer price index climbed by 0.4 percent in September
after increasing by 0.6 percent in August. Street had expected consumer prices
to rise by 0.3 percent. Excluding food and energy prices, core consumer prices
rose by 0.3 percent in September, matching the increase seen in August as well
as street estimates. The report also said the annual rate of consumer price
growth was unchanged at 3.7 percent, while the annual rate of core consumer
price growth slowed to 4.1 percent in September from 4.3 percent in August. Further,
a renewed surge by treasury yields weighed on markets, with yields regaining
ground following a notable two-day pullback. On the sectoral front, Housing
stocks moved sharply lower over the course of the session, dragging the
Philadelphia Housing Sector Index down by 4.0 percent. Significant weakness was
also visible among steel stocks, as reflected by the 2.6 percent slump by the
NYSE Arca Steel Index. Airline stocks also saw considerable weakness despite
upbeat earnings from Delta (DAL), resulting in a 2.6 percent nosedive by the
NYSE Arca Airline Index. Tobacco, biotechnology and gold stocks also showed
notable moves to the downside, moving lower along with most of the other major
sectors.
Crude oil futures ended lower on
Thursday after data showed a sharp jump in U.S. crude inventories in the week
ended October 6th. Data from the Energy Information Administration (EIA) showed
crude inventory in the US rose by 10.176 million barrels in the week to October
6th, the largest weekly rise since mid-February. However, oil prices pared
early gains as the dollar rose after hot consumer price inflation report
suggested the Fed might not be done raising rates. Benchmark crude oil futures
for November delivery fell $0.58 or about 0.7 percent to settle at $82.91 a
barrel on the New York Mercantile Exchange. However, Brent crude for December
delivery added $0.18 or about 0.2 percent to settle at $86 a barrel on London's
Intercontinental Exchange.
Rupee settled lower against
dollar on Thursday as rising crude oil prices dented the investor sentiment.
Market participants were also awaiting the industrial production data for
August and inflation numbers for September to be released later in the day.
Some concerns also came as Petroleum and Natural Gas Minister Hardeep Singh
Puri warned surging oil prices could hinder the economic recovery of many
nations by curbing demand. On the global front, Russian rouble leapt on
Thursday to a more than two-week high against the U.S. dollar, after President
Vladimir Putin ordered the mandatory sale of foreign currency revenues for some
exporters to buttress the currency. Finally, the rupee ended at 83.24
(Provisional), weaker by 6 paisa from its previous close of 83.18 on Wednesday.
The FIIs as per Thursday'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 12644.83 crore against gross
selling of Rs 12823.10 crore, while in the debt segment, the gross purchase was
of Rs 789.63 crore with gross sales of Rs 770.15 crore. Besides, in the hybrid
segment, the gross buying was of Rs 4.91 crore against gross selling of Rs 7.89
crore.
The US markets ended lower on
Thursday after Treasury yields surged as stronger-than-expected inflation data
revived Fed rate-hike worries. Asian markets are trading mostly in red on
Friday following the broadly negative cues from Wall Street overnight. Indian
markets snapped their two-day winning streak and ended lackluster session in
red terrain on Thursday. Today, markets are likely to get gap-down opening
tracking sell-off in global peers following the fresh spike in US bond yields.
There will be some cautiousness after Infosys narrowed its revenue growth
guidance for the full year at the upper end and has now guided for revenue
growth of 1-2.5 percent for the full year. This comes after it sharply slashed
the guidance last quarter to 1-3.5 percent from 4-7 percent. Persistent foreign
fund outflows likely to dent sentiments. According to the provisional data
available on the NSE, foreign institutional investors (FII) offloaded shares
worth net Rs 1,862.57 crore on October 12, 2023. Traders will be concerned as
Finance Minister Nirmala Sitharaman said domestic consumption and investment
demand will drive economic growth, but inflationary pressures may remain
elevated warranting greater vigilance by the government and the Reserve Bank of
India (RBI). However, some respite may come with strong macro-economic data.
The data released by the Ministry of Statistics and Programme Implementation
showed that India's industrial output grew by 10.3 percent in August. At 10.3
percent, the latest industrial growth figure as per the Index of Industrial
Production (IIP) is the highest in 14 months. Also, India's headline retail
inflation rate fell to 5.02 percent in September, thanks to a huge drop in
vegetable prices. At 5.02 percent, the Consumer Price Index (CPI) inflation print
for September is 181 basis points lower than August's 6.83 percent. Traders may
take note of report that Union Minister Piyush Goyal asked the industrialists
of the country to accelerate production activity and contribute to making India
a global hub for manufacturing. The Minister emphasized the Government's
steadfast commitment to providing consistent policies while acknowledging the
pivotal role and the support from industry leaders. Banking stocks will be in
focus as the results of the seventeenth round of the Federation of Indian
Chambers of Commerce and Industry-Indian Banks Association (FICCI-IBA) survey
showed that the health of banks has witnessed a notable turnaround,
characterized by stronger bank balance sheets and a gross Non-Performing Asset
(NPA) ratio at a decade low. Meanwhile, private report noted that the domestic
steel and cement industry will require an additional Rs 47 lakh crore
investment to achieve net-zero carbon emissions. Investors will continue to
keep eye on quarterly earnings report.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
19,794.00
|
19,763.34
|
19,833.99
|
BSE
Sensex
|
66,408.39
|
66,306.00
|
66,544.18
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Power
Grid
|
218.73
|
201.05
|
198.26
|
202.91
|
Tata
Steel
|
193.62
|
125.80
|
124.96
|
126.76
|
Coal
India
|
153.75
|
306.50
|
302.56
|
309.76
|
NTPC
|
131.70
|
240.90
|
238.75
|
242.90
|
State
Bank of India
|
119.84
|
585.60
|
582.74
|
590.74
|
Infosys has reported 3.14% rise in its consolidated net profit at Rs 6,215 crore for Q2FY24 as compared to Rs 6,026 crore for the same quarter in the previous year.
Maruti Suzuki has started exports of its much-loved off-roader, the Jimny 5-Door.
JSW Steel has been declared as a Preferred Bidder for Jaisinghpura North Block, in the Auction held on August 21, 2023.
Adani Enterprises has raised Rs 700 crore by allotment of 70,000 Secured, Unrated, Unlisted, Redeemable, NCDs of the face value of Rs. 1,00,000 each on private placement basis.