Indian equity benchmarks extended
gains to second day and ended higher with gains of more than half percent on
Monday on the back of buying in index majors SBI, NTPC and Bajaj Finserv and
recovery in global markets. Markets started the week on a negative note, as the
provisional data available on the NSE showed that foreign institutional
investors (FIIs) have net sold shares worth Rs 1,011.23 crore on October 14,
2022. After the initial downtick, markets soon gradually inched higher, as
traders took support with Finance Minister Nirmala Sitharaman's statement that
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 support also came 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. Key
gauges added gains as the day progressed and finally settled around the day's
high, taking support from 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. Additional support also came as Commerce and Industry
Minister Piyush Goyal has expressed confidence that the country will achieve
the export target for goods and services to $2 trillion by 2030. He emphasised
on sustaining the export momentum and said that he is confident that Indian
exports will be able to wither the global headwinds and will surpass growth in
exports by a big margin. 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. Finally, the BSE Sensex rose 491.01 points or 0.85% to 58,410.98 and
the CNX Nifty was up by 126.10 points or 0.73% to 17,311.80.
The US markets ended higher on
Monday as key earnings reports eased some of investors' fears and oversold tech
names enjoyed a rebound rally. The Nasdaq's strong day was helped by some
speculative tech names, with Zoom Video gaining 6% and Chinese internet stocks
outperforming. Bank of America reported better-than-expected results, sending
the stock up 6%. Bank of New York Mellon also posted results that beat Street
expectations and its shares jumped 5%. Besides, the strength on markets also
came following news the U.K. government is reversing course on previously
announced fiscal plans that contributed to turmoil in the global bond markets. Britain's
new finance minister Jeremy Hunt reversed almost all of the tax measures
announced by his predecessor Kwasi Kwarteng in the mini-budget on September 23.
On the sectoral, retail stocks turned in some of the market's best performances
on the day, resulting in a 3.7 percent spike by the Dow Jones U.S. Retail
Index. Substantial strength was also visible among interest rate-sensitive
commercial real estate stocks, as reflected by the 3.7 percent surge by the Dow
Jones US Real Estate Index. Networking stocks also showed a significant move to
the upside, driving the NYSE Arca Networking Index up by 3.3 percent. Computer
hardware, banking and telecom stocks also saw considerable strength amid broad
based buying interest on Wall Street.
Crude oil futures ended slightly
lower on Monday as worries about a recession weighed on outlook for energy
demand. However, the dollar's weakness and signs of improved demand for oil
from China helped limit the commodity's downside. The dollar index dropped to
111.92, down more than 1.2% from Friday's close. Chinese President Xi Jinping's
assurance that the government will take steps to boost the struggling economy
helped raise hopes about higher demand for fuel in the world's second largest
economy. Benchmark crude oil futures for November delivery fell $0.15 or 0.2
percent at $85.46 a barrel on the New York Mercantile Exchange. Brent crude for
December delivery lost slightly to settle at $91.62 a barrel on London's
Intercontinental Exchange.
Indian rupee ended lower against
the US dollar on Monday, on increased demand for the greenback from importers
and banks. Traders failed to take support with Finance Minister Nirmala
Sitharaman's statement that 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. On the global front, the rouble
strengthened to a one-week high against the dollar on Monday, supported by the
start of a favourable month-end tax period, as oil prices edged lower and the
spectre of geopolitical risk continued to lurk over Russian markets. Finally,
the rupee ended at 82.30 (Provisional), weaker by 11 paisa from its previous
close of 82.19 on Friday.
The FIIs as per Monday's data
were net sellers in both equity and debt segment. In equity segment, the gross
buying was of Rs 5029.48 crore against gross selling of Rs 5544.88 crore, while
in the debt segment, the gross purchase was of Rs 1257.67 crore against gross
selling of Rs 1870.86 crore. Besides, in the hybrid segment, the gross buying
was of Rs 6.20 crore against gross selling of Rs 39.85 crore.
The US markets ended higher on
Monday after Britain reversed course on an economic plan, while Bank of America
was the latest financial company to post solid quarterly results, which lifted
optimism about the corporate earnings season. Asian markets are trading mostly
in green on Tuesday after Wall Street's rally overnight. Indian markets closed
higher for a second straight session on Monday following buying in index majors
Reliance Industries, ICICI Bank and recovery in global markets. Today, the
markets are likely to open in green on firm global cues. Some support will come
as a new Multidimensional Poverty Index (MPI) released jointly by the United
Nations Development Programme (UNDP) and the Oxford Poverty and Human
Development Initiative (OPHI) at the University of Oxford showed that the
number of people living below the poverty line in India decreased by 415
million between 2005-06 and 2019-21. Traders may take note of an RBI article
stating that India needs to set up a dedicated wing in the environment ministry
to release estimates of Green GDP periodically on a regular basis and create a
user-friendly data dissemination platform. However, there may be some
cautiousness as the State of the Economy report released by the Reserve Bank of
India (RBI) stated that the headline consumer price index (CPI)-based
inflation, which stood at 7.4 per cent in September, might have peaked and
could fall going ahead thanks to easing momentum and favourable base effects.
Besides, foreign institutional investors (FIIs) have net sold shares worth Rs
372.03 crore on October 17, as per provisional data available on the NSE.
Meanwhile, Crisil said the Reserve Bank of India's revised guidelines for asset
reconstruction companies (ARCs) would structurally fortify the sector through
improved governance norms, better disclosures, and lower funding requirement
for asset acquisition. The sugar industry stocks will be in focus as industry
body ISMA said the country's sugar production is projected to be 36.5 million
tonnes in the 2022-23 marketing season, an increase of 2 per cent compared to
the year-ago period. There will be some reaction in power sector stocks as the
union minister for power, new and renewable energy said India will have more
than 65 per cent of its power generation from renewable energy sources by 2030.
He also said initiatives by the Centre including the Production Linked Scheme
(PLI) scheme will ensure India to have a 90 Gw solar module capacity. Investors
awaited more earnings from India Inc for domestic cues.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,311.80
|
17,164.05
|
17,394.05
|
BSE
Sensex
|
58,410.98
|
57,884.18
|
58,693.38
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
375.68
|
99.70
|
98.40
|
100.70
|
State Bank of India
|
134.85
|
543.20
|
530.04
|
550.54
|
NTPC
|
134.26
|
168.30
|
165.19
|
170.24
|
Tata Motors
|
95.43
|
397.00
|
393.36
|
399.76
|
Axis Bank
|
94.63
|
816.50
|
803.40
|
823.30
|
ICICI Bank has launched four Digital Banking Units (DBUs) to offer banking services to its customers digitally.
NTPC has signed a MoU with Mitsubishi Heavy Industries, Japan and its subsidiary Mitsubishi Power India to demonstrate the feasibility for Hydrogen co-firing blended with natural gas in MHI 701D gas turbines installed at NTPC Auraiya Gas Power Plant in Uttar Pradesh.
HDFC Life Insurance Company has completed Exide Life merger.
JSW Steel has signed a MOU with Smartex to explore the potential to promote innovation and turnkey approaches - from financing to technology availability and market access aimed at decarbonisation of the steel sector in India.