Continuing with
the momentum seen in the past week, Indian equity benchmarks settled at fresh
record closing highs on Monday, on the back of strength in select metal,
utilities and power stocks. Markets made positive start and stayed in green for
whole day, as sentiments got boost with Minister of State for External Affairs
V Muraleedharan's statement that the Indian economy is bouncing back strongly,
domestic consumption is increasing and industrial production is at pre-COVID
level, he also emphasized that the reforms implemented by the government has
provided fillip to the business ecosystem in the country. Additional optimism
also came as Union Finance Minister Nirmala Sitharaman stating that the Indian
government remains committed to bring the economy on the path of fiscal
consolidation in the near-to-medium term, setting the target to reduce fiscal
deficit to 4.5 per cent by 2025-26. Markets continued to trade firm in
afternoon session, taking support from the International Monetary Fund's (IMF)
report in which it has described the Indian government's response to the
COVID-19 situation as 'swift and substantial', adding that the country
continued with labour reforms and privatization despite the pandemic. Some
support also came after RBI data stated that the country's foreign exchange
reserves rose by $2.039 billion to 639.516 billion in the week ended October,
8. Market participants paid no heed towards report stated that the sharp
economic recovery and rising demand post the second wave of Covid coupled with
a spike in global oil prices may pose a challenge for the government in FY22 to
maintain fiscal discipline amid good growth in tax revenue. Traders overlooked data released by the
government showed India's merchandise trade deficit widened to a record $22.6
billion in September, the highest in at least about 14 years, as crude oil and
gold imports surged. Finally, the BSE
Sensex rose 459.64 points or 0.75% to 61,765.59 and the CNX Nifty was up by
138.50 points or 0.76% to 18,477.05.
The US markets ended mostly
higher on Monday as investors bet on a continuation of strong earnings reports
from major companies. A number of big names are set to report in the week
ahead, including Netflix, Johnson & Johnson, United Airlines and Procter
& Gamble on Tuesday. Tesla, Verizon and IBM are among the other names on
deck for the week. Strong results from the first week of earnings, including
from the largest banks, have pushed the markets higher. However, upside
remained capped as the Federal Reserve in its latest report has said that
industrial production in the US unexpectedly showed a steep drop in the month
of September. The Fed said industrial production tumbled by 1.3 percent in
September following a revised 0.1 percent dip in August. The sharp decline
surprised participants, who had expected industrial production to edge up by
0.2 percent compared to the 0.4 percent increase originally reported for the
previous month. The report said manufacturing output fell by 0.7 percent, with
the production of motor vehicles and parts plunging by 7.2 percent amid the
semiconductor shortage. Utilities output also plummeted by 3.6 percent, as
demand for cooling subsided after a warmer-than-usual August, while mining
production slumped by 2.3 percent due to the lingering effects of Hurricane
Ida. Besides, worries about the global economic outlook also weighed on the
markets after data showed the Chinese economy hit its slowest pace of growth in
a year in the third quarter, hurt by power shortages, supply bottlenecks,
sporadic Covid-19 outbreaks and major wobbles in the property sector. China's
GDP expanded 4.9 percent year-on-year in the third quarter of 2021, the
National Bureau of Statistics said, missing forecasts for 5.2 percent and down
sharply from 7.9 percent in the three months prior.
Crude oil futures ended higher on
Monday amid expectations that global energy demand will continue to rise
following several countries easing travel restrictions. Further, energy crisis
in China and several parts of Europe sent coal prices soaring to record levels,
pressuring power-generation companies and manufacturers to switch to using oil
as the world economy reopens. Besides, cold temperatures in the northern
hemisphere are also expected to worsen an oil supply deficit. Benchmark Crude
oil futures for November delivery rose $0.16 or about 0.2 percent to settle at $82.44
barrel on the New York Mercantile Exchange. However, Brent crude for December
delivery declined $0.69 or about 0.8 percent to settle at $84.17 a barrel on
London's Intercontinental Exchange.
Indian rupee ended significantly
lower on Monday on account of sustained dollar demand from importers and banks.
Sentiments remained fragile as data released by the government showed India's
merchandise trade deficit widened to a record $22.6 billion in September, the
highest in at least about 14 years, as crude oil and gold imports surged. Also,
jump in global crude oil prices, continued to dampen investors' sentiment for
the Indian currency by worsening the outlook on domestic inflation and the
country's trade deficit. On the global front, dollar headed back on Monday
towards a one-year high hit last week as rising inflation expectations and
higher bond yields boosted its appeal against its rivals. Finally, the rupee
ended 75.35, weaker by 9 paise from its previous close of 75.26 on Thursday.
The FIIs as per Monday's data
were net buyers in equity segment, while net sellers in debt segment. In equity
segment, the gross buying was of Rs 10654.50 crore against gross selling of Rs 9175.84
crore, while in the debt segment, the gross purchase was of Rs. 711.85 crore
with gross sales of Rs 1079.20 crore. Besides, in the hybrid segment, the gross
buying was of Rs 29.59 crore against gross selling of Rs 15.59 crore.
The US markets ended mostly
higher on Monday with the biggest boosts from the highest-profile technology
and communications companies, though a relentless surge in oil prices fuelled
concerns about elevated inflation. Asian markets are trading in green on
Tuesday supported by a tech-driven Wall Street rally, and a rebound in Chinese
markets a day after weak data heightened investor concerns about the world's
second-largest economy. Indian markets extended its winning run for the
sixth-straight day on Monday on the back of aggressive buying in metal and
select IT and financial shares. Today, the markets are likely to continue Bull
Run with positive start tracking gains in global markets. Traders will be
taking encouragement as Union Minister Shobha Karandlaje said the Centre has
infused Rs 1,31,000 crore to boost agriculture and allied sectors with special
emphasis on becoming an export-oriented economy as India has tremendous
potential to satiate global demand. Some support will come as preliminary data
of the commerce ministry showed that the country's exports rose by 40.5 per
cent to $15.13 billion during October 1-14 on account of healthy performance by
key sectors such as petroleum products, engineering and chemicals.
Additionally, amid a growing perception, partly caused by a view expressed by
some senior government functionaries against another instalment of a large
demand-side fiscal stimulus in the current fiscal, Finance Minister Nirmala
Sitharaman indicated that the government was indeed open to accelerating the
economic recovery through such largesse, if required. Meanwhile, Reserve Bank
of India (RBI) remained a net buyer of the US currency in August after it net
purchased $3.747 billion from the spot market. According to the monthly RBI
bulletin for October 2021, in the reporting month, RBI had purchased $10.887
billion and sold $7.14 billion in the spot market. Aviation industry stocks
will be in focus as the country's aviation regulator -- the Directorate General
of Civil Aviation (DGCA) said around 70.66 lakh domestic passengers travelled
by air in the month of September, 5.44 per cent higher than 67.01 lakh who
travelled in August. There will be some reaction in solvent extraction industry
stocks as industry body SEA said export of oilmeal, used as animal feed,
declined 36 per cent year-on-year to 1.83 lakh tonne in September on account of
the domestic shortage of the oilmeal products. There will be some earnings
announcements too to keep the markets buzzing.
Support and Resistance:
NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,477.05
|
18,433.85
|
18,531.70
|
BSE
Sensex
|
61,765.59
|
61,605.81
|
61,944.23
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
723.20
|
509.80
|
500.60
|
522.00
|
ITC
|
602.88
|
261.80
|
257.66
|
265.61
|
Power Grid Corporation of India
|
289.05
|
202.80
|
199.99
|
207.79
|
NTPC
|
253.45
|
149.55
|
148.26
|
151.26
|
HCL Technologies
|
238.61
|
1224.85
|
1,202.40
|
1,259.90
|
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TCS has been selected as a strategic partner by Cainz Corporation, to accelerate its digital transformation, improve customer experience, and drive growth.
Infosys has inked a new collaboration with Brent Council to make high-quality digital education accessible to every Brent resident and boost employability skills through its digital learning and training program, Infosys Springboard.