Extending their gaining streak
into the fifth session in a row, Indian equity benchmarks ended over half a
percent higher on Wednesday, led by buying in consumer durables, energy and
auto stocks. Markets made a cautious start, amid reports that workers in India
are facing increased burnout due to lack of separation between work and
personal life as well as concerns of contracting COVID-19. Close to one-third
of workers in India cited increased rates of burnout over the past six months
with the lack of separation between work duties and personal obligations as
negatively impacting their well-being. However, key gauges soon gained ground
and traded in fine fettle throughout the day, as traders found support with
report that companies garnered more than Rs 1 lakh crore from the capital
markets in August, a surge of 64 percent from the preceding month, with private
placement of debt instruments emerging as the most preferred route for
financing business needs. The funds have been mopped-up mainly for business
expansion plans, loan repayments and working capital requirements. Domestic
indices held on to their firm undertone in late afternoon trading, taking
support from Fitch Ratings' report that IT services sector is likely to resume
high single-digit revenue growth in 2021-2022 on the back of higher demand for
digital transformation after a flattish 2020. However, further up-move got
restricted as traders awaited corporate earnings from heavyweights and the
outcome of a policy review by the RBI due in the coming days. The Reserve Bank
of India's Monetary Policy Committee will to begin a three-day review later in
the day. The central bank is widely expected to hold key interest rates at
existing levels in the upcoming policy statement, due on October 9, in a bid to
tackle high inflation. Tata Consultancy Services (TCS) - the country's largest
IT company - will kick of the earnings season by reporting its financial
results for the July-September period. Finally, the BSE Sensex rose 304.38
points or 0.77% to 39,878.95, while the CNX Nifty was up by 76.45 points or
0.66% to 11,738.85.
The US markets ended sharply
higher on Wednesday after Trump indicated he would support individual stimulus
measures after calling off negotiations over a broader relief package. He said the
House & Senate should immediately Approve $25 Billion for Airline Payroll
Support, & $135 Billion for Paycheck Protection Program for Small Business.
Both of these will be fully paid for with unused funds from the Cares Act. Have
this money. I will sign now. He added later that he will sign a Stand Alone
Bill for Stimulus Checks ($1,200) the moment it is sent to him. They will go
out to our great people immediately. Meanwhile, minutes of the Federal
Reserve's September policy meeting showed senior Fed officials thought the US
economy was recovering faster than expected, but many had penciled in another
stimulus package before the end of this year. Without additional spending, Fed
officials expected the recovery to slow more than anticipated. Besides,
Technology stocks were in focus after the House Judiciary Antitrust, Commercial
and Administrative Law Subcommittee issued a highly critical report on the
business practices of industry juggernauts Amazon.com Inc., Apple Inc.,
Facebook Inc. and Google parent Alphabet Inc.
Crude oil futures ended lower on
Wednesday as hopes about a new stimulus package faded after US President Donald
Trump halted negotiations with Democrats, and data showed an increase in crude
stockpiles last week. The Energy Information Administration reported that US
crude inventories rose by 500,000 barrels for the week ended October 2. The
American Petroleum Institute on Tuesday had reported a rise of 951,000 barrels.
However, prices finished off the session's worst levels following reports that
more than 80% of oil production in the Gulf of Mexico has been halted as a
major hurricane approaches the region. Crude oil futures for November dropped
72 cents or 1.8 percent to settle at $39.95 a barrel on the New York Mercantile
Exchange. December Brent crude fell 66 cents or 1.6 percent to settle at $41.99
a barrel on London's Intercontinental Exchange.
Erasing previous two sessions
drubbing, Indian rupee ended stronger against dollar on Wednesday due to fresh
selling of the American currency by banks and exporters. Sentiments were positive
with the International Monetary Fund's (IMF) statement that the global economy
has started on a long climb to stronger growth with prospects looking a little
better than four months ago. Global economic activity suffered an unprecedented
fall in the spring when 85 per cent of the global economy was in lockdown for
several weeks. The situation currently is less dire with many countries
experiencing a better-than-expected rebound in recent weeks. Besides, healthy
gains in the domestic equity markets added to the rupee gains. On the global
front; dollar steadied on Wednesday, ticking down against most currencies after
an initial jump triggered by U.S. President Donald Trump cancelling stimulus
talks with Democrat lawmakers, a move which increased demand for safe-haven
assets. Finally, the rupee ended at 73.33, 13 paise stronger from its previous
close of 73.46 on Tuesday.
The FIIs as per Wednesday's data
were net buyers in equity, while net sellers in debt segment. In equity
segment, the gross buying was of Rs 6003.58 crore against gross selling of Rs
4942.18 crore, while in the debt segment, the gross purchase was of Rs 335.74
crore with gross sales of Rs 623.59 crore. Besides, in the hybrid segment, the
gross buying was of Rs 6.03 crore against gross selling of Rs 13.03 crore.
The US markets ended sharply
higher on Wednesday as investors regained optimism that at least a partial deal
on more US fiscal stimulus may happen. Asian markets are trading mostly in
green on Thursday tracking overnight gains on Wall Street. Indian markets ended
higher on Wednesday led by gains in heavyweight Reliance Industries after it
secured a $750 million investment in its retail arm. Today, the markets are
likely to continue their winning streak with positive start following gains in
Asian peers. Traders will be taking encouragement with the Union health
ministry's statement that the number of people recovered from Covid-19 has
exceeded those with active infection by more than 48 lakh as the recovery rate
surpassed 85% on Wednesday. Some support will come with the chairman of the
Standing Committee on Statistics, ministry of statistics and programme
implementation Pranob Sen stating that the government should continue with the
stimulus to revive the economy for three years and it should not be one off.
Some optimism will also come in with Union Minister VK Singh's statement that
highways and infrastructure can spur the country's economic growth. Traders may
take note of Principal Economic Adviser Sanjeev Sanyal's statement that the
government recognises the need for further stimulus at an appropriate time to
perk up demand in the economy, hit by COVID-19. Meanwhile, there are
expectations that the revamped Monetary Policy Committee (MPC) of the Reserve
Bank of India (RBI) may at last release a GDP forecast for the fiscal, which
the apex bank has refrained from giving since the outbreak of the pandemic.
MSME stocks will be in focus as the RBI said the two per cent interest
subvention scheme for micro, small and medium enterprises (MSMEs) on loans
extended by co-operative banks has been extended till March 31 next year. There
will be some reaction in pharma stocks with report that the initial response to
the four schemes launched by the Department of Pharmaceuticals (DoP) for
promoting domestic manufacturing of drugs, APIs/ KSMs and medical devices is
quite encouraging.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous
close
|
Support
|
Resistance
|
NSE
Nifty
|
11,738.85
|
11,657.79
|
11,791.49
|
BSE
Sensex
|
39,878.95
|
39,563.84
|
40,081.06
|
Nifty Top volumes
Stock
|
Volume
|
Previous
close (Rs)
|
Support (Rs)
|
Resistance
(Rs)
|
(in
Lacs)
|
Tata
Motors
|
682.74
|
141.00
|
139.04
|
143.74
|
Oil
& Natural Gas Corporation
|
500.75
|
70.50
|
68.61
|
72.86
|
State
Bank of India
|
345.79
|
190.70
|
188.81
|
192.86
|
Reliance
Industries
|
245.39
|
2,257.50
|
2,215.34
|
2,304.34
|
ICICI
Bank
|
218.46
|
382.65
|
376.39
|
386.64
|
Axis Bank and Vistara have launched a co-branded forex card that can load up to 16 currencies.
RIL's telecom arm -- Jio has entered into partnership with USP Studios to strengthen the platform's offering for children.
Hero Motocorp has launched new Maestro Edge 125 Stealth scooter.
Bharti Airtel has extended its contract with Ericsson for deployment of 5G-ready radio network.