Daily Newsletter
NSE Intra-day chart (09 October 2018)
Top Gainers
Company NameClose% Change
Top Losers
Company NameClose% Change
World Indices
IndicesLast Trade% Change
IndicesLast Trade% Change
FII Activity(Rs. Cr)
DateMarketGross PurchaseGross SalesNet Change
Market Commentary 10 October 2018
Markets to make positive start amid mixed global cues


Indian equity indices closed extremely volatile session near their intraday low points on Tuesday, amid mixed global cues. The markets made a firm start, aided by Union Home Minister Rajnath Singh's statement that India will be among the top three economies of the world by 2030 if it kept up its current pace of growth. Separately, the International Monetary Fund (IMF) in its latest World Economic Outlook (WEO) report retained India's economic growth forecast at 7.3% for the current year 2018. Traders took encouragement with DIPP Secretary Ramesh Abhishek's statement that India is taking several steps, including hiring more manpower and increasing use of technology, to reduce time for granting patents and trademarks. Some support also came with a report stating that India is all set to emerge as the 11th wealthiest country in the world as its personal financial wealth is projected to grow by 13% to $5 trillion by 2022 from the current $3 trillion. But, the benchmarks soon turned choppy, amid credit rating agency CRISIL's latest report that farmers' income remain low in calendar year 2018, despite normal rainfall. The street got cautious with International Monetary Fund (IMF) stating that global growth has plateaued at 3.7% with its chief economist warning the world that there are clouds on the horizon and growth has proven to be less balanced than hoped. Key indices weakened further to settle the day with the losses of around half a percent on heavy selling towards the fag-end. Domestic sentiments got hit with reports that India fared poorly, ranking 147 out of 157 countries, in terms of its commitment to reducing inequality. Some concerns also came with another report showing that India is one of the most vulnerable countries for extreme weather events. Finally, the BSE Sensex tumbled 174.91 points or 0.51% to 34,299.47, while the CNX Nifty was down by 47.00 points or 0.45% to 10,301.05.


The US markets, extending the volatile performance seen in the previous session, ended mostly in red on Tuesday, as traders kept an eye on treasuries amid renewed concerns about the outlook for interest rates. Traders largely shrugged off news the International Monetary Fund lowered its forecast for US and Chinese economic growth. Citing the negative effect of recent tariff actions, the IMF said economic growth in the US and China is now expected to slow to 2.5 percent and 6.2 percent, respectively, next year. Overall trading activity was somewhat subdued, as a lack of major US economic data kept some traders on the sidelines following the holiday on Monday. In the coming days, traders are likely to keep a close eye on reports on producer and consumer prices as well as comments by several Federal Reserve officials. S&P 500 slipped 4.09 points or 0.14 percent to 2880.34 and Dow Jones Industrial Average was down by 56.21 points or 0.21 percent to 26430.57. However, Nasdaq was up by 2.07 points or 0.03 percent to 7738.02.


Crude oil prices ended higher on Tuesday amid reports about falling crude exports from Iran ahead of the US sanctions against the country. Crude exports from Iran dropped to 1.1 million barrels per day in the first week of October, from 1.6 million barrels per day in September. In April, Iran's crude exports stood at about 2.5 million barrels per day. Another reason for crude's uptick was the news that Hurricane Michael will make landfall along the Gulf Coast by Wednesday, as a category 3 storm. The National Hurricane Center's bulletin said the center of Michael will continue to move over the southern Gulf of Mexico and then move across the eastern Gulf of Mexico later on Tuesday. Benchmark crude oil futures for November jumped 67 cents or 0.9% to settle at $74.96 a barrel on the New York Mercantile Exchange. December Brent crude surged $1.09 or 1.3 percent to settle at $85 a barrel on London's Intercontinental Exchanged.


Continuing its downward trend for sixth straight session, Indian rupee closed at a fresh lifetime low against the dollar on Tuesday, on strong demand for the US currency from importers. The rupee sentiments were hit with the International Monetary Fund (IMF), in its World Economic Outlook (WEO), retained economic growth projection for India at 7.3% for 2018-19 (FY19), lower than the government's and the Reserve Bank of India's (RBI) forecasts. Though, this is noteworthy as the IMF cut global growth projections by 0.2 percentage points. The IMF wants the RBI to tighten monetary conditions, something which it did not do in the October policy review. Moreover, a surge in crude oil prices coupled with dollar's strength against its rival currencies overseas pulled the rupee lower. On the global front, euro languished near a seven-week low on Tuesday as concerns about a row in the European Union over Italy's budget persisted. Finally, the rupee ended at 74.39, 33 paise weaker from its previous close of 74.06 on Monday.


The FIIs as per Tuesday's data were net sellers in equity and debt segments both. In equity segment, the gross buying was of Rs 6197.71 crore against gross selling of Rs 7368.01 crore, while in the debt segment, the gross purchase was of Rs 821.03 crore with gross sales of Rs 3052.54 crore. Besides, in the hybrid segment, the gross buying was of Rs 1.20 crore against gross selling of Rs 1.68 crore.


The US markets ended mostly lower on Tuesday as traders kept an eye on treasuries amid renewed concerns about the outlook for interest rates. Asian markets were trading mixed on Wednesday following a volatile session for US equities and as yields on Treasuries retreated from a seven-year peak. Late hour sell-off mainly dragged the Indian markets near intra-day low level to end the session in red territory on Tuesday as investors remained cautious amid mixed global cues. Today, the markets are likely to open in green, but the investors' sentiments are likely to remain subdued on worries about global economic growth. Traders may take note of a report that the Reserve Bank of India (RBI) will inject Rs 12,000 crore liquidity into the system through purchase of government bonds on October 11 to meet the festival season demand for funds. It added that the government will purchase bonds with maturity ranging between 2020 to 2030. Besides, a another report stated that the US government's development finance institution Overseas Private Investment Corporation (OPIC) is keen to invest in the development of India's infrastructure, port and solar energy sectors. However, there may be some cautiousness with Moody's Investors Service's report that the excise duty cut on petrol and diesel is credit negative for India as it will reduce government revenue and increase fiscal deficit by 0.1 per cent to 3.4 per cent of Gross Domestic Product (GDP) in the year ending March 2019. Also, the earning of public sector oil marketing companies (OMCs) would be negatively affected as they also absorbed Rs 1 per litre cut in their pricing. Meanwhile, India has imposed an anti-dumping duty of up to $719 per tonne for five years on import of nylon filament yarn from the European Union (EU) and Vietnam following recommendations by the commerce ministry's investigation arm DGTR. There will be some buzz in telecom sector stocks with a private report that rising bond yields and a weakening rupee are inflating telecom firms' cost of borrowing and could force them to increase mobile tariffs.


Support and Resistance: NSE (Nifty) and BSE (Sensex)



Previous close



NSE Nifty




BSE Sensex





Nifty Top volumes




Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Tata Motors





Yes Bank





















  • Coal India and NLC India have signed a MoU for formation of JV Company for Solar Power Generation of 3,000 MW and Thermal Power Projects of 2000 MW capacity. 
  • Tata Motors' wholly owned subsidiary -- JLR -- has reported total retail sales of 57,114 vehicles in September 2018, down 12.3% year on year. 
  • Tata Steel has reported consolidated steel output (Provisional) at 7.33 MT during Q2 FY19. 
  • NTPC has signed a term loan agreement of Rs 5,000 crore with the State Bank of India.
News Analysis