The Indian stock market is expected to open on a positive note on October 1 following global cues as some investors clung to hopes that China and the United States could work towards reaching a deal on trade and other issues in the fourth quarter. Also, US markets closed higher led by gains in Apple, Microsoft and Merck & Co, as investors set aside worries about the US-China trade war.
Market experts expect the consolidation in the market to continue until the result season begins. Moreover, all eyes are now on the RBI's monetary policy meet on October 4 which will give a direction to the market in the near-term.
Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 17.5 points loss or 0.15 percent. Nifty futures were trading around 11,555 level on the Singaporean Exchange.
The Sensex closed with a loss of 155 points, or 0.40 percent, at 38,667.33, with 13 stocks in the green and 17 in the red. The Nifty closed 38 points, or 0.33 percent, lower at 11,474.45, with 22 stocks up and 28 down.
The broader markets suffered more than the frontline indices. BSE Midcap and Smallcap indices declined 1.13 percent and 1.21 percent, respectively,
underperforming BSE Sensex.
Rupee declined 31 paise to close at 70.87 against the US dollar on Monday amid rising demand for the greenback vis-a-vis other currencies overseas, even as crude oil prices eased. Forex traders said globally risk appetite has plunged as US-China trade concerns continue to linger. Besides, selling in domestic equities and unabated foreign fund outflows also weighed on the local unit.
At the interbank foreign exchange market, the rupee opened on a strong note at 70.37, then lost ground and fell to an intra-day low of 70.88 against the American currency. However, it finally closed at 70.87 per US dollar, down 31 paise over its previous close.
Meanwhile, foreign institutional investors (FIIs) sold shares worth Rs 469.4 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 504.69 crore in the Indian equity market on September 30, as per provisional data available on the NSE.
Stocks in news:
Punjab National Bank: The bank received Rs 3,000 crore from the Government of India.
Bank of Baroda: Lender received a capital infusion of Rs 7,000 crore from Government of India.
PNB Housing Finance: Sunil Mehta resigned as Chairman.
Cadila Healthcare: The drugmaker has entered into an asset purchase agreement with Medicure lnc., a cardiovascular pharmaceutical company.
Technical Recommendations:
We spoke to HDFC Securities and here’s what he has to recommend:
Reliance Industries: Buy | LTP: Rs 1,333.40 | Stop loss: Rs 1,285 | Target: Rs 1,410 | Upside: 6%
UPL: Buy | LTP: Rs 601.25 | Stop loss: Rs 580 | Target: Rs 640 | Upside: 6%
Quess Corp: Buy | LTP: Rs 471 | Stop loss: Rs 440 | Target: Rs 520 | Upside: 11%
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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