The benchmark Sensex and Nifty indices are likely to open marginally higher on October 3 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 7 points.
The BSE Sensex climbed 320 points to 65,828, and the Nifty50 gained 115 points to 19,638, after a day of steep fall in the previous close.
"The Nifty has formed a bullish harami candle on the daily chart. The index took support from the 50-day exponential moving average (DEMA) of 19,562 and moved up steadily," Ashwin Ramani, derivatives and technical analyst at SAMCO Securities, said.
The pivot point calculator indicates that the Nifty may be taking support at 19,572, followed by 19,530 and 19,463. On the higher side, 19,705 can be an immediate resistance, followed by 19,747 and 19,814.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.
GIFT Nifty
The GIFT Nifty indicates a marginally positive start for the broader index with a gain of 7 points. GIFT Nifty futures stood at 19,600 points after making a high of 19,609 points.
Trade setup for Tuesday: Top 15 things to know before the opening bell
US Markets
Stock futures were little changed on Monday night. Futures tied to the S&P 500 added 0.03 percent, while Nasdaq 100 futures gained 0.05 percent. Dow Jones Industrial Average futures flickered near the flat line. Stocks kicked off October trading after lawmakers in Washington arrived at a short-term agreement over the weekend that headed off a government shutdown. During Monday’s trading, the 30-stock Dow closed lower by 74.15 points, or 0.2 percent, while the S&P 500 inched higher by 0.01 percent. The Nasdaq Composite added 0.67 percent, rising for the fourth day in a row.
Wall Street is also contending with rising bond yields, with the 10-year Treasury yield topping 4.7 percent at one point Monday — its highest level since October 2007. Investors are hoping to turn the page on a disappointing September for stocks. All three major indexes closed the month and the third quarter lower. The S&P 500 alone lost nearly 5 percent in September. That means key economic reports — such as last month’s payroll reports, due Friday — and the kick off of earnings reporting season next week are back in focus.
European Markets
European stock markets closed lower Monday as figures showed continued pressures on the manufacturing sector. The Stoxx 600 index closed 1 percent lower after a cautiously positive start to the session. Utilities shed 2.8 percent as chemicals dropped 1.8 percent.
That comes after the Stoxx 600 rounded off the worst quarter of the year and two successive months of declines. The latest set of purchasing managers’ index surveys on Monday revealed an outgoing downturn in manufacturing output, as new orders fell by a near-record level.
Asian Markets
Asia-Pacific stocks fell even after manufacturing data out of China bounced back to expansion territory. China’s factory activity in September expanded for the first time since April, according to official data over the weekend. China’s PMI climbed to 50.2 in September from 49.7, beating Reuters’ expectations of 50.0. China’s markets are closed for the weeklong Golden Week holiday. South Korean and Hong Kong’s markets are also closed for holidays. Japan’s Nikkei 225 traded 0.31 percent lower to close at 31,759.88, while the Topix slipped 0.39 percent to end at 2,314.
Sentiment of Japan’s big manufacturers improved to a score of 9 in the third quarter, up from 5 in the previous three months, the closely-watched central bank tankan survey showed. Australia’s S&P/ASX 200 was down 0.22 percent to end at 7,033.2. On Friday in the US, the three major indexes were mixed. The Dow and S&P 500 finished the session lower by 0.5 percent and 0.3 percent, respectively, capping off a negative week for the two indexes. The Nasdaq Composite finished up 0.1 percent. Over the weekend, US legislators were able to reach a temporary agreement that averted a government shutdown.
JSW Infra lists today: Will it match grey market premium after a healthy IPO?
JSW Infrastructure, the second-largest commercial port operator in India, is likely to debut on the bourses with 15-20 percent gains on October 3, given the strong subscription numbers reported by the IPO, healthy performance in the past financial years, and strong parentage support with diversified customer base, experts said.
The stock will be listing within the T+2 timeline (issue closing date + two working days) after completing allotment, share transfer and refunds process, instead of going for T+3 or T+6 timeline. Companies launching IPOs with effect from September 1 can voluntarily go for the new T+3 timeline which will be mandatory for all IPOs coming out with effect from December 1. This will be the second company after RR Kabel listing in the T+2 timeline.
The Rs 2,800-crore public issue of the JSW Group was subscribed 37.37 times during September 25-27, with major support from qualified institutional investors who bought 57.09 times the allotted quota. High net-worth individuals subscribed for 15.99 times and retail investors 10.32 times the portion set aside for them.
HP partners with Google to make Chromebooks in India from next month
PC maker HP has joined hands with Google to manufacture Chromebooks in India from October 2, the company said on Thursday. Alphabet and Google CEO Sundar Pichai took to microblogging platform X (formerly known as Twitter), and said: “We are partnering with HP to manufacture Chromebooks in India. These are the first Chromebooks to be made in India and will make it easier for Indian students to have access to affordable and secure computing.”
The Chromebook devices will be manufactured at the Flex Facility near Chennai, where HP has been producing a range of laptops and desktops since August 2020, it said in a statement.
"Manufacturing Chromebook laptops in India will allow Indian students to get easy access to affordable PCs. By further expanding our manufacturing operations, we continue to support the Make in India initiative of the government," HP India, Senior Director - Personal Systems, Vickram Bedi said.
CIL's coal supply to power sector rises 3.4% to 294.8 MT in H1
Supply of coal to the power sector by state-owned Coal India increased 3.4 per cent to 294.8 million tonnes in the first six months of the current fiscal even as the demand for electricity touched record highs in the past two months, the maharatna firm said on October 2.
The total amount of coal supplied was 1.8 MT more than the 293 MT demand projected for this period, Coal India Ltd (CIL) said in a statement.
"Compared to the high base of same period last fiscal, the volume increase was 9.7 MT, or 3.4 percent. This could have been higher if the logistics were eased out and intake not regulated by few consumers," CIL said in a statement.
Primary market action: 14 IPOs closing, 7 stocks to debut this week
After a significant rush of IPOs in the quarter gone by, this week seems to be a silent period for the primary market in terms of new public issues launch as there won't be any new initial public offering.
Meanwhile, 14 companies will be closing their IPOs while seven firms will be making their debut on the bourses this week. In the mainboard segment, pharma company Valiant Laboratories will close its Rs 152-crore public issue on October 3, while the subscription for Rs 71-crore IPO by Delhi-based wire manufacturer Plaza Wires will be ending on October 5.
IT earnings in Q2 may suffer from weak demand, macro headwinds; Nomura stays cautious
As information technology companies gear up for the upcoming July-September earnings season, brokerage firm Nomura believes continued weakness in demand and sustained macro uncertainty will adversely impact their financials.
"We believe the void created by the lower number of small-sized and discretionary projects along with delays in client decision-making and ramp-up of won projects in certain cases will lead to both revenue and margin disappointments in the near term, given the ‘sticky’ nature of costs," the firm stated in its report.
Nomura expects large cap IT players to report revenue growth in the range of -1 percent to +2 percent on-quarter, while midcaps are likely to fare better with expectations of 0.7 to 3.3 percent sequential growth in constant currency terms.
Sangam India eyes close to Rs 4,000 crore revenue by FY25
Cotton, PV-dyed yarn and ready-to-stitch fabric producer Sangam India expects to achieve a revenue of around Rs 4,000 crore by 2024-25, following capacity expansion at its seven production units in Bhilwara in Rajasthan, a top company executive has said. "We recorded Rs 2,730 crore revenue in FY23, and this financial year we are expecting to touch Rs 3,000 crore. With our capacity expansion in various product categories, we are targeting close to Rs 4,000 crore revenue by 2024-25," Sangam India managing director and chief executive SN Modani told.
Hindustan Zinc mined metal output drops marginally to 2.52 lakh tonnes in Q2
Vedanta group firm Hindustan Zinc Ltd on October 2 said its production of mined metal dropped marginally by one percent to 2,52,000 tonnes in the second quarter of the ongoing fiscal. Hindustan Zinc Ltd's (HZL) mined metal production was 2,55,000 tonnes in the second quarter of the previous fiscal.
"Mined metal production in the second quarter at 252kt, marginally down YoY and two per cent down sequentially mainly due to lower ore production at Rampura Agucha & Kayad mine partly offset by better overall metal grades," HZL said in a filing to BSE. The company's refined metal output in the second quarter at 2,41,000 tonnes, dropped by two per cent over the corresponding quarter of previous fiscal.
Oil Prices
Oil prices fell about 2 percent on Monday to a three-week low as a higher-priced Brent contract expired, the US dollar strengthened and traders took profits, concerned about forecasts of rising crude supplies and pressure on demand from high interest rates.
On its first day as the front-month, Brent futures for December delivery fell to $90.78 a barrel, down $1.42, or 1.5 percent, from Friday’s close and also down about 4 percent from where the November future closed on Friday when it was still the front-month. That was the Brent front-month’s biggest daily percentage decline since late May.
US West Texas Intermediate (WTI) crude fell $1.90, or 2.1 percent, to $88.89 per barrel. Both benchmarks were headed for their third daily decline and their lowest settlements since mid-September.
Dollar Index
The Dollar index traded 0.61 percent higher in futures at 106.87, whereas the value of one dollar hovered near Rs 83.20.
Gold Prices
Gold extended its decline for the sixth straight session on Monday to hit a near seven-month trough, as a robust dollar and prospects of higher US interest rates took the shine off bullion. Spot gold was down 0.8 percent at $1,835.40 per ounce, its lowest since March 10. U.S. gold futures slipped 0.7 percent to $1,853.00.
“There is a reckoning that interest rates are going to be higher for much longer, which has been the bearish element in the precious market. Gold prices could go below $1,800 in the near-term,” said Jim Wyckoff, senior analyst at Kitco Metals.
“Trends in the currency markets tend to be stronger and longer lasting. The appreciation of the U.S. dollar may not end anytime soon, pressuring the gold market.”
FIIs and DIIs
Foreign institutional investors (FII) sold shares worth Rs 1,685.70 crore, while domestic institutional investors (DII) bought Rs 2,751.49 crore worth of stocks on September 29, provisional data from the National Stock Exchange (NSE) showed.
With inputs from Reuters and other agencies.
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