Mohit Nigam, Head - PMS, Hem Securities:
Market today was a complete roller coaster ride as Nifty50 opened flat, was in red for some time and finally closed in green on second consecutive day with gain of 131.05 points or 0.74% at 17,822.30. At close Sensex was up by 429.48 points or 0.72% at 59,728.80 and Nifty Bank was up by 148.60 points or 0.40% at 37,728.25.
On technical front, Nifty50 looks strong with strong support at 17,750 level and can face resistance at 17,935 level. We can see Nifty creating new record highs in near future.
Palak Kothari, Research Associate at Choice Broking:
After a negative opening, the index made an intraday low at 17640 levels, but bulls took charge and managed to close the session near the intraday high at 17822.30 level with a gain of 131 points. While Bank Nifty closed the session at 37,741 level with a gain of 161.35 points.
On the technical front, the Nifty Index has formed bullish marabozu candle on daily time frame which points out strength in the counter. Furthermore, the index has given closing above 21 & 50 HMA, which suggests northward direction in the counter. Hourly momentum indicator MACD is trading with positive crossover above the zero-level line as well as the index is trading above Ichimoku cloud, which indicate upside momentum in the upcoming session. At present, the Nifty has immediate support at 17,580, while resistance comes at 17,950 levels.
Vinod Nair, Head of Research at Geojit Financial Services:
Domestic equities opened on a weak note as investors turned cautious due to a weak closing of the US market and rising crude oil price. However, upbeat mood of the European markets which rebounded after the US tech based sell-off helped the Indian market to regain momentum.
Also, the rout of Chinese economy led by power shortage provided a positively surprise to few sectors in the Indian market.
Rahul Sharma, Co-Founder, Equity99.
The market made a good positive move against the weak opening indicated by SGX Nifty. Sensex was up 445 points while Nifty50 was up 131 points.
Now going further on upside 17,865 will act as immediate resistance will strong resistance is placed at 17,950 levels. On the downside 17,700 will act as crucial support followed by 17,650 levels.
S Ranganathan, Head of Research at LKP securities:
Bulls took charge of the proceedings today powered by the Oil & Gas and IT sector while the PSE Index continued to lend strong support to the rally. The real action however was seen in the broader market where the breadth was indeed impressive with several companies in sectors like Power, Textiles, IMFL, Paper & Chemicals participating in the rally.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some positive movements and an attempt to hold the level around the Nifty 50 Index level of 17700. In the short-term, it is going to be crucial for market to sustain above the 17800 level.
If the market is able to sustain the level of 17800, it can witness higher levels of 18000. The momentum indicators like RSI and MACD indicating positive momentum is likely to continue.
Market Close
: Indian benchmark indices ended higher in the second consecutive session on October 5 amid mixed global cues.
At close, the Sensex was up 445.56 points or 0.75% at 59,744.88, and the Nifty was up 131 points or 0.74% at 17,822.30. About 2025 shares have advanced, 1184 shares declined, and 154 shares are unchanged.
ONGC, IndusInd Bank, Coal India, IOC and Bharti Airtel were among the major gainers on the Nifty. Cipla, Hindalco, Shree Cements, Sun Pharma and Tata Consumer Products were among the big losers.
Except PSUbank, realty and pharma, all other sectoral indices ended in the green with oil & gas, power and IT indices up 1-3 percent. BSE midcap and smallcap indices ended in the green.
Deepak Singh, Head-Derivatives - ICICI Securities:
Indian Rupee depreciated majorly on the back of strong dollar and surge in crude oil prices. Oil prices rallied sending it to 7 year high as OPEC+ said it would stick to an existing pact for a gradual increase in oil output.
Investors fear that higher energy prices may add to inflationary pressure pushing central banks across globe to start tapering monetary stimulus. Rupee may trade in the range of 74.30 to 74.90 in next couple of session
Churchil Bhatt, EVP Debt Investments, Kotak Mahindra Life Insurance Company:
The MPC in the October policy is expected to signal the end of ‘excessive’ Covid-era accommodation amidst a steady pick-up in economic activity and progress in vaccination. The unrelenting build-up in inflationary pressures, even if deemed transitory, is likely to elicit a measured central bank response – especially on the surplus banking system liquidity.
Going forward, we expect the Repo rate, which ceased to be the operating rate since the pandemic, to regain its status as the Key Policy Rate through a gradual and guided transition.
The MPC may however continue to emphasize its intent to maintain what would still be an otherwise accommodative monetary policy.
Hence, we expect that an emphasis on a dovish, gradual taper, coupled with expected G-SAP 3.0 announcement, should keep any undue bond market volatility under check.
Offer price for Aditya Birla Sun Life IPO finalised at Rs 712
Aditya Birla Sun Life has finalised the offer price of its initial public offering (IPO) at Rs 712 per share
The issue has been subscribed 5.24 times so far on October 1, the final day of bidding.
Aditya Birla Sun Life Asset Management Company reduced its issue size to 2.77 crore equity shares from 3.88 crore shares earlier, especially after garnering Rs 789 crore from anchor investors on September 28.
Market at 3 PM
Market has gained further ground in the final hour of the trading with Nifty above 17800.
The Sensex was up 413.24 points or 0.70% at 59712.56, and the Nifty was up 120.60 points or 0.68% at 17811.90. About 1943 shares have advanced, 1092 shares declined, and 117 shares are unchanged.
Nifty IT index rose 1 percent supported by the HCL Technologies, Tech Mahindra, TCS:
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices were trading 0.41% up near $77.94 per barrel for the day. MCX Crude oil October futures were trading 0.36% down near Rs 5,804 per barrel by noon.
Crude oil prices are expected to trade sideways to up with resistance at $80 and support at $76 per barrel. MCX Crude oil October has support at Rs 5,720 and resistance at Rs 5,860.
European markets are trading in the green with FTSE and CAC up half a percent each
BLS International signs renewal contract with Royal Thai Embassy for visa services
BLS International announced its contract with Royal Thai Embassy in New Delhi for visa services. BLS will be accepting visa applications for Thailand from various cities of India including New Delhi, Himachal Pradesh, Punjab, Haryana, Rajasthan, Uttarakhand, Assam, North East, Chandigarh, Jalandhar,
Jammu & Kashmir, it said in an exchange filing. The stock was trading at Rs 274.80, up Rs 9.05, or 3.41 percent. It has touched an intraday high of Rs 277.50 and an intraday low of Rs 265.
Market update at 2 PM: Sensex is up 233.86 points or 0.39% at 59533.18, and the Nifty added 76.10 points or 0.43% at 17767.40.
Airtel conducts India’s first Rural 5G trial in partnership with Ericsson
Bharti Airtel and Ericsson have conducted India’s first 5G network demonstration in a rural geography. The demonstration took place in Bhaipur Bramanan village on the outskirts of Delhi/NCR using 5G trial spectrum allocated to Airtel by the Department of Telecom, company said in its press release.
Bharti Airtel was quoting at Rs 698.25, up Rs 17.15, or 2.52 percent.
Allied Digital Services bags contract worth Rs 165 crore
Allied Digital Services has won a transformational, five year contract valued at Rs 165 crore from a large Global Manufacturing Conglomerate, company said in its release.
Allied Digital Services touched a 52-week high of Rs 82.80 and was quoting at Rs 82.80, up Rs 7.50, or 9.96 percent on the BSE.
IDFC First Bank Q2 business update:
Jyoti Roy - DVP- Equity Strategist, Angel One:
The seasonally adjusted India Services Business Activity Index posted 55.2 in September 2021. While the reading has come down from 56.7 in August 2021, it still points to a solid pace of expansion in the services sector. Rollback of Covid related restrictions have led to an increase in movement of people thus leading to continued increase in new business inflows.
Despite easing from August, the rate of expansion was marked and the second-fastest since February 2020. Moreover this was the first time that Indian service providers have hired people after shedding jobs for nine consecutive months till August. Despite the strong rebound in services growth there were concerns over inflationary pressures.
Continued strong growth in the services sector resulted in a strong composite PMI reading of 55.3 in September as compared to a reading of 55.4 in August. We expect continued strong momentum in both the manufacturing & services sector led by inventory buildup leading to the festive season. Key risk to growth is the possibility of a third Covid wave due to increased mobility on account of the festive season.
NMDC revises price of lump ore, and fines
NMDC has fixed the prices of iron ore w.e.f. 05-10-2021 with Lump Ore (65.5%. 6-40mm) at Rs 5.950 per ton and Fines (64%, -10mm) at Rs 4,760 per ton.
NMDC was quoting at Rs 148.25, down Rs 0.10, or 0.07 percent on the BSE.
Oil gains after OPEC+ holds firm on supply restraint
Oil prices climbed on Tuesday, hitting their highest levels in at least three years, extending gains triggered during the previous session after the world's major oil producers announced they had decided to keep a cap on crude supplies.
Market at 1 PM
Benchmark indices erased all the intraday losses and trading at day's high supported by the power and oil & gas stocks.
The Sensex was up 198.42 points or 0.33% at 59497.74, and the Nifty was up 66.00 points or 0.37% at 17757.30. About 1948 shares have advanced, 1025 shares declined, and 123 shares are unchanged.
IndusInd Bank business Updates:
BSE Smallcap index added 0.5 percent led by the I G Petrochemicals, Arvind Fashions, Patel Engineering
Ircon International emerges lowest bidder for project by NHSRCL
Ircon International with its JV partner has emerged as the lowest bidder valuing Rs 3429 crore in the tender floated by National High Speed Rail Corporation Limited (NHSRCL) for the design and construction of 18.133 km of viaduct involving Ahmedabad Station and Sabarmati Station and associated works for the project for construction of Mumbai-Ahmedabad High Speed Rail.
Ircon International was quoting at Rs 46.45, up Rs 1.35, or 2.99 percent on the BSE.
Asian stocks fall to near 1-year lows as oil rally fuels inflation fears
Asian shares tracked a broad sell-off on Wall Street to weaken for a third straight session on Tuesday, as investors feared oil prices hitting multi-year highs would add to inflationary pressures caused by supply chain disruptions.
U.S. and European stock futures edged up, with S&P 500 e-minis rising 0.01%, the pan-region Euro Stoxx 50 futures gaining 0.2 and FTSE futures gaining 0.4%.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped as much as 1.3%, declining for a third consecutive session. Japan stocks were down 2.5%, South Korea gave up 2% and Australia shed 0.4%.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities:
COMEX gold trades modestly lower near USD 1760/oz after a 0.5% gain yesterday. Gold trades lower as US dollar index bounced back amid higher bond yields and increased expectations for Fed’s monetary tightening. ETF flows also show weaker investor interest in gold.
However, supporting price is weakness in equities, inflation concerns and worries about health of Chinese economy. Gold may remain mixed however weaker risk sentiment may keep prices supported.
TVS Motor Company signs MoU with Tata Power
Tata Power Company share price touched a 52-week high of Rs 179.65, rising 6.5 percent on October 5 on the back of forming strategic partnership with TVS Motor Company.
As part of the MoU, the two companies agreed to drive the comprehensive implementation of electric vehicle charging infrastructure (EVCI) across India and deploy solar power technologies at TVS Motor locations.
Market at 12 PM
Benchmark indices continued to trade flat in the afternoon session amid buying seen in the oil & gas and power stocks.
The Sensex was down 30.66 points or 0.05% at 59268.66, and the Nifty was down 1.40 points or 0.01% at 17689.90. About 1879 shares have advanced, 1043 shares declined, and 135 shares are unchanged.
Nifty Energy Index rose 1 percent led by ONGC, Tata Power, Adani Transmission
Covid Updates:
India logged 18,346 new coronavirus infections, the lowest in 209 days, taking the total tally of COVID-19 cases to 3,38,53,048, while the active cases declined to 2,52,902, the lowest in 201 days, according to the Union Health Ministry data updated on Tuesday.
The death toll climbed to 4,49,260 with 263 fresh fatalities, according to the data.
ICICI Lombard block deal launched, AXA to sell 3.57% stake
The block deal of ICICI Lombard General Insurance Company was launched on October 4, with the company announcing that its key shareholder, French insurance firm Axa S.A., will share 3.57 percent of its stake.
Axa would approximately sell around 175 crore shares via the block deal, at an indicative price of Rs 1,497 to Rs 1,576 per share.
ICICI Lombard General Insurance Company was quoting at Rs 1,550.25, down Rs 26.45, or 1.68 percent on the BSE.
Santosh Meena, Head of Research, Swastika Investmart:
Oil and Gas stocks strong are witnessing a strong rally amid a sharp surge in crude oil and Natural Gas prices. The strong demand and supply-side constraints together causing a rally in commodity prices where inflation has become the biggest worry for the global markets because earlier central banks were saying inflation is transitory but the current situation is looking different.
In the previous big bull market of 2003-2007, the intermediate correction was triggered by inflation, and this time also inflation may trigger a first meaningful correction in the market. Investors should have some commodity stocks in their portfolios to hedge themselves with inflation risk.
It should be tactical play for the short to the medium term where oil exploration companies, power companies, chemical stocks, and sugar stocks may outperform. ONGC and Oil India may continue to do well despite the big rally while Vedanta is a good play for the rally in both crude oil and metal prices.
In sugar space, Balrampur Chini and Triveni Engineering are looking strong while Aarti Industries, SRF, and Deepak Nitrite may outperform in chemical space.
Tata-Mistry feud may return as Shapoorji Pallonji plans Rs 6,600-crore debentures: Report
The promoters of Shapoorji Pallonji (SP) Group are planning to raise Rs 6,600 crore by selling debentures to investors, according to a news report. This will be secured against shares of Tata Sons, it said, citing filings with the Registrar of Companies by Sterling Investment Corporation, a Mistry family entity, on September 25.
According to the report, legal experts call the planned move “potentially controversial” as Tata Sons has objected to similar moves by the Mistrys in the past. The Mistry family owns an 18 percent stake in Tata Sons, the holding company of the Tata Group.
Market update at 11 AM
: Sensex is down 32.74 points or 0.06% at 59266.58, and the Nifty shed 2.50 points or 0.01% at 17688.80. ONGC, Bharti Airtel and Indian OIl Corporation are the top gainers while Cipla, Shree Cements and Sun Pharma are the top drags.
Among the sectors, S&P BSE Oil and Gas along with power index gained over 2 percent while realty and pharma are under pressure.
HDFC Bank Q2 retail loans up 13% YoY
Retail loans of private sector lender HDFC Bank grew around 13 percent in Q2FY22, when compared with September 30, 2020.
Retail loans rose 5.5 percent from June 30, 2021, the bank said in a BSE filing.
India September services PMI was at 55.2 against 56.7 and Composite PMI was at 55.3 versus 55.4, MoM.
BSE Realty index shed 1 percent dragged by the Sobha, Godrej Properties, Indiabulls Real Estate
JSPL Q2 business updates:
Jindal Steel & Power (JSPL) has reported robust growth in sales and production in Q2FY22. Company's steel sales volume surged 32% Q-o-Q and 10% Y-o-Y to hit a record of 2.13 million tonnes during the quarter.
The steel production also increased to 1.93 million tonnes in Q2FY22, posting a modest growth of 5% Y-o-Y.
Jindal Steel & Power was quoting at Rs 418.85, up Rs 0.45, or 0.11 percent on the BSE.
Rail Vikas Nigam enters into MoU with Tata Steel
Rail Vikas Nigam Limited (RVNL) has entered into an Memorandum of Understanding (MoU) with Tata Steel in connection with implementation of infrastructure projects either on nomination basis as a deposit work or through the special purpose vehicle (SPV) route subject to bankability of the SPV project, execution of definitive agreement and management approval.
Rail Vikas Nigam was quoting at Rs 31.05, up Rs 0.85, or 2.81 percent on the BSE.
Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors:
Rupee to open around 74.63 as Asian currencies fall and oil rises to beyond USD 81 on account of supply constraints. The Dow fell overnight on inflation concerns, rising oil and gas prices and rising yields took a toll on the tech stocks.
The dollar index however was below 94. The SGX nifty was down 150 points on risk off sentiments after yesterday's rise. The range for rupee will be 74.30 to 74.80 as RBI is expected to curb the fall. As rupee has crossed 74.50 importers need to cover imports at all dips.
Rupee
Opens:Indian rupee opened weak against the US dollar on October 5. The rupee slipped 32 paise at 74.63 per dollar against previous close of 74.31.
Market at 10 AM
Benchmark indices were trading lower in the volatile session with Nifty around 17650.
The Sensex was down 127.04 points or 0.21% at 59172.28, and the Nifty was down 29.10 points or 0.16% at 17662.20. About 1742 shares have advanced, 970 shares declined, and 124 shares are unchanged.
Mahanagar Gas hikes CNG, PNG prices by Rs 2 each
Following the steep 62 percent hike in prices of domestically produced gas announced by the Centre last week, Mahanagar Gas on Monday increased the retail price of compressed natural gas (CNG) and piped natural gas (PNG) by Rs 2 each with immediate effect.
Mahanagar Gas was quoting at Rs 1,093, up Rs 2.00, or 0.18 percent on the BSE.
HFCL bags Rs 287.96 crore order from RailTel Corporation of India
HFCL has bagged an order amounting to Rs 287.96 crore from RailTel Corporation of India Limited, a Mini Ratna (Category-I) Central Public Sector Undertaking (CPSU) of Ministry of Railways, for setting up of Secured Optical Packet Switched Network for Defense Forces," company said in its press release.
HFCL was quoting at Rs 79.00, up Rs 3.75, or 4.98 percent on the BSE.
RBI allows banks to amortise additional liability post family pension revision
The Reserve Bank on Monday permitted the banks to amortise the additional liability on account of revision in family pension over five years beginning 2021-22.
The banks, the RBI said, will be required to make appropriate disclosures of the accounting policy followed in this regard in the 'Notes to Accounts' to the financial statements.
The relaxation follows a request by the Indian Banks' Association (IBA) that it would be difficult for some banks to absorb large amounts of liability with regard to revision in the family pension in a single year.
