Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Nifty opened with a gap of 160 points but then traded within a narrow range of 17800 to 17850. Among sectors, strong buying was seen in auto and reality stocks. Amid auto stocks, Tata Motors gain the most rallied over 11 percent. While energy stocks witnessed technical selloff at higher levels.
Technically, a strong bearish candle followed by inside body candle formation clearly suggests indecisiveness between the bulls and the bears. The market is consistently taking support near 20 day SMA but at the same time witnessed profit booking near 17,900 level. For the day traders, 17,720 would be the trend decider level.
Mohit Nigam, Head - PMS, Hem Securities:
After opening in green, Nifty maintained the lead and closed with a gain of 0.85% at 17,796.20. Whereas Bank Nifty closed with a gain of 0.63% at 37,757.20 and Sensex with a gain of 0.80% at 59,667.52.
With the commencem of this festive season we believe strong buying can be seen in auto, textile and realty stocks. IT earnings are starting from tomorrow and the market seems to be quite optimistic on it.
On technical front, Nifty can face resistance at 17,915 levels and a good support can be seen at 17,688 levels.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty had a sharp bounce on October 07 after a steep decline on October 06. Nevertheless, this bounce is a part of the short term consolidation process. Structurally, the consolidation over the last few sessions has taken form a triangular pattern. With today’s bounce the Nifty has once again tested upper end of the pattern & formed distribution over there throughout the day.
Hereon the index is expected to slide down towards the lower end of the pattern, which is near 17,550. On the flip side, the resistance zone of 17,900-17,950 will continue to maintain pressure on the higher side.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities:
There has been a cool-off in energy prices, US Dollar Index and bond yields and that has helped USDINR spot to close 19 paise lower at 74.78 levels. Volatility can increase over Friday and Monday, as RBI announces monetary policy and US releases jobs data for the month of September. We expect USDINR to operate within a range of 74.40 and 75.00 on spot.
Palak Kothari, Research Associate at Choice Broking:
On a weekly expiry, the index opened on a gap-up note and showed strength throughout the day and set a high at 17857 levels. In the second half of the session, it showed some selling pressure & managed to close at 17790.35 Levels with the gain of 0.82%, while Bank Nifty managed to close with a slight gain of 0.63% at 37753.20 levels. Nifty Realty lead the show with 6.16% gains in a day.
On the technical front, the Index has formed a Doji kind of candlestick pattern which points out confusion between a buyer & a seller. Moreover, the Index has been trading above 21 DMA, which points out strength in the counter.
Momentum indicator stochastic is trading with positive crossover, which adds strength to the counter. On an hourly chart, the Index has been trading with the support of the middle band of the Bollinger band formation, sustain above the same can show further upside movement. At present, the index has immediate support at 17,500 level, while resistance comes at 17,900 levels.
Sharad Agarwal, Executive Director – Capital Markets, Knight Frank India:
The market saw a smart rebound in Q3 2021 as mobility restrictions were relaxed and businesses started to return to normal. Sales grew by a considerable 92% YoY to 64,010 units during Q3 2021.The enhanced need of the homebuyer to own a home, lower house prices, interest rates at a record low of under 7% and stamp duty cuts in some of the key markets, have been the primary drivers of increased sales traction in 2021.
Residential sales in this quarter even exceeded the pre-pandemic 2019 average quarterly sales by 4%, signifying a return to normalcy. Demand momentum was strong across markets in Q3 2021 with all markets reporting a YoY growth in sales. Homebuyers are more inclined to acquire ready or near-ready inventory to minimise completion risk.
The markets seem to have factored in the very low likelihood of a complete lockdown as was seen last year, due to the ample availability of the COVID vaccine. Comparatively lower residential prices, attractive interest rates and higher household savings rates over the past year should support housing demand going forward. Homebuyers’ preference for grade A developers and their access to cheaper credit has positioned them well in this recovering market.
Vinod Nair, Head of Research at Geojit Financial Services:
Domestic market clawed its way out to a gap up opening following strong global sentiments, as US debt default worries calmed along with easing bond yields and crude oil prices. The domestic market was pushed by strong buying in auto, realty & IT sectors which bolstered the market to sustain the trend in favour of the bulls.
Despite the global semiconductor shortage, auto stocks sparked a rally in hopes of demand revival during the festive season while the expectation of better Q2 numbers for IT and strong pre-sale numbers helped the realty sector.
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 17,700. The market shows that it is going to be crucial for the short-term market scenario to sustain above the 17800 level.
If the market is able to sustain the level of 17,800, it can witness higher levels of 18,000. The momentum indicators like RSI and MACD indicating positive momentum is likely to continue.
S Ranganathan, Head of Research at LKP securities:
Bulls stepped up the accelerator ahead of the RBI policy led by the Auto Index which was up 4.5% in afternoon trade today. As the festive season commenced we saw heightened activity in textiles, consumer durables & real estate stocks.
The IT Index lent good support ahead of earnings starting tomorrow. While the street would be keen to watch the RBI stance tomorrow, the market breadth was very good with the small & midcap indices buzzing with optimism.
Market Close
: Indian market ended higher with Nifty near 17,800 mainly supported by the buying seen in the auto and realty name.
At close, the Sensex was up 488.10 points or 0.82% at 59677.83, and the Nifty was up 144.30 points or 0.82% at 17790.30. About 2096 shares have advanced, 1023 shares declined, and 119 shares are unchanged.
Tata Motors, Titan Company, M&M, Maruti Suzuki and Eicher Motors were among the major gainers on the Nifty. ONGC, Dr Reddy's Labs, Coal India, Britannia and HDFC were among the big gainers.
Except oil & gas, all other sectoral indices ended in the green, with Nifty realty and auto indices rising 4-6 percent. BSE midcap and smallcap indices added over 1 percent each.
Mahesh Kumar, EVP & Head Capital & Commodities Market (Abans Group):
WTI Crude oil is now trading at $75.73, down slightly from the previous day's close, on the back of an unexpected increase in US crude inventory, which has raised demand concerns. WTI crude oil, on the other hand, hit a multi-year high of $79.78.
Yesterday, the market rose on the back of a positive demand outlook for Covid-19-related travel relaxation in the US and the Eurozone, as well as limited supply from OPEC.
Crude oil prices are expected to remain stable due to limited production from OPEC+ members and strong global energy demand. However, a threat from the United States of releasing SPR reverse is likely to limit the gains.
WTI Crude oil is expected to find strong support near the 20-day moving average of $74.02 per barrel and the 50-day moving average of $71.97 per barrel. In the meantime, immediate resistance can be found between $78 and $80.96 per barrel.
SEBI unlikely to exempt open offers for Petronet, IGL in BPCL privatisation
India's capital market regulator is unlikely to give exemption to the company acquiring BPCL from making mandatory open offers for Petronet LNG Ltd and Indraprastha Gas share purchases which will be countered by other promoters of the two firms such as GAIL to save from going private, officials said. Click to read more
Yash Gupta, Equity Research Analyst, Angel One:
S&P BSE Realty up by 5.83% today and up by 30% in the last one month. Today Sobha up by 15.7% on the back of the announcement of best ever pre-sales volumes for the Q2FY21 along with Macrotech Developers Limited (Lodha) reported very strong pre-sales.
We have seen very strong demand after the covid first wave and even it got continued after the 2nd wave of covid also, we are heading towards the festival season and we are expecting this pre-sales momentum to continue as home loan interest are at its decades lows. We have a buy rating on Sobha and a neutral rating on Godrej Properties.
Market at 3 PM
Benchmark indices erased some of the intraday gains but still trading higher with Nifty around 17,800.
The Sensex was up 540.86 points or 0.91% at 59,730.59, and the Nifty was up 163.20 points or 0.92% at 17,809.20. About 2044 shares have advanced, 967 shares declined, and 126 shares are unchanged.
BSE Smallcap index rose 1 percent supported by the Sadhana Nitrochem, Aban Offshore, Sobha
Gaurav Garg, Head of Research, Capitalvia Global Research:
Indian equity benchmarks were trading near their neutral lines in early afternoon session, with both Sensex and Nifty holding margin gains. BSE mid cap and small cap indices are trading in the green. Domestic sentiments impacted by negative cues from other Asian markets. Gained will be caped as the International Monetary Fund expects global economic growth in 2021 to fall slightly below its July forecast.
Traders will be cautious as Bombay Chamber of Commerce and Industry survey found that an overwhelming number of exporters are worried about competitiveness after the pandemic. Our research suggests that 59,500-59,600 levels will act as immediate support. we can expect the market to trade in the range of 59,500-60,000.
European markets are trading in the green with CAC and DAX up over a percent each
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded lower with benchmark NYMEX WTI crude oil prices plunged by 2.96% to $75.14 per barrel for the day. MCX Crude oil October futures fell by more than 3% near Rs 5,622 per barrel by noon
Crude oil prices are expected to trade down with resistance at $78 and support at $72 per barrel. MCX Crude oil October has support at Rs 5,560 and resistance at Rs 5,710.
Piramal Enterprises Board approves demerger of pharma operations
The board of directors of Piramal Enterprises at their meeting held on October 7, 2021 has approved demerger of pharma operations. For one share held in the company four shares of Piramal Pharma will be issued. Piramal Pharma will be listed on BSE and NSE. The stock was trading at Rs 2,906.50, up Rs 64.60, or 2.27 percent. It has touched a 52-week high of Rs 3,013.
Market update at 2 PM: Sensex is up 682.06 points or 1.15% at 59871.79, and the Nifty jumped 203.80 points or 1.15% at 17849.80.
Bombay HC dismisses Srei Group's plea against RBI action
Bombay HC on October 7 dismissed Srei Group's plea against Reserve Bank of India's (RBI) action on Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL).
Srei Group promoters, Adisri commercial private ltd, had filed a writ petition against the RBI challenging the order and had also sought a stay on initiating insolvency proceedings against Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL).
SREI Infrastructure Finance was quoting at Rs 7.39, down Rs 0.38, or 4.89 percent.
Moody's revises Long Term Issuer Default Rating outlook of HPCL to stable
Moody's Investors Service, an international credit rating agency for Foreign Currency (USD) denominated notes, has revised the Long Term Issuer Default Rating outlook of Hindustan Petroleum Corporation Limited to "Stable" from "Negative".
Hindustan Petroleum Corporation touched a 52-week high of Rs 323.55 and was quoting at Rs 322.45, up Rs 10.90, or 3.50 percent.
Nifty IT index rose 2 percent led by the Mphasis, Coforge, Mindtree
Market at 1 PM
Benchmark indices extended the gains and trading near the day's high level in the afternoon session.
The Sensex was up 691.51 points or 1.17% at 59881.24, and the Nifty was up 200 points or 1.13% at 17846. About 2179 shares have advanced, 789 shares declined, and 121 shares are unchanged.
Sobha hits 52-week high:
Sobha has touched a 52-week high of Rs 852.25, gaining 12 percent on October 7 after the company achieved best-ever sales volume at sustainable price realisation, the company said in its press release.
The company achieved best ever first half total sales volume and sale value of 2,244,403 square feet and Rs 17.13 billion respectively.
Prabhudas Lilladher on Titan Company:
Prabhudas Lilladher has upgraded the Titan Company to buy from accumulate with a target at Rs 2555.
Broking house believe that worst is over as over 90% stores are operational and rising vaccinations are improving consumer confidence and footfalls.
Growth in watches, Eyewear and Accessories has shown faster recovery which is a big positive given low base in coming quarters, it added.
Buzzing
Kalyan Jewellers share price added over 11 percent on October 7 after the company reported a revenue growth of 60 percent for its India operations during quarter ended September, as compared to the same period in the previous year.
The non-south markets recorded a higher same store sales growth of 70 percent compared to south markets which recorded same store sales growth of 40 percent.
Mohit Nigam, Head – PMS, Hem Securities on RBI monetary policy
Indian economy is in a much better position than viewed in the RBI’s August meeting, as indicated by improving high frequency indicators such as e-way bills, steel consumption, import of capital goods and vehicle sales. Manufacturing has also rebounded post second wave but we believe recovery remains uneven and needs support through coordinated fiscal-monetary action.
The Reserve Bank of India (RBI) is likely to keep repo rate unchanged and there is a low probability of hike in reverse repo rate by 10 to 20 bps and is likely to signal unwinding of its accommodative stance on monetary policy from December 2021.
The RBI’s announcement would however be closely watched to see how it addresses underlying and emerging concerns on the inflation front given the oil, natural gas and coal prices showing no signs of abating.
Market at 12 PM
Benchmark indices gained further ground with rising over a percent pushing Nifty above 17,800.
The Sensex was up 684.17 points or 1.16% at 59873.90, and the Nifty was up 193.70 points or 1.10% at 17839.70. About 2178 shares have advanced, 761 shares declined, and 116 shares are unchanged.
Amarjeet Maurya - AVP - Mid Caps, Angel One
Today, Titan Company (TCL) is up ~ 8%. Stock is up mainly due to company recorded revenue growth of ~ 78% yoy in 1QFY22. TCL is targeting to gain market share in the jewellery segment due to strong focus on wedding segment, huge scope for store expansion (40-50 stores every year), and gold harvest & gold exchange schemes.
Further, the shift from unorganized (currently 70%) to organized (currently 30%) in the jewellery segment will benefit branded players like Titan due to strong brand positioning and superior quality. Thus, we are positive on stock.
BSE Midcap index rose over 1 percent led by the Oberoi Realty, Indian Hotels, Aditya Birla Fashion
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
Nifty's range of 17500- 18000 is likely to be broken in the next few days. Outcomes of probable taper timelines, MPC meeting and Q2 results are likely to be market moving. An area of concern is the MPC sounding caution on the inflation front and gradually moving away from accommodative monetary policy. Also the central bank will have to initiate measures to absorb the excess liquidity in the system.
Globally, the Fed's communication on the Taper timeline, which in turn will be influenced by the non-farm payrolls data, will be keenly watched by the markets.
While the bears swear by the elevated valuations in the markets, the bulls are optimistic about the prospects of steady rise in corporate earnings for the next 3 to 4 years. Only time can give the final verdict.
Expect more clarity in India's real-money gaming market in coming quarters: Nazara Tech CEO
Manish Agarwal, the chief executive of India's first publicly listed gaming company Nazara Technologies, is optimistic that more clarity will emerge in the country's real-money gaming market in the forthcoming quarters.
"In the last two months, there have been more positives than negatives (in the sector). I'm seeing that state governments are losing battles in their respective high courts and judgements are becoming sharper and clearer where there are black and white rather than grey." Agarwal said "Given that the space is so large and new, there will be constant challenges but our view is that over the next four to eight quarters, things will start becoming more clear and firm."
NTPC signs agreement with French company Electricite de France for cooperation in international power sector
: Électricité de France S.A. (EDF), headquartered in Paris, France, and NTPC Ltd. signed a Memorandum of Understanding (MoU) to explore potential power project development opportunities in the Middle East, Asia, Europe and Africa. The two companies will also collaborate for knowledge sharing, R&D, technical services and consultancy assignments
globally. NTPC was trading at Rs 144.75, up Rs 1.40, or 0.98 percent. It has touched an intraday high of Rs 145.65 and an intraday low of Rs 142.80.
Just in
Sources to CNBC-TV18 - Government may announce Air India winning bid tomorrow. Tata Group is expected to bag Air India.
Market update at 11 AM: Sensex is up 542.20 points or 0.92% at 59731.93, and the Nifty jumped 160 points or 0.91% at 17806. Titan Company, Tata Motors and Maruti Suzuki are the top gainers while Tata Motors, IRCTC and Titan Company are the most active stocks.
Lupin gets tentative USFDA nod for Brexpiprazole tablets
Lupin has received tentative approval from the United States Food and Drug Administration (FDA) for its Abbreviated New Drug Application (ANDA) Brexpiprazole Tablets, 0.25 mg, 0.5 mg, 1 mg, 2 mg, 3 mg, and 4 mg, to market a generic equivalent of Rexulti Tablets, 0.25 mg, 0.5 mg, 1 mg, 2 mg, 3 mg, and 4 mg, of Otsuka Pharmaceutical Co., Ltd. This product will be manufactured at Lupin's Pithampur facility in India.
Lupin was quoting at Rs 955.15, up Rs 7.50, or 0.79 percent on the BSE.
Moody's revises GAIL’s rating outlook to stable:
Moody's has revised GAIL’s rating outlook to stable from negative and affirmed rating at Baa3.
GAIL India was quoting at Rs 163.85, down Rs 2.45, or 1.47 percent.
Nifty Auto index rose over 3 percent led by the Tata Motors, Ashok Leyland, Maruti Suzuki
Rupee Opens:
Indian rupee opened 21 paise higher at 74.77 per dollar on Thursday against previous close of 74.98.
Moody's changes rating outlook of 9 Indian banks to stable from negative
Global ratings agency Moody's on October 6 changed the rating outlook of nine Indian banks to "stable" from "negative". These lenders include Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, Punjab National Bank, Export-Import Bank of India, State Bank of India (SBI) and Union Bank of India. Click to read more
Market at 10 AM
Benchmark indices extended the early gains and trading near the day's high level with Nifty above 17800.
The Sensex was up 548.68 points or 0.93% at 59738.41, and the Nifty was up 161.80 points or 0.92% at 17807.80. About 2130 shares have advanced, 603 shares declined, and 97 shares are unchanged.
Ramkrishna Forgings signs MoU with US-based company
Ramkrishna Forgings has signed a Memorandum of Understanding (MOU) with a US based technology partner for the development of Electric Vehicle Powertrain components for the Indian EV market, company said in the press release.
Ramkrishna Forgings touched a 52-week high of Rs 1,187 and was quoting at Rs 1,146.65, up Rs 41.35, or 3.74 percent on the BSE.
Buzzing:
Titan Company share price touched a 52-week high of Rs 2,314.30, rising nearly 8 percent on October 7 after the Tata group firm reported a strong recovery in demand in the second quarter of the financial year 2021-22.
Titan Company said its jewellery business grew by 78 percent in Q2FY22 YoY and added 13 stores during the quarter.
The watches and wearables segment registered 73 percent growth and the eye-wear business was up by 74 percent YoY.
BSE Realty index added 3 percent supported by the Sobha, Oberoi Realty, Prestige Estate
Abheek Barua, Chief Economist, HDFC Bank:
We expect the RBI to retain its accommodative stance without any increase in the reverse repo rate, currently the effective policy rate. The amount of the GSAP for Q3 could be reduced with the provision that it could be revised up when required. Moreover, the RBI could continue to sterilise its GSAP purchases going forward to keep the impact of its yield management tools liquidity neutral.
The RBI is likely to revise down its inflation forecast for Q2 FY22 (last RBI’s forecast: 5.9%) and for Q3 FY22 (last RBI’s forecast: 5.3%) projected in the last policy meeting in Aug-21 due to lower food prices. We expect inflation to average at 5.1% in Q2 and 4.8% in Q3 FY22. For FY22, we expect inflation to average at 5.35%.
