The benchmark Indian indices are likely to open in the green on October 25 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 30 points.
On October 23, bears tightened their grip in the domestic stock market as both the Sensex and the Nifty extended their losses to a fourth straight session.
The Nifty 50 index slipped 1.34 percent or 260.90 points to 19,281.75, while the BSE flagship 30-share Sensex dipped 1.26 percent or 825.74 points to 64,571.88.
The pivot point calculator indicates that the Nifty may be taking support at 19,251, followed by 19,181 and 19,066. On the higher side, 19,309 can be an immediate resistance followed by 19,550 and 19,664.
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
Trends on the GIFT Nifty indicate a positive start for the broader index in India, with a gain of 30 points or 0.16 percent. The Nifty futures were trading around the 19,312.00 level.
Trade setup for Wednesday: Top 15 things to know before the opening bell
Wall Street surges to close higher, powered by upbeat earnings, guidance
Wall Street ended higher on Tuesday as a spate of solid corporate earnings and upbeat forecasts stoked investor risk appetite and sparked a broad rally.
All three major US stock indices advanced, with interest rate sensitive megacaps providing much of the upside lift as benchmark Treasury yields held steady, comfortably below their recent spike to 5 percent.
The third-quarter earnings season has shifted into high gear, and this week nearly a third of the companies in the S&P 500 are expected to post results.
The Dow Jones Industrial Average rose 204.97 points, or 0.62 percent, to 33,141.38, the S&P 500 gained 30.64 points, or 0.73 percent, to 4,247.68 and the Nasdaq Composite added 121.55 points, or 0.93 percent, to 13,139.88.
Axis Bank Q2 profit likely to rise 7%, Citi integration to be keenly watched
Axis Bank is likely to clock a modest 7 percent on-year net profit growth at Rs 5,698 crore in the September quarter, led by net interest income (NII) growth and firm asset quality when it reports its second-quarter result on October 25.
Higher costs of funds will continue to exert pressure on the margins of the private bank, just like for other lenders, analysts said.
Axis Bank’s net interest income (NII), the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, is expected to increase 15 percent on-year to Rs 11,908 crore, driven by a steady pick-up in loan growth, according to the average of five brokerages’ estimates.
Net profit is likely to fall 2 percent on-quarter, weighed down by elevated cost ratios due to Citi integration. NII is estimated to remain flat from Rs 11,959 crore in the previous quarter.
Tech Mahindra Q2 revenue, profit, margin may fall on-year; deal wins seen muted
Tech Mahindra is likely to report dull fiscal second-quarter earnings on October 25. The IT firm’s Q2 FY24 net profit is expected to decline on a year-on-year (YoY) basis while its revenue is likely to remain flat due to lacklustre performance in the communications vertical, delayed telecom revenue and weak discretionary spends, according to analysts.
Tech Mahindra’s EBIT margin is likely to be the major concern as brokerages expect a big contraction in Q2 FY24 on an on-year basis. The company’s deal wins are also expected to remain muted in the quarter under review, on account of weak macro and slow decision-making.
The IT major's net profit may decline around 37 percent YoY to Rs 822 crore, per the average of six brokerages’ estimates. However, sequentially, there might be an 18 percent rise. The quarter may witness certain one-time costs, said analysts.
Blue Jet Healthcare's public issue to open on October 25; raises Rs 252 crore via anchor book
Maharashtra-based pharma company Blue Jet Healthcare mopped up Rs 252.08 crore from 22 anchor investors on October 23, the last working day before the issue opening.
The firm in its filing to exchanges said it has finalised the allocation of 72,85,548 equity shares to anchor investors, at a price of Rs 346 per equity share.
The speciality pharmaceutical and healthcare ingredients developer will open its Rs 840.27-crore public issue on October 25, with a price band at Rs 329-346 per share.
Bitcoin soars 10% to 2-1/2 year high
Cyrptocurrency bitcoin leapt as much as 14 percent to a 2-1/2 year high of $34,283 in early Asia hours on Tuesday, on speculation that the U.S. could soon approve a bitcoin exchange-traded fund.
Bitcoin was last up 10 percent at $33,030. Smaller rival ether was up 6 percent at $1,763.
Dollar Updates
The dollar was on the front foot on Wednesday, drawing support from yet another resilient US economic data reading, while the euro struggled to make headway on the back of a darkening growth outlook in the bloc.
The Australian dollar rose more than 0.5 percent in an initial knee-jerk reaction following a higher-than-expected inflation print in Australia on Wednesday.
US business output ticked higher in October as the manufacturing sector pulled out of a five-month contraction, data on Tuesday showed, while separate data released the same day showed the euro zone's business activity in contrast took a surprise turn for the worse this month.
Oil Prices Update
Oil prices were nearly flat on Wednesday as signs of tighter U.S. supplies countered economic data that dampened the outlook for energy demand.
Brent crude futures edged higher 2 cents to $88.09 a barrel as of 0003 GMT, while U.S. West Texas Intermediate crude futures dipped 5 cents to $83.69 a barrel.
The benchmark prices have fallen in each of the previous three sessions.
FII and DII data
Foreign institutional investors (FII) bought shares worth Rs 252.25 crore, while domestic institutional investors (DII) purchased Rs 1,111.84 crore worth of stocks on October 23, provisional data from the National Stock Exchange (NSE) showed.
Stocks under F&O ban on NSE
The NSE has added RBL Bank to its F&O ban list for October 25. Indiabulls Housing Finance has been removed from the said list.
With inputs from Reuters and other agencies.
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