Trends on SGX Nifty indicate a negative opening for the index in India with a loss of 55 points.
The Indian stock market is expected to open in the red following global cues on delay in vaccine trials and US stimulus agreement. Trends on SGX Nifty indicate a negative opening for the index in India with a loss of 55 points.
The Sensex rose 31.71 points to close at 40,625.51 on October 13 and the Nifty gained 3.50 points at 11,934.50. According to pivot charts, the key support levels for the Nifty is placed at 11,886.2, followed by 11,837.9. If the index moves up, the key resistance levels to watch out for are 11,985.5 and 12,036.5.
Stay tuned to Moneycontrol to find out what happens in 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:
Wall Street ends lower:
Wall Street lost ground on Tuesday, with halted COVID-19 vaccine trials and an elusive U.S. stimulus agreement weighing on sentiment as third quarter earnings season got underway. While all three major stock indexes closed in the red, Microsoft Corp and Amazon.com helped the mitigate the tech-heavy Nasdaq's loss.
The Dow Jones Industrial Average fell 158.04 points, or 0.55%, to 28,679.48, the S&P 500 lost 22.51 points, or 0.64%, to 3,511.71 and the Nasdaq Composite dropped 12.36 points, or 0.1%, to 11,863.90.
Asian equities were set to slip on Wednesday as halted COVID-19 vaccine trials and an elusive U.S. stimulus agreement weighed on investor sentiment, while the dollar rose from Tuesday's three-week low as demand firmed for safe-haven assets.
MSCI's gauge of stocks across the globe shed 0.03%. Australian S&P/ASX 200 futures were down 0.74% at 22:50 GMT, while Japan's Nikkei 225 futures were up 0.13%
Trends on SGX Nifty indicate a negative opening for the index in India with a loss of 55 points. The Nifty futures were trading at 11,886 on the Singaporean Exchange around 07:50 hours IST.
OPEC cuts 2021 oil demand forecast again as coronavirus cases rise
World oil demand will rebound more slowly in 2021 than previously thought as coronavirus cases rise, OPEC said on October 13, adding to headwinds faced by the group and its allies in balancing the market. Demand will rise by 6.54 million barrels per day(bpd) next year to 96.84 million bpd, the Organization of the Petroleum Exporting Countries said in a monthly report. The growth forecast is 80,000 bpd less than expected a month ago.
A further weakening of demand could threaten plans by OPEC and allies to taper in 2021 the record oil output cuts they made this year. OPEC is keeping an eye on the situation but currently has no plan to cancel the supply boost.
IMF projects 10.3% contraction in FY21, sharp rebound in FY22
The International Monetary Fund (IMF) on October 13 said it expects India’s gross domestic product (GDP) to decline by 10.3 percent in FY21. It revised India's GDP growth, since its June forecast of a 4.5 percent drop, while reflecting a severe-than-anticipated contraction in economic activities in Q1 FY21, amid the nationwide lockdown due to the COVID-19 pandemic.
Stating that India's GDP contracted much more severely than expected in the second quarter, Gopinath said, "The economy is projected to contract by 10.3 percent in 2020, before rebounding by 8.8 percent in 2021."
Gross NPAs of banks may jump to 11.5% by end of this fiscal: CARE
Indian banks are likely to restructure around 4-5 percent of the overall bank credit outstanding while the Gross NPA (non-performing assets) ratio is likely to be 11-11.5 percent by end of FY21, CARE Rating said in a note on Tuesday.
“Further, the asset quality data post the Covid-19 lockdown is uncertain due to a developing regulatory scenario; multiple stakeholder objectives and moratorium computation with various firms have varying ways of computing moratorium,” said the rating agency in the note.
Markets have more upside than downside: BlackRock CEO Fink
Strong support from accommodative central banks across the globe and potentially another large round of fiscal stimulus both in the United States and Europe mean financial markets have more upside than downside, BlackRock Inc Chief Executive Larry Fink said on October 13. Globally, investors remain under-invested, Fink said in an interview.
"With central banks' behaviors being very accommodative, with I believe, another very large round of fiscal stimulus in the United States and Europe ... these are the great foundational reasons why markets have more upside than downside," Fink said.
Wipro's Q2 profit rises sequentially
IT player Wipro, on October 13, reported a consolidated profit of Rs 2,465.7 crore for the July-September quarter. The company's quarterly numbers came on expected lines and it recorded quarter-on-quarter (QoQ) improvement on most parameters. Along with the numbers, the company also announced the share buyback of Rs 9,500 crore.
Consolidated profit increased to Rs 2,465.7 crore for the quarter compared to Rs 2,390.4 crore in the previous quarter. Consolidated revenue during the quarter increased 1.2 percent sequentially to Rs 15,096.7 crore.
Results on October 14
Infosys, Aditya Birla Money, Tata Elxsi, Tata Steel BSL, Titagarh Wagons, CHD Chemicals, Den Networks, Goa Carbon, International Travel House, JTL Infra, Kilburn Chemicals, Modern Steels and Reliance Industrial Infrastructure are among the 16 companies that will announce their quarterly earnings on October 14.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 832.14 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,674.46 crore in the Indian equity market on October 13, as per provisional data available on the NSE.
7 stocks under F&O ban on NSE
Adani Enterprises, Bharat Heavy Electricals, Canara Bank, Escorts, Vodafone Idea, Jindal Steel & Power and Steel Authority of India are under the F&O ban for October 14. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.With inputs from Reuters & other agencies