The benchmark Sensex and Nifty indices are likely to open in the red on October 20 as trends in the GIFT Nifty indicate a negative start for the broader index with a loss of 48 points.
On October 19, the Indian benchmark indices remained under pressure for the second session in a row, tracking weak global cues amid raging crisis in the Middle East and the ongoing earnings season. At close, the Sensex was down 247.78 points or 0.38 percent at 65,629.24, and the Nifty was down 46.40 points or 0.24 percent at 19,624.70.
The pivot point calculator indicates that the Nifty may be taking support at 19,542, followed by 19,502 and 19,437. On the higher side, 19,671 can be an immediate resistance followed by 19,711 and 19,776.
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 GIFT Nifty indicate a negative start for the broader index in India, with a loss of 48.50 points or 0.25 percent. The Nifty futures were trading around 19,506.50 level.
Trade setup for Friday: Top 15 things to know before the opening bell
US Markets
US stocks ended solidly lower on Thursday, with shares of Tesla falling after its results and Treasury yields surging as Federal Reserve Chair Jerome Powell spoke about monetary policy and investors worried whether interest rates would stay higher for longer.
Tesla shares dropped a day after the carmaker missed Wall Street expectations on third-quarter gross margin, profit and revenue, and its CEO Elon Musk said he was concerned about high interest rates affecting demand.
Treasury yields rose further and the benchmark 10-year note yield was at a 16-year high of almost 5 percent.
The Dow Jones Industrial Average fell 250.91 points, or 0.75 percent, to 33,414.17, the S&P 500 lost 36.6 points, or 0.85 percent, to 4,278 and the Nasdaq Composite dropped 128.13 points, or 0.96 percent, to 13,186.18.
Asian Markets
Asia-Pacific markets were all lower Friday, extending losses from Thursday’s broad sell-off. This comes as US Federal Reserve Chair Jerome Powell said inflation was still too high and would likely require lower economic growth.
While he noted that recent data showed progress toward slowing prices, Powell also added that monetary policy was not yet too tight.
Asia investors will also assess Japan’s September inflation data, which came in at 3 percent, the 18th straight month above the BOJ’s 2 percent target, as well as China’s one-year and five-year loan prime rates.
ITC Q2 net profit jumps 10% to Rs 4,927 crore
Hotels-to-FMCG major ITC on October 19 reported a standalone net profit of Rs 4,926.96 crore for the September quarter of the current financial year, a growth of 10.32 percent from the year-ago period.
Revenue from operations came in at Rs 17,705.08 crore, up 3.17 percent from Rs 17,159.56 crore in the year-ago quarter, the company said in a regulatory filing.
The numbers more-or-less met estimates. According to a poll of four brokerages the net profit was expected at Rs 4,933.9 crore and revenue at Rs 16,870 crore.
During the quarter, FMCG excluding cigarettes segment revenue was up 8.3 percent year-on-year (YoY). Segment EBITDA margin expanded 150 bps YoY to 11 percent.
HUL Q2 earnings beat street estimates; net profit up 3.86% on-year
Hindustan Unilever Ltd (HUL) on October 19 reported a standalone net profit of Rs 2,717 crore for the September quarter, up 3.86 percent from the year-ago period.
India’s largest FMCG company's revenue rose 3.53 percent to Rs 15,027 crore from a year ago, the company said in an exchange filing.
Net profit exceeded estimates, while net revenue was slight lower than projected. A Moneycontrol poll of four brokerages had pegged HUL’s Q2 revenue at Rs 15,300 crore and net profit at Rs 2,540.9 crore.
Tech Mahindra board to consider interim dividend on October 25
IT services company Tech Mahindra is planning to consider a proposal for its interim dividend for the financial year 2023-24 on October 25, it said in a regulatory filing on October 19.
The company will announce its results for the September quarter next week.
The payment of the interim dividend will be considered by the board on October 25.
Softbank fund to sell $123 million stake in India's Zomato
SoftBank’s venture capital fund SVF Growth, Singapore, will sell a 1.1 percent stake in Indian food delivery firm Zomato for 10.24 billion rupees ($123.24 million), CNBC TV-18 reported on Thursday, citing sources.
The offer price currently stands at Rs 109.4-111.65/sh, with a discount of up to 2 percent to CMP. The offer size is likely to stand at Rs 1023.6 crore.
Tata Motors to acquire 26.79% stake in Freight Tiger for Rs 150 crore
Tata Motors on Thursday said it has inked a pact to acquire a 26.79 percent stake in digital platform Freight Tiger for Rs 150 crore. The company and Freight Commerce Solutions have signed a securities subscription agreement (SSA) and a shareholders agreement (SHA) for the acquisition of the stake in Freight Tiger, the Mumbai-based auto major said in a regulatory filing.
The SSA also includes a provision enabling Tata Motors to further invest Rs 100 crore over the next two years, at the then prevailing market value, it added. Freight Tiger is a digital platform that provides end-to-end logistics value chain solutions for cargo movement in the country.
Jerome Powell signals Fed to stay on hold and keep future hike on table
Federal Reserve Chair Jerome Powell suggested the US central bank is inclined to hold interest rates steady again at its next meeting while leaving open the possibility of a future hike if policymakers see further signs of resilient economic growth.
The comments effectively affirm market expectations for the Fed to skip a rate increase for a second straight meeting when officials gather on October 31 and Novemver 1. The Fed chief also said a recent run-up in long-term Treasury yields, if they persist, could lessen the need for further hikes “at the margin,” echoing his colleagues and underscoring the importance of tightening financial conditions to the rate outlook over the coming months.
FII and DII data
Foreign institutional investors (FII) sold shares worth Rs 1,093.47 crore, while domestic institutional investors (DII) purchased Rs 736.15 crore worth of stocks on October 19, provisional data from the National Stock Exchange (NSE) showed.
Stocks under F&O ban on NSE
The NSE has retained Balrampur Chini Mills, Delta Corp, GNFC, Indiabulls Housing Finance, India Cements, Manappuram Finance, and MCX India to its F&O ban list for October 20. Hindustan Copper and SAIL have been removed from the said list.
With inputs from Reuters and other agencies.
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