The Sensex and Nifty are likely to open in the higher on October 27 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 44.50 points.
On October 26, the bears' onslaught on Dalal Street extended to the sixth session on October 26 amid rising US bond yield and worsening situation over the conflict between Hamas and Israel. Most indices were down over a percent however, smallcap index saw a smart recovery but still closed lower.
The 50-share NSE Nifty fell 264.90 points or 1.39 percent to 18,857.25. BSE flagship Sensex plunged 1.41 percent or 900.91 points to 63,148.15.
The pivot point calculator indicates that the Nifty may take support at 18,834, followed by 18,786 and 18,708. On the higher side, 18,990 can be the immediate resistance followed by 19,038 and 19,116.
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 44.50 points or 0.23 percent. The Nifty futures were trading around the 19,005.50 level.
Trade setup for Friday: Top 15 things to know before the opening bell
US Markets
U.S. stocks tumbled on Thursday, dragged by tech and tech-adjacent megacap shares as investors digested mixed quarterly earnings and signs of economic resiliency that could encourage the Federal Reserve to keep interest rates at a restrictive level longer than expected.
All three major U.S. stock indexes ended in the red, and all remain on track for weekly declines.
The tech-heavy Nasdaq suffered the biggest percentage drop, weighed down by the "magnificent seven" group of megacap stocks in the face of cloudy earnings guidance and the "higher for longer" interest rate scenario.
The Dow Jones Industrial Average fell 251.63 points, or 0.76%, to 32,784.3, the S&P 500 lost 49.54 points, or 1.18%, to 4,137.23 and the Nasdaq Composite dropped 225.62 points, or 1.76%, to 12,595.61.
SEBI proposes new ‘high-risk’ category of mutual funds, seeks comments from AMFI
The capital market regulator, Securities and Exchange Board of India (SEBI) has proposed to introduce a new mutual fund (MF) that comes with high-risk, and offers a chance to earn higher returns. SEBI has sent a letter to Association of Mutual Funds of India (AMFI; the MF industry's trade body).
SEBI initially put forth this proposal at a meeting with AMFI. Following which, it wrote a letter to AMFI to internally consult about the possibility of such a category. A person with knowledge of the matter said that SEBI is concerned that many investors- in the race to earn higher returns (out of greed)- rush to high-risk Portfolio Management Services and sometimes to unregistered advisors.
RIL Q2 net profit may jump led by all-round growth in oil, Jio telecom, retail businesses
Reliance Industries is expected to report a sharp jump in fiscal second quarter net profit even on a marginal revenue uptick, primarily led by refining margin gains. India’s largest company by market capitalisation is likely to show robust performance across segments, except some weakness in the petrochemicals segment.
Analysts foresee steady growth in all areas in Q2 FY24 after a weak Q1 FY24 O2C performance. Retail EBITDA will increase with higher foot traffic. Jio's EBITDA will gain from new subscribers, and Oil and Gas EBITDA will improve with increased gas production.
According to a Moneycontrol survey of 10 brokerages, RIL’s consolidated net sales are expected to come in at Rs 2.31 lakh crore in Q2 FY24, up 0.5 percent year-on-year, and 11 percent quarter-on-quarter.
Net profit is estimated at Rs 17,482 crore, up 27.2 percent year-on-year. RIL’s second quarter EBITDA is expected at Rs 39,696 crore, up 28 percent year-on-year and 9.2 percent quarter-on-quarter.
ED attaches assets worth over Rs 70 cr of DHFL promoters Wadhawans
The Enforcement Directorate on Thursday said it has attached assets, including diamond jewellery and flats, worth more than Rs 70 crore of DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan as part of a money laundering probe linked to an alleged bank loan fraud case.
The probe against the Wadhawans pertains to "cheating" a consortium of 17 banks to the tune of Rs 34,615 crore and the money laundering case stems from a Central Bureau of Investigation (CBI) FIR, the agency said in a statement. "The attached assets are in the form of paintings and sculpture worth Rs 28.58 crore, watches worth Rs 5 crore, diamond jewellery worth Rs 10.71 crore, 20 per cent stake in a helicopter to the tune of Rs 9 crore and two flats in Bandra (Mumbai) worth Rs 17.10 crore," the ED said.
Crude Oil Prices Update
Oil prices rose on Friday, regaining ground after tumbling more than $2 a barrel in the previous session as concerns of a wider Middle East conflict eased while the United States, the world's biggest oil consumer, showed signs of weakening demand.
Brent crude futures climbed 45 cents, or 0.5%, to $88.38 a barrel by 0019 GMT while U.S. West Texas Intermediate was at $83.63 a barrel, up 42 cents, or 0.5%.
Both contracts are on track to post their first weekly drop in three weeks as the geopolitical premium built on fears that the Israel-Gaza conflict could involve more countries in the Middle East and disrupt oil supply has eased.
Gold Prices Update
Gold was slightly higher on Thursday as steady safe-haven demand fueled by the Middle East conflict helped bullion weather pressure from strong U.S. data that quelled recession fears.
Spot gold was higher by 0.3% at $1,986.29 per ounce. Earlier in the session, prices were just shy of the five-month high hit on Friday. U.S. gold futures rose 0.1% to $1,996.40.
Dollar Updates:
The dollar was headed for a weekly gain on Friday, aided by solid U.S. growth figures that bolstered the case for higher-for-longer interest rates, while the yen hovered on the weaker side of 150 per dollar ahead of a key policy meeting next week.
The U.S. economy grew at its fastest pace in nearly two years in the third quarter as higher wages from a tight labor market helped to power consumer spending, data on Thursday showed.
That added to bets the Federal Reserve is likely to keep monetary conditions restrictive for longer, driving the dollar broadly higher against a basket of currencies.
The U.S. dollar index steadied at 106.57, having hit a three-week high of 106.89 in the previous session, and was on track for a weekly gain of about 0.4%.
FII and DII data
Foreign institutional investors sold shares worth Rs 7,702.53 crore, while domestic institutional investors bought Rs 6,558.45 crore worth of stocks on October 26, provisional data from the National Stock Exchange showed.
Stocks under F&O ban on NSE
The NSE has added Delta Corp to its F&O ban list for October 26, while retaining RBL Bank on the said list.
With inputs from Reuters and other agencies
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