Sensex, Nifty Highlights on October 8: Market indices closed bullish on Thursday, amid positive global equities. Extending gains for the six straight day, the 30-share benchmark BSE Sensex ended 303 points higher at 40,182 and NSE Nifty50 index gained 95 points to 11,834. Yesterday, the 30-share benchmark BSE Sensex ended 304 points higher at 39,878 and NSE Nifty50 index gained 76 points to 11,738.
Here's a look at the updates of the market action on BSE and NSE today
3. 46PM: Closing
Market indices closed bullish on Thursday, amid positive global equities. Extending gains for the six straight day, the 30-share benchmark BSE Sensex ended 303 points higher at 40,182 and NSE Nifty50 index gained 95 points to 11,834.
3.31PM: Market outlook
-Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The Nifty cooled off after a flying start; this could be a situation of profit booking. However the overall trend continues to remain positive and we could accumulate long positions on dips with a target of 12000 and then 12200 keeping a stop loss of a closing below 11400."
3. 22PM: Market quote
S Ranganathan, Head of Research at LKP Securities said,"The BSE SENSEX vaulted past the 40k mark today morning powered by TCS and the IT biggies with good support from large Cement majors. Although the sector rotation did exhibit a polarised market, afternoon trade witnessed buying interest in Pharma despite profit-taking".
3. 12PM: Market update
Market indices traded bullish on Thursday, amid positive global equities. Extending gains for the six straight day, the 30-share benchmark BSE Sensex gained 303 points higher at 40,182 and NSE Nifty50 index gained 95 points to 11,834.
3.06PM: Rupee settles higher
On the currency front, rupee strengthened by 9 paise to close at 73.24 against the US dollar on Thursday, supported by positive domestic equities and weak American currency.
2. 45PM: UTI IPO
The Rs 2,160-crore IPO of UTI AMC opened for subscription on September 29 and ended on October 1 in a price range of Rs 552-554 per share. UTI Asset Management IPO was subscribed around 2.3 times till the final day of bidding. The issue received bids for 6.31 crore equity shares compared to the size of 2.73 crore shares.
The IPO was an offer for sale of 3,89,87,081 equity shares, or 30.75 per cent stake by the company's existing investors to raise Rs 2,152-2,160 crore.
Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, DSP Merrill Lynch, ICICI Securities, JM Financial and SBI Capital Markets are the book running lead managers to the offer.
2. 29 PM: Sector update
On the sectoral front, barring FMCG and media index, all the other indices closed bullsigh today, with over 3% rise in IT, followed by over % gain in pharma and almost 1% rise in banking stocks
2. 16 PM: UTI AMC IPO allotment
UTI Asset Management Company, that recently concluded its Rs 2,160 crore-initial public offer (IPO) has finalised the basis of allotment of IPO shares on October 7. The unblocking of funds from ASBA account will start around October 8 and the shares will be credited to the account of eligible investors by October 9.
Shares of the company are proposed to be listed on BSE and NSE on October 12. This will be the third AMC to get listed on the stock exchanges after Nippon Life India Asset Management and HDFC AMC.
Those who had bid for the issue can check the subscription status on the online portal of KFin Technologies, the registrar to the issue. Applicants can also check their allotment status on the BSE website.
1. 49 PM: US stimulus
Fed policymakers said their economic outlook assumed additional fiscal support and showed concerns over economic recovery as lack of White House fiscal aid, according to U.S. Federal Reserve minutes released on Wednesday. Central bank officials believed that U.S. economy's most pressing need is for a new round of government spending and added that aid packages are too small or too late, the economy is in for a weak recovery. Investors also awaited weekly jobless claims data to further gauge the health of the world's largest economy.
1. 34PM: Brent crude
Brent crude futures, the global oil benchmark, rose 0.24 per cent to USD 42.09 per barrel.
1. 12PM: Rupee trades flat
Indian rupee, the domestic currency benchmark, opened on a flat note and later gained by 5 paise to 73.28 per US dollar aided by the gains in the domestic equity markets and weak American currency. Traders said gains were checked as investors turned cautious ahead of the RBI Monetary Policy Committee (MPC) decision on Friday.
The local unit later gained some ground and touched 73.28, up 5 paise from its previous close of 73.33 per dollar.
1.08 PM: RBI MPC meet
The Reserve Bank of India's Monetary Policy Committee (MPC) meet is scheduled during 7 to 9 October 2020. RBI is expected to keep key interest rates unchanged to maintain low inflation amid the pandemic induced recession. Investors will also be keenly awaiting the central bank's guidance on how the economy is performing amid the coronavirus pandemic.
1. 57PM: Rupee outlook
"While the natural tendency for the rupee is to strengthen in the backdrop of a weak US dollar globally, nationalised banks likely on behalf of the Reserve Bank buy the dips to around 73.10 aggressively," said Abhishek Goenka, Founder and CEO, IFA Global.
Goenka further added "we are likely to see another quiet, range bound session ahead of the MPC decision on Friday".
12. 44PM: Gold price steadies post recent fall
Gold price steadied after slipping for the three consecutive sessions in the Indian commodity market on Thursday and traded above the key psychological level of Rs 50K, following a flat trend from overseas. Gold prices were little changed today as renewed hopes of more U.S. stimulus helped restore investor confidence.
In muted trading session, Gold October Futures on the Multi Commodity Exchange-traded Rs 66 higher at Rs 50,114, after hitting an intraday high and low of Rs 50,134 and Rs 49,950, respectively. Yesterday, gold futures on MCX closed at Rs 50,048 per 10 gm. The bullion, trades almost Rs 6,000 lower than its lifetime high of Rs 56,191 per 10 gm hit last month.
12. 29 PM: Wipro stock gains over 5%
Wipro share price rose over 5% today after the IT firm announced its board would consider a share buyback on October 13. Share price of Wipro rose up to 5.5% to Rs 353.7 against previous close of Rs 335.25 on BSE. The stock has gained 6.44% in last two days.
The share opened with a gain of 4.01% at Rs 348.70. The share has gained 48.18% in one year and 42.87% since the beginning of this year.
In a month, the share has gained 24.5%.
12. 12PM: TCS share price hits all-time high
Tata Consultancy Services (TCS) share hit all-time high in early trade after the IT major reported a 6.66 per cent rise in consolidated profit in September quarter. Profit rose to Rs 7,475 crore in Q2 against Rs 7,008 crore profit in June quarter of current fiscal.
12.01 PM: Stocks to watch today on October 8
TCS, Wipro, Dr Reddy's, Maruti Suzuki, PVR among others are the top stocks to watch out for in Thursday's trading session
11. 53 AM: Market technical indicators
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking) said," The over bought momentum readings on the lower time frame chart and divergence in the broader markets indicates stock specific action and thus, traders should be selective in stock picking. The immediate support for the index are placed around 11680 and 11625 whereas resistance is seen around 11800 mark."
11. 45 AM: US dollar today
US dollar remained unchanged as focus changed towards a possibility of stimulus plan. FOMC minutes showed officials' concerns over economic recovery as lack of White House fiscal aid.
11. 34 AM: Coronavirus toll
Worldwide, there were 363 lakh confirmed cases and 10.6 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 68-lakh mark and the death toll from COVID-19 infections rose to 10.5 lakh, as of today.
11. 24 AM: Cement sector update
Centrum broking in its note said,"Continuing the trend, average cement prices declined by c.1.2% MoM in Sep'20 as per the channel checks. The decline was led by East and Central. Prices in other regions remained stable in Sep'20. Average prices for Jul-Sep'20 was marginally lower vs. 1Q average as higher prices in South was offset by decline in West, East, North and Central. Cement demand is witnessing a significant uptick since mid-Sep'20 in North/Central and East. Demand continues to be weak in West/South. Cement production for the month of Aug'20 declined by 14.6% YoY (as per Eight Core Industries data). Dealers in some regions of West/South are protesting significant rise in cement prices, no imbursements for rate difference and longer time taken to repay the discounts. This has stretched dealers' working capital requirements and adversely impacted their P&L."
11. 15 AM: Market rises further
Market indices traded majorly bullish on Thursday, amid positive global equities. Extending gains for the six straight day, the 30-share benchmark BSE Sensex gained 550 points higher at 40,402 and NSE Nifty50 index gained 143 points to 11,882.
11.08 AM: Rupee outlook
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said, "Yesterday, NSE USDINR OCT contract appreciated by 0.15 percent and closed at 73.46 levels while the Dollar Index decreased by 0.1 percent. India's services sector, hit severely due to the over two-month long pandemic-induced lockdown, neared recovery in September, with the PMI for services rising to 49.8 from 41.8 in August. US Federal Reserve Chairman Jerome Powell called for continued aggressive fiscal and monetary stimulus for an economic recovery that he said still has a long way to go. As of today traders can go for sell in NSE USDINR Oct contract at 73.50, with the stop loss of 73.70 and for the target of 73.10 to 72.90 levels. We are expecting appreciation in USDINR in short term and it may test 72.50 levels soon.
10. 55 AM: Bandhan Bank update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said,"Bandhan Bank reported provisional numbers for Q2FY21. Advance grew 20% YoY & 3.2% QoQ. Deposit grew at a healthy rate 34% YoY & 9% QoQ. CASA deposit grew 56% YoY. CASA ratio grew increased by 530bps to 38.2%. During the quarter the Bank reduced minimum interest rate on saving bank deposits from 4 % p.a. to 3% p.a. The September collection efficiency was at 92% and 89% was for microfinance. For the Mortgage and other segment collection efficiency was at 98%. Currently, it trades at 3.21x of trailing book value. Positives in provisional number are deposit growth and collection efficiency."
10. 44 AM: Gold outlook
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said," On Wednesday, Spot Gold ended higher by 0.54 percent to close at $1887.2 per ounce and Spot silver gained over 3.2 percent to close at $23.8 per ounce as additional stimulus demanded by U.S. President Donald Trump boosted appeal for the safe haven, Gold. On MCX Gold prices corrected 0.95% and closed at 50048 levels. Silver also corrected by 0.25% and closed at 60419 levels.
He added,"After calling off the negotiations over further stimulus aid with the democrats until the upcoming elections, Donald Trump asked Congress to infuse $25 billion in new payroll assistance to U.S. passenger airlines in order to help ten thousands of workers maintaining their jobs. Hopes over further coronavirus relief fund levied support for the Gold as it is considered as a hedge against inflation and currency debasement. Moreover, weaker Dollar and worries over the widening impact of the pandemic also elevated the yellow metal prices. "
On gold futures technical, he said,"As for today traders can go for Buy in gold at Rs 49,900 levels with the stop loss of Rs 49600 levels for the target of 50400 levels. They can also go for Buy in Silver at Rs 60,000 levels, with the stop loss of 59,300 levels and for the target of 61,500 levels."
10. 30 AM: TCS Q2 results
Jyoti Roy - DVP- Equity Strategist, Angel Broking said,"TCS reported a 7.2% qoq growth in revenues to USD 5.42bn which was significantly ahead of street estimates. In rupee terms revenue grew by 4.7% qoq to Rs 40,135 crore. Gross profit for the quarter was up 8.7% qoq to rs 16,420 crore while gross margins expanded by 150bps qoq to 40.9%. EBIT for the quarter registered a growth of 16.2% qoq to Rs 10,515 crore while EBIT margins expanded by 260 bps qoq to 26.2% while. Net profit for the quarter excluding legal claim provisions was up by 20.3% qoq to Rs 8,433 crore. The Q2FY21 numbers were well above street expectations on all counts, while new deal wins remained strong at USD 8.6bn for the quarter which was a key positive. We believe that the TCS numbers will be well received by the markets and will be positive for the entire IT sector."
10. 21 AM: US central bank on stimulus
U.S. central bankers said on Wednesday that U.S. economy's most pressing need is for a new round of government spending,
Many members of the Federal Open Market Committee said their economic outlook assumed additional fiscal support, according to U.S. Federal Reserve minutes released on Wednesday. Central bank officials believe if aid packages are too small or too late, the economy is in for a weak recovery.
10. 13 AM: IT services sector
Centrum Broking in its IT Services -2QFY21 Results Preview said," While 1QFY21 has been a weak quarter, we expect steady bounce back in performance in 2QFY21.Recent strong commentary from HCL Tech, strong outsourcing segment performance at Accenture lends confidence on steady business outlook. Deal wins remain steady and Enterprises continue to accelerate Cloud migration, invest in online channels as Covid drives Touchless Interfaces. While vendor consolidation led deals are in pipeline, closure in these could remain key. We believe large cost take out deals are needed for Tier 1 IT vendors to pull surprises on revenue growth . Street would also watch for commentary of furloughs in 3QFY21. With FY21 likely to remain as tepid year, we expect upturn in FY22 and expect Tier 1 IT vendors to be back to 8-11% YoY USD revenue growth."
The report added,"We note scale midcap vendors like LT Infotech, Mphasis, Mindtree have strong breadth of service offerings and have navigated the Covid crisis well with minimal impact."
10.07 AM: Market outlook
On markets opening today -Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The markets have flown out of the resistance levels of 11750-11800 when it opened with a gap up this morning. This is a positive signal that the bulls are in complete control of this trend. We have even crossed the previous high of the Nifty which was 11794, recorded on 31 August 2020. This opens up new targets of 12000 and then 12300. The support is now upgraded to 11400."
9. 56 AM: Positive global cues
Asian markets are trading higher tracking overnight gains in US markets. Samsung shares led Kospi markets higher after its reported that quarterly profits likely rose 58%. U.S. markets closed higher led by basic materials, consumer services and healthcare stocks on the back of renewed hopes for a stimulus deal in US.
European markets closed lower as investors reacted to Trump's decision to halt stimulus talks until after elections.
9. 44 AM: Gold outlook
On gold outlook, Hareesh V, Geojits Head of Commodity said,"Gold continues to trade in a range of worries over US fiscal stimulus measures that usually tend to benefit the yellow metal. A volatile US Currency and Covid vaccine optimism are also weighing the sentiments. However, US-China tensions continue to offer support to prices.
Technical Outlook (London spot), he added," As long as the support of $1840 holds the downside, we can expect a rebound in prices, but it has to break $1920 to continue the momentum. An unexpected drop below $1820 would extend further selling pressure."
9. 30 AM: Top gainers and losers
HCL Tech, TCS, Infosys and Tech Mahindra were among the top gainers on both BSE and NSE today. On the other hand, Bajaj Auto, GAIL, ONGC, Indian Oil and Asian Paints were among the top losers today.
9. 22 AM: Market outlook
As per Reliance Smartmoney Reserch, NSE-NIFTY rose to fresh 7-month closing high continuing its daily rising trend. Its key technical indicators on the near-term timeframe chart remained above their averages. Reiterating our bullish stance we believe the index has potential to test psychological level 12,000 provide it manages to surpass the August month's high of 11,794 mark convincingly. There will be near-term volatility amidst weekly option expiry. In case of decline, the index will initially find support at 11,450 level and then at 11,305 mark, which coincides with its recent positive gaps.
As for the day, support is placed at around 11,658 and then at 11,577 levels, while resistance is observed at 11,791 and then at 11,844 levels.
9. 18 AM: FII action
Foreign portfolio investors (FPIs) bought shares worth Rs 1,093.81 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,129.49 crore in the Indian equity market on 7 October, provisional data showed.
9. 11 AM: Opening session
Extending gains for the six straight day, the 30-share benchmark BSE Sensex gained 415 points higher at 40,296 and NSE Nifty50 index gained 116 points to 11,855.
9.09 AM: Market outlook
On Nifty's technical view, Rohit Singre, Senior Technical Analyst at LKP Securities said, "Index closed a day at 11739 with gains of 76 points and formed a bullish candle on the daily chart. The index closed on a positive note for a fifth consecutive day, now the index has immediate hurdle around 11800 zone if managed to hold above 11800 zone then we may see a quick move towards 12k mark and good supports are still placed around 11660-11600 zone."
8. 50 AM: Nifty technical outlook
On the technical front, Nifty index closed near major hurdles today, observed at 11,707 and then at 11,752 levels. Yesterday, the index rose to 7-month closing high and as per analysts, the index has the potential to test its August month's high of 11,794 mark.
8. 40 AM: Global markets today
Asian markets were trading mostly higher on Thursday tracking an overnight surge on Wall Street. US stocks rose sharply yesterday after US President Donald Trump tweeted support for aid to airlines and other stimulus measures.
8. 30 AM: Closing on Wednesday
Benchmark indices closed on a bullish note for the fifth straight session on Wednesday amid positive global cues. After a volatile trading session, the 30-share benchmark BSE Sensex ended 304 points higher at 39,878 and NSE Nifty50 index gained 76 points to 11,738. Yesterday, Sensex ended 600 points higher to 39,574 and Nifty gained 159 points to settle at 11,662.