Sensex, Nifty Highlights on October 9: Market indices closed bullish for the seventh consecutive session on Friday, after the Reserve Bank of India kept the repo rate unchanged at 4 per cent in its Monetary Policy Committee (MPC) meet outcome today. Sensex ended 326 points higher at 40, 509 and Nifty gained 79 points to 11,914. SGX Nifty was rising 25 points higher, indicating positive trend in domestic grounds today. Yesterday, 30-share benchmark BSE Sensex ended 303 points higher at 40,182 and NSE Nifty50 index gained 95 points to 11,834.
Here's a look at the updates of the market action on BSE and NSE today
3. 48 PM: Closing
Market indices closed bullish for the seventh consecutive session on Friday, after the Reserve Bank of India kept the repo rate unchanged at 4 per cent in its Monetary Policy Committee (MPC) meet outcome today. Sensex ended 326 points higher at 40, 509 and Nifty gained 79 points to 11,914.
3. 33PM: Market outlook
On markets closing, -Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The markets maintained an upward trajectory shortly after its tepid opening. We are entering into the weekend with a strong closing where the Nifty is not very far from the 12000 price mark! 12200-12300 is a potential target which the index is capable of achieving during the course of this month. 11400 is a good support level."
3. 20 PM: Nifty technicals
Axis Securities in its note said," Sensex has marked a high around its psychological level of 40000 and witnessed profit booking around the same hence from current levels 39500-40000 levels are remains a crucial resistance zone to watch for. How ever any weekly close above this supply zone will encourage the bulls to continue their bullish command into the markets towards 40500-41000 levels. As the current under tone still remains bullish and any short term corrections towards 37500-36500 levels will remains as a buying opportunity for the traders. On the contrary, crucial support zone is around 37000-36500 levels. Good bullish momentum build-up was seen in IT, healthcare and consumer durables stocks. Whereas sectors like metals, oil & gas & banking lagged."
3. 14PM: Infibeam Avenues share price rises 3%
Infibeam Avenues share price rose 3 percent in the early trade on Friday after the parent of payment gateway company CC Avenue said it has signed a deal to license its ecommerce and payment software to Jio Platforms.
"The firm entered into a definitive agreement with Oman's second-largest bank, Bank Dhofar, to offer its acquiring processor services to the bank," Fintech solutions provider Infibeam Avenues said in a regulatory filing.
Under the agreement, Infibeam Avenues, through its digital payment solution, CCAvenue Payment Gateway Service will process online card transactions of various payment networks for Bank Dhofar and help the bank to authorise online payment for its customers.
3. 09 PM: HeroMotoCorp update
Amarjeet Maurya - AVP - Mid Caps, Angel Broking said," Hero MotoCorp is market leader in (~66%) 75-125CC motorcycles. In the month of September 20, the company reported strong ~17% volume growth and the company's products having good traction in rural pockets. Further, expected reduction in the GST rate would boost the revenue for the company. Going forward, we expect healthy growth on the back of a strong brand, wide distribution network and new product launches. We are positive on stock with a buy rating."
2. 42PM: Oil and gas sector update: JM Financial
Expressing views on the oil and gas 2QFY21 preview, Dayanand Mittal from JM Financial Institutional Securities said,"We expect RIL's 2QFY21 EBITDA to rise 12% QoQ on an improvement in EBITDA from Petchem, Digital and Retail segments. However, refining EBITDA continues to be under pressure due to lower volumes while GRM continues to be subdued. HPCL/BPCL EBITDA might decline by 10-14% QoQ on a moderation in auto-fuel marketing margins from record highs seen in 1QFY21; however, IOCL might post QoQ EBITDA growth on the low base of 1QFY21.
However, Gujarat Gas (GGas) might report lower margins as the company offered discounts to be competitive vs. alternative fuels. PLNG's earnings could rebound on a sharp recovery in LNG demand and GAIL/GSPL transmission volume could recover 10% QoQ, GAIL might see some recovery in volume/margin for Petchem and LPG segments. However, GAIL's gas trading margin may continue to be under pressure due to its uncompetitive US LNG cargoes."
2. 30 PM: Vedanta delisting
Yash Gupta, Equity Research Associate, Angel Broking said,"Vedanta Delisting - As per the latest data available at exchanges, total 127.86 crores shares have been offered at different prices, with maximum bids happening in between Rs 145 - Rs 160 as compared to floor price of Rs 87.25. We expect that the discovered price may end up being much higher than the floor price and there could be a possibility of the promoters coming out with a counter offer. Currently the promoters own 50.14% of the shares in the company and will need to increase their holdings to at least 90% for successful delisting. The Reverse Book building process for price discovery is currently under progress and today is the last day for bidding. We believe that It would be prudent for retail shareholders to participate in the Reverse book building process.
2. 14PM: Nifty technicals
As per Angel Broking, Nifty started the session with another gap up opening well above the 11800 mark. It continued the momentum and even tested 11900; however, some profit booking was seen in the penultimate hour. As far as index levels are concerned, the 20 EMA on the hourly chart has not been breached in the recent upmove which is placed around 11745 and is seen as important support whereas the immediate resistances are seen around 11900 and 12000 mark.
2.05 PM: Lakshmi Vilas Bank share rises 16%
Lakshmi Vilas Bank share rose 16% on Friday after the lender said it had received an indicative non-binding offer from the Clix Group.
The bank is undergoing the process of considering and evaluating the proposed amalgamation with Clix Capital Services, Clix Finance India, and Clix Housing Finance.
The bank in June 2020 had inked a non-binding agreement with the Clix Group for amalgamation. Later, the parties extended the validity of the agreement to September 15 citing the lockdowns.
1. 56PM: RBI MPC comment
Commenting on RBI policy outcome, Gurpreet Sidana, Chief Operating Officer, Religare Broking said," The ease in risk weights on new individual home loans would help subside challenges for the real estate sector to some extent and would also ease the pressure on lenders and borrowers. At the same time, individual borrowers, who are expecting some relief in their existing EMIs, have to wait a little longer. The hike in retail lending limits is largely targeted to improve the credit flow to the small businesses which are under tremendous pressure and have limited avenues to raise funds. These measures, in our opinion, are in sync with the government's focus to revive the growth amid the challenges, which the economy is facing at large due to COVID-19."
1. 43PM: Global markets
Stock prices Wall Street benchmarks gained on Thursday after President Donald Trump suggested he might be reversing his decision to halt talks on economic aid.
Asian stock markets followed Wall Street today as investors turned optimistic on hopes of fiscal stimulus discussion in the US to revive struggling US economy.
1. 36PM: Repo rate outlook
On Unchanged repo rate by Mr. Sanjay Kumar, CEO & MD, Elior India said,"The decision taken by the central bank to keep the repo-rate intact is indeed on expected lines. However, a more aggressive stance by the RBI probably would have helped in stimulating credit off-take for retail borrowers. Of course, its a challenging situation right now with food inflation soaring. Probably that's why the head-room that RBI had for further lowering the repo rates was limited. The MPC has probably now reached as far as it could in terms of accommodating the inflationary environment."
1. 28 PM: RBI announcement outlook
Speaking on RBI announcement Abhishek Bansal, Executive Director, Pacific Group said, "It was an expected move, as we all understand that the repo rate is already low. The real estate market has started picking up as people are enjoying the low-interest rates and subdued pricing. The sector is also enjoying the fruits of the changed mindset of people towards owning a real estate asset, be it for living or earning extra income. The safety of real estate investment that came to the fore will gain steam during the festival season as fence-sitters too will come out in great numbers."
1. 12 PM: Rupee gains 15 paise to 73.09
The rupee gained 15 paise to 73.09 against the US dollar in early trade on Friday after the Reserve Bank of India kept the repo rate unchanged at 4% in its Monetary Policy Committee (MPC) meet outcome today. Moreover, the domestic currency benchamrk was rising today, amid weakness in dollar on back of revived hopes for a US stimulus deal.
12. 53PM: Real estate update
Ram Raheja-Director, S Raheja Realty said," The real estate sector was expecting a rate cut which would give further impetus to demand and induce liquidity in the market. However, the RBI has reiterated its decision to keep the repo rate unchanged to achieve sustainable growth of the economy and its determination for control over inflation. The central bank will be rationalising risk weights for all new housing loans till March 31, 2022 and extending scheme for co-lending to all non-banking financial companies (NBFCs) and housing finance companies (HFCs) this will provide the much-needed boost and encouragement to home buyers. With the forthcoming festive season in the country, this move would make REALTY - A reality for the fence-sitters who have been eagerly waiting for the boost and encouragement to buy a home."
12. 42 PM: Gold, Silver prices in India on October 9
Gold price traded above Rs 50K mark in India on Friday, tracking strength from overseas, as uncertainty around US elections and the possibility of additional stimulus drove investors to the safe-haven assets.
Gold October Futures on the Multi Commodity Exchange traded Rs 385 higher at Rs 50,560, after hitting an intraday high and low of Rs 50,600 and Rs 50,300, respectively. Yesterday, gold futures on MCX closed at Rs 50,175 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. 30 PM: RBI Governor Das sees light at the end of the tunnel for economy
The Reserve Bank of India (RBI) Governor Shaktikanta Das today projected better days for the economy that saw contraction in the first quarter of 2020-21. While high inflation was a major stumbling block for the monetary policy committee (MPC) to reduce the repo rate, the Governor expects retail inflation or CPI to come closer to the targeted level by the fourth quarter. The RBI Governor said that the mood of the nation has shifted from fear and despair to confidence and hope. "Today, there is a turn in the wind, which suggests that it is not imprudent to dream of a brighter tomorrow even in the bleakest of times," said RBI Governor.
12. 21 PM: Market update
Market indices turned bullish on Friday, after the Reserve Bank of India kept the repo rate unchanged at 4 per cent in its Monetary Policy Committee (MPC) meet outcome today. Sensex was rising 220 points higher at 40, 400 and Nifty gained 55 points to 11,890.
12. 11 PM: Rupee outlook
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said," As expected yesterday USDINR appreciated by 0.07% and closed at 73.21 levels due to weakness in the dollar index. Performing equity market also supports the currency and expectation of positive economic data also supportive for the currency. 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 FED officials worried that a lack of further fiscal stimulus would jeopardize an economic recovery that was moving faster than expected, according to meeting minutes.
On today's technical outlook, he added,"As of today traders can go for sell in USDINR at 73.40, with the stop loss of 73.70 and for the target of 72.80. We are expecting appreciation in USDINR in short term and it may test 72.50 levels soon."
11. 59 AM: RBI Repo announcement outlook
On RBI Repo announcement, Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and Proptiger.com said, "The status quo on repo rate was expected as inflationary pressures made it difficult to cut rates further. Rationalising risk weightage on home loans and linking it to Loan to Value (LTV) ratio will effectively result in higher credit flow to the real estate sector, which is positive news for the sector. Also, the hike in credit limit for retail exposure by a single lending entity from Rs. 5 crore to Rs 7.5 crore is a welcome move that will immensely help both retail as well as small businesses."
11. 43 PM: Market update
Market indices turned bullish on Friday, after the Reserve Bank of India kept the repo rate unchanged at 4 per cent in its Monetary Policy Committee (MPC) meet outcome today. Sensex was rising 337 points higher at 40, 520 and Nifty gained 91 points to 11,926.
11. 37 AM: Banking stocks rise
Banking stocks turned green in early trade today after Reserve Bank of India (RBI ) kept repo rate unchanged. BSE bankex rose 300 points after the RBI announced its monetary policy at 10:00 am.
On BSE bankex, ICICI Bank, Bandhan Bank, RBL Bank, City Union Bank, HDFC Bank and Axis Bank stocks rose up to 3%.
Bank Nifty too rose 2.27% or 519 points to 23,708 on BSE.
The index which stood at 26,231 at 9:52 am gained 297 points to hit intra day high of 26, 528 after the RBI governor Shaktikanta Das announced the Monetary Policy Committee (MPC)'s decisions today
11. 25 AM: MPC outcome outlook
Expressing views MPC outcome, on V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Please incorporate his quote for your story. "Though the policy rate remains unchanged, this is a very dovish policy announcement. Rationalization of risk weightage of home finance companies is an innovative initiative which will bring home loan rates down. This will be a boost to the real estate sector & housing companies. Proposed OMOs for State Development Loans will boost liquidity for SDLs. This will be beneficial for funds starved states. The new MPC's first policy announcement is a fine example of being dovish without cutting rates. The positive response of the bond market with sharp cut in yields is a reflection of the success of the policy."
11.1 7AM: Coronavirus toll
Worldwide, there were 367 lakh confirmed cases and 10.66 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 69-lakh mark and the death toll from COVID-19 infections rose to 10.6 lakh, as of today.
11.09 AM: Gold outlook
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said,"On Thursday, Spot Gold ended higher by 0.54% to close at $1887.2 per ounce and Spot silver gained over 3.2% to close at $23.8 per ounce as the strengthening of U.S. currency dented appeal for the Dollar-denominated Gold. MCX gold also increased by 0.25% and closed at 50,175 levels and silver increased by 0.17% and closed at 60,519 levels.
He added," After calling off the negotiations over further stimulus aid with the democrats until the upcoming U.S. 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 boosted markets risk appetite, in turn, pressurizing the safe haven, Gold. However, political uncertainties ahead of the U.S. elections and alarming increase in the virus cases in Europe limited the losses for the yellow metal. Hopes over additional corona relief fund demanded by the U.S. President Donald Trump for payroll assistance is expected to support Gold. "
On its technical outlook, he said," On the MCX, gold prices are expected to trade higher in today's session. As for today, traders can go for Buy in gold at Rs 50,400 levels with the stop loss of Rs 50100 levels for the target of 51100 levels. They can also go for Buy in Silver at Rs 61,200 levels, with the stop loss of 60,500 levels and for the target of 62,800 levels."
10. 55 AM: RBI MPC keeps repo rate unchanged
In keeping with the market expectations, the Reserve Bank of India's newly-formed Monetary Policy Committee (MPC) decided to keep key lending repo rate unchanged at 4 per cent. The newly-constituted MPC began its three-day deliberations on Wednesday, amid expectations that the RBI will maintain status quo on the benchmark lending rates in view. The meeting of the six-member MPC, earlier slated for September 29 to October 1, was rescheduled as the appointment of independent members was delayed. India will see a "3-speed recovery", though it will vary from sectors-to-sectors, said the RBI Governor later.
10. 47 AM: Market outlook
-Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The markets have taken a bit of a breather this morning where it's movements seem tepid. This is acceptable considering the rally we have had in the last couple of sessions. It can also be attributed to the approaching weekend. The direction still remains on the bullish side and we can utilise these drops to accumulate long positions. The target for the Nifty should be 12200-12300 with a strong support at the 11400 level."
10. 34 AM: Global markets
Asian markets are trading mixed this morning as investors await the Chinese services sectors activity data for September. Korean and Taiwan markets are closed for holiday. U.S. markets closed higher taking cues from the recent comments from White House regarding further fiscal stimulus. European markets closed higher as market participants kept a close watch on developments on US stimulus discussions. OIl&gas shares climbed.
10. 28 AM: LVB update
Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking said,"In keeping with the market expectations, the Reserve Bank of India's newly-formed Monetary Policy Committee (MPC) decided to keep key lending repo rate unchanged at 4 per cent. The newly-constituted MPC began its three-day deliberations on Wednesday, amid expectations that the RBI will maintain status quo on the benchmark lending rates in view. The meeting of the six-member MPC, earlier slated for September 29 to October 1, was rescheduled as the appointment of independent members was delayed."
10. 18 AM: Nifty outlook
The bounce yesterday off 11800 in the closing hour should face early challenges at 11875, performance at which region would decide the nature of the trades today. Volatility is likely to dominate but could get directional trades should 11745/720 or 11944 give away on either side.
10. 02 AM: Market update
Market indices turned bullish on Friday, after the Reserve Bank of India kept the repo rate unchanged at 4 per cent in its Monetary Policy Committee (MPC) meet outcome today. Sensex was rising 182 points higher at 40, 365 and Nifty gained 57 points to 11,892.
9. 57 AM: RBI MPC meet
RBI MPC meet outcome- rate change unlikely Inflation above 4%,will adopt a status quo on the policy rate, would maintain an accommodative stance. Announcement will be at 10 am today
9. 40 AM: Nifty technical indicators
Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking said," As far as index levels are concerned, the 20 EMA on the hourly chart has not been breached in the recent upmove which is placed around 11745 and is seen as important support whereas the immediate resistances are seen around 11900 and 12000 mark."
9. 32 AM: Global markets
Overseas, Asian equities were trading higher today, tracking rally from US stocks on back of revived hopes for a US stimulus deal. Stocks in mainland China surged as they returned to trade on Friday from holidays and on positive key economic data. Markets in South Korea and Taiwan are closed on Friday for holidays.
House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke on Thursday about a broad coronavirus stimulus plan, after U.S. President Donald Trump pulled out of talks earlier in the week and called for stand-alone bills.
9. 20 AM: Opening session
Market indices opened on a bullish note, on Friday, although gains were checked as the Reserve Bank of India's will announce its Monetary Policy Committee (MPC) meet outcome today. SGX Nifty was rising 25 points higher, indicating positive trend in domestic grounds today.
9. 10 AM: Market outlook
As per Reliance SmartMoney, NSE-NIFTY surpassed its August month's high convincingly and rose to 7 and half month high of 11,906 level. As mentioned earlier, our bullish view will remain intact, but near-term volatility cannot be ruled as the index has formed an indecisive pattern doji on the daily chart and also, its key technical indicators on the near-term timeframe chart reversed down from their overbought zone. In case of decline, the index will initially find support at 11,618 level and then at 11,450 mark. On the higher side, the index will face major hurdle around its psychological level-12,000.
As for the day, support is placed at around 11,782 and then at 11,729 levels, while resistance is observed at 11,896 and then at 11,958 levels.
9.00 AM: RBI policy outcome today
Market gains were checked ahead of the RBI Monetary Policy Committee (MPC) decision today. Reserve Bank of India's meeting of the Monetary Policy Committee (MPC) that began on 7 October 2020 and ends today, and the central bank will announce its policy decision at 10 am. Rate-sensitive stocks includes names like Maruti, Tata Motors, DLF, Godrej Properties, Bajaj Auto, Hero MotoCorp, SBI, PNB, ICICI Bank and HDFC Bank.
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.
8. 50 AM: Nifty outlook
On Nifty technical outlook, Aamar Deo Singh-Head Advisory, Angel Broking said," Positive global cues, sharp rally in IT stocks along with move in Nifty heavyweight HDFC Bank, all contributed to today's move. Going forward, Nifty has support around the 11550-11600 zone whereas resistance on the upside is seen around 11900-12000 zone."
8. 40 AM: FII action
Foreign portfolio investors (FPIs) bought shares worth Rs 978.37 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 19.85 crore in the Indian equity market on 8 October, provisional data showed.
8. 30 AM: Closing
Benchmark indices Sensex and Nifty closed higher for the six straight session on Thursday, tracking positive cues from global equities. With the start of September quarter earnings season, the 30-share benchmark BSE Sensex ended 303 points higher at 40,182 and NSE Nifty50 index gained 95 points to 11,834.
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