Shanghai Composite, Hang Seng, Nikkei 225, and KOSDAQ were all trading with losses. SGX Nifty too was trading over 55 points lower during the early hours of trade on Wednesday.Share Market News Today | Sensex, Nifty, Share Prices Highlights: Sensex and Nifty ended in the green, on Wednesday marking the tenth day of gains. S&P BSE Sensex surged 169 points while Nifty 50 moved closer to 12,000 mark. Bajaj Finserv and Bajaj Finance were the top index gainers, followed by ICICI Bank, IndusInd Bank, and Tata Steel. On the other hand, NTPC, ONGC, and Tech Mahindra were the top drags. Major banking stocks, that were trading with losses earlier in the day, recouped losses to end with gains. India VIX slipped over 2% to end at 20.21 levels.
The International Monetary Fund (IMF) has projected the Indian economy to contract by 10.3% this year, owing to the coronavirus pandemic. However, the IMF also said that India is likely to bounce back with an impressive 8.8% growth in 2021. The 8.8% growth rate would make India as the fastest growing emerging economy in the world. IMF’s prediction comes after the World Bank said India’s GDP is expected to contract 9.6%. The Reserve Bank of India has forecasted the GDP to shrink 9.5% this fiscal year.
Highlights
Stock markets ended in the green on Wednesday, recouping all intraday losses and taking their gaining streak to 10-days. S&P BSE Sensex jumped 169 points or 0.42% while the 50-stock Nifty managed to close above the 11,950 mark. Today’s surge was aided by index heavyweights like ICICI Bank and HDFC twins that moved from losses to gains and pulled the stock market higher. Bajaj Finserv and Bajaj Finance were the top gainers, up over 3% each, followed by ICICI Bank and IndusInd Bank. On the other end of the table, NTPC, ONGC, Tech Mahindra, and Powergrid were the worst performing index constituents.
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The rights issue of EIH Ltd, which runs hotels and resorts under the Oberoi brand, has been over-subscribed, with Rs 561 crore being offered against the issue size of Rs 350 crore. EIH offered 5.37 crore shares for subscription to existing shareholders at a price of Rs 65. The rights issue opened on September 29 and closed on October 13.
The Index was able to get past its resistance levels of 11950-11975. This should allow the Nifty to move towards 12100. The support of 11800 has been respected which is an added confirmation that the trend continues to remain bullish: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Sensex and Nifty zoomed before the closing bell on Wednesday. Sensex was up over 200 points while Nifty 50 was just shy of the 12,000 mark.
The increase in wholesale food inflation is a cause of concern, for two reasons. One is that it limits any more scope for the intervention of the RBI in terms of reducing the repo rate any further. At the other end, it force-puts a dampener on consumption because of the fact that the tax-paying population is already under stretch due to job losses and the economic contraction. Hence, a probably more aggressive approach to ramping up of both government public spending as well as taking an aggressive stance on fiscal policy by enabling consumption. The recent announcement by the government with regards to compensation laws will hopefully spur some demand. However, what one needs now is a tax regime that enables private investments and the key for this to pickup is more demand from the middle class which is actually the consuming class: Sanjay Kumar, CEO & MD, Elior India
Those investors who have missed the bus should not panic and buy aggressively at these levels. Nifty has risen more than 60% from the March 2020 bottom. Risk reward is not favourable at these levels. Instead, they should wait for dips to accumulate the stocks for long term. If Nifty were to break 11800, then it might show deep correction. So for investors better strategy is to buy the stocks in phased manner just like SIP. Weekly and Monthly SIP in selected stocks is the best way to invest: Vinay Rajani, Technical Research Analyst, HDFC Securities
Nifty is at the highest levels since 20 Feb 2020, so there is no way we can say that market is falling. Nifty is in continuation of an uptrend with very few largecap stocks participating. Whatever positions investors hold should be held with 11800 as a stoploss, as Nifty looks overstretched. Weak Market breadth is not a good sign for markets, so considering that one should remain cautious at these levels: Vinay Rajani, Technical Research Analyst, HDFC Securities
The credit card spends for Aug crossed March month's spend. According to the RBI, Data banks reported Rs 50,311 crore worth spends in August, compared with Rs 50,574 crore in March. However, in Aug 2019 it was Rs.60,011cr. Credit card spend is coming back to the pre-covid level which has created a fresh positive movement in SBI cards and Payment stock price. We have a positive view owing to attractive industry prospects like 1) The government of India push for a digitized and cash-less India 2) shift in spending pattern bending towards higher discretionary spending. 2) Lower penetration - 3-4 out of every 100 people using credit cards to transact. Along with this SBI strong parentage and diversified portfolio backing to revenue growth. SBI cards is well placed to capture the current trend of online payment and spending: Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd
Markets staged a smart recovery from lows. BSE Sensex trimmed most of the day's losses and was trading just 11 points down. While, the broader Nifty 50 index was ruling above 11,900.
With the Q2FY21 results season underway, markets will continue to remain very volatile till mid-November. Reliance Industries & HDFC bank results in the coming days will determine the Nifty trend in the next 1 week. With US elections also around the corner, Nifty below 11800 closing can fall till 11550 & 11200 in the coming weeks. 12080 will continue to remain a strong resistance for Nifty 50: Abhijeet Ramachandran, Independent Analyst/ Co-Founder and trainer at Tips2trade
The market sentiments have been still travelling with the notion that a new US stimulus is coming, but the delay is hinting that it may be rolled out after US election. Also, the halt in covid-19 vaccine trials calibrates that the race for a vaccine is bumpy and we cannot hope for a quick global economic recovery. The USDINR spot is trading sideways in between 73-73.60 and we may see it to continue being in this range: Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services
In September 2020, the wholesale price index (WPI) based inflation increased by 1.3% (prov.), marking successive pick-up for 5th month and the highest in the past 7 months. It was 1% higher than September 2019 (0.3%) and 1.2% higher than the previous month (0.2% in August 2020). CARE Ratings had estimated WPI at 0.9% for the month. It needs to be noted that the WPI for September has been compiled with a weighted response rate of 72% and may undergo revision in its final estimate.
~ Care Ratings
In my opinion, the levels of 12000 has become an intermediate resistance and top for the markets. If the investors need to start taking long positions, it would be best if they do it once the NIFTY moves past the 12k mark comprehensively. If investors go long in the present conditions, it would be prudent if they keep their fresh positions limited to defensives like consumption and non-discretionary. On the downside, the NIFTY has supports near 11550-11600 levels: Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research & Advisory Services
SBI Cards and Payment Services share price hit a fresh 52-week high of Rs 891.95 apiece on BSE, rising 4.18 per cent on Wednesday. The company on Tuesday, announced festive season offers ranging from fashion and lifestyle to electronics to travel. The stock has surpassed its previous high of Rs 867.50 touched on September 14, this year.
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Domestic brokerage and research firm ICICI Direct, though its three-factor model for stock filtration has picked two insurance company stocks that could see as much as 19% upside in the next three months. The qualitative analysis, done by ICICI Direct filters stocks based on their delivery Z-score, frequency distribution of the stock returns, and historical volatility pattern. “When historical stock returns follow a uniformly distributed pattern that shows accumulation in the stock where the frequency of sharp stock downsides is lower and it has been in a narrow range scenario for most of the time,” ICICI Direct said in the report.
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“Indian Indices Nifty and Sensex, down by 85 points (0.72%) and 259 points (0.64%) respectively. Indian Indices open flat on back mix global market clues but seen selling pressure in heavy weights during the 1st half of the day. Today S&P BSE CONSUMER DURABLES (up 0.39%), S&P BSE Telecom (up 0.17%) while S&P BSE Utilities (down 1.84%), S&P BSE BANKEX (down 1.16%). We expect the market to trade under pressure. Global Market update - DOW Jones down by 157 points (down 0.57%) and NASDAQ down by 12 points (down 0.10%)," said Yash Gupta- Equity Research Associate, Angel Broking Ltd.
Amidst the COVID-19 crisis, and an increasing concern over climate change and other environment-related challenges, the consideration of Environmental, Social & Governance (ESG) factors while making investment decisions is gaining traction.
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India’s share markets are now outperforming emerging markets, led by strong policy traction, corporate resilience and an attractive starting point of valuations, said global investment bank Morgan Stanley in a recent report. S&P BSE Sensex and NSE Nifty 50 have so far jumped over 37% each since April, which is when Morgan Stanley said the outperformance over EMs began. However, the report’s authors Ridham Desai and Sheela Rathi argued that for this outperformance to be sustained, India needs to continue to deliver policy that lifts India’s potential growth in the eyes of market participants.
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Infosys share price fell over 2 per cent to Rs 1,134.20 apiece on BSE ahead of July-September quarter earnings later in the day today. The stock opened at Rs 1,164.70 and hit a day’s low of Rs 1,134.20 so far. In the previous session, Infosys stock hit a fresh 52-week high of Rs 1,165.86, rallying over 128 per cent in less than seven months.
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India’s COVID-19 caseload rose to 72,39,389 with 63,509 infections being reported in a day, while the number of people who have recuperated from the disease crossed 63 lakh, according to the Health Ministry data updated on Wednesday. The recovery rate stands at 87.05 per cent. The coronavirus death toll climbed to 1,10,586 with the virus claiming 730 lives in a span of 24 hours, the data updated at 8 am showed. For six days in a row the active cases of COVID-19 remained below 9 lakh.There are 8,26,876 active cases of coronavirus infection in the country which comprises 11.42 per cent of the total caseload, while the recoveries have surged to 63,01,927, the data stated.
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The central government has mandated all ministries, public departments and public sector units to use telecom services of state-run Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL). “The government of India has, inter-alia, approved the mandatory utilisation of capacities of BSNL and MTNL by all ministries/departments of government of India, CPSEs, central autonomous bodies,” a memorandum issued by the Department of Telecommunications (DoT) said.
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COMEX gold trades mixed near $1890/oz after a 1.8% decline yesterday. Gold weakened as the US dollar index bounced back from recent lows amid delay in US stimulus package, setback on vaccine front and rising virus cases in Europe. ETF investors also moved to sidelines after net inflows a day earlier. Gold may continue to witness choppy trade until there is more clarity on US stimulus however we maintain buy on dips view as concerns about health of US economy may keep check on US dollar: Ravindra Rao, VP-Head commodity research, Kotak Securities Ltd
Wipro share price plunged 6.4 per cent to Rs 351.45 apiece on BSE a day after the IT company posted 3.4 per cent decline in consolidated net profit at Rs 2,465.7 crore for the July-September quarter. Wipro had recorded a net profit of Rs 2,552.7 crore in the year-ago period. The board of the company has also approved a share buyback plan of Rs 9,500 crore for purchase of up to 23.75 crore equity shares at Rs 400 per share.
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Rupee traded a very tight range yesterday. In the absence of any major data or triggers, we expect range-bound trading to continue. The rupee is likely to open around 73.38 and trade 73.25-73.55 range intraday. Though the Nifty ended just 3pts higher, it registered the eight back to back sessions of gains. The bond yields were stable despite higher than expected September CPI print. 20 states who had agreed to the first of 2 options have been allowed to borrow Rs 68825crs from the open market through a special window: Abhishek Goenka, Founder and CEO, IFA Global
The Nifty seems to be facing some selling pressures around the 11950-11975 zone. While the trend remains positive, it is suggested that traders book profits on their long positions if 11800 breaks. An entry at lower levels can always be used to re-enter the current uptrend. Considering the one-way rally we have witnessed, there could always be some profit booking. However, one should look at building long positions in this market: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
"The Nifty seems to be facing some selling pressures around the 11950-11975 zone. While the trend remains positive, it is suggested that traders book profits on their long positions if 11800 breaks. An entry at lower levels can always be used to re-enter the current uptrend. Considering the one-way rally we have witnessed, there could always be some profit booking. However, one should look at building long positions in this market," said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
With financials dragging stock markets lower on Wednesday, the Nifty Private Bank and Nifty Bank indices were the worst peforming sectoral indices, falling over 1% each. All sectoral indice were in the red.
Shares of Wipro slipped over 6% on Wedneday morning, a day after the firm announced its quarterly results. Wirpo in its quarterly results disclosed that it has registered a 3.2% on-quarter growth in consolidated profit to Rs 2465.7 crore in Q2FY21 on the back of improved utilization and improvement in offshore revenue.
S&P BSE Sensex slipped close to 50 points on opening bell while the Nifty 50 was trading below the 11,950 mark and inching closer to 11,900 mark. Tata Steel and Reliance Industries Limited were the top gainers.
Domestic benchmark indices witnessed a muted pre-open session on Wednesday with both Sensex and Nifty dancing between marginal gains and losses.
Wipro: Wipro on Tuesday announced an up to Rs 9,500 crore buyback plan at Rs 400 per equity share. Company’s board has approved a buyback proposal for purchase of up to 23.75 crore equity shares at Rs 400 per share and aggregates to an amount of up to Rs 9,500 crore.Infosys: IT bellwether Infosys is slated to announce July-September quarter earnings later in the day today.
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S&P BSE Sensex slipped 0.17% in the pre-open session on Wedneday while the 50-stock Nifty was still above the 11,950 mark. Global cues are negative on Wednesday morning.
Indian markets could open flat to mildly lower following largely negative Asian markets today and negative US markets on Tuesday. U.S. stocks ended slightly lower in a choppy Tuesday session as investors saw some U.S. drugmakers face setbacks in vaccine or treatment trials for COVID-19. Pharmaceutical giant Johnson & Johnson announced a pause of all of its COVID-19 vaccine trials. And a clinical trial for a coronavirus antibody treatment made by Eli Lilly was paused because of a “potential safety concern.” ~ HDFC Securities
Building on a record-breaking momentum for the past three months, the Sensex 50 contracts of BSE has crossed daily trading turnover of Rs 2 lakh crore for the first time in history. "The exchange recorded turnover of Rs 2,00,390 crore on October 13, 2020 in Equity Derivatives segment, on back of a sharp increase in the transactions in an upbeat equity market. The previous daily high turnover INR 184,655 crore was recorded on October 9, 2020," BSE said in a release.
After the failure of its delisting, Anil Agarwal's Vedanta Ltd said that it remains committed to India particularly in the natural resources sector. "The bid would have resulted in FDI inflow of over 3.15 billion dollars into the Indian economy and helped boost growth between 0.4% and 0.8% through the multiplier impact of such large infusion of funds. Vedanta looks forward to unparalleled opportunities and growth in India. The company is committed to fulfilling the goal of Aatmanirbharta in the natural resources sector," the company said in a statement released on Tuesday.
IT services major Wipro on Tuesday announced an up to Rs 9,500 crore buyback plan at Rs 400 per equity share. The announcement comes a week after its rival Tata Consultancy Services (TCS) announced a mega Rs 16,000-crore buyback plan at Rs 3,000 per equity share.
In a regulatory filing, Wipro said its board of directors has approved a buyback proposal for purchase of up to 23.75 crore equity shares at Rs 400 per share and aggregates to an amount of up to Rs 9,500 crore. This is 4.16 per cent of the paid-up equity share capital of the company as on September 30, 2020, it added.
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Continuing the gaining momentum for nine straight days, BSE Sensex and Nifty 50 are likely to open in the negative territory on Wednesday. In the previous session, Indian share markets traded volatile and ended with marginal gains, following Asian peers. Investors will watch quarterly earnings of IT bellwether Infosys, react to Wipro’s buyback approval, number of COVID-19 cases coupled with a high rate of recoveries, and other global cues.
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"After showing minor weakness from the swing highs On Monday, Nifty shifted into a consolidation with weak bias on Tuesday and closed the day on a flat note. A doji type candle pattern was formed (identical open and close), which was formed beside the minor negative candle of Monday," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
He added that normally, a formation of doji after a reasonable upmoe or down move could be considered as a warning signal for trend reversal. "Having formed this pattern beside the last negative candle could mean less predictive value for this doji pattern."
Batting for more fiscal spending, chief economic adviser Krishnamurthy V Subramanian said a boost to infrastructure and employment-related programmes like creation of an urban job guarantee programme would help pep up consumption demand. The Covid-ravaged economy will likely shrink by a record 9.5% in the current fiscal, Subramanian said on Tuesday, as he agreed with the central bank’s latest assessment of the magnitude of growth slump. However, elevated inflation will still drive up nominal GDP.
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The Indian economy, severely hit by the coronavirus pandemic, is projected to contract by a massive 10.3 per cent this year, the International Monetary Fund said on Tuesday. However, India is likely to bounce back with an impressive 8.8 per cent growth rate in 2021, thus regaining the position of the fastest growing emerging economy, surpassing China’s projected growth rate of 8.2 per cent, the IMF said in its latest ‘World Economic Outlook’ report.
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