Indian benchmark indices ended in losses on Tuesday following weak global peers and amid rising geopolitical tensions in Europe. Traders remained cautious when a private report stated that India’s retail inflation accelerated to a five-month high of 7.30% in September with surging food prices, staying above the Reserve Bank of India’s (RBI) upper tolerance band for the ninth month.
“The short-term trend of Nifty is weak with high volatility. The emergence of sharp buying interest from near the lows could be a cheering factor for the bulls to make a comeback. Hence, one may expect Nifty to retest the hurdle of 17,400 levels in the near term,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Immediate support is placed at 17,050-17,100 levels, Shetti added.
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Indian Indices
The Sensex fell 843.79 points or 1.46% to 57,147.32 while the Nifty was down by 257.45 points or 1.49% to 16,983.55 at the close of trading on Tuesday. The Sensex moved in a high and low band of high and low of 58,027.52 and 57,050.40. There were 2 stocks advancing against 28 stocks declining on the index. The Nifty traded in a range of 17,261.80 and 16,950.30. There were 3 stocks advancing against 47 stocks declining on the index.
Broader Indices
The broader indices ended in red with the BSE mid-cap index down by 1.61% and the Small-cap index down by 1.47%. The top losing sectoral indices on the BSE were Realty by 3.07%, Metal by 3.04%, Telecommunication by 2.45%, IT by 2.12% and TECK down by 2.11%, while there were no gaining sectoral indices on the BSE.
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India VIX Index
Nifty or India VIX, a gauge of the market’s expectation of volatility over the near term, rose 4.42% to 20.49 on Tuesday.
SGX Nifty
The trends on SGX Nifty indicate a positive opening for the indices in India. The Nifty futures were trading at 16,970.5 up 30 points at around 08:00 hours IST.
Support and Resistance levels
The key support level for the Nifty is placed at 17,110, followed by 16,980. If the index moves up, the key resistance levels to watch out for are 17,326 and 17,411, according to pivot charts.
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US Markets
The S&P 500 fell 23.55 points, or 0.7%, to 3,588.84 on Tuesday.
The Dow Jones Industrial Average rose 36.31 points, or 0.1%, to 29,239.19.
The Nasdaq fell 115.91 points, or 1.1%, to 10,426.19.
The Russell 2000 index of smaller companies rose 1 point, or 0.1%, to 1,692.92.
Asian Markets
Asian markets are lower today as Chinese and Hong Kong shares fall. The Shanghai Composite is off 0.73% while the Hang Seng is down 1.65%. The Nikkei 225 is not trading
European Markets
European markets finished broadly lower with shares in London leading the region. The FTSE 100 was down 1.06% while Germany’s DAX was off 0.43% and France’s CAC 40 was lower by 0.13%.
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Major Headlines
IMF lowers India’s GDP forecast by 60 bps to 6.8%, warns global economies
The International Monetary Fund (IMF) on Tuesday announced another cut to India’s gross domestic product (GDP) growth forecast for India for the financial year 2022-23 by 60 basis points to 6.8%.
The IMF had in July predicted a gross domestic product (GDP) growth of 7.4% for India for the same year. Even that forecast was lower than the 8.2% predicted in January this year.
Global growth is projected to slow from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023. This is the weakest growth profile since 2021, except for the global financial crisis and the acute phase of the COVID-19 pandemic.
Infosys president Ravi Kumar S resigns ahead of Q2 results announcement
IT services giant Infosys on Tuesday said that president Ravi Kumar S has resigned from his post with immediate effect.
“The Board of Directors placed on record their deep sense of appreciation for the services rendered by Ravi Kumar S. for his contributions to the company,” Infosys said in a regulatory filing.
The move comes just two days ahead of the company’s second-quarter result announcement.
According to the financial year 2021-22 annual report of Infosys, Kumar was the third highest-paid senior executive of the company after CEO Salil Parekh and former COO UB Pravin Rao.
Bulk Deal Data
ROUTE ONE FUND I LP sold 1,20,00,000 shares in IndusInd Bank Ltd. at Rs 1168.26 per share on the NSE.
GOLDMAN SACHS INVESTMENT (MAURITIUS) I LTD bought 69,66,712 shares in IndusInd Bank Ltd. at Rs 1167.53 per share on the NSE.
BOFA SECURITIES EUROPE SA bought 46,88,000 shares in Tilaknagar Industries Ltd at Rs 99.98 per share on the NSE.
JOHN HANCOCK FUNDS II INTERNATIONAL VALUE FUND sold 5,00,000 shares in Motilal Oswal Financial S at Rs 703 per share on the NSE.
PPFAS MUTUAL FUND sold 5,00,000 shares in Motilal Oswal Financial S at Rs 703 per share on the NSE.
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DII and FII data
Foreign institutional investors (FIIs) have sold shares worth a net of Rs 4,612.67 crore, whereas domestic institutional investors (DIIs) purchased shares worth a net of Rs 2,430.76 crore on October 11, as per provisional data available on the NSE.
NSE F&O Ban
Delta Corp Ltd, Indiabulls Housing Finance and India Cements have been placed under the F&O ban for October 12. Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
