Indian benchmark indices erased most of the gains
towards the end but still ended higher on Thursday, with investors eyeing
quarterly updates from companies ahead of corporate earnings season. Benchmarks
made a positive start and added gains in morning deals with strong foreign
flows. Indices pared most of their gains in the late afternoon session, as some
concern came with the S&P Global India services Purchasing Managers’ Index
falling to 54.3 in September from August’s 57.2, a six-month low, led by a substantial
easing in demand amid high inflation.

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The Nifty50 has formed a small negative candle on
the daily chart with an upper shadow, reflecting sort of a breather after a
bounce from strong support at 16,800, according to Nagaraj Shetti, Technical
Research Analyst at HDFC Securities.

One can expect some sideways move in the coming
sessions with resistance around 17,450-17,500 levels, he said.

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Indian Indices

The Sensex rose 156.63 points or 0.27% to 58,222.10
while the Nifty was up by 57.50 points or 0.33% to 17,331.80 at the close of
trading on Thursday. The Sensex moved in a high and low band of 58,578.76 and
58,173.70. There were 18 stocks advancing against 12 stocks declining on the
index. The Nifty traded in a range of 17,428.80 and 17,315.65. There were 27
stocks advancing against 23 stocks declining on the index.

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Broader Indices

The broader indices ended in green with the BSE
mid-cap index up by 1.13% and the Small cap index up by 1.30%. The top gaining
sectoral indices on the BSE were Metal up by 3.89%, Capital Goods up by 2.34%,
Realty up by 2.15%, Industrials up by 1.96% and Power up by 1.61%, while FMCG
down by 0.18% and Telecom down by 0.16% were the top losing indices on 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, fell 1.30% to 19.32 on Thursday.

SGX Nifty

The trends on SGX Nifty indicate a positive opening
for the index in India with a 23.5 point loss. The Nifty futures were trading
at 17,292.5 on the Singaporean Exchange at around 6.52 hours IST.

Support and Resistance levels

The key support level for the Nifty is placed at
17,289, followed by 17,246. If the index moves up, the key resistance levels to
watch out for are 17,402 and 17,472, according to pivot charts.

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US Markets

The S&P 500 fell 38.75 points, or 1.02%, to
3,744.52 on Thursday.

The Dow Jones Industrial Average fell 346.93
points, or 1.15%, to 29,926.94.

The Nasdaq composite fell 75.33 points, or 0.68%,
to 11,073.31.

The Russell 2000 index of smaller companies fell
10.19 points, or 0.58%, to 1,752.51.

Asian Markets

Asian markets ended mostly higher on Thursday. The
KOSPI Composite rose 1.02%, the Nikkei 225 rose 0.70% and the Hang Seng fell
0.42%.

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European Markets

European markets ended mostly in red on Thursday.
Germany’s DAX was down by 0.37%, France’s CAC 40 was down by 0.82% and London’s
FTSE was down by 0.78%.

Major Headlines

World Bank cuts India’s GDP growth
forecast by 100 basis points

The World Bank on Thursday downgraded the real
gross domestic product (GDP) growth forecast for India to 6.5% for the fiscal
year 2022-23 (FY23), from the previous one of 7.5%. The body also stated in its
report that the effects of the Russian invasion of Ukraine will impact the
economic performance of India.

Also, the global monetary tightening measures will
weigh on the growth rate. In its bi-annual report on South Asia, the World Bank
said, “Private Investment growth is likely to diminish due to high uncertainty
and higher finance costs.” The institution also reported that global demand had
plunged in the recent past and it will significantly impact the country’s
exports. 

This is the third cut in the World Bank’s forecast
of India’s GDP growth. Earlier in June, it was revised to 7.5% for FY23 while
in April it was slashed from 8.7% to 8%.

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SpiceJet shares jump 6% as Rs 1,500
crore credit line expected

SpiceJet, low-cost Indian carrier, shares rose over
6% to Rs 41.95 on Thursday when a report said that the finance ministry is
expected to allow the airline an additional 10 billion Indian rupees in the
credit line. The loan limit under the Emergency Credit Line Guarantee Scheme
(ECLGS) has been raised to Rs 1,500 crore from Rs 400 crore.

As per the latest ECLGS 3.0, an airline would be
allowed credit line up to “100% of their fund-based or non-fund based loan
outstanding as on reference dates or Rs 1,500 crore, whichever is lower; and of
the above that, Rs 500 crore shall be considered, based on the equity
contribution by the owners.”  The
modifications are aimed to provide needful collateral-free liquidity at
reasonable interest rates to help out the company with its present cash flow
problems.

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Bulk Deal data

Gaurav Jain bought 3,26,369 shares in Debock
Industries Limited at Rs 28.75 per share on the Nse.

Kuchhal Atul sold 9,18,663 shares in Gravita India
Limited at Rs 332.08 per share on the Nse.

Niraj Rajnikant Shah sold 2,65,969 shares in North
East Carry Corp Limited at Rs 24.58 per share on the Nse.

Gaurav Chordia sold 1,26,181 shares in Silgo Retail
Limited at Rs 23.81 per share on the Nse.

Abhay Narain Gupta sold 4,08,751 shares in Suumaya
Industries Limited at Rs 44.93 per share on the Nse.

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DII and FII data

Foreign institutional investors (FIIs) have bought
shares worth a net Rs 279.01 crore, whereas domestic institutional investors
(DIIs) purchased shares worth a net Rs 43.92 crore on October 6, as per
provisional data available on the NSE.

NSE F&O Ban

No/Stocks have been placed under the F&O ban
for October 7. 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.