The benchmark Sensex and Nifty are expected to open moderately higher on October 31, with the GIFT Nifty indicating a 5.5-point rise for the wider market.
On the daily charts, the BSE Sensex rose 330 points to 64,113, while the Nifty50 rose 94 points to 19,141, forming a bullish candlestick pattern with a lengthy lower shadow.
The index recovered 200 points from the day’s low. “The Nifty index staged a strong recovery, with bulls successfully defending the previous day’s low and eventually closing at its highest level.” Despite the existing decline, the prospect of a retreat persists, potentially pushing the index to the 19,300 level,” Kunal Shah, senior technical & derivative analyst at LKP Securities, said.
However, he believes that the support level at 18,900 is significant, and any closing breach below it would give the bears control, perhaps sending the index down to the 18,500-18,300 region.
According to the pivot point calculator, the Nifty may find support at 18,996, followed by 18,945 and 18,861. On the upside, 19,163 may be the first point of resistance, followed by 19,215 and 19,298.
GIFT Nifty
With a rise of 5.5 points, the GIFT Nifty predicts a somewhat favorable start for the wider market. GIFT Nifty futures were trading at 19,230 points, down from a high of 19,245 points.
US Markets
On Monday night, US stock futures were flat after the main averages rose in a relief bounce. S&P 500 futures were down 0.04 percent, while Nasdaq 100 futures fell 0.06 percent. Dow Jones Industrial Average futures rose barely 10 points, or 0.03 percent.
The S&P 500 managed to pull out of correction territory and close 1.2 percent higher on Monday, its highest day since late August. The Nasdaq Composite gained 1.2 percent, while the Dow gained 1.6 percent in its highest day since early June.
European Markets
Despite persistent instability in the Middle East, European stock markets finished higher on Monday, with investors keeping an eye on German economic data and US market action.
The pan-European Stoxx 600 finished 0.4 percent higher, with most sectors in the black, driven by healthcare companies. According to LSEG statistics, the index is on track for a 4.6 percent monthly drop due to weak profits and fears about higher-for-longer interest rates.
HSBC reported a 235 percent increase in earnings after tax to $6.26 billion in the third quarter, which was still lower than expected. In addition, Europe’s largest bank by assets announced an extra $3 billion share repurchase. Shares on the London Stock Exchange began 0.8 percent higher.
Asian Markets
Asia-Pacific markets were unsettled ahead of the Bank of Japan’s important monetary policy announcement and new economic data from throughout the region. The Bank of Japan’s two-day policy meeting will finish later in the day, with investors looking for evidence that the central bank would raise its inflation predictions.
It is also anticipated to explore other changes to its bond yield regulation. According to experts surveyed by Reuters, China’s purchasing managers’ index data for October will likely indicate manufacturing rose at an expansionary pace of 50.2.
The Nikkei 225 in Japan fell 0.34 percent at the outset, while the Topix gained 0.22 percent. The Kospi in South Korea rose 0.37 percent. The Kosdaq fell 0.06 percent. Hong Kong’s Hang Seng index futures were at 17,393, indicating a lower open compared to the HSI’s finish of 17,406.36. The S&P/ASX 200 in Australia was 0.47 percent higher.
Tata Motors received a Rs 766 crore arbitral award with interest in the Singur factory lawsuit.
Tata Motors said on October 30 that it has received an arbitral verdict of Rs 766 crore plus interest to compensate for its investment in the now-defunct Singur facility. Tata Motors was constructing a facility there to manufacture the ambitious Tata Nano.
“With regard to the pending Arbitral proceedings between Tata Motors Limited (TML) and West Bengal Industrial Development Corporation Limited (WBIDC), in relation to TML’s claim of compensation from WBIDC under different heads, on account of the loss of capital investments, in relation to the automobile manufacturing facility at Singur (West Bengal), this is to let you know that the aforesaid pending Arbitral proceedings before a three-member Arbitral Tribunal have now been finally disqualified.”
According to the submission, the tribunal determined that Tata Motors can collect Rs 765.78 crore plus interest at an annual rate of 11% from September 1, 2016, until actual recovery from WBIDC. The filing does not specify whether the interest is compounded or simple. Tata Motors stated that it has been granted permission to collect Rs 1 crore towards the cost of the proceedings.
TVS Motor Q2 statistics show a 32% increase in net profit to Rs 537 crore and a 13% increase in sales.
TVS Motor Company recorded a standalone net profit of Rs 537 crore, up 32% from the previous quarter ended September 30, 2024, on October 30. In the previous fiscal year, the company achieved a net profit of Rs 407 crore. Revenue from operations grew 13 percent to Rs 8,144.61 crore in the same period the previous year, from Rs 7,219.18 crore.
The Chennai-based two-wheeler manufacturer’s operating Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 22% to Rs 900 crore in the second quarter of 2023-24, up from Rs 737 crore in the second quarter of 2022-23, while its EBITDA margin increased to 11% from 10.2 percent.
Furthermore, the company’s Profit Before Tax (PBT) increased by 32% to Rs 724 crore (including additional income of Rs. 37.5 crores towards fair valuation of current investments) in the second quarter of 2023-24, compared to Rs. 549 crores in the same period the previous year.
Prospects for the stock market are good as youthful investors enter with active income: BSE’s CEO
According to Sundararaman Ramamurthy, CEO of BSE, the overwhelming majority of new investors joining the stock market are young and have an active income, which is a favorable sign for Dalal Street’s long-term development prospects.
Eighty-three percent of new investors registered in the previous three years are under the age of 40 and in their earning years. This demonstrates that the Indian market’s expansion would be continued in the future, Ramamurthy stated at the 28th Annual General Meeting of Asia Securities Forum (ASF), which was sponsored by the Bombay Stock Exchange Brokers’ Forum (BBF) in Mumbai.
Ramamurthy further explained that roughly half of these new investors are between the ages of 30 and 40. “In the last three years, approximately sixty percent of all investors trading in the market got registered.” One-fourth of the population is between the ages of 18 and 20. “The next 22% will be between the ages of 20 and 30 years,” he went on to say.
Chris Wood gives an ominous warning: If the BJP loses in 2024, the market will see a 25% drop.
Renowned market strategist Chris Wood, Global Head of Equity Strategy at Jefferies, made an important prediction at the Business Standard BFSI Summit 2023.
Wood voiced fear that the Indian stock markets might suffer a 25% correction if the Bharatiya Janata Party (BJP), led by Prime Minister Narendra Modi, fails to achieve victory in the 2024 general elections.
“If there was an occurrence of what happened with the surprise election in 2004, then I would expect a 25% correction, if not more,” Wood said, drawing a parallel to the surprising 2004 election results. However, market momentum would cause a strong rebound.”
Fincare SFB and AU Small Finance Bank will combine
Fincare Small Finance Bank (Fincare SFB) and AU Small Finance Bank (AU SFB) will combine on February 1, 2024. All essential permissions are required for the merger. AU SFB declared its approval of the merger in a regulatory filing late in the evening. According to the conditions of the merger, Fincare SFB owners would get 579 shares of AU SFB for every 2,000 shares they own in Fincare SFB. Following the deal, it is projected that existing Fincare SFB stockholders would own roughly 9.9% of AU SFB.
The transaction is subject to several critical conditions, including shareholder approval for both Fincare SFB and AU SFB, regulatory approvals from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI), and a capital infusion of Rs. 700 crores by Fincare SFB’s promoters. AU SFB has stated that all Fincare SFB workers would be included into the AU SFB family following the merger.
Oil Prices
Oil prices fell even after Israel moved ground forces into Gaza, escalating tensions in the region, as investors await the Federal Reserve’s monetary policy meeting later this week. Brent crude was down 2.8 percent at $87.89 a barrel. Last week, US West Texas Intermediate futures fell 3.5 percent to $82.57 a barrel.
“I believe the market priced in the incursion on Friday, and tonight is more ‘sell the fact,” Bob McNally, president of Rapidan Energy Group, told CNBC in an email. He stated that ground operations are “limited so far” and mentioned other macroeconomic issues.
The Fed is anticipated to hold rates unchanged at the end of its two-day meeting on Wednesday, following the US economy grew faster than predicted in the third quarter, expanding at a 4.9 percent annual rate.
The Dollar Index
In futures trading, the Dollar index was 0.11 percent higher at 106.32, while the value of one dollar was close to Rs 83.26.
Gold Rates
On Monday, gold prices remained near the psychologically important $2,000 level, buoyed by safe-haven demand amid the Middle East turmoil, as market players looked ahead to this week’s US Federal Reserve policy meeting.
“The Middle East conflict is keeping the gold and silver markets stable.” “I am still bullish on gold; the conflict will worsen before it improves, and In the short term, gold could reach an all-time high,” said Jim Wyckoff, senior analyst at Kitco Metals
The spot price of gold was $1,998.47 per ounce, down 0.4 percent. Gold futures in the United States finished 0.4 percent higher at $2,005.60. Spot gold prices touched $2,009.29 per ounce on Friday, breaking beyond the $2,000 barrier for the first time since mid-May, as investors rushed to the safe-haven metal.
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The FIIs and DIIs
On October 30, foreign institutional investors sold shares worth Rs 1,761.86 crore, while domestic institutional investors purchased equities worth Rs 1,328.47 crore, according to preliminary data from the National Stock Exchange.
