The Sensex and Nifty are expected to begin higher on October 27 as GIFT Nifty trends suggest a favorable opening for the wider index with a gain of 44.50 points.
The bears’ attack on Dalal Street reached a sixth session on October 26 due to rising US bond yields and a deteriorating scenario in the conflict between Hamas and Israel. Most indexes were down more than a percent; however, the smallcap index recovered well but still finished down.
The NSE Nifty 50 index slid 264.90 points, or 1.39 percent, to 18,857.25. The BSE Sensex fell 1.41 percent, or 900.91 points, to 63,148.15.
According to the pivot point calculator, the Nifty may find support at 18,834, followed by 18,786 and 18,708. On the upside, 18,990 may be the first point of resistance, followed by 19,038 and 19,116.
Nifty GIFT
Trends on the GIFT Nifty show that the larger index in India is off to a good start, with a rise of 44.50 points, or 0.23 percent. The Nifty futures were trading at roughly 19,005.50.
The US Markets
US equities fell on Thursday, led by tech and tech-related megacap firms, as investors absorbed mixed quarterly reports and evidence of economic resilience that might lead the Federal Reserve to retain interest rates at a restrictive level for a longer period of time than expected.
All three major U.S. market indices finished in the red, and all are set to fall further this week.
The tech-heavy Nasdaq fell the most, pushed down by the “magnificent seven” group of mega-cap firms in the face of bleak earnings expectations and a “higher for longer” interest rate outlook.
The Dow Jones Industrial Average sank 251.63 points, or 0.76%, to 32,784.3, the S&P 500 dropped 49.54 points, or 1.18%, to 4,137.23, and the Nasdaq Composite slid 225.62 points, or 1.76%, to 12,595.61.
SEBI proposes new ‘high-risk’ mutual fund category, wants feedback from AMFI
The Securities and Exchange Board of India (SEBI), India’s capital market regulator, has recommended the introduction of a new mutual fund (MF) with high risk and the potential for higher returns. SEBI has written to the Association of Mutual Funds of India (AMFI; the trade association for the MF sector).
This concept was first presented by SEBI during a meeting with AMFI. Following that, it sent a letter to AMFI to confer internally regarding the potential of such a category. According to a source familiar with the situation, SEBI is worried that many investors, in their quest for larger returns (because of greed), rush to high-risk Portfolio Management Services and, in some cases, unregistered consultants.
RIL’s Q2 net profit may increase due to overall development in the oil, Jio telecom, and retail sectors.
Reliance Industries is projected to record a strong increase in fiscal second-quarter net profit despite a small increase in sales, owing mostly to refining margin increases. Except for some weakness in the petrochemicals area, India’s largest firm by market value is expected to do well across the board.
Analysts anticipate consistent growth in all categories in Q2 FY24, following a disappointing O2C performance in Q1 FY24. With increased foot traffic, retail EBITDA will rise. New customers will boost Jio’s EBITDA while increasing gas output will boost Oil and Gas EBITDA.
According to a Axpert Media study of ten brokerages, RIL’s consolidated net sales in Q2 FY24 are estimated to be Rs 2.31 lakh crore, up 0.5 percent year on year and 11% quarter on quarter.
Net profit is expected to be Rs 17,482 crore, a 27.2 percent increase year on year. RIL’s second-quarter EBITDA is estimated to be Rs 39,696 crore, up 28% year on year and 9.2% quarter on quarter.
The ED seizes assets worth more than Rs 70 crore from DHFL promoters Wadhawans.
The Enforcement Directorate said on Thursday that it has attached assets worth more than Rs 70 crore belonging to DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan as part of a money laundering investigation tied to an alleged bank loan fraud case.
The Wadhawans are being investigated for “cheating” a consortium of 17 banks to the tune of Rs 34,615 crore, and the money laundering case arises from a Central Bureau of Investigation (CBI) FIR, according to a statement from the agency. “The attached assets are in the manner of paintings and sculptures worth Rs 28.58 crore, watches valued Rs 5 crore, diamond jewelry around Rs 10.71 crore, a 20 percent stake in a helicopter to the tune of Rs 9 crore, and two flats in Bandra (Mumbai) valued Rs 17.10 crore,” the official said.
Update on Crude Oil Prices
Oil prices increased on Friday, reclaiming ground after falling more than $2 per barrel the previous session, as fears of a larger Middle East conflict abated and the United States, the world’s largest oil user, showed indications of softening demand.
Brent oil futures were up 45 cents, or 0.5%, to $88.38 a barrel at 0019 GMT, while West Texas Intermediate was up 42 cents, or 0.5%, to $83.63 a barrel.
Both futures are on course for their first weekly dip in three weeks, as the geopolitical premium created on expectations that the Israel-Gaza war will involve other Middle Eastern nations and impair oil supplies has diminished.
Update on Gold Prices
Gold was marginally higher on Thursday, as persistent safe-haven demand spurred by the Middle East crisis helped bullion withstand pressure from good U.S. statistics that alleviated recession worries.
Spot gold was up 0.3% to $1,986.29 per ounce. Prices were just shy of the five-month high set on Friday earlier in the session. Gold futures in the United States climbed 0.1% to $1,996.40.
Updates on the US dollar:
The dollar was on track for a weekly gain on Friday, boosted by good U.S. economic data that supported the argument for higher-for-longer interest rates, while the yen remained on the lower side of 150 per dollar ahead of a critical policy meeting next week.
According to data released on Thursday, the United States’ economy grew at its highest rate in over two years in the third quarter, as higher salaries from a tight job market boosted consumer spending.
This added to views that the Federal Reserve will maintain monetary conditions restrictive for a longer period of time, sending the dollar broadly higher versus a basket of currencies.
The US dollar index was steady at 106.57, having achieved a three-week high of 106.89 in the previous session, and was on track for a 0.4% weekly gain.
Data from FII and DII
On October 26, foreign institutional investors sold shares worth Rs 7,702.53 crore, whereas domestic institutional investors purchased equities worth Rs 6,558.45 crore, according to preliminary data from the National Stock Exchange.
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NSE stocks subject to a F&O ban
Delta Corp has been added to the NSE’s F&O ban list for October 26, while RBL Bank remains on the same list.
