Opening Bell: Here’s what you need to know before the market opens on October 13, 2021.
Momentum likely to continue on D-Street, Retail inflation eases in September and IMF retained India’s growth at 9.5%. IT stocks would be in limelight as Infosys and few other notable names set to announce their quarterly earnings.
In the last trading session, the fag-end buying helped Indian benchmark indices to extended their winning streak for the fourth straight day on Tuesday. If we go by the early action in the SGX Nifty, it indicates that the markets are likely to pick up from where they had left in the last trading session. Nifty may open around 18,052 up by 48 points. But the question on everyone's mind is, what is helping the cause? The answer, the incoming macro data, which is certainly a cheerful one as retail inflation (CPI) for September eased to 4.35% vs 5.3% MoM. IIP for August came in at 11.9% vs 11.5% MoM, and cheery on the top is that the International Monetary Fund (IMF) report, where they retained India’s growth forecast at 9.5% for the FY 2021-22, while it is a trimmed forecast for the global economy.
Cues from Asian markets: It was a wobbly Wednesday for the Asian markets as Japan’s Nikkei 225 and China’s Shanghai Composite was down by 0.09% and 0.48%, respectively.
Overnight cues from US markets: All the three US stock indices spent a major part of Tuesday’s trading session hovering near the neutral line, but eventually ended the day with meagre losses. As a result, US stocks indices ended in red for the third straight day. The Dow dropped 0.3%, while the S&P 500 and tech-heavy Nasdaq slipped 0.2% and 0.1%, respectively. Going forward, market participants would look forward to the start of earnings season on Wednesday and the near-term movement of the markets would be dictated by their outcome.
Last session summary: After oscillating between positive and negative terrain, key equity benchmarks witnessed a strong rebound from lower levels, which helped in closing the session near the intraday high levels on Tuesday. The Nifty settled just shy of the 18,000 mark, while Sensex closed within striking distance of the 60,300 mark. The broader markets outperformed the frontline indices with Nifty Midcap 100 and Smallcap 100 rising by 0.55% and 0.80%, respectively.
Among sectoral indices, barring Nifty IT all other sectoral indices ended in positive terrain with Nifty PSU Bank advancing more than 3% to emerge as the top gainer.
FII’s and DII’s activity on Tuesday: Yet another day of selling was seen from both the FIIs and DIIs. FIIs were net sellers to the tune of Rs 278.32 crore, while the DIIs were net sellers to the tune of Rs 741.22 crore.
Important events to watch out for: On the earning front, Infosys, Wipro and Mindtree will be in focus.
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