The stock market indices opened lower in October. The benchmark BSE Sensex fell 250 points or 0.4 per cent below 59,000-mark at 58,876 tracking losses in index majors HDFC twins, ICICI Bank and Infosys amid sustained foreign fund outflow and a weak trend in global markets. The Nifty 50 slipped below 17,500.
At 09:17 AM, the Sensex was down 394.26 points or 0.67 percent at 58732.10. The broader Nifty50 was down 110 points or 0.62 percent at 17508.20. About 807 shares have advanced, 981 shares declined, and 117 shares are unchanged.
Maruti was the top loser in the Sensex pack, shedding around 2 per cent, followed by HDFC Bank, Bajaj Finserv, ICICI Bank, Bharti Airtel and HDFC.
On the other hand, PowerGrid, NTPC, Bajaj Auto, M&M and Dr Reddy''s were among the gainers.
In the previous session, the 30-share index ended 286.91 points or 0.48 per cent lower at 59,126.36, and Nifty declined 93.15 points or 0.53 per cent to 17,618.15.
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 2,225.60 crore on Thursday, as per exchange data
Fuel prices at record high
Petrol and diesel rates were hiked again on Friday, taking fuel prices across the country to a new record high.
In Delhi, petrol prices were increased by 25 paise from Rs 101.64 per litre to Rs 101.89 per litre, whereas diesel has become dearer by 30 paise from Rs 89.87 per litre to Rs 90.17 per litre.
Fuel prices differ from state to state depending on the incidence of local taxes such as value-added tax (VAT) and freight charges.
In Mumbai, the retail price of petrol jumped to Rs 107.95 per litre on Friday. Diesel price also increased in the city by 32 paise per litre to reach Rs 97.84 a litre, the highest among metros.
In Chennai, petrol is retailed at Rs 99.58 and diesel at Rs 94.74 per litre while in Kolkata, petrol costs Rs 102.47 and diesel Rs 93.27 per litre.
International oil prices are at three year high with global benchmark Brent trading at $78.94 per barrel.
Data to watch out for: Markit India Manufacturing PMI for September at 10.30 AM
Asian shares slip in early trade
Shares in Asia-Pacific slipped in Friday morning trade following an overnight drop on Wall Street. Australian stocks led losses regionally, with the S&P/ASX 200 falling 2.23 percent. In Japan, the Nikkei 225 fell 1.41 percent while the Topix index shed 1.8 percent.
Markets in Hong Kong are closed for a holiday on Friday, while those in mainland China are closed for the Golden Week holiday from Friday till October 7.
'Inflation remains high'
Congress voted through a short-term spending bill to keep the U.S. federal government running through early December, acting with only hours remaining before a partial shutdown. Congress has yet to raise the federal debt ceiling though.
Investors were also digesting fresh comments from Fed Chairman Jerome Powell, on inflation remaining high for the time being due to supply bottlenecks as the economy recovers from the pandemic, as he testified to a House panel on COVID relief, along with Treasury Secretary Janet Yellen.
Central Banks of Czechoslovakia, Mexico and Colombia raised rates by 75 bps (to 1.5 percent), 25 bps and 25 bps respectively.
Oil prices decline
Oil futures were little changed on Thursday as reports China was prepared to buy more oil and other energy supplies to meet growing demand offset price pressure from an unexpected rise in US crude inventories and a strong dollar.
Brent futures for November delivery fell 12 cents, or 0.2 percent, to settle at $78.52 a barrel, while US West Texas Intermediate (WTI) crude rose 20 cents, or 0.3 percent, to settle at $75.03.
Domestic natural gas price hiked
The Indian government increased the domestic price of natural gas for the second half of the ongoing fiscal, tracking the global surge in energy costs. Gas under the administrative price mechanism will cost 62 percent higher, at $2.9 per metric million British thermal units, for October 2021-March 2022
Fiscal deficit at 31%
The Centre's fiscal deficit for April-August came in at Rs 4.7 lakh crore, or 31 percent of the full-year budget estimate, compared with 109 percent for the same period last year, official data showed on September 30.
Finance Minister Nirmala Sitharaman had budgeted a fiscal deficit target of Rs 15.07 lakh crore, or 6.8 percent of nominal gross domestic product, for FY22. The fiscal deficit for FY21 was revised to Rs 18.49 lakh crore, or 9.5 percent of GDP, from a budget target of 7.96 lakh crore, or 3.5 percent of GDP.
Sebi extends deadline for annual compliance audit
Markets regulator Sebi on Thursday extended the deadline for investment advisers to conduct the annual compliance audit for the financial year ended March 31. The timeline for compliance with the requirements has been extended by three months, Sebi said in a circular.
For the financial year ending March 31, 2021, the investment advisers (IA) are now required to conduct the annual compliance audit by December 31, 2021.
Eight core sectors post 11.6% growth
Eight core industries, including coal, crude oil, and steel, posted a growth of 11.6 percent in August on a yearly basis, as per government data released on Thursday. The eight core industries -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).
Forex up in June quarter
The country's foreign exchange reserves in nominal terms, including valuation effects, increased by $34.1 billion during the June quarter compared to $27.9 billion in the year-ago period, RBI data showed on Thursday.
The valuation gain, reflecting the depreciation of the US dollar against major currencies and increase in gold prices, amounted to $2.2 billion during the April-June 2021 period. In the year-ago period, the same was at $8 billion.
Japan's factory activity slowest in September
Japan’s factory activity grew at the slowest rate in seven months in September as overall output and new orders shrank due to the fallout from the coronavirus pandemic, a survey showed on Friday.
The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) in September slipped to 51.5 on a seasonally adjusted basis from 52.7 in the previous month.
FII, DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 2,225.60 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 97.18 crore in the Indian equity market on September 30, as per provisional data available on NSE.
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