The benchmark indices opened higher on Wednesday (October 20). The Sensex opened above 61,800, up 118.33 points or 0.19 percent at at 61,834.38. The Nifty was inching towards 18450-mark. The Nifty was up 22.50 points or 0.12 percent at 18441.30. About 955 shares have advanced, 662 shares declined, and 114 shares are unchanged.
Among the major gainers on the Nifty at the opening bell were Wipro, L&T, Divis Labs, Infosys and HCL Tech. Coal India, Hindalco, Tata Motors, ITC and Eicher Motors were among the early losers at the bourses.
Nifty snapped a 7 day winning streak, as expected, on October 19. Nifty closed 0.32 percent or 58 points lower at 18418.7.
Nifty formed an engulfing bear pattern on daily charts, suggesting some more weakness in the coming days. The next support for the Nifty could come in at 18351, while a sustainable support could come in at 17944. On rises 18477-18500 could offer resistance, said Deepak Jasani, Head-Retail, HDFC Securities.
US stocks close higher on Tuesday
US stocks closed higher Tuesday, adding to the largest four-day stretch of gains since late July for both the S&P 500 index and Nasdaq Composite, with companies reporting solid third-quarter earnings despite the spread of the coronavirus delta variant and supply-chain disruptions.
According to Bank of America, through the first week, 66 percent of companies beat Wall Street forecasts on both sales and earnings per share, which is well above the historical average of 47 percent. Earlier this month, stagflation was the buzzword on Wall Street. But now excessive pessimism is receding, especially after strong US retail sales data on Friday.
US home builders started construction on homes at a seasonally-adjusted annual rate of 1.56 million in September, a 1.6 percent decrease from the previous month.
Brazilian assets tumble
Brazilian assets tumbled on Tuesday, leading losses across the globe, on reports the government will breach the country’s spending cap rule to finance a new social program, hurting the fiscal position of Latin America’s largest economy.
IMF downgrades 2021 economic forecast for Asia
The International Monetary Fund on Tuesday downgraded its 2021 economic growth forecast for Asia after the highly infectious COVID-19 delta variant caused a spike in cases in parts of the region.
The IMF said it expects Asia’s economy to grow by 6.5 percent in 2021, compared with its April forecast for a 7.6% expansion.
Asian stocks up
Asian stocks climbed Wednesday, tracking a US rally as a focus on corporate earnings bolstered investor sentiment.
Foreign direct investment (FDI) into China in the first nine months of the year jumped 19.6% from the same period last year to 859.51 billion yuan ($134.7 billion).
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