Sensex scales new record high at 60,300, Nifty inching towards 18,000-mark

FPJ Web DeskUpdated: Monday, October 11, 2021, 02:09 PM IST
TCS was the top loser in the Sensex pack, shedding over 6 per cent, after the company’s Q2 earnings missed street expectations./Representational image | ANI Photo

The benchmark Sense was around 60,300 mark while the broader Nifty50 hit 18,000-level. At 2.06 PM, the Sensex was up 280.61 points or 0.47 percent at 60,339.67. The Nifty30 is inching towards the 18000 mark. It was 102.90 points or 0.58 percent up at 17,998.10.

Nifty Bank Index rose over 1 percent at noon on the stock markets led by strong showing by stocks of Kotak Mahindra Bank, HDFC Bank, ICICI Bank. A frontline indices including Midcap Index are at record highs.

Equity benchmark Sensex rose over 100 points in opening trade on Monday after opening 100 points lower in opening trade, tracking gains in index heavyweights HDFC Bank, Reliance Industries and Kotak Bank amid a positive trend in global markets. The Nifty rose 52.05 points or 0.29 per cent to 17,947.25.

Maruti was the top gainer in the Sensex pack, rallying over 3 per cent, followed by NTPC, PowerGrid, Kotak Bank, Bajaj Finserv and Bajaj Auto.

TCS was the top loser in the Sensex pack, shedding over 6 per cent, after the company’s Q2 earnings missed street expectations.

The benchmark indices declined at the opening bell. At 09:17 AM, the Sensex was down 100.25 points or 0.17 percent at 59958.81. The broader Nifty was down 23.20 points or 0.13 percent at 17,872. About 1617 shares have advanced, 499 shares declined, and 120 shares are unchanged.

PoweGrid, Maruti, NTPC, Kotak Bank, Reliance, Mahindra and Mahindra were among major gainers while TCS, HCL Tech, Tech Mahindra, Infosys, Bharti Airtel were among early losers on the bourses.

Asian markets trade high

Asian markets were trading higher with Hang Seng and Nikkei up 1 percent each, while Shanghai Composite up 0.5 percent.

OECD breakthrough in corporate tax structure

The Organization for Economic Cooperation and Development on Friday announced a major breakthrough on corporate tax rates, after years of disagreement. The group of developed nations agreed to a global minimum corporate tax rate of 15 percent. This marks a huge shift for smaller economies, such as the Republic of Ireland, which have attracted international firms — to a large extent — via a lower tax rate.

The landmark deal, agreed by 136 countries and jurisdictions representing more than 90 percent of global GDP, will also reallocate more than USD 125 billion of profits from around 100 of the world’s largest and most profitable MNEs to countries worldwide, ensuring that these firms pay a fair share of tax wherever they operate and generate profits

MPC outcome on expected lines

The MPC meet outcome on Oct 08 was largely on expected lines, though sounding a bit dovish. The RBI seems to be following the other central banks by first trying to reduce liquidity (by abandoning GSAPs and announcing VRRR calendar). It also cut inflation projection for FY22 by more than the street expectations to 5.3 percent. Though it has not hinted at a hike in rates, reverse repo rates could be hiked in December meet, signaling the start of policy normalization. The equity markets are relieved temporarily by the dovish tone but will be aware of the rate hike possibilities going ahead.

India's job market clocks records 57% Y-o-Y growth

The Indian job market maintained its record-breaking run for the third consecutive month in a row, clocking 57 percent year-on-year growth in September, according to the latest Naukri JobSpeak report.

At 2,753 job postings, the index hit an all-time high in September surpassing pre-COVID levels in September 2019 by 21 percent.

It said sectors like hospitality (82 percent) and retail (+70 percent) which were most impacted by the pandemic, also witnessed significant YoY growth in September with several hotels and physical store outlets across the country gradually reopening.

Hiring activity has also grown in the education (53 percent), banking/financial services (43 percent) and telecom/ISP (+37 percent) sectors as compared to September, 202The government has initiated the process of filling about 100 vacancies of independent directors in public sector banks and financial institutions to meet regulatory norms of corporate governance.

There have been vacancies at the independent director level across the public sector.

US unemployment rate declines

The United States added 194,000 jobs last month and the unemployment rate fell to 4.8 percent, government data released Friday showed, a mixed result as the world's largest economy recovers from the pandemic.

Fewer jobs were gained than expected but the unemployment rate dropped by more than analysts predicted, with the Labor Department noting employment rising in the leisure and hospitality sector that had been hard hit by Covid-19, but declining in public education.

Hiring was overall much weaker than the upwardly revised 366,000 positions added in August, and may indicate that the COVID-19 Delta variant made businesses hesitant and held back employment.

Driven by record inflows into Systematic Investment Plans (SIPs), the overall mutual funds industry's assets under management jumped to nearly Rs 37 lakh crore in September, registering an over 33 per cent growth compared to the year-ago period, according to Amfi data.

AUM up at 36.77 lakh crore in September

The overall Assets Under Management (AUM) touched Rs 36.74 lakh crore last month, up from Rs 27.6 lakh crore in September 2020, the data from the Association of Mutual Funds (Amfi) showed on Friday.

Amfi CEO N S Venkatesh attributed the record AUM to the record inflows into the SIPs which crossed the Rs 10,000-crore milestone for the first time. This is also reflective of the continued retail investor confidence in mutual funds. Retail investors are preferring mutual funds over low-yielding traditional savings avenue like bank fixed deposits as well as gold and real estate, he added.

Forex dips

The country's foreign exchange reserves dipped by $1.169 billion to stand at $637.477 billion in the week ended October 1, RBI data showed on Friday. In the previous week ended September 24, 2021, the reserves had declined by $997 million to $638.646 billion. The reserves had surged by $8.895 billion to a lifetime high of $642.453 billion in the week ended September 3, 2021.

During the reporting week ended October 1, 2021, the dip in the forex kitty was on account of a fall in the foreign currency assets (FCAs), a major component of the overall reserves. FCAs declined by $1.28 billion to $575.451 billion, as per weekly data by the Reserve Bank of India (RBI).

Results on October 11

Delta Corp, HFCL, Krsnaa Diagnostics, Ramkrishna Forgings, Saregama India, Tata Metaliks, Tinplate Company of India, Lesha Industries, and Sri Lakshmi Saraswathi Textiles will release its quarterly earnings on October 11.

Seven stocks under F&O ban

Seven stocks - Canara Bank, Indiabulls Housing Finance, IRCTC, NALCO, Punjab National Bank, SAIL, and Sun TV Network - are under the F&O ban for October 11. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

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