Trends on SGX Nifty indicate a flat to positive opening for the index in India with a 43-points gain. The Nifty futures were trading at 18,047 on the Singaporean Exchange around 07:30 AM.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, “Nifty is expected to open positive at 18045, up by 45 points. Nifty has support in 17800-17850 range. Nifty is in a bullish trend and traders can consider buy on dips with strict stoploss for 18100 and 18140 as targets.”
Indian markets could open mildly higher, in line with mostly positive Asian markets today and despite mildly lower US markets on Tuesday, said Deepak Jasani, Head-Retail, HDFC Securities.
Mohit Nigam, Head - PMS, Hem Securities said, "Benchmark Indices are expected to open on a slight positive note as suggested by trends on SGX Nifty. US markets ended lower yesterday as investors are uncertain about the third quarter’s earnings. Asian stocks were trading mixed in the early Wednesday trade with Nikkei and Hang Seng trading in red while Kospi trading in green.
"Some stock specific actions can be witnessed in stocks such as Tata Motors (raises 7,500 Cr from TPG, ADQ for EV business), Happiest Minds (entered into partnership with Tech4TH Solutions), Zen Technologies (consider fundraising plan on October 16). Earnings to watch today include Infosys, Wipro and Mindtree. According to our analysis, with such a strong demand environment both Infosys and Wipro are expected to post strong numbers and likely to revise their guidance upwards.
"On technical front, Nifty 50 has been closing in green for the last 4 days and once the index closes above 18,000 level, this will open gates for 18,400 – 18,500 levels in the short term. Immediate support level in Nifty 50 is 17,800 while 18,200 may act as an immediate resistance."
US stocks finish lower on Tuesday
US stocks finished lower on Tuesday, extending losses late as investors grew more jittery in the run up to third-quarter earnings, while a jump in Tesla shares helped support the market.
The Dow Jones Industrial Average fell 117.72 points, or 0.34%, to 34,378.34, the S&P 500 lost 10.54 points, or 0.24%, to 4,350.65 and the Nasdaq Composite dropped 20.28 points, or 0.14%, to 14,465.93.
Asian indices trade mixed
Asian indices were trading mixed with Straits Times and Kospi gaining 1 percent each, while Taiwan Weighted and Shanghai Composite are trading flat.
Indian economy contracts by 7.3%
India's economy, which contracted by 7.3 percent due to the COVID-19 pandemic, is expected to grow by 9.5 per cent in 2021 and 8.5 per cent in 2022, according to latest projections released by the International Monetary Fund on Tuesday.
As the low base effect slowly wears off, industrial production in India continued to stabilise in August, expanded by 11.9 percent year-on-year (YoY) in August, rising slightly from 11.4 percent in July.
CPI inflation for September at 4.35% in against 4.30 in August
The Consumer Price Index-based (CPI) inflation for September 2021 came in at 4.35 percent, compared with 5.30 percent in August, data released by the National Statistical Office (NSO) showed on October 12. This is the lowest retail inflation print since April 2021.
The fall in headline retail inflation was primarily on the back of a sharp cooling in food inflation. Consumer Food Price Inflation (CFPI) for September stood at 0.68 percent in September, compared with 3.11 percent in August.
Domestic flights allowed to operate at full capacity
Domestic flights will be allowed to operate at full capacity from October 18, the government said in an order issued on October 12.
"After review of the current status of Scheduled Domestic Operations viz-a-viz passenger demand for air travel", it has been decided to "restore the scheduled domestic air operations with effect from 18-10-2021 without any capacity restriction," the ministry stated.
PE firm TPG Group to invest in Tata Motors' EV subsidiary
Tata Motors on October 12 announced that private equity firm TPG Group would be investing Rs 7,500 crore in its new wholly-owned electric vehicle subsidiary.
The investment would be made in tranches, over a period of 18 months from the date of completion of the first tranche.
RBI announces cancellation of licences of 6 NBFCs
The Reserve Bank of India (RBI) on October 12 announced the cancellation of registration (licenses) of six NBFCs.
The list includes names such as Cartel Finance and Investments Private Limited, Alamgir Motor Finance Limited, Nau-Nidh Finance Limited, Kim Investment Limited, Sambandh Finserve Private Limited, and BTL HoldingCompany Limited.
RBI issues SFB licence to consortium
The Reserve Bank of India (RBI) on October 12 issued a small finance bank licence to the consortium of Centrum Financial Services Limited (Centrum), and Resilient Innovations Private Limited (BharatPe), Centrum said in an exchange filing.
The new entity will take over the assets and liabilities of Punjab and Maharashtra Co-operative Bank. Centrum’s MSME and Micro Finance businesses will be merged into Unity Small Finance Bank.
Results on October 13
Infosys, Wipro, Mindtree, Advik Laboratories, Aditya Birla Money, Morarka Finance, National Standard, Perfect-Octave Media Projects, Plastiblends India, Raghav Productivity Enhancers, SDC Techmedia, Sanathnagar Enterprises, Stratmont Industries, and Unistar Multimedia will release quarterly earnings on October 13.
Stocks under F&O ban on NSE
Seven stocks - Bank of Baroda, Indiabulls Housing Finance, IRCTC, NALCO, Punjab National Bank, SAIL, and Sun TV Network - are under the F&O ban for October 13. 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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