On the weekly chart, the index formed a small negative candle with a long lower shadow, which suggests the formation of a bullish hammer-type candle pattern at the lows.
“Such a weekly chart pattern after a reasonable decline calls for bottom reversal for the market. We observe a broadening type pattern, which is unfolding in Nifty as per weekly timeframe chart,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
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Wall Street opens lower as inflation data adds to rate-hike worries
Wall Street’s main indexes opened lower on Friday as resilient core inflation in August stoked fears of more big-sized interest-rate hikes denting a rebound in consumer spending.The Dow Jones Industrial Average fell 102.58 points, or 0.35%, at the open to 29,123.03.The S&P 500 opened lower by 6.99 points, or 0.19%, at 3,633.48, while the Nasdaq Composite dropped 39.80 points, or 0.37%, to 10,697.71 at the opening bell.
Sebi extends two-factor authentication for mutual fund subscription transactions
In order to further safeguard interest of investors, capital markets regulator Sebi on Friday decided to extend the two-factor authentication for subscription transactions in units of mutual funds. The new framework will come into effect from April 1, 2023, the Securities and Exchange Board of India (Sebi) said in a circular.At present, all asset management companies (AMCs) are required to authenticate redemption transactions using two-factor authentication for online transactions and signature method for offline transactions.
JUST IN: Sebi board approves proposal mandating issuer of IPO to disclose price per share based on past transactions and fund raising
Sterlite Power postpones IPO plans on current market volatility
Sterlite Power on Friday announced deferring its Rs 1,250 crore-IPO in view of current volatility in the stock market. In August 2021, the company had filed the Draft Red Herring Prospectus (DRHP) with markets regulator Sebi. The Initial Public Offer (IPO) was to be worth Rs 1,250 crore.”Sterlite Power, a leading private sector power transmission infrastructure developer and solutions provider, announced the postponement of their plans to go public through an IPO,” it said in a statement.Pratik Agarwal, Managing Director of Sterlite Power, said that given the volatility in the current markets and the limited window available under the currently filed DRHP, it has been decided to withdraw the DRHP.
Fed’s hawkish approach to tame inflation through aggressive interest hikes was a misfortune for the domestic market’s bull-run. Although the domestic economy is buoyed by solid fundamentals, the stock market’s appetite for risk has been hindered by the rising worry of a worldwide recession. As the 10yr yield spread between India and US fell to a multi-year low, foreign investors have started departing from the Indian market. This, along with increased interest in the dollar as a safe haven option, forced the rupee to trade at its all-time low levels. Domestic investors have been turning to IT and pharma companies, which have been in a consolidation phase for the past year and are now benefiting from the INR depreciation. However, an in-line rate hike along with the RBI’s confidence in the economy’s growth momentum helped the domestic market to alter the losing streak. The choice to maintain inflation at 6.70% with a slight reduction but a sound GDP prediction of 7.0% demonstrates the Indian economy’s resiliency
– Vinod Nair, Head of Research at Geojit Financial Services
Markets recovered sharply on Friday and gained over one and a half percent, tracking firm domestic cues. The beginning was downbeat however the Nifty index recovered in no time and witnessed strong momentum post the MPC’s monetary policy outcome. It finally settled at 17,094.35 levels; up by 1.64%. All sectors contributed to the move but it was banking and financials which topped the gainers’ list.The rebound was overdue but the key is to hold the gains amid the feeble global cues. We feel the recovery would strengthen above 17,200 in Nifty while 16,800 would continue to act as critical support. Meanwhile, participants should stay focused on overnight risk management and prefer index majors over others.
– Mr. Ajit Mishra, VP – Research, Religare Broking
Nifty snapped its losing streak as the index posted a gain after seven consecutive days of correction. On the lower end, it found support at 16800 and moved up. On the daily chart, the index has formed a bullish engulfing pattern. The daily RSI is seen to be entering the bullish crossover. Going forward, the trend may remain bullish with an upside potential of 17300/17500. On the lower end, 16950/16800 may continue to act as crucial support for the short term.
– Rupak De, Senior Technical Analyst at LKP Securities
With most key events now behind, market finally found some strength on Friday. After 7 consecutive fall, Nifty witnessed strong rally and closed with gains of almost 300 points. It also reclaimed the 17,000 zones, making the short term technical view positive. Nifty can now move towards 17,500-17,700 zones with key support around 17,000 and 16850. Auto and consumption sectors would be in focus ahead of monthly sales data and high demand in the ongoing Navaratri festival. Pharma sector is seeing some value buying as market focused on defensive names in times of global uncertainty.
– Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
Rupee ends volatile week on strong note after RBI raises rates
The Indian rupee strengthened on Friday at the end of a volatile week, after the Reserve Bank of India raised the key lending rate by an expected 50 basis points, and a Reuters report on central bank measures to stabilise the currency, boosted gains. The partially convertible rupee ended up 0.64% to 81.34 per dollar, having sprinted to a high of 81.16 during the session. Two traders confirmed the jump happened after Reuters exclusively reported that RBI was encouraging state-run refiners to reduce dollar buying in the spot market and lean on a special credit line instead.
An in-line rate hike along with the RBI’s confidence in the economy’s growth momentum aided the domestic market to alter the seven-day losing streak. The decision to retain inflation at 6.70% with a marginal cut but a healthy GDP forecast of 7.0% indicates the resilience of the Indian economy. Although the commentary warned about prevailing risks to the domestic economy from the global economy, the MPC refrained from sounding very hawkish. Continuation of the policy stance as ‘withdrawal of accommodation’ indicates more rate hikes in the future, but data-driven.
– Vinod Nair, Head of Research at Geojit Financial Services
Closing Bell: Sensex snaps 7-day losing streak, ends 1,017 pts higher; Nifty near 17,100; Airtel, IndusInd Bank rally 4% each
STOCK IN FOCUS: INFOSYS
#MarketsWithETNOW | @Infosys could announce a #buyback along with its Q2FY23 results, says @Jefferies @_anishaj a… https://t.co/UlNqXI42QW
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Most active stocks in afternoon session
Price as on 30 Sep, 2022 03:09 PM, Click on company names for their live prices.
RBI’s rate hike was in expected lines as inflation remains elevated coupled with continued global uncertainties. This hike is also to keep in pace with what’s happening across the globe. But in contrast to many other countries, economic activities in India are stable now and most of the sectors are holding back well. Growth in credit offtake driven by the sustained retail and improving corporate credit is a proof of that. Overall, I think the rate hike is a positive communication as the hike will help to control the inflation and to protect the currency.
– Mini Nair, Chief Financial Officer at Geojit Financial Service
Sensex surges nearly 1300 points
GLOBAL MARKET CHECK
- The Stoxx Europe 600 rose 1.1%
- Futures on the S&P 500 rose 0.8%
- Futures on the Nasdaq 100 rose 0.9%
- Futures on the Dow Jones Industrial Average rose 0.6%
- The MSCI Asia Pacific Index fell 0.5%
- The MSCI Emerging Markets Index rose 0.2%
Airox Technologies files Rs 750-cr IPO papers with Sebi
Medical equipment manufacturer Airox Technologies has filed preliminary papers with capital markets regulator Sebi to raise Rs 750 crore through an initial public offering (IPO). The IPO is entirely an offer-for-sale (OFS) of equity shares by promoters — Sanjay Bharatkumar Jaiswal and Ashima Sanjay Jaiswal, according to the draft red herring prospectus (DRHP). Under the OFS, Sanjay and Ashima will offload equity shares worth Rs 525 crore and Rs 225 crore respectively. Airox Technologies, manufacturer of (Pressure swing adsorption) oxygen generator, has a market share of 50-55 per cent, in terms of operational private hospital PSA medical oxygen market, as of fiscal 2022, according to the draft papers.
These stocks defy market mood, crack up to 6%
Price as on 30 Sep, 2022 01:33 PM, Click on company names for their live prices.
These stocks hit fresh 52-week high in trade today
Das says 67% of decline in forex reserves due to valuation changes
Reserve Bank Governor Shaktikanta Das on Friday said 67 per cent of the decline in the foreign exchange reserves since April was due to valuation changes arising from strengthening US dollar and higher American bond yields. The forex reserves, which stood at USD 606.475 billion as on April 2, have declined to USD 537.5 billion as on September 23. It was also the eighth straight week when the reserves declined.
We feel that the RBI may be nearing the end of the rate hike cycle in India and future rate hikes will have more to do with supporting the Indian currency and also to some extent the inflation trajectory. Both equity and bond markets have taken this in a positive stride and have rallied post the policy announcement.
– Sampath Reddy, Chief Investment Officer, Bajaj Allianz Life Insurance
Top Sensex contributors at this hour
Adani Green, Omaxe among top NSE gainers at this hour
Price as on 30 Sep, 2022 12:31 PM, Click on company names for their live prices.
NIFTY RECLAIMS 17,000
SENSEX RALLIES 600 POINTS, AT DAY’S HIGH
The RBI MPC increase of repo rate of 50 basis points, comes as no surprise to the market as the same was widely expected. The governors mention of doing away with forward guidance is a clear indication of the hawkish stance that the RBI is going to be adopting for the next few cycles, with policy responses evolving in response to changes in the external environment. While the country fundamentals seem to be strong and there is hope that they will continue to be strong, headwinds from the global environment have a bearing on growth for which policy responses will be provided, even if they are unconventional is what we heard the governor say. The markets are going to see some interesting times.
– Vivek iyer- Partner and leader , Financial services risk, Grant Thornton Bharat
Amidst challenging global monetary policy backdrop, RBI stays with a 3rd consecutive rate hike of 50 bps and keeps a tight vigil on domestic inflation. Continuation with “withdrawal of accommodation” signals more rate hikes to come. External factors holding well as of now but needs to be monitored closely. Re-assurance on ample systemic liquidity provides relief to the shorter segment. Overall, in line with market expectations as of now but we expect market volatility to remain high with fast evolving global backdrop.
– Vikas Garg– Head of Fixed Income, Invesco Mutual Fund
Motherson Sumi Wiring approves 2:5 bonus issue
Price as on 30 Sep, 2022 11:52 AM, Click on company names for their live prices.
David Steven McDaniel, Executive Director – Finance & Control and Chief Financial Officer, shall demit office effective from 1st March 2023. McDaniel will be taking up a new assignment with a Nestlé Affiliate
Price as on 30 Sep, 2022 11:36 AM, Click on company names for their live prices.
The MPC delivered 50bps hike in line with expectations. Clearly, the fast-evolving world order and consistent repricing of Fed’s outsized hikes are strong-arming the EMs. This painful adjustment has not spared the RBI either, which realised the net cost of a supposed soft signalling via shallow hike could be higher than a larger hike of 50bps. This exposes the instability inherent with the classic EM central bank trilemma: one cannot have a stable currency, unfettered capital flows, and independent monetary policy all at the same time. This conscious front-loading could give them some breather next year on shallow hikes ahead. With inflation likely to be largely in line with RBI’s estimates, this week’s 50bps hike will make the ex-post forward real repo rate positive, albeit still lower than the RBI’s estimated real neutral rate of 0.8-1%. At this point, we still think that the RBI would not go too restrictive and terminal rate could hover near the estimated real rates, implying not more than 100bps hikes ahead, including today’s decision. However, the extent of global disruption will remain key to the RBI’s reaction function ahead.
– Madhavi Arora, Lead Economist, Emkay Global
How long will RBI hike rates?
— Prasenjit Basu – Chief Economist, ICICI Securities
Heritage Foods to issue shares in ratio of 1:1 by rights issue basis; Rights issue size of Rs 23.2 crore
Price as on 30 Sep, 2022 11:23 AM, Click on company names for their live prices.
L&T Technology Services Limited announced that it is collaborating with Qualcomm Technologies, Inc. to deploy end-to-end solutions for the global 5G Private Network Industry utilizing their combined core expertise in the Hi-Tech & Telecommunication domain.
Price as on 30 Sep, 2022 11:19 AM, Click on company names for their live prices.
The Adani Group and the Godrejs are among the promoters that have raised stakes in their companies recently, timing their open-market purchases with the broad-based equities downturn that hasn’t spared any pocket of the listed universe over the past month.
The dominant theme in economic and market discussions these days is India’s resilience and outperformance in a weakening global economy and bearish equity markets. The RBI governor’s comments today is a reaffirmation of this ‘India resilient’ theme. It was this positive commentary on India’s growth impulses and projection of 7% GDP growth with 6.7% inflation for FY 23 that has come as a positive even while the policy announcements relating to rates were on totally expected lines. The Governor’s confident statement that CAD can be financed comfortably even with crude at $100 for the rest of the year is reassuring. In brief the positive commentary is market positive.
– Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Indian central bank has raised repo rates by 50 bps along expected lines. As the governor has noted, global economy is in turmoil and India needs to be watchful both on the external account as well as in terms of the domestic fiscal situation. We expect the rbi to remain prudent in terms of balancing between growth and inflation.
– Sameer Kaul – MD & CEO, TrustPlutus Wealth
SENSEX UP 300 POINTS, AT DAY’S HIGH POST POLICY MEET
LIVE | RBI GOVERNOR SAYS
- To float discussion paper on banks’ expected loss provision
- To introduce framework for stressed assets securitisation
- To regulate offline payment aggregators
Market interventions continues to be judicious
– RBI Governor
Realty stocks trade mixed as RBI hikes rate by 50 bps
Price as on 30 Sep, 2022 10:29 AM, Click on company names for their live prices.
LIVE | RBI GOVERNOR SAYS
- Rupee is a freely floating currency
- RBI doesn’t have fixed exchange rate in mind
- RBI intervenes to adjust volatility in market
- Intervention in FX market based on evolving situation
- Forward guidance may destabilize capital markets
LIVE | RBI GOVERNOR ON RUPEE
- Rupee has fallen 7.4% vs dollar from April
- Rupee has depreciated in an orderly manner
- Indian rupee has fared much better than several other currencies
Merchandise exports have been affected due to external factors
– RBI Das
Recent correction in global crude oil prices if sustained may provide relief to inflation
– RBI Governor
LIVE | RBI GOVERNOR SAYS
- High-frequency data for Q2 indicates economic activities remain resilient
- Private consumption picking up
Sensex extends gains, jumps 250 points on RBI’s inflation guidance
RBI Das: FY23 CPI inflation retained at 6.7%
- Geopolitical tensions affecting domestic inflation
LIVE | RBI Das: FY23 real GDP growth seen at 7% from 7.2% earlier
Auto index in the red; Tata Motors worst performer
Price as on 30 Sep, 2022 10:16 AM, Click on company names for their live prices.
RBI to remain focussed on withdrawal of accommodation
RBI to remain focussed on withdrawal of accommodation #RBIPolicy #InterestRates #RBI #MPC https://t.co/QLW2F2j1I5 https://t.co/PGxc4PyjVa
— ETMarkets (@ETMarkets) 1664512921000
LIVE | RBI GOVERNOR SAYS
- Inflation persists at alarmingly high levels
- Inflation trajectory remains clouded
WATCH | Shaktikanta Das’ address
LIVE | Watch @RBI Governor Shaktikanta Das announce MPC decision @DasShaktikanta #RBIPolicy #InterestRates #RBI… https://t.co/yDTddmsydP
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Market volatile as RBI policy underway
Sensex rises 100 points as RBI hikes rates along expected lines
RBI hikes repo rate by 50 bps to 5.90%
- SDF rate stands adjusted to 5.65%
- RBI to remain focussed on withdrawal of accommodation
- RBI voted 5:1 in favour of rate hike
LIVE | RBI GOVERNOR SAYS
- Global economy in the eye of a new storm
- Indian economy continues to remain resilient
- India has sustained the shocks of pandemic, Ukraine conflict
World has been confronted with one crisis after another
– Shaktikanta Das, RBI Governor
RBI MPC POLICY DECISION KICKS OFF
Sensex turns mildly positive ahead of rate hike decision
Meghmani Finechem commissions additional 106,000 TPA capacity of caustic soda at Dahej plant
Price as on 30 Sep, 2022 09:55 AM, Click on company names for their live prices.