Investors will closely track the RBI Monetary Policy Committee (MPC) decision todayShare Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic equity market benchmarks BSE Sensex and Nifty 50 are likely to open in green on Friday ahead of the 3-day Reserve Bank of India’s (RBI) monetary policy outcome later in the day. Nifty futures were trading 21.50 points up at 11,870.50 on Singaporean Exchange. The headline indices have been on a gaining spree from last six trading session, to sit on a seven-month high. Along with MPC outcome, investors will track stock-specific action, rising COVID-19 cases, oil prices and rupee movement. Asian stock markets were trading mixed in the early trade on Friday. The Shanghai Composite jumped 1.34 per cent, while Hong Kong’s Hang Seng index dipped 0.15 per cent. In Japan’s Nikkei was trading flat while the Topix index was 0.49 per cent down. In overnight trade on Wall Street, US stocks ended higher as comments by US President Donald Trump fueled hopes of fresh fiscal support. The Dow Jones Industrial Average rose 0.43 per cent, the S&P 500 gained 0.80 per cent, and the Nasdaq Composite added 0.5 per cent.
Investors will closely track the RBI Monetary Policy Committee (MPC) decision today. The newly-constituted MPC of the Reserve Bank began its three-day deliberations on Wednesday. The decision of the rate-setting panel will be announced on October 9. Analysts expect RBI MPC will maintain status quo on the benchmark lending rates and accommodative stance in today monetary policy. The monetary policy address will be given by RBI Governor Shaktikanta Das at 10 am today. Earlier this week, Japanese Brokerage Nomura said that the appointment of three new external members to the RBI’s Monetary Policy Committee by the government gives the rate-setting panel a ‘dovish tilt’.
Highlights
Foreign Institutional Investors (FII) were net buyers of domestic securities for the fifth day straight, and were this time accompanied by Domestic Institutional Investors (DII). FIIs bought stocks with Rs 978 crore on Thursday while DIIs bought equities worth Rs 19.85 crore. FIIs also bought Index Futures worth Rs 1,398 crore and Index options worth Rs 1,711 crore.
Domestic benchmark indices, now at their pre-pandemic highs, could now be sitting on shaky grounds. S&P BSE Sensex gained for the sixth consecutive session on Thursday along with the 50-stock Nifty. However, technical analysts say that a small negative candle was formed with minor upper and lower shadow on the charts during yesterday’s session. “Technically, this market action could indicate a formation of a doji type pattern at the swing high of 11905. This could be crucial for bulls to sustain the highs,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that any weakness in the stock market is expected to open profit booking in the market from the highs.
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International oil prices have started flat this Friday morning in Asian trade. Technically, NYMEX WTI Crude Oil continues its bullish trend where also it has given a breakout above 50-Daily Moving Average indicating for positive breath in the counter. Resistance is at $42.15-$44.37 levels. Support is at $40.60-$39.40 levels. Domestic crude ended with solid gains on Thursday, tracking firm overseas prices. Domestic crude could start flat to firm this Friday morning, tracking overseas prices. Technically, MCX Crude Oil October has given a positive close above 3000 levels after a very long time with increase in volume activity indicating a positive trend to continue up to 3088-3109 levels. Support is at 2960-2920 levels: Sriram Iyer, Senior Research Analyst at Reliance Securities
After appointing three new external members, the Monetary Policy Committee (MPC) meet is underway and the committee would announce its observations on 9th October 2020. The August-2020 MPC decided not to change the benchmark Repo Rates and continued with the ‘Accommodative’ stance. While expressing concern on inflation, the MPC decided to ‘maintain the stance for as long as it is necessary to revive growth’.
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It will be interesting to watch how newly constituted MPC will take the rate trajectory from here onward. Especially when we look from an international perspective there is scope for many more rate cuts at the same time our domestic audience is getting uncomfortable with very low saving rates. In our view, we have entered into an uncharted trajectory on the policy rate front, with far-reaching implications on many fronts. We see an interesting time ahead and expect many old patterns/ standards to be broken in the coming 12-18 months period: Ashika Institutional Equity
In overnight trade on Wall Street, US stocks ended higher as comments by US President Donald Trump fueled hopes of fresh fiscal support. The Dow Jones Industrial Average rose 0.43 per cent, the S&P 500 gained 0.80 per cent, and the Nasdaq Composite added 0.5 per cent.
Asian stock markets were trading mixed in the early trade on Friday. The Shanghai Composite jumped 1.34 per cent, while Hong Kong’s Hang Seng index dipped 0.15 per cent. In Japan’s Nikkei was trading flat while the Topix index was 0.49 per cent down.