The market is expected to open flat as trends in the SGX Nifty indicate a cautious opening for the broader index in India with a loss of 1 point on Wednesday.
The BSE Sensex rallied 550 points to 58,961, while the Nifty50 jumped 175 points to 17,487, the highest closing level since September 22 and formed small-bodied bullish candle on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 17,447, followed by 17,425 and 17,389. If the index moves up, the key resistance levels to watch out for will be 17,519, followed by 17,541 and 17,577.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines from across news platforms which could impact Indian as well as international markets:
US Markets
Wall Street stocks closed higher and Treasury yields dipped on Tuesday as upbeat earnings and better-than-expected factory data stoked a risk-on rally.
The Dow Jones Industrial Average rose 337.98 points, or 1.12 percent, to 30,523.8, the S&P 500 gained 42.04 points, or 1.14 percent, to 3,719.99 and the Nasdaq Composite added 96.60 points, or 0.9 percent, to 10,772.40.
Asian Markets
Shares in the Asia-Pacific inched higher on Wednesday following a second day of gains in major US indices. The Nikkei 225 in Japan added 0.42 percent and the Topix gained 0.3 percent. South Korea’s Kospi ticked 0.14 percent higher. In Australia, the S&P/ASX 200 rose 0.32. MSCI’s broadest index of Asia-Pacific shares outside Japan was fractionally higher.
SGX Nifty
Trends in the SGX Nifty indicate a cautious opening for the broader index in India with a loss of 1 point. The Nifty futures were trading around 17,494 levels on the Singapore exchange.
US factory output solid in September; builder sentiment slumps further
Production at US factories climbed in September, led by output gains in both durable and nondurable goods, indicating that the manufacturing sector remains on a reasonable footing, despite the Federal Reserve's efforts to hamper demand - and lower inflation - through higher interest rates.
Housing has emerged as the most-afflicted sector so far, with interest rates on the most popular type of US home loan nearing 7 percent - the highest since 2006 - while sales of new and existing homes have tumbled by roughly 25 percent since January. But there's been little consistent hard data so far showing that demand elsewhere in the US economy was falling to the degree needed to bring inflation materially lower from its four-decade-high peaks reached over the summer.
US manufacturing output rises more than expected in September
Production at US factories spiked in September, led by output gains in both durable and nondurable goods, indicating strength in the manufacturing sector despite Fed efforts to hamper demand through higher interest rates.
Manufacturing output rose 0.4 percent last month, keeping pace with an upwardly revised 0.4 percent gain in August, the Federal Reserve said on Tuesday. Economists polled by Reuters had forecast factory production would rise 0.2 percent. Output increased 4.7 percent from a year earlier.
UltraTech Cement Q2 PAT may decline 27% on-year as spurt in power and fuel costs impact margins
UltraTech Cement Ltd is likely to witness a decline of 27 percent in its consolidated profit after tax (PAT) for the quarter ended September 2022. Consolidated revenue, however, is likely to rise 11 percent on-year on the back of higher volumes and realisations. The company will declare its results for the second quarter on October 19.
According to a poll of brokerages conducted by Moneycontrol, the flagship company of Aditya Birla Group is expected to report a consolidated PAT of Rs 950 crore for the quarter, while revenue is expected to improve to Rs 13,350 crore.
Results on October 19
IndusInd Bank, UltraTech Cement, HDFC Asset Management Company, Nestle India, 5paisa Capital, AU Small Finance Bank, CG Power and Industrial Solutions, Havells India, Home First Finance Company India, Inox Leisure, Metro Brands, Max Financial Services, Nippon Life India Asset Management, Navin Fluorine International, Persistent Systems, Shoppers Stop, and Syngene International will be in focus ahead of September FY23 quarter earnings on October 19.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 153.40 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 2,084.71 crore on October 18, as per provisional data available on the NSE.
Dollar higher but gains in check as risk appetite rebounds
The US dollar edged higher against a basket of currencies on Tuesday, shaking off some of the weaknesses of the previous session, but a revival in risk appetite in global financial markets kept a lid on its gains.
Against a basket of currencies, the dollar was 0.07 percent higher at 112.15 , having earlier slipped to a near two-week low of 111.76 . The index, which fell 1 percent in the previous session, remains just 2 percent shy of the two-decade high of 114.58 touched in late September.
Stocks under F&O ban on NSE
Three stocks – Delta Corp, Indiabulls Housing Finance, and India Cements – are under the NSE F&O ban list for October 18. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
With inputs from Reuters and other agencies