 "Sensex, Nifty outperform global peers; BSE Midcap index rises 2%")
After witnessing a sharp fall on Thursday due to geo-political concerns, markets rebounded and ended flat on the first day of October series despite weak global cues.
The S&P BSE Sensex ended up 38 points to settle at 27,866 and the Nifty50 settled 20 points higher at 8,611. In the broader market, both the BSE Midcap and Smallcap indices outperformed the front-liners with gains of 2% each.
On Thursday, markets ended at their lowest closing levels since August 26, 2016 as risk-aversion prevailed following September F&O expiry and concerns over foreign capital outflows amid geo-political tensions arising between India and Pakistan after the Indian Army conducted surgical strikes across LoC in Pakistan on Wednesday night.
Sacchitanand Uttekar, Equity Technical Analyst of Motilal Oswal Securities said, “Going forward lack of recovery could prove detrimental for the short term trend as the broader range for the coming week now rests at 8,900-8,430”.
The rupee recovered 25 paise to 66.60 against the US dollar today at the Interbank Foreign Exchange market on fresh selling of the American currency by exporters.
Investors’ focus has now shifted to the bi-monthly monetary policy of RBI which is scheduled on October 4. Ahead of the first interest rate review since he took over as RBI Governor, Urjit Patel today met Finance Minister Arun Jaitley. Patel replaced Raghuram Rajan as the head of central bank on September 4.
“After moving up by almost 30% in last six months, market had been looking for some reasons to take a correction. On economic parameters, no negatives had been visible so market seems to have taken recourse to a non-economic reason to take a correction” said Kunj Bansal, ED & CIO, Centrum Wealth Management.”
He further adds, “Yesterday’s correction will be followed by RBI’s monetary policy review on Tuesday, October 4. Taking these two events together, we can witness some kind of consolidation in the market before it takes a fresh direction. Post these events, September quarter results are likely to be good and we should see market sentiment improving accordingly.”
GLOBAL MARKETS & CRUDE OIL DIP
Asian stocks extended losses on Friday as worries about the health of Deutsche Bank weighed on financial shares and as oil prices inched back from near-one month highs on scepticism over OPEC's new plan to curb output.
MSCI's broadest index of Asia-Pacific shares outside Japan lost 1% and was on track for a 0.9% drop for the week. But it is poised for a 1.7% gain in September, and a 9% jump in the third quarter.
Japan's Nikkei closed down 1.5% after weaker-than-expected consumption and inflation data. It recorded a loss of 2.6% for the month, but ended the quarter up 5.6%.
Oil prices dropped on Friday as investors took profits following a seven-per cent rise in the last two sessions, amid doubts that the Organization of the Petroleum Exporting Countries' (OPEC's) first planned output cut in eight years would make a substantial dent in the global crude glut.
European stocks are sharply lower as concerns over the systemic risk posed by German banks weighed on investor sentiment. CAC, DAX and FTSE are down 1%-2%.
STOCK TRENDS
Top gainers from the Sensex pack included GAIL, M&M, ONGC, Power Grid and Tata Steel, all surging between 1%-3%. On the losing side, Cipla, ITC, Coal India, Bharti Airtel and HUL slipped between 1%-3%.
Tata Steel plans to add 6 million tonne steel output to its existing 13 mt capacity across two facilities at Jamshedpur and Kalinganagar through brownfield expansion over the next few years. The stock gained over 1%.
Cipla fell 3% after the company said the US drug regulator issued four observations across three facilities in Goa.
The share buyback plan of Coal India, through which the central government intends to raise Rs 3,650 crore, would commence on October 3. The process of trading would close on October 18. The stock slipped by 2%.
Among other shares, Alkem Laboratories dipped over 6% after the pharmaceuticals company said it has received 13 observations from the US drug regulator for its manufacturing facility at Daman.
TVS Srichakra touched new high of Rs 4,247 on back of heavy volumes. The stock closed up by nearly 9%.
Seamec rallied over 8% after the company said it won a contract worth approximately $33.44 million from HAL Offshore.
Tata Chemicals, Havells India, Grasim Industries and Berger Paints saw a surge in volumes on the BSE today.
With Reuters inputs
The S&P BSE Sensex ended up 38 points to settle at 27,866 and the Nifty50 settled 20 points higher at 8,611. In the broader market, both the BSE Midcap and Smallcap indices outperformed the front-liners with gains of 2% each.
On Thursday, markets ended at their lowest closing levels since August 26, 2016 as risk-aversion prevailed following September F&O expiry and concerns over foreign capital outflows amid geo-political tensions arising between India and Pakistan after the Indian Army conducted surgical strikes across LoC in Pakistan on Wednesday night.
ALSO READ: Market gurus expect a rebound soon
Sacchitanand Uttekar, Equity Technical Analyst of Motilal Oswal Securities said, “Going forward lack of recovery could prove detrimental for the short term trend as the broader range for the coming week now rests at 8,900-8,430”.
The rupee recovered 25 paise to 66.60 against the US dollar today at the Interbank Foreign Exchange market on fresh selling of the American currency by exporters.
Investors’ focus has now shifted to the bi-monthly monetary policy of RBI which is scheduled on October 4. Ahead of the first interest rate review since he took over as RBI Governor, Urjit Patel today met Finance Minister Arun Jaitley. Patel replaced Raghuram Rajan as the head of central bank on September 4.
ALSO READ: Space emerges for further easing
“After moving up by almost 30% in last six months, market had been looking for some reasons to take a correction. On economic parameters, no negatives had been visible so market seems to have taken recourse to a non-economic reason to take a correction” said Kunj Bansal, ED & CIO, Centrum Wealth Management.”
He further adds, “Yesterday’s correction will be followed by RBI’s monetary policy review on Tuesday, October 4. Taking these two events together, we can witness some kind of consolidation in the market before it takes a fresh direction. Post these events, September quarter results are likely to be good and we should see market sentiment improving accordingly.”
GLOBAL MARKETS & CRUDE OIL DIP
Asian stocks extended losses on Friday as worries about the health of Deutsche Bank weighed on financial shares and as oil prices inched back from near-one month highs on scepticism over OPEC's new plan to curb output.
MSCI's broadest index of Asia-Pacific shares outside Japan lost 1% and was on track for a 0.9% drop for the week. But it is poised for a 1.7% gain in September, and a 9% jump in the third quarter.
Japan's Nikkei closed down 1.5% after weaker-than-expected consumption and inflation data. It recorded a loss of 2.6% for the month, but ended the quarter up 5.6%.
Oil prices dropped on Friday as investors took profits following a seven-per cent rise in the last two sessions, amid doubts that the Organization of the Petroleum Exporting Countries' (OPEC's) first planned output cut in eight years would make a substantial dent in the global crude glut.
European stocks are sharply lower as concerns over the systemic risk posed by German banks weighed on investor sentiment. CAC, DAX and FTSE are down 1%-2%.
STOCK TRENDS
Top gainers from the Sensex pack included GAIL, M&M, ONGC, Power Grid and Tata Steel, all surging between 1%-3%. On the losing side, Cipla, ITC, Coal India, Bharti Airtel and HUL slipped between 1%-3%.
Tata Steel plans to add 6 million tonne steel output to its existing 13 mt capacity across two facilities at Jamshedpur and Kalinganagar through brownfield expansion over the next few years. The stock gained over 1%.
Cipla fell 3% after the company said the US drug regulator issued four observations across three facilities in Goa.
ALSO READ: Dishman Pharma, JK Cement, Page Industries, Tata Communications, TVS Motor hit 52-week highs
The share buyback plan of Coal India, through which the central government intends to raise Rs 3,650 crore, would commence on October 3. The process of trading would close on October 18. The stock slipped by 2%.
Among other shares, Alkem Laboratories dipped over 6% after the pharmaceuticals company said it has received 13 observations from the US drug regulator for its manufacturing facility at Daman.
TVS Srichakra touched new high of Rs 4,247 on back of heavy volumes. The stock closed up by nearly 9%.
Seamec rallied over 8% after the company said it won a contract worth approximately $33.44 million from HAL Offshore.
Tata Chemicals, Havells India, Grasim Industries and Berger Paints saw a surge in volumes on the BSE today.
With Reuters inputs