The domestic equity barometers came off the days' high in mid morning trade. The Nifty, however, continued to trade above the 17,900 mark. IT stocks extended gains for second day.
At 11:22 IST, the barometer index, the S&P BSE Sensex, was up 450.59 points or 0.76% to 60,128.42. The Nifty 50 index added 129.85 points or 0.73% to 17,920.20.
In the broader market, the S&P BSE Mid-Cap index rose 0.40% while the S&P BSE Small-Cap index gained 0.70%.
The market breadth was positive. On the BSE, 1886 shares rose and 1200 shares fell. A total of 149 shares were unchanged.
Investors rejoiced after the RBI kept the repo and reverse repo rates unhanged and continued its 'accommodative' stance.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 236,748,936 with 4,834,268 deaths. India reported 240,221 active cases of COVID-19 infection and 450,127 deaths according to the data from the Ministry of Health and Family Welfare, Government of India.
A total of 93,11,77,197 COVID-19 vaccine doses have been administered in the country so far, with over 50.03 lakh doses being given yesterday, according to the Co-WIN dashboard.
RBI MPC Outcome:
The Reserve Bank of India (RBI) kept the policy repo rate unchanged while maintaining its accommodative stance after the conclusion of the Monetary Policy Committee (MPC) meeting today, 8 October 2021.
RBI kept repo rate unchanged at 4% and maintained an accommodative stance. Reverse repo rate stands at 3.35%.
RBI maintained the FY22 GDP growth forecast at 9.5%. This includes 7.9% in Q2, 6.8% in Q2 and 6.1% in Q4. For Q1 FY23, GDP growth has been pegged at 17.2%.
CPI inflation is seen at 5.3% for this fiscal. In Q2, it is seen at 5.1%, 4.5% in Q3 and 5.8% in Q4, with risks broadly balanced.
Buzzing Index:
The Nifty IT index rose 2.29% to 36,522.25. The index has added 4.12% in two sessions.
MindTree (up 5.21%), Coforge (up 3.96%), Mphasis (up 3.43%), Larsen & Toubro Infotech (up 2.44%), L&T Technology Services (up 2.41%), Wipro (up 2.19%), Infosys (up 2.17%), Tech Mahindra (up 1.38%) and HCL Tech (up 1.21%) advanced.
Tata Consultancy Services rose 2.11% to Rs 3,974.90. The IT major will announce its September 2021 quarter earnings today, 8 October 2021.
Stocks in Spotlight:
NCL Industries gained 1.11% to Rs 244.95 after the company said its cement production increased 10% YoY to 6,77,383 metric tonnes (MT) while cement dispatches improved by 10% YoY to 6,78,216 MT in Q2 FY22. Cement boards production soared 108% to 19,156 MT while cement boards dispatches grew by 37% to 18,769 MT in Q2 FY22 over Q2 FY21. Doors production & sales during Q2 FY22 stood at 3,606 units, registering a 157% year on year growth. Energy (hydro power) rose by 35% to 15.76 MU in Q2 FY22 from 11.67 MU in Q2 FY21.
K P I Global Infrastructure jumped 7.14% to Rs 138.05. The company informed that it signed a new long-term Power Purchase Agreement (PPA) with GHCL, Bhilad for sale of 1.25 MW solar power for a period of 20 years under Independent Power Producer (IPP) business vertical.
Tata Motors rose 1.17% to Rs 380.80. A media report said the auto major is seeking to buy Ford's units in Tamil Nadu and Gujarat states. According to reports, Ford's manufacturing plants could help Tata Motors augment capacity as it focuses on eco-friendly vehicles. While Tata Motors has no manufacturing facility in Tamil Nadu, it has a plant in Gujarat, which is next to Ford's production unit, reports said.
Separately, the media reported that TPG is in advanced talks with the Tata group to invest $1 billion-$1.5 billion in its electric vehicle unit. The group is also in talks with several Middle East-based sovereign wealth funds (SWFs) such as Abu Dhabi Investment Authority and Saudi Arabia's PIF to come as anchor investors on the deal, the report added.
Global markets:
Asian stocks were trading mostly higher as markets on Wall Street rallied, while investors also eyed key US jobs data for any fresh insight into the timing of Federal Reserve tapering. Chinese stocks jumped on the first day of trade after a week-long holiday.
Activity in China's services sector returned to growth in September as a major COVID-19 outbreak in the eastern province of Jiangsu receded, a private-sector survey showed on October 8. The Caixin/Markit services Purchasing Managers' Index (PMI) rose to 53.4 from 46.7 in August.
US stocks rallied on Thursday as Senate leaders moved to avert a US debt default. Senate Majority Leader Chuck Schumer announced Thursday that lawmakers have reached a deal on a short-term debt ceiling increase after hours of discussion with Minority Leader Mitch McConnell.
Markets will look ahead to Friday's key September jobs report as the Federal Reserve prepares to slow its $120 billion-per-month bond-buying program.
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