Morning Update: All sectors indices are trading in the green, with the real estate index up 1%. Among the most active equities on the NSE are HDFC Bank, GMDC, Bank of Baroda, Infosys, and ICICI Bank.
Sensex- UP 439 Points at 66518
Nifty 50 – UP 130 points at 19820
Indian Market
FII AND DII
| FII sold | 1,005.49 Cr |
| DII purchased | 1,963.34 Cr |
Indian Market News
- Indices are expected to open higher on robust global signals; CLSA upgrades India.
- Asian markets are trading higher, with the Kospi up 2% and the Hang Seng up 1.6%.
- Dovish As bond yields fall, Fed officials encourage Wall Street.
- The dollar is losing momentum ahead of the Fed meeting minutes and the US inflation test.
- Oil prices have barely changed as supply concerns in the Middle East dissipate.
- According to IN-SPACe Chairman Pawan Goenka, India’s space industry would reach $44 billion by 2033.
- With 8% growth, India’s contribution to global GDP will be nearly equal to China’s by 2028: Barclays
- Direct tax revenues exceeded Rs 11 lakh crore in October, rising 18% year on year, according to the Finance Ministry.
- Knorr-Bremse Group is expected to pay more than Rs 4,000 crore for Escorts Kubota’s railway business. According to CNBC-TV18, the deal is expected to be revealed in a few days, citing sources.
- IRM Energy’s IPO price band is Rs 480-505, with a target of Rs 545 crore.
- MCX will launch a new commodity derivatives platform on October 16th.
Global Market Check
Gift Nifty
The GIFT Nifty shows a somewhat better opening for the broader market with a rise of 15 points. GIFT Nifty futures stood at 19,786 points after touching a high of 19,800 points.
US Markets
Stock futures were little changed in overnight trading as Wall Street looked ahead to Wednesday’s producer price index. Futures related to the Dow Jones Industrial Average were flat, as with those tied to the S&P 500. Nasdaq-100 futures inched up 0.1 percent.
Stocks are coming off a great session as Treasury yields decreased from their recent highs and Wall Street considered the ripple repercussions from the Israel-Hamas war. The 30-stock Dow increased 0.40 percent, while the S&P 500 gained 0.52 percent and the tech-heavy Nasdaq Composite jumped 0.58 percent. Meanwhile, the yield on the benchmark 10-year Treasury yield declined roughly 13 basis points to about 4.65 percent.
European Markets
European financial markets closed higher Tuesday amid the continuous conflict in Israel and Gaza. The regional Stoxx 600 index closed 2 percent higher, reversing the pattern seen on Monday, with all sectors comfortably in the green. Travel shares surged 3.9 percent amid the global anxiety as airlines delayed flights to Israel, while mining companies rallied 2.9 percent.
The al-Qassam military arm of Palestinian militant group Hamas said it launched hundreds of missiles toward the southern Israeli city of Ashkelon Tuesday, stating the strike was “in response to the displacement of civilians.”
It comes after Israel pummelled the Gaza Strip with airstrikes Monday, as it intensified its reaction to a surprise onslaught by the Palestinian militant group Hamas that began Saturday morning.
Asian Markets
Asia-Pacific markets mainly rose, followed moves on Wall Street as U.S. Treasury yields fell and oil prices somewhat dipped. The benchmark 10-year US Treasury yield decreased roughly 13 basis points to about 4.65 percent, as investors sought safe assets amid the Hamas-Israel crisis. Yields and prices move in opposite directions.
The move matched the early reaction to the violence in the US bond market, which was closed Monday for Columbus Day. In Australia, the S&P/ASX 200 rose 0.6 percent in early trade, extending four straight days of gains.
Japan’s Nikkei 225 climbed 0.26 percent as investors analyzed the Reuters Tankan survey, which found business mood at large Japanese corporations stay essentially constant. The Topix however, lost 0.12 percent. South Korea’s Kospi popped 1.63 percent on its open even as semiconductor giant Samsung Electronics anticipated a 78 percent dip in its third-quarter operating profit, while the Kosdaq was up 1.68 percent.
Futures for Hong Kong’s Hang Seng index was at 17,981, hinting to a stronger beginning compared with the HSI’s closing of 17,664.73 and on line for a sixth straight session of rises.
Oil Prices
Oil prices oil sank more than $1 a barrel on Tuesday, continuing a slide that began earlier in the day with traders focused on demand levels but still cautious as they monitored for potential supply interruptions amid military hostilities between Israel and the Palestinian Islamist group Hamas.
Brent crude was down 38 cents at $87.77 a barrel as of 1:07 p.m. ET, while US West Texas Intermediate (WTI) crude down 35 cents to $86.03 a barrel. Both benchmarks had declined by more than $1 in prior trade. Brent and WTI had jumped more over $3.50 on Monday as the violence fanned fears that the crisis could spread beyond Gaza.
Hamas launched the heaviest military assault on Israel in decades on Saturday, while Israel hammered the Gaza Strip on Tuesday with the fiercest air assaults in the 75-year history of its struggle with the Palestinians.
Dollar Index
The Dollar index traded 0.26 percent down in futures at 105.32, but the value of one dollar held near Rs 83.12.
Gold Prices
Gold prices dipped on Tuesday after increasing about 2% in the previous session as investors cautiously shifted back to riskier assets and looked forward to fresh clues on the U.S. central bank’s policy stance. Spot gold was barely 0.05 percent higher at 1,861.8308 per ounce as of 112:58pm after climbing to a more than one week high earlier in the session.
US gold futures increased 0.6 percent to $1,875.40 an ounce. Spot gold surged 1.6 percent on Monday, its highest one-day jump in five months, as military hostilities between Israel and Palestinian Islamist group Hamas spurred demand for safe-haven investments.
Profit-taking and heightened investor appetite for risk depressed prices, while the war between Israel and Hamas restrained gold’s losses, said Bart Melek, head of commodity strategies at TD Securities. Gold is frequently a safe haven for investors during times of global upheaval.
News updates
TCS Earnings Preview Q2FY24: Moderate growth will continue despite large contract wins
India’s top IT services company TCS is projected to announce sluggish increase in its fiscal second quarter earnings, mostly due to lacklustre discretionary spending in the IT sector. Tata Consultancy Services is slated to declare its Q2FY24 financial results on October 11.
TCS’ profit after tax (PAT) for the July-September quarter is likely to climb 3.12 percent quarter-on-quarter to Rs 11,420 crore, according to an average of five brokerages’ projections. The firm is projected to announce a quarter-on-quarter gain of 1.5 percent in revenue to Rs 60,270crore for the period.BNP Paribas attributed the projected weak revenue growth trend to “the continued impact of a slowdown related to a cut in discretionary tech spending, partially offset by large deal ramp-ups”.
RBI asks Bank of Baroda to halt onboarding new clients through BoB World app
The Reserve Bank of India (RBI), on October 10 told state lender Bank of Baroda to suspend onboarding new customers through BoB World, the lender’s digital banking platform.
“Bank of Baroda to suspend, with immediate effect, any further onboarding of their customers onto the ‘bob World’ mobile application. This action is predicated on certain substantial supervisory concerns noticed in the manner of onboarding of their consumers onto this mobile application,” the central bank said in a press release.
Following the RBI order, Bank of Baroda filed a statement indicating it has already put out corrective procedures to address the issues noted by the RBI and is taking further steps to plug any remaining gaps. The statement read: “While the Bank has already carried out corrective measures to address the concerns of the RBI, we have initiated further steps to plug any remaining gaps identified and we will work closely with the RBI to address their concerns at the earliest to their satisfaction.”
The RBI further noted that any future onboarding of clients of the bank on the application will be subject to rectification of the shortcomings discovered and strengthening of the corresponding processes by the bank to the satisfaction of the RBI.
India’s space industry to surpass $44 billion by 2033, says IN-SPACe Chairman Pawan Goenka
In what could be a shot in the arm for prospective investors and private players in India’s space tech ecosystem, the Indian Space Promotion and Authorisation Centre (IN-SPACe), the country’s space regulator, estimates the size of the Indian space economy to be around $44 billion, including $11 billion of exports over the next 10 years.
India’s space economy as of now makes up 2 percent when compared to the global space market size. However, by 2023, IN-SPACe predicts the $44 billion market size to make up for 8 percent of the global market. The agency also predicts $22 billion of investments in the sector over the next 10 years.
Till now, India’s space tech firms, who have been raising adequate funding since last year, often have had to face queries from investors regarding the market size of India’s space ecosystem. These numbers by India’s national space regulator show the potential of the space tech ecosystem, and could help investors in gaining an idea of the market size.
With 8% growth, India’s contribution to global GDP would virtually be on level with China by 2028: Barclays
In order for India to become the main driver for global growth, even exceeding China, it would need to seek an 8 percent growth, Barclay’s stated in its study. According to Barclay’s analysts, India’s growth has outpaced the rest of the globe, delivering robust expansion with relatively low inflation and it is on the way to attaining at least 6 percent GDP growth, while maintaining broad macro stability intact.
But a significant challenge, the research adds is whether authorities can “encourage more rapid growth without compromising India’s hard-won macro stability that has dominated India’s growth ambitions since the start of the Ukraine-Russia war”.
“Amid considerable economic turbulence in rest of the world, India has been an island of relatively better macro outcomes in the past two years. On the surface, India is once again poised to be the fastest-growing major economy in the medium future, since global growth is likely to be weaker through 2023-2024 (relative to historical levels),” the report says.
Stock in News
Bank of Baroda: The Reserve Bank of India has ordered Bank of Baroda to stop immediately onboarding any new clients to the smartphone application “bob World.” This course of action stems from some serious supervisory concerns about how their consumers are being onboarded for this mobile application.
Titan Company: The Board of Directors will meet on October 17 to discuss the issue of non-convertible debentures on a private placement basis, within the permitted borrowing limits, according to Titan Company, a maker of jewellery, watches, and eyewear.
Union Bank of India: With effect from October 10, Sudarshana Bhat has been promoted to the position of Chief General Manager of Union Bank of India. The bank’s general manager was Sudarshana Bhat. Lal Singh, who was previously the Chief General Manager of Union Bank, has now been chosen by the Central Government to serve as Executive Director of Bank Of Baroda.
NCL Industries: The business reported that cement production for the three months ended in September FY24 was 6,59,300 metric tonnes (MT), up 9% from the same period last year, and cement dispatches were 6,69,587 MT, up 11%. Meanwhile, production of cement boards increased by 11% YoY to 21,509 MT, and cement board dispatches rose by 9% to 20,239 MT.
Birla Corporation: The flagship company of the MP Birla Group, Birla Corporation, has been issued a fine of Rs. 8.43 crore by the Office of Collector (Mining), Satna, Madhya Pradesh, for producing too much limestone from captive mining between the years 2000-01 and 2006-07 without obtaining environmental approval.
Tata Consultancy Services (TCS): The company is expected to release its September quarter earnings on October 11. The stock will be under the spotlight as a result. On the same day that Delta Corp. releases its quarterly earnings scorecards, Samhi Hotels, Signature Global (India), Zaggle Prepaid Ocean Services, Dipna Pharmachem, Justride Enterprises, National Standard (India), Plastiblends India, and Sanathnagar Enterprises do the same.
Wipro: On October 10, the top provider of IT services finished subscribing for Rs 6.3 crore in FPEL’s equity share capital. On September 1, the company finalized a contract to purchase a 9.5% share in FPEL Ujwal, a company that develops, constructs, and oversees a portfolio of solar generating assets. By May 31, 2024, the transaction is anticipated to be finished.
Akzo Nobel India: From the office of the Deputy Commissioner, Karnataka GST Department, the paint manufacturer has received a demand order for the collection of GST, together with interest and penalties. The total fine for the demand order was Rs. 9.95 lakh. On invalid credits pertaining to FY2017–18, the ITC was utilized.
Goyal Salt: On October 11, the company that refines raw salt will offer its shares on the NSE Emerge. Shares are being sold for 38 rupees each. In the trade-for-trade market, the shares will be tradable.
Sunita Tools: On October 11, the business is scheduled to make its BSE SME debut. Shares are being sold at Rs. 145 each. For ten trading days, the stock will be offered in the trade-for-trade market.
Fine Organic Industries: The chemical manufacturing company has established Fine Organic Industries (SEZ), a totally owned subsidiary company, in India. The new subsidiary will produce specialist chemical goods for the market.
Oneclick Logistics India: On October 11, Oneclick Logistics India, a provider of logistics services and products, will make its debut on the NSE Emerge. The market lot size is 1,200 shares, and the offer price is Rs 99 per share. In the trade-for-trade market, the shares will be tradable.
Canarys Automations: Beginning on October 11, equity shares of the IT solutions provider will be traded on the NSE. The price per share for the issuance has been set at Rs. 31. Its equity shares will be traded in the trade-for-trade market, or series ST.
Must read book about investing – check here
- Read more Check the latest news
Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update Morning Update