CLSA raises India allocation, changes stance to 'Overweight' - Daily Market Update- Equity 11 Oct 2023 | Globe Capital Market LTD.
CLSA raises India allocation, changes stance to ‘Overweight’ – Daily Market Update- Equity 11 Oct 2023

CLSA has increased its regional allocation for India to a 20% 'overweight' stance above MSCI benchmark. The brokerage cited rebounding credit impulse, improving external dynamics, robust GDP growth as key factors for the upgrade, in a note dated Oct 10, 2023. "Favourable energy pricing with an impending global fixed income benchmark inclusion may improve the basic balance of payments funding gap sufficiently," the brokerage said.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 0.40% to 0.58%
  • European markets also ended on positive note.
  • Asian equity markets are trading in green.
  • GIFT Nifty is little changed (as on 8:30AM), Nifty futures likely to open around 19800 levels.


News highlights from across the globe

  • The S&P 500 gained for a third day in a row. Amazon Inc rose amid its fall in sale for Prime subscribers and PepsiCo Inc climbed on a bullish forecast. Wall Street’s fear gauge, the CBOE Volatility Index or VIX, fell to a two-week low.
  • Brent crude was trading at $87 a barrel and the yield on the 10-year US bond was trading at 4.64%


Important news updates from the domestic front

  • Titan Company board will be meeting on Oct. 17 to consider the issuance of non-convertible debentures on a private placement basis within the permissible borrowing limits.
  • Wipro has completed a subscription to the 9.95% equity share capital of FPEL Ujwal, which is engaged in the business of developing, building, and managing a portfolio of solar power assets.
  • Bank of Baroda: RBI had directed the lender to suspend the onboarding of new customers onto its ‘bob World’ app due to certain supervisory concerns.
  • Samvardhana Motherson International has incorporated Motherson Groups Investments USA Inc. as an indirect wholly owned subsidiary for the purpose of acquiring, investing and holding movable and immovable assets of the group.
  • PI Industries: Therachem Research Medilab (India) and Solis Pharmachem have been merged into parent company PI Health Sciences, a wholly owned subsidiary of PI Industries.
  • Zee Entertainment has been served with an appeal on behalf of IDBI Trusteeship Services against it before the NCLAT, Delhi. The appeal challenges the scheme of arrangement involving Zee Entertainment Enterprises, Bangla Entertainment, and Culver Max Entertainment.
  • MCX: The Multi Commodity Exchange of India will go live with the new commodity derivatives platform on Oct. 16. The exchange will conduct mock trading on Oct. 15.
  • NCL Industries reported cement production in September at 6,59,300 metric tonnes year on year, up 9% over a year-ago period, and cement dispatches at 6,69,587 MT, up 11% year on year.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on higher side, kept the bullish momentum rolling throughout the session and settled near day’s highs at 19689 levels after adding 177 points to its previous closing values.

Broader market outperformed the benchmark as Midcap & Small Cap index were up over 1% each.

All the sectoral indices, barring Healthcare index, tracked at NSE settled in green. Amongst them, Nifty Realty index was at the top of the tally, rose over 4% followed by Nifty Metal and PSU Bank index that settled higher over 2%.

Technically, Nifty index settled above the trend-line breakout levels i.e 19650 levels as mentioned in our previous post. Going ahead, sustenance above 19700 levels might take it higher towards 19850-19880 levels in immediate near term.


Derivatives Overview & Outlook

Yesterday, Nifty futures remained almost unchanged on open interest front, long buildup was seen in Finnifty futures with increase in open interest by just over 1% while Banknifty futures rose on short covering as open interest shed by over 9%.

All F&O sectors settled higher. Amongst them, Chemicals, Metals, and Telecom stocks witnessed maximum addition of long positions whereas Banking, Capital Goods and Power stocks rose on short covering.

On options front, put writing was seen at multiple strikes along with some call writing at 19750 strike and maximum positions are at 19600 PE and 20000 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1005 Cr in the cash segment, bought stocks futures and index futures worth Rs 4343 Cr and Rs 303 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 1963 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19770-19860; Supports 19550-19470

Banknifty – Resistances 44680-44950; Supports 44150-43900

Finnifty – Resistances 20050-20150; Supports 19750-19600




Key Results Today – Deltacorp, TCS


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