India's CPI inflation eases to three-months low at 5.02% - Daily Market Update- Equity 13 Oct 2023 | Globe Capital Market LTD.
India’s CPI inflation eases to three-months low at 5.02% – Daily Market Update- Equity 13 Oct 2023

The Consumer Price Index-based inflation stood at 5.02% in September, as compared with 6.83% in August, according to data from the Ministry of Statistics and Programme Implementation released on Thursday. Food and beverage inflation rose to 6.3% in September, as compared with 9.19% during August. Core inflation fell to 4.6% in September, from 4.8% in August. This was the lowest since April 2020.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on negative note, up in range 0.51% to 0.63%
  • European markets ended on a mix note.
  • Asian equity markets are trading in red.
  • GIFT Nifty is little changed (as on 8:30AM), Nifty futures likely to open around 19700 levels.


News highlights from across the globe

  • Asian markets are trading in red following the Wall Street lower after the latest inflation data bolstered bets on Federal Reserve rate hikes.
  • The S&P 500 fell for the first time in five days, with banks underperforming ahead of earnings from JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. Friday.
  • Brent crude was trading at $86 a barrel and the yield on the 10-year US bond was trading at 4.69%.


Important news updates from the domestic front

  • Infosys: Temasek has extended the Infosys-Temasek digital services JV by five years. Infosys’ Q2 FY24 attrition fell to 14.6% vs. 17.3% QoQ. An interim dividend of Rs 18 per equity share was declared, with the record date set for Oct. 25.
  • HCLTech clocked the highest ever new bookings of $4 billion in Q2. Its attrition fell to 14.2% vs. 23.8% YoY. An interim dividend of Rs 12 per equity share was declared, with the record date set for Oct. 20.
  • Tech Mahindra sell a 33% stake in a South African unit for ZAR 23.95 million (approximately Rs 10.5 crore). Divestment is undertaken to comply with South African Broad-Based Black Economic Empowerment guidelines.
  • Maruti Suzuki will consider a preferential issue of equity to Suzuki Motor Corp. as consideration for acquiring Suzuki Motor Gujarat.
  • Airline Stocks: Air passenger traffic grew 18.3% to 1.22 crore in September. Indigo’s market share increased to 63.4% in September from 63.3% in August; Vistara’s share increased to 10% from 9.8%; and AirAsia India’s share fell to 6.7% from 7.1%.
  • GMR Airports Infrastructure: September passenger traffic was up 23% YoY at 94.16 lakh and aircraft movements were up 14% YoY at 62,230.
  • Dr. Reddy’s Laboratories has been issued Form 483 with nine observations from the U.S. FDA for Bachupally Manufacturing Plant, Hyderabad. The inspection was conducted from Oct. 4 to Oct. 12.
  • Lupin has received tentative approval from the US FDA to market a generic equivalent of Xywav Oral Solution, of Ireland’s Jazz Pharmaceuticals. The product will be manufactured at Lupin’s Somerset facility in the U.S.
  • SJVN: Unit SJVN Green Energy received an LoA from Rajasthan Urja Vikas Nigam for the development of a 100 MW solar power project worth Rs 600 crore to be executed over 18 months. The project will be developed on a build-own-operate basis.


Nifty Overview & Outlook

Benchmark Nifty index settled marginally lower at 19794 levels after a lackluster trading session.

Broader markets outperformed the benchmark as Small & Midcap index was up 0.65% and 0.33% respectively.

Majority of sectoral indices tracked at NSE settled in green. Amongst them, Nifty Media index gained the most, up over 3% followed by Nifty Auto, Metal and Oil& Gas index that settled higher in range 0.78% to 1%. On the other hand, Nifty IT Index witnessed some selling pressure, down over 1.5%.

Technically, Nifty index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index and suggest traders to maintain buy on dips trading approach till it is trading above 19650-19600 zones.


Derivatives Overview & Outlook

Yesterday, no significant action was seen in all three index futures on price front whereas on open interest front short covering was seen in Banknifty futures with 2.8% decrease in open interest and long buildup was seen in Finnifty futures with 3.8% increase in open interest.

On sectoral front, long buildup was seen in Automobile, Media, Pharma and Infra stocks whereas some short buildup was seen in Reality and Technology stocks.

On options front, call writing along with put writing was seen at multiple strikes and maximum positions are at 19800 PE and 19800 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1863 Cr in the cash segment, sold stocks futures worth Rs 1064 Cr and bought index futures and Rs 253 Cr. DIIs were net buyer in the cash segment to the tune of Rs 1532 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19900-19960; Supports 19700-19600

Banknifty – Resistances 44900-45100; Supports 44400-44200

Finnifty – Resistances 20090-20190; Supports 19890-19790




Key Results Today – HDFCLIFE


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