Daily Market Update- Equity 25 Oct 2022 | Globe Capital
25-Oct-2022
Daily Market Update- Equity 25 Oct 2022

On the auspicious day of Diwali, markets opened for Muhurat Trading and the benchmark index rallied over 150 points to settle at 17730 levels.

Overview and Outlook

Global Market Update

  • US equity markets were up in range 0.86% to 1.34%
  • European equity markets were up in range 0.64 to 1.59%
  • Asian equity markets were mix
  • SGX Nifty is down 60 points (as on 8:20 AM)

 

News highlights from across the globe

  • Asian share markets beyond China advanced on Tuesday following a rally in Wall Street aided by strong corporate earnings.
  • US-listed Chinese stocks slumped by a record 14% overnight, adding to declines Tuesday for Hong Kong stocks, which had their worst day since the financial crisis.
  • UK bonds rallied in a sign of support for incoming UK Prime Minister Rishi Sunak following weeks of tumult.

 

Important news updates from the domestic front

  • Reliance Industries: The company will demerge its financial services arm and list on the stock exchanges as Jio Financial Services. The company will also demerge its subsidiary Reliance Projects and Property Management Services.
  • Vodafone Idea: The company will issue Indian rupee denominated optionally convertible, unlisted, unsecured and unrated debentures worth Rs 1,600 crore to ATC Telecom Infrastructure on preferential basis.
  • State Bank of India: The bank hiked interest rates on most of its term deposits under Rs 2 crore in the range of 25-80 basis points with effect from Oct. 22.
  • Biocon: Biocon Biologics integrated insulins manufacturing facility in Malaysia accorded Certificate of GMP Compliance by the European Medicines Agency following a site inspection in July 2022.
  • DLF: The company’s board approved raising funds to the tune of Rs 1,500 crore through NCDs and/or debt securities.
  • Hindustan Aeronautics: The company received Air System Design Organisation approval certificate, making it the first defence PSU to receive CEMILAC’s Design Organisation approval as per the new Design Organisation Approval Scheme.
  • Tech Mahindra: The company will acquire 26% equity shares in Upendra Singh Multi Transmission for a consideration of Rs 48 lakh.
  • Tata Consumer Products: The company made a preferential issue of 74.6 lakh shares of Re 1 each to Tata Enterprises (Overseas) at an issue price of Rs 765.16 apiece.
  • Adani Ports And Special Economic Zone: The company incorporated a wholly owned subsidiary Tajpur Sagar Port for the purpose of development of deep-sea port on design, build, finance, operate and transfer basis at Tajpur, West Bengal.

 

Derivatives Overview & Outlook

Yesterday, both Nifty and Banknifty futures shed around 2% & 1% of open interest respectively as short covering.

Majority of F&O sectors settled higher. Amongst them, Banking, Realty and Textile stocks witnessed maximum addition of long positions whereas some short buildup was seen among Metal stocks.

On options front, put writing was seen at multiple strikes along with call buying (unwinding by writers) at 17600 strikes and maximum positions are at 18000 CE and 17000 PE followed by 17500 PE.

 

FII & DII Trading Activity

Last week, FIIs bought stocks worth Rs 2419 Cr in the cash segment, bought stocks futures worth Rs 1405 Cr and also bought index futures worth Rs 4907 Cr. DIIs were net buyers in the cash segment to the tune of Rs 3569 Cr during the week.

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