Daily Market Update- Equity 3 Oct 2022 | Globe Capital
03-Oct-2022
Daily Market Update- Equity 3 Oct 2022

RBI Monetary Policy committee increased rates by 50 BPS on Friday, which came in on expected lines resultant benchmark Nifty index reversed sharply, soared 276 points to settle at 17094 levels.

Overview and Outlook

Global Market Update

  • US equity markets were down in range 1.5 to 1.7%
  • European equity markets ended on flat to positive note, up by  0.2% to 1.5%
  • Asian equity markets are trading in red
  • SGX Nifty is down by 130 points (as on 8:30 AM)

 

News highlights from across the globe

  • Stocks in Asia struggled to make headway and US equity futures fell as negative sentiment persisted in markets amid fears that central banks across the world will keep hiking rates until inflation is under control.
  • Equities dropped in Japan and Australia. Trading in Asia may be muted by a holiday in Sydney and South Korea on Monday and the week-long closure of Chinese markets for Golden Week.

 

Important news updates from the domestic front

  • ONGC/OIL/RIL: India has hiked natural gas prices by 40% to record levels, with PPAC increasing gas prices for old fields of ONGC and OIL to $8.57/MMBtu from $6.1, and that for challenging fields of Reliance-BP to $12.46 from $9.92.
  • HDFC: The mortgage lender increased its benchmark home loan rate by 50 basis points, hours after a similar hike in the policy rate by the Reserve Bank of India.
  • Coal India: September production climbs 12.3% YoY to 45.7 million tonnes. September sales rise 1.1% YoY to 48.9 million tonnes.
  • Muthoot Capital Services: The company has completed securitisation transaction of Rs 121.56 crore, its fourth during this fiscal. The entire pool is from the non – priority sector.
  • CCL Products (India): The company’s manufacturing facility for instant coffee in Kuvvakolli village in Tirupati district of Andhra Pradesh, with a capacity of 5,500 metric tonnes and packaging capacity of 10,000 metric tonnes has commenced commercial operations.
  • LIC: The insurer has diluted its shareholding in Tamil Nadu Newsprint & Papers from 41.24 lakh shares to 27.06 lakh shares – decreasing its stake from 5.958% to 3.910%.
  • Delta Corp: Delta Corp, Coffee Holding Merger sees EV of $655 million.
  • Hero MotoCorp: Sales of India’s largest two-wheeler maker fell 1.95% year-on-year to 5,19,980 units in September 2022.
  • Maruti Suzuki: Sales of India’s largest carmaker doubled year-on-year to 176,306 units in September.
  • Tata Motors: Sales of the Nexon SUV maker rose 44% year-on-year to 80,633 units in September.

 

Nifty Outlook

RBI Monetary Policy committee increased rates by 50 BPS on Friday, which came in on expected lines resultant benchmark Nifty index reversed sharply, soared 276 points to settle at 17094 levels.

Broader markets performed in line with benchmark, Mid & Small cap index gained 1.87% and 1.59% respectively, leading to a strong market breadth.

All sector gauges tracked at NSE settled in green, PSU Bank index was at the top of the tally, up 3.01%, followed by Pvt Bank index, up 2.79% while FMCG index underperformed, settled on flattish note.

Nifty index has settled after posting smart recovery, overshadowed past couple of sessions down move. This is a positive development, indicating bullish momentum to continue till 17300-400 level in the immediate near term.

 

Derivatives Overview & Outlook

Yesterday, Nifty futures added around 7% of open interest as long buildup whereas Banknifty future shed around 1% of open interest as short covering.

All F&O sectors settled higher. Amongst them, Telecom, FMCG, Textile and Chemicals stocks witnessed maximum addition of long positions.

On options front, put writing was seen at multiple strikes and maximum positions are at 17500 CE and 16700 PE.

 

FII & DII Trading Activity

Last week, FIIs sold stocks worth Rs 15226 Cr in the cash segment, bought stocks futures worth Rs 4669 Cr and sold index futures worth Rs 196 Cr. DIIs were net buyers in the cash segment to the tune of Rs 15988 Cr during the week.

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