India’s ACC on Thursday reported a bigger-than-expected second-quarter profit aided by sturdy domestic demand, and forecast strong growth for the cement industry. The cement maker’s profit after tax stood at 3.84 billion rupees ($46.16 million), compared to a loss of 910.9 million rupees a year ago, reported Reuters.

Investment in the Indian capital markets through participatory notes rose over a six-year high at Rs 1.33 lakh crore at September-end, making it the seventh consecutive monthly increase, on the back of robust macroeconomic fundamentals, reported PTI.

This is the highest level since July 2017 — when investment through the route stood at Rs 1.35 lakh crore, data from the Securities and Exchange Board of India (Sebi) showed.

“USDINR CMP- 83.20 (spot) Indian Rupee declined by six paise on Thursday on weak domestic markets and a strong Dollar. We expect Rupee to trade with a slight negative bias on risk aversion in global markets after risk sentiments deteriorated on fears over escalation of geopolitical tensions in the Middle East. Traders may eye the GDP, weekly unemployment claims and durable goods orders data from US later in the day. Investors may also take cues from ECB’s monetary policy outcome. Markets expect ECB to keep interest rates unchanged at 4.5%. USDINR spot price is expected to trade in a range of Rs 82.90 to Rs 83.60,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Asian Paints on Thursday posted profit for the quarter ended September 2023 at Rs 1,232.39 crore, up 53.3% in comparison to Rs 803.83 crore during the corresponding quarter of last year, marginally higher from the estimates. It posted revenue from operations at Rs 8,451.93 crore, up 0.3% as against Rs 8,430.60 crore during the second quarter of FY23. The company EBITDA stood at Rs 1,717 crore. According to a CNBC TV18 poll, Asian Paints was expected to post Q2 profit at Rs 1,230 crore and revenue at Rs 8,900 crore.

The Nifty PSU Bank index tumbled 2.20% during the intra-day trade on Thursday. Indian Overseas Bank, Punjab & Sind Bank, UCO Bank and Bank of Maharashtra are among the top laggards and have tanked over 3% each.

Air cooler maker Symphony Limited on Thursday posted second quarter profit at Rs 35 crore, up 45.8% as against Rs 24 crore during the second quarter of FY23. It posted revenue from operations for the quarter ended September 2023 at Rs 275, down 8.9% in comparison to Rs 302 crore during the corresponding quarter of FY23. The company’s domestic sales were recorded at Rs 191 crore despite ‘erratic summer season’. The company EBITDA stood at Rs 41 crore, up 10.8% on-year. While the total income for the quarter in review was at Rs 286 crore, total expenses for the period stood at Rs 243 crore.

“The market was looking for some reason to correct as the valuation was not comfortable and finally, that correction happened. The main reason for correction can be attributed to the worsening of geo-political tension, rising US yield and profit booking before the upcoming election. FII has also increased their pace of selling and that might continue in the short term until rates pick out there. Long-term investors do not need to do much and the only thing they can do is to add on in dip and stay with quality. The market may look reasonable in terms of the valuation if it corrects 300-400 points more from here and geo-political risk stablises although no one can predict the top or bottom in the short term,” said Mukesh Kochar, National Head of Wealth at AUM Capital.

(Source: NSE)

Mahindra & Mahindra, Tech Mahindra, Bajaj Finance, Apollo Hospitals and UPL are the top laggards on the NSE Nifty 50 and have each tanked over 2% during the intra-day trade on Thursday.

The sectoral indices are trading in the red during intra-day trade on Thursday. Realty, Media, and PSU Bank stocks are the top laggards and have each tanked over 2%.

IRM Energy shares listed a 5.49% discount over the IPO price  amidst weak market sentiments. On the NSE, the stock debuted at Rs 477.25, compared to the Rs 505 issue price, while on the BSE, it listed at Rs 479

(Source: NSE)

The NSE Nifty 50 tumbled 0.77% to 18,975.45, while the Sensex shed 457.30 to 63,591.76, during the early trade on Thursday.

The NSE Nifty 50 opened at 19,027.25 down 0.49%, while the BSE Sensex opened at 63,774.16 down 274.90 points.

“Nifty weekly contract has highest open interest at 19,500 for Calls and 19,000 for Puts while monthly contracts have highest open interest at 19,500 for Calls and 19,000 for Puts. Highest new OI addition was seen at 19,200 for Calls and 18,950 for Puts in weekly and at 19,200 for Calls and 18,950 for Puts in monthly contracts. FIIs increased their future index long position holdings by 3.11%, increased future index shorts by 2.39% and in index options by 35.84% in Call longs, 18.92% in Call short, 24.93% in Put longs and 2.26% in Put shorts,” said Anand James, Chief Market Strategist at Geojit Financial Services.

“There is risk-off in global equity markets triggered by a combination of economics and geopolitics. The Israel-Hamas conflict continues to be a major headwind for markets. If the conflict lingers for long it has the potential to impact global growth,too, when the global economy is already in the midst of a slowdown. In the near-term, however, the strongest headwind for the market is the stubbornly high US bond yields. With the 10-year bond yield at near 5% FPIs are likely to be in the sell mode. Sectors like banking and IT which constitute the largest segments of the AUM of FPIs are likely to be under pressure. This will provide opportunities for long-term investors to buy quality stocks, particularly in banking, at attractive rates,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“The USD/INR 27 October futures contract traded within a narrow range. Upon analyzing the daily technical chart, it’s evident that the pair is currently trading below its moving average trend-line support level of 83.20, and the MACD is indicating a negative divergence. The technical setup reveals that the RSI is above the 50-level mark, but the pair is encountering significant resistance between 83.30 and 83.45.Based on the daily technical chart, the pair finds support at 83.05-82.92 and faces resistance at 83.30-83.45. To demonstrate further strength, the pair must breach and sustain a level above 83.22. Otherwise, it is likely to continue moving within the range of 82.92 to 83.45,” said Rahul Kalantri, VP Commodities, Mehta Equities.

“Gold prices inched higher on the back of the Middle-East dispute which kept kept investors worried, with bullion standing firm despite a stronger US dollar and bonds yields. Israel kept up its strikes on Hamas targets in Gaza as it prepared for a ground invasion and world powers at the United Nations failed to secure plans to deliver critical humanitarian aid. Yesterday, initial reports suggested that Israel was ready to wait for the Gaza invasion however soon it was discovered that Israel was preparing it’s troops for ground invasion. The dollar and benchmark US 10-year Treasury yields climbed after data indicated that new-home sales surged to a 19-month high in September, affirming market expectations of prolonged high rates heading into 2024. As we near the next Fed meet it is also important to keep an eye on comments from Fed Governor and other officials. Investors await the US GDP numbers for the third quarter later in the day and the PCE price index on Friday ahead of the Federal Reserve’s rate decision next week. Focus will also be on the ECB interest rate decision where the expectations is that the central bank could keep the rate unchanged, snapping a 15 month hike streak,” said Manav Modi, Analyst- Commodity and currency, Motilal Oswal Financial Services.

“The stock market at Dalal Street is currently gripped by bearish sentiment due to various factors. Tumbling oil prices haven’t diverted attention from rising US bond yields, and even diplomatic efforts to quell conflicts in the Middle East go unnoticed. Foreign Institutional Investors (FIIs) have been selling significantly in October, and concerns about inflation and recession persist. Nifty’s major support is at 18,921, while Bank Nifty faces downside risks at 41,500. Nifty’s options data suggests a trading range of 18,900-19,500. Amidst this, Q2 results are expected today from companies like ACC, Asian Paints, Canara Bank and more. The preferred trade strategy for Nifty is to buy on dips between 18,950-19,000 with targets at 19,379-19,557, while for Bank Nifty, buying between 42,500-42,600 is recommended with targets at 43,500 – 44,000,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

The NSE has added Delta Corp and RBL Bank to its F&O ban list for October 26, 2023.

WTI crude prices are trading at $85.38 down 0.02%, while Brent crude prices are trading at $89.98 down 0.17%, on Thursday morning.

The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, traded up 0.10% at 106.64.

US stocks tumbled in a broad sell-off on Wednesday as Alphabet shares slid after the Google parent posted disappointing earnings and as US Treasury yields rose, reviving fears that interest rates could stay higher for longer, reported Reuters. 

The tech-heavy Nasdaq Composite tanked 318.65 points or 2.43% to 12,821.22. The S&P plunged 60.91 points or 1.43% to 4,186.77, while the Dow Jones Industrial Average dropped 105.45 points or 0.32% to 33,035.93.