Dalal Street extended loses to the sixth session on October 26 amid rising US bond yield and worsening situation over the conflict between Hamas and Israel. Most indices were down over a percent.
Investors were left poorer by Rs 2.95 lakh crore as their wealth reflected by the total market cap of BSE-listed companies slipped to Rs 306.27 lakh crore.
The 50-share NSE Nifty fell 264.90 points or 1.39 percent to 18,857.25. BSE flagship Sensex plunged 1.41 percent or 900.91 points to 63,148.15.
Nifty Midcap was down 1.16 percent. Nifty Smallcap saw some recovery from day’s low and ended down 0.34 percent. Nifty 500, the broadest index in the market, dropped 1.23 percent. All sectoral indices closed with cuts. Nifty Metal was the biggest loser, down 1.62 percent. Nifty Financial Services, Nifty Oil & Gas, Nifty Healthcare and Media were other losers.
Here are the top news which traders and investors can watch out for before the market opens:
Asian markets sell-off
Asia-Pacific markets saw a broad sell-off, with Australia shares closing at a low not seen in over a year, while mainland China stocks bucked the broader trend to end Thursday higher. South Korea’s Kospi index slipped 2.71% to close 2,299.08, its lowest level since January 6, while the Kosdaq index shed 3.5% to reach 743.85, its lowest since January 31.
European Markets end lower
European stock markets were lower October 26 as attention remained on third-quarter earnings and government bond yields. The regional Stoxx 600 was down 0.6%, paring earlier losses. Auto stocks plunged 2.3% to lead losses as results disappointed, while travel stocks dipped 1.3% lower.
US economy accelerates to 4.9% in Q3
The US economy heated up in the third quarter, government data showed on Thursday, as a resilient job market helped boost consumer spending, holding off the prospect of a recession. Gross domestic product growth came in at an annual rate of 4.9 percent for the July to September period, the quickest pace since late-2021, according to Commerce Department figures.
Analysts have raised fears of a downturn as the US central bank started lifting interest rates rapidly last year to fight inflation, but the world’s biggest economy has so far defied these predictions.
The pick up reflects “accelerations in consumer spending, private inventory investment, and federal government spending” among other factors, said the Commerce Department.
Maruti Suzuki Q2 net profit may rise 42%
Maruti Suzuki, India’s largest OEM manufacturer, is expected to report a 42 percent increase in net profit in the quarter ended September on the back of a favourable product mix, price hikes undertaken by the company, and softening commodity prices. The company is slated to announce its results on October 27. As per the average estimates of five brokerage firms, Maruti is poised to post a net profit of Rs 2,921 crore in the second quarter as against the Rs 2,061 crore recorded during the same period last year.
The company’s EBITDA margin is expected to be about 11.1 percent, up more than 180 basis points year-on-year, largely benefitting from operating leverage, favourable mix and easing commodity prices.
ECB holds interest rates, first time since July 2022
The European Central Bank left interest rates unchanged at its meeting on Thursday, bringing an end to a series of hikes that started in July last year. Policymakers had raised rates at each of their last 10 meetings as they sought to rein in soaring inflation driven in large part by surging energy prices in the wake of Russia’s invasion of Ukraine.
The decision to stand pat at Thursday’s meeting — held exceptionally in Athens — leaves the ECB’s key deposit rate at four percent. The ECB recently revised down its growth projection for the eurozone in 2023 to a meek 0.7 percent, while the outbreak of the conflict in the Middle East has further clouded the horizon.
Oil falls on demand fears, bleaker economic outlook
Oil prices fell by over 2% on Thursday after a rise in US crude stockpiles signalled waning demand, and concerns about the economic outlook drove a broader sell-off in global equities. Brent crude futures declined by $2, or 2.2%, to $88.13 a barrel at 1238 GMT. US West Texas Intermediate crude futures slid by $2.26, or 2.7%, to $83.13 a barrel.
Dollar higher as US economic growth accelerates
The dollar rose against a basket of currencies on Thursday after data showed the US economy grew at its fastest pace in nearly two years in the third quarter, once again defying dire warnings of a recession that have lingered since 2022.
The dollar index , which measures its strength against a basket of six rivals, was 0.2% higher at 106.78, its highest in nearly three weeks.
FII and DII data
Foreign institutional investors sold shares worth Rs 7,702.53 crore, while domestic institutional investors purchased Rs 6,558.45 crore worth of stocks on October 26, provisional data from the National Stock Exchange showed.
Results on October 27
Bajaj Finserv, Bajaj Holdings, Blue Dart, BPCL, Cipla, Dr Reddy’s Labs, GE Shipping, Inox Green, Inox Wind, M&M Financial, Maruti Suzuki, Oberoi Realty, Reliance Industries and SBI Life are some of the top names which are scheduled to report their quarterly earnings.
SEBI proposes new ‘high-risk’ category of mutual funds
Securities and Exchange Board of India (SEBI) has proposed to introduce a new mutual fund (MF) that comes with high-risk, and offers a chance to earn higher returns. SEBI has sent a letter to Association of Mutual Funds of India (AMFI; the MF industry’s trade body).
SEBI hasn’t specified the instruments that this fund can invest in. “Matters are still at consultation stage,” said this official. But MF industry officials say that such a scheme might be allowed to invest in instruments like momentum stocks (small-cap, mid-cap, micro-cap and mini-cap stocks), use derivative and high-risk leverage strategies, according to sources.
The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.