Benchmarks trade with decent gains; European shares decline

The domestic equity benchmarks traded with decent gains in afternoon trade. The Nifty traded a tad above the 17,050 level after hitting day`s high at 17,105.40. FMCG, oil & gas, and IT shares advanced while metals, pharma and consumer durable markers lagged behind.

At 13:24 IST, the barometer index, the S&P BSE Sensex, was up 274.47 points or 0.48% to 57,421.79. The Nifty 50 index added 74.95 points or 0.44% to 17,058.50.

Among the Nifty 50 stocks, Power Grid Corp (up 2.90%), Coal India (up 2.51%), Bajaj Auto (up 2.46%), Axis Bank (up 1.97%) and Tata Consumer (up 1.73%) edged higher.

Adani Enterprises (down 3.60%), Asian Paints (down 2.05%), Dr. Reddy`s Laboratories (down 1.47%), ICICI Bank (down 0.98%) and Adani Ports (down 0.67%) edged lower.

In the broader market, the S&P BSE Mid-Cap index traded flat while the S&P BSE Small-Cap index shed 0.33%.

The market breadth was negative. On the BSE, 1,368 shares rose and 1,979 shares fell. A total of 145 shares were unchanged.

Economy:

The International Monetary Fund on Tuesday cut its global growth forecast for next year to 2.7%.

Cutting India`s GDP growth forecast to 6.8% for the financial year 2023, the IMF predicted that India will continue to remain on track to become one of the fastest-growing economies in the world.

IMF expects that inflation in India will come down to 4% range next year. It is said that global inflation will likely perak at 9.5% this year 4.1% by 2024. IMF also warned that a major economic slump is yet to come, and 2023 will feel like a recession to many people.

Meanwhile, the total approximate earnings of Indian Railways on originating basis during 1st April to 8th October 2022 is Rs 33476 crore, registering an increase of 92% compared with Rs 17394 crore achieved during the same period last year.

Primary Market:

The initial public offer (IPO) of Tracxn Technologies received bids for 3.32 crore shares as against 2.12 crore shares on offer, according to stock exchange data 13:18 IST on Wednesday (12 October 2022). The issue was subscribed 1.56 times.

The issue opened for bidding on Monday (10 October 2022) and it will close on Wednesday (12 October 2022). The price band of the IPO is fixed at Rs 75-80 per share. An investor can bid for a minimum of 185 equity shares and in multiples thereof.

Stocks in Spotlight:

IT majors Wipro (up 0.14%) and HCL Technologies (up 1.50%) will announce their quarterly earnings today. Infosys added 0.39%. The IT firm on Tuesday (11 October 2022) announced that Ravi Kumar S. resigned as president with effect from 11 October 2022. In his role, Ravi Kumar led the Infosys global delivery organization across all global industry segments.

L&T Finance Holdings advanced 3.27%. The company said it has received approval from SEBI for sale of 100% shareholding in subsidiary L&T Investment Management to HSBC Asset Management (India).

Global Markets:

European markets declined while Asian stocks traded in a mixed fashion on Wednesday amid concerns over the global economy. Investors are also waiting for inflation data from the U.S. due later this week.

The British pound on Wednesday morning recovered losses following a media report that said the Bank of England is privately signaling a willingness to extend its emergency bond-buying program.

Earlier in the day, the British pound fell against the dollar after Bank of England Governer Andrew Bailey warned that it would not extend its emergency intervention in financial markets beyond this week, after the turmoil sparked by the governments mini-budget.

The currency slipped by more than a cent against the dollar to below $1.10 after the Bank`s governor reportedly insisted the 65 billion pound scheme to purchase UK government bonds would not be continued beyond the deadline on Friday.

Following the reports of extension of bond-buying program, the pound reversed early losses and was back above the $1.10 mark.

Meanwhile, Banks in China extended 2.47 trillion yuan ($344 billion) of new loans in September, compared with 1.25 trillion yuan in August, the country`s central bank said in a statement late Tuesday.

The Bank of Korea raised its policy rate to 3%, an increase of 50 basis points in line with expectations. Inflation in South Korea stood at 5.6% in September, above the central bank`s target.

In US, the S&P 500 and Nasdaq ended lower on Tuesday, with indications from the Bank of England that it would support the country`s bond market for just three more days adding to market jitters late in the session.

Powered by Capital Market - Live News