Daily Market Wrap - Oct 12, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
2021-10-12 22:24:40 (Time Zone: IST)
Nifty rose for the fourth consecutive session on Oct 12 after a weak morning session. Nifty opened higher on 12 Oct and made high intraday high in the first 10 minutes of the day. It later fell in line with other Asian markets and made a low at noon. A gradual recovery followed. At close the Nifty was up 0.26% or 46 points to 17992.
On a day when the volumes on the NSE were in line with recent averages, Consumer Durables, Metals and FMCG indices rose the most while IT and Telecom indices fell the most. BSE Midcap index ended 0.65% higher while the Smallcap index ended 0.26% up.
India's overall power generation has improved to 7.3% YoY at 345 billion units in Q2FY22, due to better power demand post lockdown relaxations.
The Indian rupee fell to a 15-month low on Tuesday, sliding past important support levels. The currency extended a bout of weakness to fall to a low of 75.65 against the U.S. dollar in afternoon trade, down 0.35% for the day. Negative triggers such as higher oil prices, rising U.S. bond yields and consequently a stronger dollar pushed the Indian currency lower.
A selloff in global stocks continued into Tuesday on signs that soaring energy prices have put a dampener on economic growth, while inflation and policy-tightening fears sent short-dated U.S. Treasury yields to 18-month highs.
China Evergrande Group on Tuesday missed its third round of bond coupon payments in three weeks, intensifying market fears over contagion involving other property developers as a wall of debt payment obligations come due in the near-term.
Nifty has closed at the highest ever closer to 18000 levels. Advance decline ratio improved as the day progressed to above 1:1. The upward momentum could continue with some intermittent profit taking. Subdued sentiments in the global markets could however slow this momentum.