Daily Market Commentary - Oct 19, 2021 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

Indian equity benchmarks extended their previous session's gains with a record high opening on Tuesday tracking gains in Asian peers. Markets trimmed some of their gains in the late afternoon session as traders opted to book profit from the recent rally. However, markets were trading marginally in green as traders took support after RBI remained a net buyer of the US currency in August after it nets purchased $3.747 billion from the spot market. In the reporting month, RBI had purchased $10.887 billion and sold $7.14 billion in the spot market, according to the monthly RBI bulletin for October 2021. Some comfort also came after the Reserve Bank of India in its latest monthly bulletin 'October 2021' showed that domestic demand is gaining strength while aggregate supply conditions are recouping, powered by the robust performance of Kharif agricultural production and revival in manufacturing and services. Traders were seen piling up positions in IT, TECK, and Capital Goods sectors while selling was witnessed in Realty, Basic Materials, and FMCG sectors' stocks. Both Sensex and Nifty are trading around 61,629 and 18,390 levels.

Banking shares were in focus as Global rating agency Moody's upgraded the outlook on the Indian banking system from 'Negative' to 'Stable' on the back of stabilizing asset quality and improved capital. On the global front, Asian markets were trading mostly higher as optimism over corporate earnings provided some respite from long-running worries about inflation, central bank tightening, and signs of a slowing economic recovery.

In Nifty 50 top gainers Tech Mahindra, Larsen, Bajaj finserv, Infosys, and HDFC Bank. The losers are ITC, Tata Motors, Eicher Motors, Titan company, and JSW steel.

Source : Equity Bulls

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