Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD
Indian indices opened firm today with Nifty around 17100 despite mixed global cues. At the time of closing, the Sensex was down 37.70 points or 0.07% at 57,107.52, and the Nifty was down 8.90 points or 0.05% at 17,007.40.
During the day, Benchmark indices ended on a flat note in the highly volatile market. The Reserve Bank of India sold fewer dollars in the spot market than it did last week despite the rupee breaching 81.50 to a dollar to hit fresh lifetime lows, underscoring the diminishing utility of aggressive interventions. As a stronger dollar wiped out Rs 11 lakh cr. of investor wealth in two days, the RBI tapped the spot, futures, and overseas derivative markets to minimize the pace of depreciation in the local currency. The 10-year bond yield rallied for the second straight session, defying a broader selloff in Asia, amid a fall in crude and bets on the inclusion in the global bond indices.
US Federal Reserve officials sloughed off rising volatility in global markets, from slumping stocks to currency turbulence abroad, and said their priority remained controlling domestic inflation. South Korean consumers' inflation expectations fell in September for a second month after six months of rises, although the decline was small. The Bank of England says it is monitoring the drop in the pound and would not hesitate to boost interest rates to control inflation. The central bank reiterated its intention to make a full assessment of the government's tax and spending plans at the next meeting of its Monetary Policy Committee. On the sectoral front, selling was seen in capital goods, power, auto, metals, and financial names, while buying was seen in pharma, oil & gas, FMCG, and IT names.
Nifty 50 top gainers are Cipla, Tata Consumer Products, BPCL, Power Grid Corporation, and Shree Cements while Hero MotoCorp, Adani Ports, Titan Company, Tata Steel, and Kotak Mahindra Bank were among the top losers.