Daily Market Commentary - Oct 4, 2022 - Bonanza Portfolio

Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD

Indian indices opened on a positive note today with the Nifty above 17100. At the time of closing, Sensex was up 1301.66 points or 2.29% to close at 59,090.47 and Nifty up 391.55 points or 2.32% to close at 17278.90.

During the day, The National Highways Authority of India through its latest Infrastructure Investment Trust (InvIT) has raised Rs. 1,217 cr. to fund road projects. The rise in auto sales continued into September, as car companies in India continued to ramp up dispatches to their dealer outlets for the festive season. Industry analysts reckon that shipments of carmakers likely witnessed a jump over last year due to enhanced supply of semiconductors, the commencement of the festive season, and lower base effect vis-à-vis the previous year. India's economic growth is expected to decline to 5.7% this year from 8.2% in 2021, a top UN agency projected on Monday, citing higher financing cost and weaker public expenditures.

US manufacturing activity grew at its slowest pace in nearly 2.5 years in September as new orders contracted, likely as rising interest rates to tame inflation cooled demand for goods. Sterling rose to a fresh post-budget high on Tuesday in Asia, weighing on the broader U.S. dollar index, as the UK currency extended its recovery a day after the British government capitulated on tax cuts. The Aussie dollar retreated from near the top end of its recent range against the greenback ahead of a central bank decision later in the day, with traders split on the odds of a quarter point or half point interest rate rise. The OPEC+ group of oil producers is discussing output cuts of more than 1 million barrels per day (bpd), OPEC sources said, and voluntary cuts by individual members could come on top of that, making it their largest cut since 2020. On the sectoral front, all sectoral indices ended in green with auto, bank, metal, IT, power and realty up 2-3%.

Nifty 50 top gainers are IndusInd Bank, Adani Ports, Bajaj Finance, Coal India & TCS while Powergrid & Dr. Reddy were among the top losers.

Source : Equity Bulls

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