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Stock market today, October 15, 2024: GIFT Nifty indicates positive opening for Indian benchmark indices, Nifty50 and BSE Sensex. At 6:33 am, GIFT Nifty Futures was trading 30 points higher at 25,251, suggesting a higher start for Indian markets.
The main drivers of the day
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Investors will react to the release of CPI and WPI data as well as quarterly earnings reports from major companies such as HCLTech and Reliance Industries (RIL).
Inflation data
Retail inflation in India rose to a nine-month high in September, driven by rising food prices and a narrowing base effect. The consumer price index (CPI) jumped to 5.49 percent in September from 3.65 percent in August, slightly below the 5.69 percent recorded in December 2023. Meanwhile, the Wholesale Price Index (WPI) inflation increased from 1.31 percent to 1.84 percent. in August, mainly due to a sharp rise in food prices, which jumped to 11.53 percent from 3.11 percent in the previous month.
Second quarter results
Reliance Industries Ltd (RIL) reported a 4.8% year-on-year decline in its consolidated profit for the second quarter of 2024-25, amounting to Rs 16,563 crore, which is below the analyst expectations. This is the third consecutive quarter of profit declines, largely attributed to weaknesses in the oil-to-chemicals (O2C) segment. Without the strong performance of consumer companies and the rise in other income, the results could have been worse.
On the other hand, HCLTech, India’s third largest IT services company, raised its revenue growth forecast for FY25 by 50 basis points, now forecasting growth between 3.5 percent and 5 percent. The company reported a 10.5 percent year-on-year (y-o-y) increase in its net profit for the second quarter, at Rs 4,235 crore. Meanwhile, revenue for the quarter stood at Rs 28,862 crore, up 8.2 percent from the previous year.
Other companies like HDFC Life, HDFC AMC, KEI Industries, Bank of Maharashtra and Rallis are also expected to announce their results today.
IPO Updates
Hyundai Motor’s IPO opens for retail subscriptions today.
Hyundai Motor India (HMIL) on Monday raised Rs 8,315 crore from key investors, paving the way for the largest-ever inaugural share sale in the country. The Indian arm of South Korean carmaker Hyundai Motor Company (HMC) has allotted 42.4 million shares to 225 funds at Rs 1,960 apiece, the upper end of its price band. Investors receiving allocations included the Singapore government’s sovereign wealth fund (GIC), the New World Fund and Fidelity. The allotment included 21 domestic mutual funds (MFs), such as ICICI Prudential MF, SBI MF and HDFC MF, which applied under 83 schemes. LEARN MORE
Apart from this, Garuda Construction and Engineering Limited IPO (Mainline) and Shiv Texchem Limited IPO (SME) will debut on the stock exchanges today.
The war remains
On Monday, Israeli Prime Minister Benjamin Netanyahu announced that his country planned to carry out strikes against Hezbollah, the Iran-backed group, across Lebanon, including in its capital, Beirut, according to reports. His comments followed a visit to a military base that had been targeted by a Hezbollah drone strike the day before.
Action on Wall Street
On Wall Street, the main indices finished higher, with the S&P 500 and the Dow Jones posting record results. The S&P rose 0.77 percent, while the Dow gained 0.47 percent, crossing the 43,000 mark for the first time. The Nasdaq Composite rose 0.87 percent.
Asian markets
Asian markets opened higher on Tuesday, supported by gains on Wall Street, where the Dow Jones Industrial Average and S&P 500 hit new records. Investors were weighing trade data from South Korea, which showed a trade surplus of $6.6 billion in September, unchanged from the previous month.
As a result, South Korea’s Kospi rose 0.4 percent and Japan’s Nikkei 225 rose 1.2 percent. Australia’s S&P/ASX 200 index also rose 0.68 percent.
Raw material prices
U.S. crude oil futures fell more than 2% on Monday after OPEC cut its demand forecast for 2024. West Texas Intermediate fell to $73.83 a barrel, while Brent crude fell to $77.46.
Meanwhile, gold eased on Monday as economic stimulus measures in China failed to boost investor confidence. Spot gold fell 0.2 percent to $2,650 an ounce.
Other triggers of the day
Key indicators to watch today include Japan’s capacity utilization and industrial production for August, as well as Britain’s unemployment rate (August) and US consumers’ inflation expectations for september.
FII and DII activity
On October 14, foreign institutional investors (FIIs) sold shares worth Rs 3,731.59 crore, while domestic institutional investors (DIIs) bought shares worth Rs 2,278.09 crore.
Market Summary
On Monday (October 14), the benchmark indices, BSE Sensex and NSE Nifty50, closed in positive territory, supported by strong buying in banks, IT and financial services. The Sensex rose 591.69 points (0.73 percent) to 81,973.05, while the Nifty50 climbed 163.70 points (0.66 percent) to 25,127.95. Broader indices like Nifty Midcap 100 and Nifty Smallcap 100 also recorded gains of 0.43% each.
Here’s how analysts rate today’s (October 15) trading session:
Rupak De, Senior Technical Analyst, LKP Securities
Nifty rose after a brief consolidation on the daily chart, suggesting rising optimism. The sentiment remains strong as the index reclaimed 50 EMA on the daily time frame. At the high end, strength could continue to take the Nifty towards 25,350/25,400. At the lower end, support lies at 24,900.
Hrishikesh Yedve, Assistant Vice President of Technical Research and Derivatives at Asit C Mehta Investment Intermediates Ltd.
On the daily chart, the index formed a green candle, signaling strength. On the upside, 21-DEMA is placed near 25,270, which will be a short-term hurdle for the index, followed by 25,400. On the downside, the index will find immediate support near 24,900. Thus , as long as the index remains above 24,900, a buy-on-the-dip strategy should be pursued.
Shrikant Chouhan, Head of Equity Research, Kotak Securities
We believe that as long as the index moves above 25,000/81,500, the pullback formation is likely to continue. on the higher side, the market might go up to 25,200-25,260/82,300-82,500. On the other hand, below 25,000/81,500 the sentiment might change. Below this level, the market could retest the 24,900-24,840/81,200-81,000 level.