Stock Market Today, October 15, 2024: GIFT Nifty indicates a positive opening for Indian benchmark indices, Nifty50 and BSE Sensex. At 6:33 AM, GIFT Nifty Futures were trading 30 points higher at 25,251, suggesting a higher start for Indian markets.
Key drivers for the day
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Investors will react to the release of CPI and WPI data alongside 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 increased food prices and a diminishing base effect. The Consumer Price Index (CPI) surged to 5.49 per cent in September from 3.65 per cent in August, slightly below the 5.69 per cent recorded in December 2023. Meanwhile, Wholesale Price Index (WPI) inflation rose to 1.84 per cent from 1.31 per cent in August, primarily due to a sharp rise in food prices, which jumped to 11.53 per cent from 3.11 per cent in the previous month.
Q2 results
Reliance Industries Ltd (RIL) reported a 4.8 per cent year-on-year decline in consolidated profit for Q2 2024-25, amounting to Rs 16,563 crore, falling short of analyst expectations. This marked the third consecutive quarter of declining profits, largely attributed to weaknesses in its oil-to-chemicals (O2C) segment. Had it not been for strong performance in consumer businesses and a rise in other income, results could have been worse.
On the other hand, HCLTech, India’s third-largest IT services firm, raised its FY25 revenue growth guidance by 50 basis points, now forecasting growth between 3.5 per cent and 5 per cent. The company reported a 10.5 per cent year-on-year (Y-o-Y) increase in net profit for Q2 to Rs 4,235 crore. Meanwhile, revenue for the quarter stood at Rs 28,862 crore, up 8.2 per cent from the previous year.
Other companies like HDFC Life, HDFC AMC, KEI Industries, Bank of Maharashtra, and Rallis are also set to announce earnings today.
IPO updates
The Hyundai Motor IPO opens for retail subscriptions today.
Hyundai Motor India (HMIL) raised Rs 8,315 crore from anchor investors on Monday, setting the stage for the country’s biggest-ever maiden share sale. The Indian arm of the South Korean carmaker Hyundai Motor Company (HMC) allotted 42.4 million shares to 225 funds at Rs 1,960 apiece, the higher end of its price band. Among the investors receiving allotments were the Singapore government’s sovereign wealth fund (GIC), 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 through 83 schemes. READ MORE
Apart from that, Garuda Construction and Engineering Limited IPO (Mainline) and Shiv Texchem Limited IPO (SME) will debut on the bourses today.
The war remains
On Monday, Israeli Prime Minister Benjamin Netanyahu announced that the country plans to carry out strikes against Hezbollah, the Iranian-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.
Wall Street action
On Wall Street, major indices ended higher, with the S&P 500 and Dow Jones posting record finishes. The S&P rose 0.77 per cent, while the Dow gained 0.47 per cent, crossing the 43,000 mark for the first time. The Nasdaq Composite increased 0.87 per cent.
Asian markets
Asian markets opened higher on Tuesday, buoyed by gains from Wall Street, where the Dow Jones Industrial Average and S&P 500 reached new record highs. Investors were evaluating trade data from South Korea, which reported a trade surplus of $6.6 billion in September, unchanged from the previous month.
Consequently, South Korea’s Kospi rose 0.4 per cent, and Japan’s Nikkei 225 gained 1.2 per cent. Australia’s S&P/ASX 200 also increased by 0.68 per cent.
Commodity prices
US crude oil futures fell over 2 per cent on Monday after OPEC cut its demand forecast for 2024. West Texas Intermediate dropped to $73.83 per 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 declined 0.2 per cent to $2,650 per ounce.
Other triggers for the day
Key indicators to watch today include Japan’s capacity utilisation and industrial production for August, as well as Britain’s unemployment rate (August) and US consumer 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) purchased shares worth Rs 2,278.09 crore.
Market recap
On Monday, October 14, the benchmark indices, BSE Sensex and NSE Nifty50, closed in positive territory, buoyed by strong buying in banks, IT, and financial services. The Sensex rose 591.69 points (0.73 per cent) to 81,973.05, while the Nifty50 climbed 163.70 points (0.66 per cent) to 25,127.95. Broader indices like Nifty Midcap 100 and Nifty Smallcap 100 also saw gains of 0.43 per cent each.
Here’s how analysts are assessing today’s (October 15) trading session:
Rupak De, Senior Technical Analyst, LKP Securities
Nifty moved up after a brief consolidation on the daily chart, suggesting a rise in optimism. The sentiment remains strong as the index reclaimed 50 EMA on the daily timeframe. On the higher end, strength might continue to take the Nifty towards 25,350/25,400. On the lower end, support is seen at 24,900.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta Investment Interrmediates Ltd.
On the daily chart, the index formed a green candle, signalling strength. On the upside, the 21-DEMA is placed near 25,270, which will act as 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 holds above 24,900, a “buy on dips” strategy should be pursued.
Shrikant Chouhan, Head of Equity Research, Kotak Securities
We are of the view that, as long as the index is trading above 25000/81500 the pullback formation is likely to continue. on the higher side the market could move up till 25,200-25,260/82,300-82,500. On the flip side, below 25,000/81,500 the sentiment could change. Below the same, the market could retest the level of 24,900-24,840/81,200-81,000.