Additionally, Indian equities faced downward pressure as U.S. inflation data for September exceeded expectations, potentially diminishing the likelihood of further interest rate cuts this year. A report from the U.S. Labor Department revealed that the Consumer Price Index (CPI) rose 2.4% year-on-year, compared to an estimate of 2.3%. On a monthly basis, the CPI increased by 0.2%, against expectations of a 0.1% rise.
The BSE Sensex was trading 153 points, or 0.19%, lower at 81,457. The Nifty50 was down 53 points, or 0.21%, trading at 24,945 around 9:21 am.
From the Sensex pack, HDFC Bank, ICICI Bank, Bharti Airtel, Bajaj Finance, Kotak Mahindra Bank, and TCS were the top contributors to the index’s decline, while HCL Tech, Tech Mahindra, Infosys, and Tata Steel opened with gains.
Among individual stocks, Tata Elxsi rose 3% in early trade after the company beat September-quarter profit estimates, driven by its transportation segment.
Anand Rathi Wealth shares rose 6% after the company reported a consolidated net profit of Rs 76 crores in Q2, marking a 32% year-on-year increase.On the sectoral front, Nifty Bank, Financial, and Realty indices opened lower, while IT, Metal, Pharma, PSU Bank, and Healthcare sectors opened higher.Experts View
“Market is likely to remain volatile in the near-term alternating between FII selling and DII buying. Attractive valuations in other markets, particularly in Chinese stocks, will facilitate further selling by FIIs in India since Indian valuations are elevated,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“Concerns of earnings downgrades in H2 FY 25 render Indian valuations difficult to sustain. However, the sustained flows into the domestic mutual funds, where monthly SIPs have set a new record of Rs 24500 in September, will ensure that all FII selling will be easily absorbed by DII buying. This has been the trend in October so far,” Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, “Nifty can find support at 24,950 followed by 24,850 and 24,700. On the higher side, 25,050 can be an immediate resistance, followed by 24,150 and 25,250.”
Global Markets
Asian shares were headed for the first weekly loss in five as the stunning rally in Chinese shares took a breather, although all eyes are on the details of the much-anticipated fiscal stimulus from Beijing this weekend.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose a subdued 0.3% but still set for a weekly loss of 1.7% after four straight weeks of gains. The Nikkei , however, gained 0.6%, bringing its weekly rise to 2.6%.
Wall Street futures were up 0.1%. Investors are watching the launch of Tesla’s long-promised robotaxi late on Thursday.
FII/DII Tracker
The foreign institutional investors (FIIs) extended their selling on October 10 as they sold equities worth Rs 4,926 crore, on the other hand, domestic institutional investors also extended their buying as they bought equities worth Rs 3,878 crore on the same day.
Crude Oil
Oil eased on Friday after a rally the previous day, but prices remained set for a second straight weekly gain as investors weighed the impact of hurricane damage on U.S. demand against any broad supply disruption if Israel attacks Iranian oil sites.
Brent crude oil futures fell 39 cents, or 0.5%, to $79.01 a barrel. U.S. West Texas Intermediate crude futures dropped 32 cents, or 0.4%, to $75.53 per barrel.
Currency Watch
The Indian rupee rose 2 paise to 83.96 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.11% to 102.87 level.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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