Dear Trader…
Indian equity benchmarks continued to trade in high spirit in today session, on account of broad based buying in blue chip counters. Traders were energized as foreign investors turned net buyers after a gap of eight days of being net sellers. The foreign portfolio investors bought equities worth 590.58, according to National Stock Exchange data. Sentiments were also upbeat with Icra Ratings’ statement that credit quality of corporates has strengthened further in the first half of the current fiscal with rating upgrades being more than three times that of downgrades, carrying on with the momentum since early FY22. Broader indices were trading with healthy gains in the range of 1.99%-1.42%.
All sectoral indices on BSE were into positive territory, stocks from Bankex, Metal and IT counters were the prominent gainers. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 2578: 759; while 129 shares remained unchanged. On the IPO front, Electronics Mart India's initial public offer (IPO) received a strong demand, especially from retail investors’ category, with bids recording 35 per cent of the issue size within the first two hours of Day 1 bidding process. The IPO is opened for public bidding from October 4 to October 7. On the global front, Asian markets were trading in green.
Nifty futures opened at 16895.65 points against the previous close of 17140.00 and opened at a low of 17125.00 points. Nifty Future closed with an average movement of 184.00 points and a rise of around 410.35 points and 17306.00 points...!!
On the NSE, the midcap 100 index will rise 2.66% and smallcap 100 index is closing rise 1.76%. Speaking of various sectoral indices, PVT Bank, Metal, PSU Bank, IT and Media stocks saw heavy gains on the NSE, while all other sectoral indices also closed higher.
At the start of intra-day trading, October gold opened at Rs.51000, fell from a high of Rs.51077 points to a low of Rs.50800 with a rise of 635 points, a trend of around Rs.50800 and December Silver opened at Rs.61288, fell from a high of Rs.61865 points to a low of Rs.61071, with a rise of 669 points, a trend of around Rs.61580.
Meanwhile, Federation of Indian Export Organizations (FIEO) has urged Union Finance Minister Nirmala Sitharaman to extend the Goods and Services Tax (GST) exemption on export freight that lapsed on September 30. The FIEO expressed concern that if the exemption is not extended, it will add to their liquidity challenges amid rising interest rates. Since its introduction in 2018, the government had extended the exemption twice till September this year.
FIEO President A Sakthivel has said that overseas freight rates had increased by 300–350 per cent from pre–Covid levels. Now, there has been a slight decline in such rates, but these are still 200–250 per cent higher than that of the 2019 levels. If the exemption is not renewed, exporters will be required to pay GST at 18 per cent on export freight, which will increase the logistical costs for Indian goods in the international market. Due to the recent increase in interest rates by the Reserve Bank of India, the GST payments on such high freight cost will have a significant negative impact on exporters' liquidity. Global trade is entering a very challenging era as countries are facing high inflation, with an impending recession impacting the demand.
Technically, the important key resistances are placed in Nifty future are at 17373 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 17404 - 17474 levels. Immediate support is placed at 17170 – 17077 levels.
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