Dear Trader…
Gaining momentum persisted in Indian equity markets in early today deals with both Sensex and Nifty higher around 1.2%, aided by positive cues from other Asian markets. Domestic sentiments were optimistic, as India's annual wholesale price-based inflation (WPI) eased in September to 10.70% as against 12.41% recorded in August 2022 and 11.8% in September last year.
Besides, World Bank President David Malpass said that India has taken good advantage of digitisation to create social protection programmes that reach the poor, noting that the country can do a lot more on the administrative side to create efficiencies. The street overlooked reports that private equity investments plunged 77.5 per cent to $3.84 billion in the September quarter, reflecting the overall decline in funds flows into startups especially since the Ukraine war.
Nifty futures opened at 17299.75 points against the previous close of 17010.85 and opened at a low of 17175.00 points. Nifty Future closed with an average movement of 192.00 points and a rise of around 198.90 points and 17209.75 points...!!
On the NSE, the midcap 100 index will decline 0.07% and smallcap 100 index is closing rise 0.13%. Speaking of various sectoral indices, only Oil & Gas, Realty, Media, Auto and Metal saw stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, December gold opened at Rs.50794, fell from a high of Rs.50974 points to a low of Rs.50476 with a decline of 245 points, a trend of around Rs.50639 and December Silver opened at Rs.57226, fell from a high of Rs.57517 points to a low of Rs.56301, with a decline of 489 points, a trend of around Rs.56651.
Meanwhile, applauding India's digitisation efforts, Pierre-Olivier Gourinchas, the chief economist of the International Monetary Fund (IMF) has said that the move was a game changer as it had allowed the Indian government to do things that would have been extremely difficult otherwise. He said digitisation is helping along a number of dimensions. One is financial inclusion, obviously because there are a lot of people in countries like India that were unbanked. And having access to digital wallets is a way in which they can enter into transactions that are not just cash transactions, which are very inefficient.
Gourinchas suggested ‘So that's a huge plus in terms of bringing people into a more modern economy. That's a factor for growth, adding that your market becomes very different if you are plugged into this digital instrument. The second one which I think has also been important in the case of India is these digital instruments also allow governments to reach and disburse systems in ways that are much harder to do sometimes with some of the regular pipes of the safety net’.
The chief economist of the IMF said ‘one of the lessons we've learned from both the pandemic and we're learning it again with the energy crisis, is how can we provide the assistance where it's needed. Because it's enormously costly to just have a blanket policy that is going to cover everyone’. He said most people don't necessarily need this and most businesses may not need it. But sometimes it has to be done that way because that's the only way it can be done. Digitisation offers the promise of more targeted assistance when it's needed.
Technically, the important key resistances are placed in Nifty future are at 17303 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 17373 – 17404 levels. Immediate support is placed at 17077 – 17007 levels.
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