Share Market Highlights- Nifty settles above 19810, Sensex over 66420; Bank Nifty adds over 180 points

“The Company has received intimation of tax ascertained as being payable under Section 74(5) of CGST Act, 2017, wherein GST short paid / notpaid amounting to Rs 3,20,60,53,069/- has been advised to be paid by the Company along with the amount of applicable interest and penalty under Section 74(5) of COST Act, 2017, failing which Show Cause Notice will be issued,” said Dabur India in a regulatory filing to the NSE.

“USDINR CMP- 83.2550 (spot) Indian Rupee is trading with a slight positive bias on positive domestic markets and softness in crude oil prices. We expect Rupee to trade with a slight positive bias on rise in risk appetite in global markets and decline in crude oil prices. diplomatic efforts to contain the Middle East conflict may also support the risk assets. However, elevated US Dollar and any further escalation on geopolitical tensions between Hamas and Israel may cap sharp gains. Selling pressure from FIIs and RBI’s maturing of Dollar/Rupee swap transaction may pressurise Rupee at higher levels. Traders may take cues from retail sales and industrial production data from US. USDINR spot price is expected to trade in a range of Rs 82.90 to Rs 83.70,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

BPCL, Power Grid Corporation, SBI Life Insurance Company, HDFC Life Insurance Company, and Tech Mahindra were the top gainers on the NSE during the intra-day trade on Tuesday.

The stock price of Jio Financial Services slipped 0.44% to Rs 223.80 during the intra-day trade on Tuesday. The movement followed the news that the company's Q2 profit doubled from the previous quarter, in its first earnings report after a demerger from Reliance Industries. Consolidated profit after tax for Q2, which includes share of profits of associates and joint venture, rose to Rs 668 crore from Rs 332 crore rupees in Q1FY24, JFS said in a regulatory filing.

HDFC Bank, IRCON, IRFC, Chennai Petroleum Corporation and MRPL are among the most active stocks on the NSE.

“Board of Directors of the Company, at its meeting held on 17th October, 2023, has approved execution of a Share Purchase and Subscription Agreement (SPSA) to acquire 100% equity capital of Suzuki Motor Gujarat Private (SMG) owned by Suzuki Motor Corporation (SMC) and discharge the consideration for such purchase of 100% of the SMG’s equity shares by way of issue and allotment of the Company’s equity shares to SMC on a preferential basis for consideration other than cash, the company said in a regulatory filing to the NSE.

The company has executed the SPSA with SMC and SMG today to acquire 12,84,11,07,500 equity shares of Rs 10/- each, representing 100% equity capital of SMG owned by SMC, for a total purchase consideration of Rs 12,841.1 Crores.

HDFC Bank’s share price surged on the back of 50.60% jump in its Q2 net profit. On a half-yearly basis, the net profit grew 41% to 27,928 crore. This was the first quarterly financial result of the bank post merger with HDFC, which came into effect on July 1. However, the second quarter financial numbers are not comparable with the same period of previous fiscal as the two entities followed different accounting norms.

“WTI Crude oil futures eased at the start of the week, as the US intensified diplomatic efforts to contain the crisis in middle-east. US can’t squeeze Iranian and Russian oil at the same time, with significant political risk for Biden as he heads into the 2024 Presidential election. Oil prices were also under pressure amid reports that the US will ease sanctions on Venezuela’s oil exports in exchange for steps to ensure the country holds fair presidential elections next year. Amid ongoing diplomatic efforts and reports of lifting Venezuelan sanctions, we expect oil prices to be under pressure for the day. Still, risks remain skewed to the upside and markets remain on the edge as Iran, which supports Hamas, has warned that an expansion of the war was 'approaching the inevitable stage',” said Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities.

The NSE Nifty 50 opened at 19843.20, up 0.56%, while the BSE Sensex opened at 66,558.15, up 391.22 points.

“Diplomatic efforts to stifle the ongoing conflict in the middle East led to corrections in gold and bond prices. Spot gold closed with a loss of nearly 0.50% at $1921, whereas the ten-year US yields were up around 2.50% to close at 4.72%. Risk appetite improved, thus the Dollar Index edged lower by around 0.40% to close at 106.21. Today's data calendar includes the US retail sales, industrial production, NAHB housing market Index; the UK's employment report; and the Euro-zone's and Germany's ZEW Survey expectations. However, data may not influence the metal much as focus remains on the geopolitical factors. Support is at $1900, whereas resistance is at $1950,” said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan.

“The USD-INR 27th October futures contract exhibited a narrow trading range. According to the daily technical chart analysis, the pair is trading above its moving average trend-line support level of 83.20, and the RSI is above the 50 level. While examining the technical setup, it's worth noting that MACD is indicating negative divergence. But, the pair is maintaining its position above the 83.20 level. On the daily technical chart, the pair finds support at the 83.20-83.05 range, with resistance levels at 83.50-83.66. If the pair continues to sustain itself above 83.35, there is potential for further strength, potentially pushing towards the 83.55-83.80 range,” said Rahul Kalantri, VP Commodities, Mehta Equities.

The NSE has added GNFC, MCX India, Balrampur Chini Mills, Indiabulls Housing Finance, BHEL, Delta Corp, Hindustan Copper, India Cements, Manappuram Finance, Punjab National Bank, SAIL, and Sun TV Network to its F&O ban list for October 17, 2023.

“A positive start this Tuesday with two promising developments: WTI oil prices holding below $87 a barrel and Nifty poised to join the global stock market rally. The preferred trade suggestions include buying Nifty at 19,732 with a stop at 19,487 and targets at 19,889 – 20,000, while Bank Nifty at 44,287 should be bought with a stop at 43,433 and targets at 44.900 – 45,367. Optimism surrounds the earnings season, but concerns loom regarding an escalation in the Israel-Hamas conflict, which could spike oil prices above $100. HDFC Bank reports strong Q2 results, and a range of other companies is expected to release their Q2 results today. Technical analysis hints at positive prospects for Nifty, while FMCG, Realty, and Auto stocks are expected to thrive amidst festive demand. Notably, Zomato, Titan, M&M, Tata Motors, and Bajaj Finance are likely to be in the spotlight. The recommended stock to buy is ZOMATO (CMP 112). Nifty is anticipated to trade in the 19,300-20,000 range. Federal Reserve Chair Jerome Powell's upcoming speech on October 19th will provide insights into the central bank's future plans,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Foreign institutional investors (FII) sold shares worth net Rs 593.66 crore, while domestic institutional investors (DII) added shares worth net Rs 1,184.24 crore on October 16, 2023, according to the provisional data available on the NSE.

WTI crude prices are trading at $86.56, down 0.12%, while Brent crude prices are trading at $89.68, up 0.03%, on Tuesday morning.

Wall Street’s major indexes ended higher on Monday. The tech-heavy Nasdaq Composite climbed 160.75 points, or 1.2%, to 13,567.98. The S&P 500 soared 45.85 points, or 1.06%, to 4,373.63, at 4,327.78, while the Dow Jones Industrial Average surged 314.25 points, or 0.93%, to 33,984.54.