Friday’s sharp rally on Wall Street could negatively impact domestic equities, which are likely to start the week on a positive note. Auto stocks would be in the spotlight before October’s auto sales data is released. All eyes would be on central bank policy reviews scheduled for later this week. Here’s what you need to know before the opening bell:
Nifty50 had formed an indecisive candle on the weekly chart on Friday. The index failed to break through the 17,800 level on a closing basis. Analysts believe the index may encounter resistance near the 17,800-17,850 levels, while viewing the 17,700 level, followed by the 17,500 level, as important supports.
SGX Nifty signals a solid start
Handy futures on the Singapore Exchange were up 174.50 points, or 0.98 percent, at 18,009, signaling a strong start for the domestic market on Monday.
Asian markets rise in early trading
Asian markets, excluding mainland China and Hong Kong, rose Monday morning ahead of the US Federal Reserve’s policy review later this week. Japan’s Nikkei rose 1.58 percent to 27,539.50. The Korean Kospi gained 0.86 percent to 2,287.92. Markets in Taiwan, Australia and New Zealand rose to 1.6 percent. China’s Shanghai Composite closed 0.13% lower, while Hong Kong’s Hang Seng fell 0.23%.
Wall Street on Friday
Economic prints such as better-than-expected consumer spending and slowing wage growth caused US stocks to rally on Friday. US equities gained even as the US Fed was expected to raise interest rates by 75 basis points during its November 1-2 policy meeting. Dow Jones rose 828.52 points, or 2.59 percent, to 32,861.80 points. The S&P 500 rose 93.76 points, or 2.46 percent, to 3,901.06. Meanwhile, the Nasdaq Composite gained 309.78 points, or 2.87 percent, to 11,102.45.
3 Convenient Costs to Report Q2 Results
Bharti Airtel, Tata Steel, Larsen & Toubro, Motherson Sumi Wiring, Equitas Small Finance Bank, Supreme Industries, Castrol India and Timken India are among dozens of companies set to release their September quarterly results later today.
Company actions today
A total of nine stocks such as Nestle India, Asian Paints, Symphony, Colgate-Palmolive and ICICI Securities are going ex-dividend today. Shares of Sanmit Infra will go ex-split from a face value of Rs 10 to face value of Re 1. Shares of TD Power Systems will also go ex-split. This script is split from a face value of Rs 10 to Rs 2.
Stocks in F&O Ban
No security is banned in the M&D segment today. Derivative contracts in a security are prohibited when it exceeds 95 percent of the market-wide position limit (MWPL). No new positions can be created in the security’s derivative contracts. The ban will be lifted when the outstanding interest in the stock falls below 80 percent of the MWPL.
Automatic sales data
Auto stocks will be sharp for October sales data. Emkay Global expects wholesale sales to grow in passenger cars (PVs), commercial vehicles (CVs), three-wheelers (3-Ws) and two-wheelers (2-Ws), supported by the healthy holiday season. The wholesale trade in tractors is likely to decline as a result of destocking. “Our channel audits indicate robust double-digit growth in PVs, CVs and 3Ws and single-digit growth in 2Ws and tractors for retail sales during the holiday season,” said Emkay Global.
FPIs sell shares worth Rs 1,569 crore
Preliminary data available from NSE suggests that FPIs were net buyers of domestic stocks amounting to Rs 1,568.75 crore. Domestic Institutional Investors (DIIs), on the other hand, were sellers of shares amounting to Rs 613.37 crore.
Rupee at 82.47 vs. dollar
The domestic currency fell 14 paise to settle at 82.47 against the dollar on Friday. Analysts said a stronger foreign dollar weighed on the domestic currency, but a positive trend in domestic equities and fresh inflows from foreign funds covered the loss.
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