Market Movers: Top 10 things to know before markets open for trading on Monday

Indian stock markets ended the week on a high note scaling new peaks. After an extended weekend, when the market reopens today, watch out for these 10 triggers that could impact movement, one way or the other. The exchanges were shut on Friday on account of Dussehra.

The week gone by, proved to be significantly rewarding for the BSE Sensex and Nifty50. While the former was up by 2 per cent, the latter gained 2.5 per cent over the 4-day trading week. 

The BSE Sensex hit a 61,000-mark for the first time ever, ending the day at 61,305.95. It was up over 568 points or 0.94 per cent. The broader market Nifty50 ended at 18,338.55, up by almost 1 per cent or 177 points. It touched an all-time high of 18,350.75 on the intraday basis.

Nifty Bank gained 4 per cent while Nifty Mid Cap was up 3.4 per cent in the week gone by. Both, Nifty PSU Bank and Nifty Auto was higher by 6.5 per cent against previous week’s closing.

Nifty Bank ended up 1.8 per cent from the previous closing at 39,340.90. Nifty mid cap also ended with gains and settled at 32,503.50.

India VIX – a measure of market volatility – declined over 2 per cent on Thursday to settle at 15.77.

Stay tuned to Zeebiz.com to find out what could impact your trade today. We have collated a list of top 10 news points which could impact markets, companies, or economy:  

Global Markets

Stocks surged globally on Friday in their best day in five months as strong US corporate earnings reports fueled optimism about the economy, though three-year-high oil prices kept inflation risks alive and lifted government bond yields, Reuters reported.

US investment bank Goldman Sachs Group Inc was the latest on Wall Street to trounce market expectations when it reported a 66 per cent surge in third-quarter profit, the report said.

US stocks joined Friday’s rally in global equities. The Dow Jones Industrial Average jumped 1.1 per cent in its best weekly performance since June 25. The S&P 500 climbed 0.75 per cent to notch its best week in 2-1/2 months, and the Nasdaq Composite added 0.5 per cent.

The pan-European STOXX 600 index rose 0.74 per cent and MSCI’s gauge of stocks across the globe gained 0.86 per cent, the biggest daily rise since May 14.

Asian Markets 

Asian shares were on edge on Monday morning ahead of the release of Chinese economic data for the third quarter, as investors fret about the health of the world`s second-largest economy even as US companies report strong quarterly earnings.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed in early trading on Monday, off 0.07 per cent, while Japan`s Nikkei lost 0.12 per cent. US stock futures, the S&P 500 e-minis, were down 0.13 per cent.

SGX Nifty

SGX Nifty was trading with a negative bias on Monday and was down 21 points or 0.12 per cent at 18,444.20 around 7:30 am (IST).

Banking & IT Sectors

Banking and IT stocks are expected to remain in focus when the markets reopen on Monday. Watch out for index Nifty50 and Nifty Bank heavyweight HDFC Bank, which reported a strong Q2FY22 results. The country's biggest mortgage lender HDFC Bank on Saturday reported an increase of 17.6 per cent in standalone profit at Rs 8,834.31 crore for the September quarter of FY22 (Q2FY22).

In the year-ago period, the profit stood at Rs 7,513.11 crore. The Bank's net revenues (net interest income plus other income) increased by 14.7 per cent to Rs 25,085.2 crore for the quarter ended September 30, 2021 from Rs 21,868.8 crore for the quarter ended September 30, 2020. 

After strong July-September results posted by Infosys, Wipro and Mindtree, HCL Technologies posted a weaker than expected results on Thursday. The revenue growth for the reporting quarter was up 2.9 per cent quarter-on-quarter (qoq) as against the expectations of 4-5 per cent.

Also Read: HCL Tech Q2FY22 revenues up 2.9% QoQ vs 4% estimated; PAT up 1.6% 

“With the expectation of a strong recovery in corporate earnings, the Indian market is positioned to continue its bull run. However, any deviation from market expectation may lead to short-term correction in the respective segments," Vinod Nair, Head of Research at Geojit Financial Services said.

Q2FY22 Earnings Results

Ultratech Cement Limited, Route Mobile Limited and Tata Coffee Limited will be announcing their quarterly results on Monday. Ultratech’s Q2 results could set the tone for other cement companies.  

Also Read: Ultratech Cement Q2FY22 Earnings Result Preview – Company to announce results on Monday- Here are 5 things to watch out for

Foreign Institutional Investors (FIIs), Domestic Institutional Investors (DIIs)

Foreign Institutional Investors (FIIs) bought Indian equities worth Rs 1681 cr in the cash market on Thursday. Meanwhile, the Domestic Institutional Investors (DIIs) were net sellers at Rs 1750.59.

However, Foreign Portfolio investors (FPI) have turned net sellers in the capital markets in October so far, reversing the trend of net investments in the previous two months, due to depreciation in the rupee and global factors, a PTI report said quoting experts.

USD Vs INR and Crude oil  

The rupee gained 11 paise to close at 75.26 against the US dollar on Thursday as heavy buying in domestic equities and weakness in the greenback strengthened investor sentiment. Morgan Stanley expects Indian Rupee to test levels around 78 against the USD, making imports dearer according to a PTI report.

There has been 14 per cent jump in oil prices to USD 83 per barrel and 15 per cent rise in coal rate to USD 200 per metric tonne, this report said quoting analysts at Morgan Stanley, stoking fears of inflation.

Gold

Gold imports, which have a bearing on the current account deficit, zoomed to about USD 24 billion during April-September 2021 due to higher demand in the country, according to data from the Commerce Ministry, another PTI report said.

Festive season coupled with scepticism around Covid-19 third wave could trigger investments in the yellow metal, taking some sheen off the equity markets.

Gold exchange-traded funds (ETFs) attracted Rs 446 crore in September and inflow may continue in coming months due to strong demand on the back of festival season in the country. The was sharply higher than the net inflow of Rs 24 crore recorded in the previous month.     

Asset Monetisation

The finance ministry will soon move the Cabinet to seek approval for setting up a company for transfer and subsequent monetisation of land and non-core assets of privatisation bound CPSEs.

A special purpose vehicle (SPV) in the form of a company would be set up to hold these assets which would be monetised to fetch value to the exchequer, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said.

The government is targeting to conclude strategic sale of BPCL, Shipping Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam Ltd, this fiscal.

Stocks under F&O ban on NSE

Six stocks – Bank of Baroda, BHEL, Indiabulls Housing Finance, Idea, IRCTC, & Sun TV - are under the F&O ban. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

(Inputs from PTI)

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)