Market Today: CPI at 14-mth high; FIIs; Swiggy & ACME Solar IPO listing

Both Sensex and Nifty closed over 1 per cent lower on Tuesday, November 12, with the Sensex ending at 78,675.18 and the Nifty closing at 23,883.45 levels

Stock Market Today, Wednesday, Nov 13: Weak global cues may weigh on Indian benchmark indices, Sensex and Nifty50, at market open today. At 6:37 AM, GIFT Nifty Futures indicated a weak start, down 74 points at 23,886.

 

Meanwhile, on Tuesday, Nov 12, both Sensex and Nifty closed over 1 per cent lower, with the Sensex ending at 78,675.18 and the Nifty closing at 23,883.45 levels.

 

Also Read: Nifty closes near five-month low; earnings miss, foreign outflows weigh

 

Domestic investors are expected to focus on CPI and IIP data, along with Q2 nos. from various companies. October’s retail inflation surged to a 14-month high of 6.2 per cent, largely due to rising food prices. In contrast, industrial production showed signs of recovery. The IIP grew 3.1 per cent in September, reversing an August contraction, largely driven by festive demand. 

 

 

The National Statistical Office (NSO) reported that the CPI-based food inflation soared to 10.87 per cent Y-o-Y in October — the highest in 15 months. READ MORE

 

Also Read: Futures trading ban fails to cool retail prices in India, say reports

 

Q2 earnings  

Investors will be analysing quarterly results from companies such as Nykaa, Bosch and BSE. Nykaa posted a 67 per cent year-over-year (Y-o-Y) rise in profit for Q2FY25 to Rs 13 crore from Rs 7.8 crore in Q2FY24. While Bosch saw its profit decline 46 per cent annually to Rs 536 crore in Q2FY25.

 

Several other companies will also release their Q2 results, including Apollo Tyres, Eicher Motors, Vi, GRSE, Happiest Mind Tech, Sun TV, and Thermax, among others.

 

Institutional activity 

Foreign Institutional Investors (FIIs) sold shares of Rs 3,024.31 crore on Nov 12, while Domestic Institutional Investors (DIIs) bought shares worth Rs 1,854.46 crore.

 

Also Read: Market regulator Sebi simplifies process for registration of certain FPIs

 

IPO corner 

Swiggy Limited IPO (Mainline) and ACME Solar Holdings IPO (Mainline) will debut on the bourses. Additionally, Zinka Logistics IPO (Mainline) and the Onyx Biotec IPO (SME) will open for subscription. 

The Mangal Compusolution IPO (SME) enters its second day of subscription, while the allotment for Neelam Linens and Garments (India) Ltd IPO (SME) will be announced today.

 

Global markets  

Asia-Pacific stock markets opened lower on Wednesday, mirroring losses on Wall Street. Traders in Asia also reacted to Japan's latest corporate goods data, which revealed that October's Y-oY producer price inflation reached 3.4 per cent — its highest level since July of the previous year. This figure exceeded both the 3 per cent forecast by Reuters-polled economists and the 2.8 per cent increase recorded in September.

 

Nikkei opened 0.5 per cent lower, while the Topix slipped 0.3 per cent. Kospi declined 1.1 per cent and ASX 200 dropped 1.4 per cent. 

 

In the US, markets fell, with both the Nasdaq and the S&P 500 breaking their five-day winning streaks. The Dow Jones dropped 0.86 per cent. The S&P 500 lost 0.29 per cent while the Nasdaq finished marginally lower.

 

Investors now await the release of October's CPI data, which will be closely watched for insights into inflation and its potential impact on Federal Reserve rate decisions. Economists expect the CPI to rise 0.2 per cent for the month, bringing the annual rate to 2.6 per cent. 

 

Commodity prices 

Oil prices hovered near a two-week low on Tuesday after a roughly 5 per cent decline over the previous two sessions, driven by OPEC's downward revision in demand growth projections, a stronger US dollar, and tepid market response to China's latest stimulus measures. Brent crude futures edged up 6 cents to close at $71.89 a barrel, while US West Texas Intermediate (WTI) crude rose 8 cents to settle at $68.12 per barrel.

 

Gold prices continued their downward trend, falling to a near two-month low on Tuesday due to a stronger dollar and improved market optimism over economic growth prospects. Spot gold dropped 0.8 per cent to $2,600.49 per ounce.

 

Here's how analysts are assessing today's (November 13) trading session:

 

Hrishikesh Yedve, AVP, technical and derivatives research at Asit C Mehta Investment  

The index has broken its 150-day exponential moving average (DEMA) support and formed a red candle, signalling weakness. Last week's low for the index was near 23,816. Thus, 23,800-23,820 will provide immediate support for the Nifty. As long as the index remains over 23,800, a short-term pullback seems possible. If the index remains below it, losses may extend to 23,530, where the 200-DEMA support is located.

 

Shrikant Chouhan, head equity research, Kotak Securities 

As long as the market is trading below 24000/79000 the weak texture is likely to continue. Below the same, the correction wave could continue till 23800/78500. Further down side may also continue which could drag the Nifty/ Sensex till 24700/78200. On the flip side, dismissal of 24000/79000 could change the sentiment. Above 24000/79000 it could bounce back till 24100-24125/79300-79500.

 

Rupak De, senior technical analyst, LKP Securities 

The Nifty slipped from its recent consolidation on the daily chart, indicating growing pessimism in the market. The index has been holding below key short-term moving averages, specifically the 21-EMA and 50-EMA, further weakening sentiment. The daily RSI is declining, accompanied by a bearish crossover. In the short term, the index may move towards the 23,600–23,650 range, while resistance on the higher end is seen at 24,000.