Market Today: GIFT Nifty sinks, Q2 results, Sinwar killed, Gold tops $2,700

Stock Market Today, October 18, 2024: Indian benchmarks, Nifty50 and Sensex may open on a negative note today. 

At 6:30 AM, GIFT Nifty Futures were trading about 103 points lower at 24,741, suggesting a gap-down start for Indian markets.

Domestic triggers
 

Investors will be reacting to earnings reports from Infosys, Wipro, Axis Bank and Nestle today. 

Infosys reported a 4.7 per cent year-on-year increase in net profit at Rs 6,506 crore for Q2FY25, missing estimates. Revenue rose to Rs 40,986 crore, up 5.1 per cent Y-o-Y and 4.2 per cent sequentially.

Wipro saw a 21.3 per cent Y-o-Y increase in net profit, reaching Rs 3,201 crore for Q2FY25. Revenue for the quarter was Rs 22,300 crore, down 1 per cent Y-o-Y but up 1.5 per cent Q-o-Q.

 

Axis Bank reported an 18 per cent Y-o-Y jump in net profit to ₹6,918 crore for Q2FY25, bolstered by strong growth in other income. Net interest income stood at ₹13,483 crore, up 9 per cent Y-o-Y.

Also Read: Nestle Q2 results 

Additionally, the market will track Q2 results from various companies, including Tata Consumer Products and ICICI Lombard General Insurance and recently-listed Manba Finance, among several others.

That apart, S&P Global Ratings, on Thursday, said that India could become the third-largest global economy by 2030, with a target of a $30 trillion economy by 2047, while addressing challenges posed by a rising population. READ MORE

Wall Street check
 

The Dow Jones Industrial Average closed higher on Thursday, marking its fourth record close in five sessions. This uptick was fuelled by stronger-than-expected retail sales, which rose 0.4 per cent month-over-month in September, surpassing August's 0.1 per cent gain and beating forecasts of a 0.3 per cent increase. 

Additionally, US unemployment claims fell by 19,000 for the week ending October 12, marking the largest drop in three months and bringing total claims to 241,000—well below the expected 260,000. 

In contrast, industrial production declined 0.3 per cent in September, exceeding expectations of a 0.2 per cent decrease, following a revised 0.3 per cent increase in August. Manufacturing output also dropped by 0.4 per cent, compared to expectations of a 0.1 per cent decline.

Consequently, the Dow closed 0.37 per cent higher, while the Nasdaq edged up 0.04 per cent. However, the S&P 500 slipped 0.02 per cent. 

Investors now will be watching for upcoming data on housing starts and building permits, along with comments from Federal Reserve officials, including Atlanta Fed President Raphael Bostic and Minneapolis Fed President Neel Kashkari.

Asia-Pacific markets
 

Asia-Pacific markets were mixed on Friday as investors awaited key economic data from China and assessed inflation figures from Japan. 

China's third-quarter GDP is anticipated to show a growth of 4.5 per cent, down from 4.7 per cent in the previous quarter, with the house price index for September set to be released shortly. Economists predict a mixed outlook for China’s economy, with urban investment expected to grow 3.3 per cent year-on-year, slightly lower than August's 3.4 per cent, and retail sales projected to rise 2.5 per cent, improving from last month's 2.1 per cent. Industrial production is forecasted to expand by 4.5 per cent compared to the previous year.

In Japan, headline inflation for September was reported at 2.5 per cent, with core CPI (excluding fresh food) rising to 2.4 per cent, slightly above expectations of 2.3 per cent. Therefore, Japan’s Nikkei was trading 0.45 per cent higher, while the broader Topix index rose 0.40 per cent. South Korea's Kospi dropped 0.19 per cent while Australia's S&P/ASX 200 slipped 0.60 per cent.

IPO corner
 

The IPO of Hyundai Motor India Ltd saw a subscription rate of 2.37 times, with major interest from qualified institutional buyers. READ MORE

The Freshara Agro Exports Limited IPO (SME) will enter Day 2 of its subscription, while Lakshya Powertech Limited's IPO will conclude today.

Oil prices
 

Crude oil prices saw a slight rise, on Thursday, after four days of losses, with WTI at $70.67 per barrel and Brent at $74.45. Meanwhile, Geopolitical tensions remain high, particularly following the reported death of Hamas chief Yahya Sinwar. 

Gold rates
 

Gold prices hit record highs on Thursday, driven by uncertainty surrounding US elections and global conflicts, with spot gold rising to $2,692.04 per ounce.  The US gold futures closed 0.6 per cent higher at $2,707.5.

FII and DII activity
 

On October 17, foreign institutional investors sold shares worth Rs 7,421.40 crore, while domestic institutional investors purchased shares worth Rs 4,979.83 crore.

Also Read: Heavy buying: Record FPI outflows cross $8.5 bn this month, shows data

Market summary (October 17)
 

On Thursday, the BSE Sensex and NSE Nifty50 ended in the red amid Nifty50 contract expirations, with the Sensex falling 494.75 points (0.61 per cent) to 81,006.61 and the Nifty50 down 221.45 points (0.89 per cent) to 24,749.85.

Here's how analysts are assessing today's (October 18) trading session:

Shrikant Chouhan, head of equity research, Kotak Securities
 

We are of the view that the market texture is weak and as long as Nifty trades below 24,900/81,500 weak sentiment is likely to continue. On the downside the market could slip till 24,550-24,500/80,900-80,600. On the flip side, above 24,825/81,300 we could see a one quick pullback rally till 24,850-24,900/81,400-81,500.

Rupak De, senior technical analyst, LKP Securities
 

On the daily chart, the Nifty has broken down from a bearish flag pattern, suggesting a possible downward move in the short term. The RSI is showing a bearish crossover and is declining. However, this may not be the ideal level to initiate short positions, as the index has experienced a steep correction and is near a double-bottom support, which could trigger a near-term recovery toward 25,000. Conversely, a decisive fall below 24,700 could lead to a significant correction in the market.

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

On the daily chart, Nifty formed a big red candle, indicating weakness. However, the index is approaching the previous demand zone of 24,690. If Nifty sustains below this level, further downside could be likely, taking it towards 24,500–24,400 levels. On the upside, immediate resistance is positioned at the psychological level of 25,000, followed by the 21-day Exponential Moving Average (21-DEMA) at 25,185.