After a quick rebound from weekly lows, the Indian equity market stopped a two-week losing trend and completed the week ending October 6 slightly higher. Following the upward trend over the previous several sessions, the market climbed back over the 10-day EMA (exponential moving average set at 19,627) as well as the 50-day EMA (19,560) on the Nifty50. The recovery may continue in the upcoming week as well, but given the start of the September quarter earnings season and increased volatility, experts said. They added that participants will also closely monitor the September inflation numbers by the US and India as well as FOMC minutes.
Falling oil prices, positive domestic PMI data, and the Monetary Policy Committee’s decision to maintain the current repo rate all contributed to the upward trend in equities prices; nonetheless, the RBI continues to view inflation as a major danger and is remaining hawkish with the introduction of OMOs to manage liquidity. Gains were nevertheless limited by the sizeable FII outflow brought on by high US bond yields and the US dollar index. The Nifty Midcap 100 index fell 0.6 percent and the Smallcap 100 index jumped 0.7 percent over the week, while the BSE Sensex increased by 167 points to 65,996 and the Nifty50 increased by 15 points to 19,654.
While technology and real estate equities trended higher, companies in the auto, banking, energy, pharmaceutical, and oil & gas industries were under pressure. The Dow futures are down more than 200 points this morning, Asian markets are mostly negative, and oil has risen above $88 per barrel in response to the Hamas attack on Israel. These are not very positive global signs. Today’s stocks of interest include TCS, Titan, TVS Motor, and MCX, among others.