Markets on Friday sold off ahead of U.S Fed meet on expectations that a higher-than-expected CPI number would force the Fed to resort to an aggressive rate hike of 100 bps to curtail inflation. Nifty ended lower by 1.7% after hitting 24 weeks high while Bank Nifty posted weekly gains of 1% after hitting an all-time high.
Due to sectoral diversion in the Indian market with the Nifty IT index moving into a 52-week low while Bank Nifty hitting an all-time high, the Nifty 50 benchmark has outperformed U.S. markets by a wide margin of 16% and this move may attract further buying by foreign players in the near term.
In short term, after Friday’s correction, the spread of the Nifty50-Nifty500 Index has moved back to the support zone of the bullish flag and would ensure good chances of a sustainable rebound in the coming days with the expectation of Nifty 50 hitting an all-time high in the coming week.
BSE Sensex Daily
Stocks to watch
Positive Read through
- Logistics cos- Logistics policy announced. To build a unified interface platform.
- Ambuja Cements- 47.74 cr warrants issued to the promoter at Rs 418.87 a sh.
- Amara Raja bets on EV sector; expects turnover to touch Rs 3,000 cr by 2025.
- Maruti to ramp up exports; targets shipments worth Rs 20,000 cr in 3 years.
- Lupin launches generic Suprep Bowel Prep Kit in the US.
- M&M: Ontario Teachers Pension plans, will acquire a 30% stake in Mahindra Susten at an equity value of Rs 2,371 crore.
- Shree Renuka Sugars expanded its capacity for ethanol production, from 720 KLPD to 1250 KLPD and is expected to go on stream by December 2022.
- ONGC, RIL, Vedanta- India has reduced windfall tax on domestically produced crude oil as well as cut export duty on diesel and aviation turbine fuel.
- Defence Cos- Army invites Cos to offer critical equipment for emergency procurement.
- Tata Power assures quality – the power to industries, to invest Rs 5,000 crore in capex.
- HDFC Life- NCLT nod for merger of Exide Life into Company.
Negative Read through
- Citi Gas- India’s Natural Gas consumption slides 10% in Aug YoY.
- Maruti Suzuki has recalled 5,002 units of its Super Carry LCV to fix potential issues with a bolt.
- Adani Power withdraws the delisting proposal in 2020.
- Cipla- gets 3 repeat observations from USFDA for the Goa plant.
- BPCL divestment is not on the table as of now, says oil minister Hardeep Singh Puri.
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