Reliance and Maruti aided Nifty recovery; India VIX drifted below 16 mark!
Interestingly, India VIX (which gauges market volatility) has drifted below the level of 16
Market Update at 3.30 PM: Nifty recovered almost 70 points from the day’s low and settled within the striking distance from the 17,800 mark. Selected index heavyweights were seen doing much of the lifting on Friday as Reliance, Maruti, and HDFC combinedly contributed nearly 85 points. Interestingly, India VIX (which gauges market volatility) has drifted below the level of 16, indicating a low-risk perception among the market participants.
Talking about the sectoral indices, the majority of the sectors ended in red with Nifty Metal and Pharma losing over a per cent each. On the other hand, Nifty Auto and Energy jumped 1.63 per cent & 1.39 per cent, respectively.
For the week, Nifty advanced nearly 1.25 per cent while the broader markets underperformed as Nifty Midcap added nearly 1 per cent and Nifty Smallcap gained a meager 0.20 per cent.
Market Update at 1.00 PM: Nifty has trimmed almost 100 points from the day’s high and is seen trading near the day’s low as US Dow Jones futures slipped 0.41 per cent.
The market breadth tilted in favour of bears as the broader markets were seen trading in the red. Nifty Smallcap is down by nearly 1 per cent while the mid-cap index tanked over half a per cent.
Talking about the sectoral performance, the majority of the sectors are seen trading in red with losses led by Nifty Metal and Nifty Pharma while on the other hand, Nifty Energy turned out to be the top gainer, solely led by the blue-eyed boy of D-Street i.e. Reliance Industries.
Market Update at 9.30 AM: Nifty hovers around the 17,800 mark with gains of 0.33 per cent while Sensex is trading within the striking distance of its important psychological mark of 60,000.
Among the sectoral performance, Nifty PSU Bank and Nifty Financial Services turned out to be the top gainers.
Talking about stock-specific performance, Infibeam Avenues has jumped over 13 per cent as it received RBI’s nod for a payment aggregator licence.
After signing off October series with a gain of over 3.5 per cent, the Indian benchmark indices are likely to open in green on the last trading session of the week as indicated by SGX Nifty, which is trading up by 60 points at 17,862.50 level.
On Wall Street, US stock indices witnessed mixed performance on Thursday with Dow Jones ending the session higher by 0.6 per cent and recording its fifth successive gain. On the other hand, the tech-heavy Nasdaq tumbled over 1.5 per cent amid steep drop in Meta stock.
One of the most notable events on Thursday was the monetary policy decision taken by European Central Bank (ECB) wherein, it raised interest rates by 75 bps to the highest level since 2009.
Back home on Thursday, after two days of selling, FIIs turned net buyers as they were net buyers to the tune of Rs 2,818.40 crore while DIIs turned net sellers to the tune of Rs 1,580.10 crore. On the earnings front, over 40 companies will announce their earnings for the quarter ended September 2022. Some of the key names to watch out for are Maruti, Dr Reddy’s, Blue Dart, Bandhan Bank, Astec LifeSciences, JSW Energy, and VEDL.
Talking about corporate action, today is the ex-dividend date for KPI Green as it has announced an interim dividend of Rs 17.
Technically, the level of 17,820 is likely to act as a resistance for Nifty. Unless Nifty sustains above this level, don’t expect a runaway rise!