RBI IN FOUCS

 

RBI IN FOUCS

 

WORLD MARKETS

 

Dow and Nasdaq climbed 1% each while S & P 500 gained 0.8% as lawmakers reached a deal to increase the debt ceiling into December. All three extended the winning streak to third consecutive day.

 

Weekly jobless claims totaled 326,000, below the 345,000 estimate and a drop from the previous week’s 364,000. Continuing claims declined by 97,000 to 2.71 million.

 

Markets are also awaiting September non-farm payroll report to be released today, which is expected to show an addition of 500,000 jobs, up from 235000 in August.

 

US 10-year Treasury yield rose 4.7 bps to 1.571%. Dollar index was little changed at 94.20. Spot gold fell 0.3% to $1,757.30 per ounce.

 

Brent futures rose 87 cents, or 1.1%, to settle at $81.95 a barrel, while U.S. crude gained 87 cents, or 1.1%, to reach $78.30 a barrel.

 

European markets climbed 1.2%-2.1%. German August industrial output fell by 4% month-on-month following an increase of 1.3% in July, a vastly worse showing than the expected 0.4% decline.

 

AT HOME

 

Benchmark indices gained eight tenth of a percent each, recouping 80% of yesterday's losses. Sensex settled at 59677, up 488 points while Nifty added 144 points to finish at 17790. Nifty mid-cap and small-cap indices surged 1.9% and 1.2% respectively with the former hitting fresh record intraday as well closing high while the later made a fresh record closing high. Except 0.5% lower Oil & Gas and 0.03% lower Telecom index, all the BSE sectoral indices ended higher with Realty and Consumer Durables indices leading the tally, up 6% and 5.8% respectively.

 

FIIs net sold stocks worth Rs 1764 cr but net bought index futures and stock futures worth Rs 1195 cr and 2141 cr respectively. DIIs were net buyers to the tune of Rs 1029 cr.

 

Rupee appreciated 20 paise to end at 74.77/$.

 

OUTLOOK

 

Today morning, Nikkei is up more than 2% while Hang Seng and Shanghai are up 0.1% and 0.6% respectively. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 17885, the top made Wednesday followed by 17947, the top made last week, were the upside level to eye and that 17581-17557, the gap created by Monday's gap-up opening, was the support zone.

 

Nifty surged to touch a high of 17857 before closing at 17790.

 

17885, the top made Wednesday, followed by 17947, the top made last week, continue to be upside level to eye.

 

17581-17557, the gap created by Monday's gap-up opening, continues to be the support zone.

 

38107, 38377 are the upside levels for Banknifty; 37355-37300 is support zone.

 

RBI's Monetary Policy Committee is expected to leave its key interest rate unchanged for an eight straight meeting to support economic growth. The central bank however is expected to signal readiness to unwind some pandemic-era stimulus to tackle inflation concerns.

 

TCS will report its quarterly earnings today.