Markets at new highs amid major earnings; Sensex crosses over 60,620, Nifty 50 just shy of 18,100; Auto outperforms; M&M, Power Grid lead

The domestic stocks have even shrugged off the broader weak global cues as investors await major earnings for September 2021 ending quarter.

Oct 13, 2021 09:10 IST India Infoline News Service

Stock Market Up
The bulls took over Indian equities during Wednesday's opening bell with benchmarks Sensex and Nifty 50 cruising to new historic highs. A broad-based buying across sectoral indices with auto stocks outperforming counterparts and trading at new highs was a major growth booster. However, lacklustre demand was witnessed in metal and oil & gas stocks. The domestic stocks have even shrugged off the broader weak global cues as investors await major earnings for September 2021 ending quarter.

In the early trade, Sensex has risen by more than 334 points so far today and has even clocked a new lifetime high of 60621.72. On similar lines, Nifty 50 climbed by at least 107 points today and also touched a new high of 18,098.85.

For today, Nifty 50 is expected to find support around 17850 while 18200 will act as resistance. Overall, the session looks volatile and some pullbacks can be witnessed during the second half of the day. Also, caution remains on the Rupee side as it hits 15-month lows at 75.51.

At around 09.30 am, Sensex was trading at 60,584.32 higher by 300.01 points or 0.50. Nifty 50 traded at 18,087 up 95.05 points or 0.53%.

In terms of sectoral indices, on BSE, the Auto index advanced nearly 595 points. Meanwhile, the Bankex, Capital Goods and Consumer Durables indexes also contributed substantially to the upside by soaring between 160-220 points.

These indexes have also touched new all-time highs. On BSE, the Auto index has jumped to a 52-week high of 26,328.60, while the Bankex hit a new high of 44,165.97. The Capital Goods and Consumer Durables saw a new 52-week high of 26,796.63 and 45,902.25 respectively.

Sensex bulls were - M&M soaring over 3.3% followed by Power Grid climbing nearly 2%. Stocks like L&T, ICICI Bank, Bharti Airtel, Titan, Ultratech Cement, Bajaj Finserv, NTPC, Bajaj Finance, Axis Bank and HDFC Bank jumped between 0.5-1%.

Sensex bears were - Nestle, HUL, Tata Steel, HCL Tech and ITC trading between flat to marginally lower.

Stocks like Infosys, Wipro, Mindtree and Aditya Birla Money will be in focus ahead of their Q2 earnings scheduled for the day.

Also, factors like CPI inflation, factory output and IMF's economic outlook for the country - added to the winnings.

India's consumer price index (CPI) or retail inflation further eased to 4.35% in September 2021 compared to 5.30% in the previous month. A year ago in September, the country's inflation was at 7.27%. The latest inflation data is the lowest since April 2021. The consumer price is placed well within RBI's trajectory.

As for Industrial Production (IIP), the index rises to 11.9% in August 2021 on low base effect, compared to a contraction of 7.1% witnessed in the same month a year ago. Cumulatively, between April - August 2021, the factory output stands at 28.6% against a decline of 25% in the corresponding period of the previous year.

Meanwhile, the International Monetary Fund expects India's economic growth at 9.5% for the year 2021. The monetary fund house further forecasts the country's growth to be at 8.5% in 2022.

On the global front, Asian stocks were broadly lower with Hong Kong's Hang Seng diving over 360 points. Japan's Nikkei 225 slipped nearly 60 points, while China's Shanghai Composite dropping marginally. Australia's S&P/ASX traded flat but in red. On the contrary, South Korea's KOSPI index outperformed by surging more than 1%.

Asian cues tracked losses of Wall Street overnight. Notably, Chinese stocks have been huge underperformers this year and could see some value buying emerging as valuations become attractive. Stronger US$ could see pressure on importers as margins come under pressure.

On Tuesday, US markets close in the red for the third consecutive day as markets await earnings from large corporates with higher yields and inflation threats coupled with supply disruptions seeing profit booking. Bond yields close at 1.57% while oil prices also see cool off after hitting 3 years’ highs. The US dollar benchmark index hits 15-month highs at 94.52 which sees pressure on emerging markets.

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