Daily Market Commentary - Sep 29, 2022 - Bonanza Portfolio

Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD

Indian indices opened on a positive note with Nifty around 17000. At the time of closing, Sensex was down 188.32 points or 0.33% at 56,409.96, and the Nifty was down 40.50 points or 0.24% at 16,818.10.

During the day, Indian benchmark indices ended lower in the highly volatile session. India's depleted foreign exchange reserves are likely to drop further, falling to their lowest level in over two years by end-2022, as the RBI continues to defend the rupee from the mighty dollar's rise. Markets regulator SEBI came out with a new framework for credit rating agencies (CRAs), involving ratings of securities having explicit credit enhancement features. The new framework, which will be applicable from January 1, 2023, is aimed at enhancing transparency and improving the rating process of the SEBI. Automobile dealers are set to clock their fastest revenue growth in three fiscals with sales accelerating 20-25% YoY on the back of 12-14% volume growth. This will be aided by increasing preference for personal mobility, higher economic activity, easing supply-side constraints, a shift in product mix towards higher-priced vehicles, and price hikes of 5-7%.

The Indian rupee erased intraday gains and traded flat. Asian share markets rose today after Britain's central bank launched an emergency bond-buying program to stabilize a furious sell-off in gilts, though trade was skittish and sterling remained under pressure. The Bank of England said it will buy as much as £5 billion ($5.4 billion) a day of long-dated government bonds until Oct. 14. It spent about a billion pounds on Wednesday and 30-year gilt yields fell 105 bps, the biggest drop ever according to Refinitiv records stretching back to 1992. Oil prices fell in early Asian trade as a strong dollar and economic woes outweighed optimism over consumer demand. On the sectoral front Auto, Financial services, IT & Private banks are in red whereas FMCG, Media, Pharma & PSU banks rose between 1-2%.

Nifty 50 top gainers are Shree Cement, ONGC, Hindalco, ITC, and Apollo Hospital while Asian Paints, Hero Motors Corporations, Tech Mahindra, Bajaj-Auto & Titan were among the top losers.

Source : Equity Bulls

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