Daily Market Commentary - Oct 3, 2022 - Bonanza Portfolio

Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD

Indian indices opened lower today with the Nifty below 17100. At the time of closing, the Sensex was down 638.11 points or 1.11% at 56,788.81, and the Nifty was down 207 points or 1.21% at 16,887.30.

During the day, India's forex continued its southward journey, with the overall reserves declining by USD 8.134 billion to USD 537.51 billion for the week that ended September 23. India collected Rs. 1.48 lakh cr. as Goods and Services Tax in September, registering an increase of 26% from the same month last year. The September GST mop-up was 2.8% higher than in August. Monthly GST revenues have been more than Rs. 1.4 lakh cr. for 7 months in a row. The central government's fiscal deficit stood at Rs. 5.42 lk. cr. in April-August, accounting for 32.6% of the full-year target. The fiscal deficit in the first 5 months of FY22 was Rs. 4.68 lk. cr. The Centre is targeting a fiscal deficit of Rs. 16.61 lk. Cr. for FY23, or 6.4% of GDP.

The government has cut the windfall profit tax on locally produced crude oil and diesel, in line with a fall in international rates, and scrapped the levy on the export of jet fuel. SEBI includes mutual fund units in Insider Trading regulations. Prices of natural gas, which is used to generate electricity, make fertilizer, and is converted into CNG to run automobiles, were hiked by a steep 40% to record levels, in step with the global firming up of energy rates.

Euro Zone September Manufacturing PMI was at 48.4. UK September final manufacturing PMI was at 48.4 versus 47.3 (MoM) versus an estimate of 48.5. S&P Global India's September manufacturing PMI at 55.1 against 56.2. ICICI Bank hiked lending rates by 10 bps and hiked benchmark lending rates by 15 bps to 9.25%. Yes Bank hikes lending rates by 20-50 bps. State Bank of India hikes external benchmark lending rates by 50 bps to 8.55%. On the sectoral front, except Pharma, all other sectoral indices are trading lower with auto, power, metal, FMCG down 2-4%.

Nifty 50 top gainers are ONGC, Dr. Reddy, Cipla, BPCL & Coal India. While Adanient, Eicher Motors, Adani Ports, Tata Consumers & Maruti were among the top losers.

Source : Equity Bulls

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