Daily Market Commentary - Oct 11, 2022 - Bonanza Portfolio

Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD

Indian indices opened lower today amid weak global markets. At the time of closing, the Sensex was down 843.79 points or 1.46% at 57,147.32, and the Nifty was down 257.50 points or 1.49% at 16,983.50.

During the day, Indian benchmark indices ended lower for the third consecutive session. Fund raising through corporate bond sales rose sharply by 49% month-on-month to Rs. 82,378 cr. on the back of large issuance by some banks and state-owned entities even as the rates on these instruments rise. According to data from Prime Database, companies and banks raised funds worth Rs. 82,378 cr. in September, compared to Rs. 55,500 cr. raised in the previous month. Japan's current account surplus shrank to its smallest amount on record for the month of August, with surging prices of energy imports outstripping price rises in exports, draining national wealth. The surplus stood at 58.9 billion yen, smaller than economists' median forecast of 121.8 billion yen in a poll.

Bank of England widens bond purchases over market turmoil. The dollar loomed large over fragile financial markets, with worries about rising interest rates, global growth, and geopolitical tensions unsettling investors, while the yen was testing levels that have prompted an official intervention. The yen hit 145.80 per dollar overnight, just 10 pips short of the 24-year trough it made before the Japanese government stepped in to prop it up three weeks ago. Oil prices fell, extending nearly 2% losses in the previous session, as a stronger US dollar and a flare-up in Covid-19 cases in China increased fears of slowing global demand. All the sectoral indices ended in the red with auto, metal, IT, oil & gas and realty indices down 1-3%.

Nifty 50 top gainers are Axis Bank, Aidan Net, and Asian Paints while Divis Lab, JSW Steel, IndusInd bank Eicher Motors, and Nestle India were among the top losers.

Source : Equity Bulls

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