Daily Market Commentary - Oct 27, 2022 - Bonanza Portfolio Ltd

Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD

Indian indices opened higher today with Nifty around 17750. At the time of closing, the Sensex was up 212.88 points or 0.36% at 59,756.84, and the Nifty was up 80.70 points or 0.46% at 17,737.

During the day, Benchmark indices ended on a positive note in the highly volatile session. Government of India to hold roadshows for Hindustan Zinc divestment by November-December. The company reported more or less an in-line set of quarterly numbers. However, the company is expecting the zinc's division cost of production to rise by more than $100/ tonne for the financial year to $1,225-$1,275/ tonne, due to issues with coal availability, which have led to higher coal costs. The Indian rupee strengthened, taking heart from the dollar index's plunge overnight on growing views that softer U.S. economic data may prompt the Federal Reserve to slow the pace of its rate hikes. Oil prices continued to rise in early Asian trade after surging more than 3% in the previous session, driven by record U.S. crude exports and a weaker U.S. dollar.

The European Central Bank will raise interest rates again and likely reel in a key subsidy to commercial banks, taking another huge step in tightening policy to fight off a historic surge in inflation. Fearing that rapid price growth is becoming entrenched, the ECB has already raised rates at the fastest pace on record, and there is little let-up in sight as unwinding a decade worth of stimulus could take it well into next year and beyond. Gold prices rose, as the US dollar and Treasury yields fell on mounting expectations of slower monetary policy tightening by the Federal Reserve later in the year. On the sectoral front, Except IT all other Indices end in green with metal, power, and reality up by 2-3%.

Nifty 50 top gainers are JSW Steel, Hindalco, Tata Steel, Power Grid & Adani Ports while Bajaj Financial Services, Bajaj Finance, Asian Paints, Tech Mahindra & Bajaj Auto were among the top losers.

Source : Equity Bulls

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