Daily Market Commentary - Oct 28, 2022 - Bonanza Portfolio

Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD

Indian indices opened flat with positive bias amid mixed global cues. At the time of closing, Sensex ended higher by 203.01 points or 0.34 percent at 59,959.85. Nifty ended higher by 49.80 points or 0.28 percent at 17,786.80.

During the day, The Reserve Bank of India (RBI) announced that the Monetary Policy Committee (MPC) will hold an additional meeting on November 3. NHAI's Infrastructure Investment Trust (InvIT) which has been oversubscribed by about five times will be listed on the Bombay Stock Exchange. InvIT is an instrument on the pattern of mutual funds, designed to pool money from investors and invest in assets that will provide cash flows over a period of time. The RBI is expected to continue to intervene in the forex markets as the depletion of foreign exchange reserves is not a major concern at the moment. India's forex reserves dropped by more than $100 billion in the past year as the RBI intervened in the forex market in the wake of the Russia-Ukraine war and the US Federal Reserve's policy tightening.

The European Central Bank rolled out another bumper rate hike to combat soaring inflation, despite growing concern that the eurozone is hurtling towards a painful recession. The ECB's 25-member governing council repeated last month's unprecedented move and opted for another increase of 75 bps, leaving its three main rates sitting in a range of between 1.5 and 2.2%. The US economy grew at a better-than-expected 2.6% annual rate from July through September, snapping two straight quarters of economic contraction and overcoming punishingly high inflation and interest rates. The Bank of Japan maintains a policy balance rate at -0.1%. Germany's preliminary Q3 GDP is up 1.2% YoY against an estimated 0.7% rise. The International Monetary Fund cut Asia's economic forecasts as global monetary tightening, rising inflation blamed on the war in Ukraine, and China's sharp slowdown dampened the region's recovery prospects. On the sectoral front, selling is seen in metals, IT, and financials, while buying is seen in autos, FMCG, and energy space.

Nifty 50 top gainers are Maruti, Reliance, Apollo Hospital, NTPC, and Hero Motor Company while Tech Mahindra, Tata Steel Sun Pharma, Grasims, and Divis Lab were among the top losers.

Source : Equity Bulls

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