FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 278.32 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 741.22 crore in the Indian equity market on October 12, as per provisional data available on the NSE.
Indian markets are likely to open positive tracking mixed global cues as traders weighed the impact of elevated inflation on an economic recovery and looked ahead to earnings reports. US markets ended lower amid concerns on elevated commodity prices and other signs of inflation heading into the corporate earnings season.
Market at pre-open: Benchmark indices are trading higher in the pre-opening session amid mixed global cues.
At 09:02 IST, the Sensex was up 438.17 points or 0.73% at 60722.48, and the Nifty was up 153.20 points or 0.85% at 18145.20.
RBI grants small finance bank licence to Unity SFB
The Reserve Bank of India (RBI) on October 12 issued a small finance bank licence to the consortium of Centrum Financial Services Limited (Centrum), and Resilient Innovations Private Limited (BharatPe), Centrum said in an exchange filing.
The new entity will take over the assets and liabilities of Punjab and Maharashtra Co-operative Bank.
Centrum’s MSME and Micro Finance businesses will be merged into Unity Small Finance Bank.
Mohit Nigam, Head – PMS, Hem Securities:
Benchmark Indices are expected to open on a slight positive note as suggested by trends on SGX Nifty. US markets ended lower yesterday as investors are uncertain about the third quarter’s earnings. Asian stocks were trading mixed in the early Wednesday trade with Nikkei and Hang Seng trading in red while Kospi trading in green.
Earnings to watch today include Infosys, Wipro and Mindtree. According to our analysis, with such a strong demand environment both Infosys and Wipro are expected to post strong numbers and likely to revise their guidance upwards.
On technical front, Nifty 50 has been closing in green for the last 4 days and once the index closes above 18,000 level, this will open gates for 18,400 – 18,500 levels in the short term. Immediate support level in Nifty 50 is 17,800 while 18,200 may act as an immediate resistance.
RBI cancels registrations of six NBFCs
The Reserve Bank of India (RBI) on October 12 announced the cancellation of registration (licenses) of six NBFCs.
The list includes names such as Cartel Finance and Investments Private Limited, Alamgir Motor Finance Limited, Nau-Nidh Finance Limited, Kim Investment Limited, Sambandh Finserve Private Limited, and BTL Holding Company Limited.
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For upcoming sessions, markets are expected to trade with a positive bias, and on higher side, now any decisive move beyond 18,050 levels could add further buying momentum into Nifty50 index. As far as Bank Nifty is concerned, now 38,000-37,500 zone would act as a strong support for the index.
TPG Group to invest Rs 7,500 crore in Tata Motors’ subsidiary
Tata Motors on October 12 announced that private equity firm TPG Group would be investing Rs 7,500 crore in its new wholly-owned electric vehicle subsidiary.
The investment would be made in tranches, over a period of 18 months from the date of completion of the first tranche. It is expected that the first round of capital infusion will be completed by March 22 and the entire funds will be infused by end of 2022, company said.
TPG Group will secure 11-15 percent stake in the EV subsidiary at an equity valuation of USD 9.1 billion.
Govt removes restrictions on domestic flight capacity from October 18
Domestic flights will be allowed to operate at full capacity from October 18, the government said in an order issued on October 12.
The decision to ease the norms was taken after reviewing the current air travel demand, the Ministry of Civil Aviation said.
“After review of the current status of Scheduled Domestic Operations viz-a-viz passenger demand for air travel”, it has been decided to “restore the scheduled domestic air operations with effect from 18-10-2021 without any capacity restriction,” the ministry stated.
September retail inflation at 4.35%
The Consumer Price Index-based (CPI) inflation for September 2021 came in at 4.35 percent, compared with 5.30 percent in August, data released by the National Statistical Office (NSO) showed on October 12. This is the lowest retail inflation print since April 2021.
The fall in headline retail inflation was primarily on the back of a sharp cooling in food inflation. Consumer Food Price Inflation (CFPI) for September stood at 0.68 percent in September, compared with 3.11 percent in August.
August IIP holds firm at 11.9%
As the low base effect slowly wears off, industrial production in India continued to stabilise in August, expanded by 11.9 percent year-on-year (YoY) in August, rising slightly from 11.4 percent in July.