Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services:
Rupee fell to fresh all-time lows against the US dollar after the Fed raised rates earlier this week. Most of the currencies are under pressure as the dollar continues to strengthen.
Volatility in Yen remained elevated after the Bank of Japan intervened to curb sharp depreciation. Bank of England released its policy statement and raised rates by 50bps.
Focus will be on the preliminary manufacturing PMI number that will be released from the US, EZ and UK. We expect the USDINR(Spot) to trade sideways and quote in the range of 80.40 and 81.20.
Manappuram Finance accepts right issue proposal of arm Asirvad Micro FinanceThe Board of Directors of Manappuram Finance accepted the right issue proposal of Asirvad Micro Finance Limited, subsidiary of the
Company. Company is entitled to purchase 90,96,333 number of shares having face value Rs 10 per share for Rs 268 per share including a premium of Rs. 258 per share. The total issue size is 93,28,358 shares.The last date of acceptance of the offer is September 28, 2022.The board approved subscription to rights issue upto 93,28,358 having value of Rs 250 crore (approx..), in case of renunciation available.
RBI may slow intervention in October-March to allow weakness in rupee: Kotak Bank
The rupee dropped to a record low of 81.2250 to the dollar on Friday, prompting the RBI to sell dollars to prop up the currency, traders said.
Market at 3 PMMarket extended the losses and trading at day’s low level with Nifty around 17350.At 15:00 hrs IST, the Sensex is down 934.18 points or 1.58% at 58185.54, and the Nifty down 276.80 points or 1.57% at 17353. About 838 shares have advanced, 2385 shares declined, and 85 shares are unchanged.
Sterling & Wilson signs MoU with Nigeria govt to develop 961 MW Solar Power PlantsSterling and Wilson Solar Solutions, a wholly owned step down subsidiary of the Sterling and Wilson Renewable Energy along with its consortium partner Sun Africa LLC, have signed a Memorandum of Understanding with the Government of the Federal Republic of Nigeria to deliver the development, design, construction and commissioning of solar photovoltaic power plants with total installed capacity of 961 MWdc at five different locations in the Federal Republic of Nigeria along with battery energy storage systems with total installed
capacity of 455 MWh.
Sensex down 1000 points dragged by RIL, HDFC Bank, ICICI Bank
Sensex crashes 1000 points
Voltas Large Trade | 5.22 lakh shares (0.16 percent equity) worth Rs 47.3 crore change hands at average Rs 907 per share
MC Interview | Nifty IT may fall another 10%; overall structure bullish in CPSEs, says this investment advisor
The Put-Call ratio, a measure of the market’s mood, has slipped to an oversold level of 0.76 so the Nifty can still bounce back from the 17,500-17,300 zone.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
On Gold
Gold prices prices have capped downside, despite of a stronger dollar over recession worries. Traders are also pricing in the possibility that the Fed will begin cutting rates in late 2023 to prevent broader economic shocks from high rates. The stronger dollar has lower demand for the yellow metal which was trading 0.61 percent higher near 111.78 by noon. We expect bullion prices to trade sideways to down with COMEX spot gold support at $1650 and resistance at $1680. MCX Gold October support lies at Rs 49,500 and resistance lies at Rs 50,100.
On Crude Oil
Crude oil prices traded lower with benchmark NYMEX WTI crude oil falling more than 2 percent to $81.69 per barrel on Friday. MCX Crude oil October futures were trading down by 2.31 percent to Rs 6650 by noon session. Crude oil prices declined amid recession fears and a stronger U.S. dollar, though losses were capped by supply concerns after Moscow’s new mobilization campaign in its war with Ukraine and an apparent deadlock in talks on reviving the Iran nuclear deal.
We expect crude oil prices to trade lower with support at $78 and resistance at $84. MCX Crude oil October has support at Rs 6490, resistance at Rs 6810.
UK Data Watch | September S&P Global Services PMI at 49.2 versus estimate of 50; manufacturing PMI at 48.5 versus estimate of 47.5
India VIX spikes 8 percent
