SGX Nifty indicates a positive start for Indian indices

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Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 26 points at the opening bell. Overseas, Asian stocks mostly traded lower Monday as investors reacted to the release of key Chinese economic data. China’s economic growth continued to decelerate in the third quarter, as the gross domestic product came in at 4.9%, softened by the country’s zero-tolerance COVID measures and energy shortages. The figure slid from 7.9% for the April-to-June quarter, weighed down by high commodity prices amid uncertainty kindled by the Evergrande Group’s debt crisis, which is piling risk onto the property and banking sectors.

US stocks rose on Friday as Goldman Sachs rounded out a week of strong quarterly earnings for the big banks.

Domestic markets:

Back home, benchmarks indices ended with strong gains on Thursday, extending their winning run to sixth consecutive session. Positive global stocks boosted sentiment. The barometer index, the S&P BSE Sensex, rallied 568.90 points or 0.94% to 61,305.95. The Nifty 50 index added 176.80 points or 0.97% to 18,338.55. The Indian stock market remained shut on Friday (15 October 2021) on account of Dussehra.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,681.60 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,750.59 crore in the Indian equity market on 14 October, provisional data showed.

Aviation industry stocks will be in the limelight as the Ministry of Civil Aviation allowed airlines to operate at 100% capacity. There will be some buzz in jewellery industry stocks as data from the Commerce Ministry showed that gold imports, which have a bearing on the current account deficit, zoomed to about $ 24 billion during April-September 2021 due to higher demand in the country.

Power stocks will be in focus as power ministry data showed that India’s power consumption grew 3.35% in the first half of October to 57.22 billion units (BU), showing recovery amid coal shortage at electricity generation plants. There will be some reaction in sponge iron industry as Sponge Iron Manufacturers Association (SIMA) stated that the domestic sponge iron industry might report a negative growth in the ongoing December quarter if the shortage of coal is allowed to continue. There will be lots of earnings reactions based on the performance of the companies.