Nifty 50, Sensex Rise in Early Trade; Trent, Kotak Mahindra Bank and BSE Lead Gains

Market Update at 09:30 AM: The Nifty 50 and the Sensex opened higher on Tuesday, October 6, as global equities rallied despite elevated bond yields. The positive momentum was also reflected in broader domestic markets, with Mid-Cap and Small-Cap stocks gaining in early trade.

As of 9:18 AM, the Sensex rose 97.10 points, or 0.13 per cent, to 72,479.57, while the Nifty 50 advanced 37.70 points, or 0.17 per cent, to 22,593.45.

Trent, Kotak Mahindra Bank and BSE were the Top Gainers in the Nifty 50 index during early trading.

In the broader market, the Nifty MidCap index gained 0.29 per cent, while the Nifty SmallCap index rose 0.65 per cent, indicating positive sentiment across the broader equity market.

Among sectoral indices, the Nifty Private Bank index emerged as the biggest gainer, while the Nifty Healthcare index was the biggest decliner.

In the primary market, R.K.Fashion Accessories IPO will enter its second day of subscription on Tuesday.

Meanwhile, in the IPO listing segment, SRIT India and Shah Investor's Home are scheduled to make their debut on the stock exchanges on Tuesday.

Pre-Market Update at 7:30 AM: GIFT Nifty indicated a firm start for domestic equities on October 6. At 22,647.50 at 6:59 AM IST, it was 91.75 points, or 0.41 per cent, above the previous Nifty 50 close of 22,555.75.

The positive opening indication follows gains across U.S. and Asian markets. However, elevated crude oil prices, continued foreign institutional selling and the Reserve Bank of India’s (RBI) policy decision due on October 7 are likely to remain key factors for investors. The Nifty 50 rose 133.80 points, or 0.60 per cent, in the previous session, while the Sensex gained 472.77 points, or 0.66 per cent.

The RBI’s Monetary Policy Committee meeting is underway from October 5 to October 7, with the policy decision due on Wednesday. The repo rate stood at 5.25 per cent after the August review. The policy stance and the central bank’s commentary on inflation and economic growth could remain important for banks, NBFCs, Real Estate and automobile companies. Bond yields and expectations around funding costs are also likely to be closely monitored.

Foreign institutional selling remains another key concern. FIIs were net sellers of Indian equities worth Rs 4,699.14 crore, while domestic institutional investors bought shares worth Rs 5,181.62 crore, according to the latest available data. The divergence highlights continued domestic absorption of foreign selling. Cumulative FII outflows in October stood at Rs 14,183.32 crore after the October 1 and October 5 sessions, keeping institutional liquidity trends relevant for Large-Cap and financial shares.

The power sector is also likely to remain in focus after the Power Ministry said thermal power generators will not be required to blend imported coal with domestic coal. Gas-based generation will also not be mandated despite low thermal-coal inventories. Thermal-power coal stocks stood at 18.6 million tonnes as of September 30, against a normative requirement of around 55 million tonnes. Coal India’s September output rose 9.18 per cent year-on-year to 53.5 million tonnes. The development could be watched by power producers, Coal India, metals and cement companies, as lower Reliance on imported fuel could limit fuel-cost pressure, although low inventory levels remain relevant.

Primary-market activity will also be in focus on October 6. SRIT India is scheduled to list on the mainboard, while Acme Universal Safezone 9, Shivchem Agro and Pind Hospitality are slated to list on the SME platform. The listings could provide a fresh indication of investor appetite in the primary market and draw attention to capital-market activity during the session.

Global cues remained supportive. U.S. equities closed higher in the previous session, led by technology shares. The Nasdaq advanced 1.05 per cent to 27,477.31, while the S&P 500 gained 0.66 per cent to 7,773.95. The Dow Jones Industrial Average rose 0.18 per cent to 51,267.90.

Asian markets were broadly positive in early trade. Japan’s Nikkei rose 0.56 per cent, the Hang Seng gained 0.28 per cent and the Shanghai Composite was up 0.31 per cent. European markets were mixed in the previous session, with the FTSE 100 gaining 0.34 per cent and Germany’s DAX edging up 0.09 per cent, while France’s CAC 40 declined 0.80 per cent.

Brazil’s Ibovespa surged as much as 9.1 per cent after Flavio Bolsonaro finished ahead of President Luiz Inacio Lula da Silva in the first round of the country’s election. The Brazilian real strengthened more than 4 per cent against the U.S. dollar, making the development a notable emerging-market risk appetite signal ahead of the October 25 runoff.

Crude oil prices remain a key domestic market trigger. Brent crude was trading at USD 100.49 a barrel as of 7:00 AM IST on October 6, up 0.28 per cent, while WTI crude was at USD 91.47 a barrel, higher by 0.17 per cent. Crude prices above USD 100 a barrel remain significant for India as a major oil importer and could keep aviation and other fuel-intensive businesses in focus.

Gold was marginally lower at USD 4,135.49, down 0.09 per cent, while silver declined 0.39 per cent to USD 60.80. The Dollar Index eased 0.07 per cent to 102.10, while the rupee traded around Rs 96.30 per U.S. dollar, unchanged from the previous level.

The U.S. 10-year Treasury yield stood at 5.315 per cent, up by 0.003 percentage points. Global bond yields remain relevant for overseas capital flows and broader equity-market risk appetite.

In the previous session, the Nifty 50 ended at 22,555.75, gaining 133.80 points, or 0.60 per cent. The index moved between an Intraday high of 22,621.80 and a low of 22,397.10. The Sensex closed at 72,382.47, up 472.77 points, or 0.66 per cent, after touching a high of 72,631.93 and a low of 71,840.18.

India VIX rose 2.14 per cent to 14.77, signalling an increase in expected market volatility. The rise comes ahead of the RBI policy decision and amid continued foreign institutional selling.

Among stocks to watch, Axis Bank reported a 22.7 per cent year-on-year rise in gross advances to Rs 13.84 lakh crore for the September quarter. Total deposits increased 20.7 per cent to Rs 14.52 lakh crore, while CASA deposits grew 10.6 per cent to Rs 5.29 lakh crore. The relative pace of advances, deposits and CASA growth may be assessed ahead of its Quarterly Results.

Kotak Mahindra Bank’s net advances rose 24.7 per cent year-on-year to Rs 5.77 lakh crore, while total deposits increased 23.2 per cent to Rs 6.51 lakh crore. CASA deposits grew 11.3 per cent to Rs 2.49 lakh crore, putting the bank’s funding mix and balance-sheet growth in focus.

Trent reported a 23 per cent year-on-year increase in standalone revenue to Rs 5,788 crore for the September quarter. The company added 10 Westside stores and 17 Zudio stores during the quarter, taking its total store portfolio to 1,342 at September-end.

AWL Agri Business reported 12 per cent volume growth and a 24 per cent rise in revenue for the September quarter. Food and FMCG revenue rose 33 per cent and crossed Rs 2,000 crore in a quarter for the first time, while branded-export volume increased 59 per cent.

Marico acquired an additional 24.09 per cent stake in Satiya Nutraceuticals, taking its holding to 84.09 per cent on a fully diluted basis. The aggregate consideration for the 84.09 per cent stake is Rs 1,392.07 crore. The company plans to acquire the remaining 14.09 per cent founder and other shareholder stake for Rs 592 crore in July 2027.

Juniper Hotels signed a binding memorandum of understanding with Imagicaaworld Entertainment to acquire the operating Novotel Imagicaa hotel in Khopoli, Maharashtra, for Rs 248 crore. The proposed transaction would add a leisure-destination property to its hospitality portfolio.

BGR Energy Systems entered into a Master Restructuring Agreement with National Asset ReConstruction Company, acting through India Debt Resolution Company, to restructure outstanding debt of Rs 3,736 crore. The agreement is material for the company’s creditor negotiations and operational turnaround prospects.

Disclaimer: The article is for informational purposes only and not investment advice.

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