EconomyPrice AnalysisStocks

Indian Stocks – Nifty and LIC Open Higher in Anticipation of Inflation Data

Domestic benchmarks were relatively flat on Monday, 14th November 2022, as investors anticipated inflation reports scheduled for release later on Monday. Investors are looking towards the inflation data for guidance on the Reserve bank of India’s (RIB) interest rate trajectory and ahead of a flurry of corporate earnings releases.

Nifty Price Index Reports

Previously in early trading, the NSE Nifty 50 index increased by 0.1%, moving to 18,366, while the S&P BSE Sensex, which set a new closing high on Friday, increased by 0.19%, rising as high as  61,909.51. Chief Investment Strategist at Geojit Financial Services, Dr. V K Vijayakumar, commented that the current market structure favors Nifty’s rise to new record levels.

He explained that at all-time highs, Bank Nifty can give the market resiliency, especially now that banks’ futures are improving. He further explained that since fears of the anticipated downturn in technology investments may not come through, this gives Nifty IT ample opportunity to rise further.

Due to the unstable increases in food prices and a decent base year, economists predict retail cost inflation to decelerate to 6.73% in October, according to a Reuters poll. However, it will still persistently exceed India’s central bank’s 6% upper limit.

Nifty’s IT and metal indices, which saw improvements of 0.9% and 1.6%, respectively, in early trading, were some of the more successful industries. At the same time, the public sector bank and pharmaceutical indexes experienced a decrease of almost 1%. The Chief Market Strategist at Geojit Financial Services, Anand James, predicted in a comment that Nifty would start the week trying to surpass its all-time high of 18604. 

He explained that, however, if Nifty opens above 18480 on Monday, this will attract prolonged liquidation pressures immensely, and this could last until at least 18200 before the uptrend resumes. He further added that instead of these results, consolidation inside the 18480-350 range might assist in reducing the risk of profit booking. He finally commented that investors might see 18800 this week if 18200 survives.

LIC Price Index Reports

Meanwhile, following the announcement of a substantial quarterly profit, the Life Insurance Corporation of India, popularly (LIC) saw a 7.3% increase. Over a thousand companies are preparing to release their results later on Monday. The corporations in question include tyre producer, Apollo Tyres, pharmaceutical firm Biocon, low-cost airline SpiceJet, empires Godrej Industries and Grasim Industries, and others.

According to preliminary statistics made public by the National Stock Exchange, external institutional investors purchased a net of 39.58 billion Rupees worth of stocks on Friday, 11th November, equivalent to $492 million. In addition, domestic investors purchased shares worth 6.16 billion Rupees.

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