Sensex, Nifty to open on a positive note

US indices managed to notch up gains. Asian markets are also higher. A smart start is in store. Technically, Nifty managed to close above the previous quarter’s low of 7940, which indicates that positive momentum may prolong in the coming days. The main indices managed to keep the momentum going despite FII selling on Tuesday and Wednesday.

Welcome to the month of October, which has a history of some of the worst stock market crashes. The IMF head says there is reason to be concerned about the global economy warning that a marked slowdown in big emerging market countries will cut global growth to its lowest level since the deep recession of 2009. The good news is that India remains a bright spot. China is slowing down as it rebalances away from export-led growth. Countries such as Russia and Brazil are facing serious economic difficulties. Growth in Latin American countries, in general, continues to slow sharply, she added.

Fortunately for the stock market, the sentiment seems to be good for the moment. US indices managed to notch up gains. Asian markets are also higher. A smart start is in store. Technically, Nifty managed to close above the previous quarter’s low of 7940, which indicates that positive momentum may prolong in the coming days. The main indices managed to keep the momentum going despite FII selling on Tuesday and Wednesday. Investors will now look at the PMI numbers and auto sales figures to get some sense of how the economy is doing. Stocks like HCL Tech could see pressure after the company warned about tepid revenue growth for the July-September quarter, citing depreciation of multiple currencies against the US dollar and a strong likelihood of a disengagement in a multi-million dollar contract.

Besides the currency impact, other factors that led the company to project muted revenue growth are client specific issues and challenges from its second largest revenue generating vertical – infrastructure services. On the issues confronting a multi-million dollar contract, HCL Tech said that while discussions are on with the customer and it is in the process of disengagement, as a matter of prudence the company is considering reserving up to US$20mn this quarter.

The rupee which moved higher may remain in positive zone following improvement in sentiment after increase in cap on FPI debt invest limit by RBI.

Gold futures registered a fourth straight day of losses, settling at their lowest level in more than two weeks. The precious metal has lost for the month, quarter and year.

Oil futures saw a 24% loss for the third quarter, after ending weak on Wednesday.WTI and Brent crude prices, are down by more than 15% YTD.

The Union Ministry of Mines is reportedly planning to open up mines exploration to both Indian private sector companies and foreign companies. The Mines Ministry is in the process of introducing a new mineral exploration policy, which will be announced very soon, a top ministry official has been quoted as saying.

Reliance Communications Ltd. (RCOM) is planning to further strengthen its strategic partnership with Reliance Jio by extending their cooperation in offering 4G services. Reliance Group Chairman Anil Ambani told RCOM shareholders at the company's AGM in Mumbai on Wednesday.

Apollo India Pvt. Equity II (Mauritius) Ltd. has sold its entire 3.58% stake in direct-to-home (DTH) services provider Dish TV India Ltd. for INR 399 crore.  According to the bulk deal data available on the BSE, Apollo India Pvt Equity Mauritius sold 3,81,23,235 shares of Dish TV for INR 399 crore. The shares were sold at an average price of INR 104.64.

Nestle India on Wednesday told the National Consumer Disputes Redressal Commission (NCDRC) that the Government was being biased by banning its popular Maggi instant noodles while not taking action against other manufacturers of similar products. A NCDRC bench, headed by justice V.K. Jain, issued notice to the Government on Nestle India’s plea and sought its response by 8th October.
Transport Minister Gadkari will speak at the National Workshop on Road Asset Management for National Highways this morning. Expect some sound bytes here.

The government reduced natural gas prices by 16% to $4.24 per unit for the six-month period, beginning October 1.

The combined Index of Eight Core Industries stands at 169.6 in August, 2015, which was 2.6 % higher compared to the index of August, 2014. Its cumulative growth during April to August, 2015-16 was 2.2 %.

Union Minister Nitin Gadkari reportedly said that the Corrective steps by the Modi government have led to roll out of majority of the Rs 3.8 lakh crore stuck highways projects.The Fast-tracking of projects may be made possible because of expediting decision-making process as well as policy interventions, Nitin Gadkari reported.

Addressing the shareholders at Annual General Meeting, the Reliance Capital Chairman Anil Ambani reportedly said in Reliance Life, Nippon plans to hike the stake from 26% to 49%, while it would increase holding in Reliance Capital Asset Management Company from 35% to 49%. The company is targetting to more than double  housing finance business loan book to Rs 10,000 crore this fiscal, he said.

The government is planning to join the arbitration initiated by British oil explorer Cairn Energy plc over a Rs 10,247 crore tax demand and will soon appoint its arbitrator, says report.