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Stocks in News

* DABUR: Delhi Income Tax Department reduced the company’s August tax demand from Rs.279.13 crore to Rs.202.01 crore.

* IOL CHEMICAL AND PHARMACEUTICALS: The company received a certificate of suitability from the European Directorate for Quality of Medicines for ‘Pantoprazole Sodium Sesquihydrate Process-III’, a proton pump inhibitor used to reduce stomach acid.

* ZEE ENTERTAINMENT: The company received a favorable CESTAT ruling dismissing the Service Tax Commissioner’s appeal, vacating a contingent service tax liability of Rs.46.2 crore related to input tax credit utilisation for FY 2004 -05, 2006-07, and 2007-08.

* JYOTI STRUCTURES: The company secured a Rs.288 crore order from AESL Projects for supplying transmission towers.

* KIRLOSKAR BOTHER: NCLAT dismissed the company’s appeal as infructuous, with no expected impact on operations.

* KNR HEATEXCHANGE: The company’s subsidiary, KRN HVAC Products, has started commercial production of its bus air conditioning division at the Rajasthan plant.

* TVS MOTORS: The company launched the TVS Apache RTX at an introductory price of Rs.1.99 lakh.

* NTPC GREEN ENERGY: The company’s subsidiary has started commercial operations of a 12.5 MW solar power plant in Bhuj.

* SENCO GOLD: The company opened a new franchise store in Bikaner, bringing its total India store count to 185.

Economic News

* Trump says Modi assured India will phase out Russian oil, sparking 1% rise in crude prices: Former U.S. President Donald Trump claimed that PM Modi assured him India would stop buying Russian oil, though shipments cannot halt immediately. The statement lifted oil prices by ~1%, with Brent at $62.48 and WTI at $58.81. India and China remain top buyers of discounted Russian crude despite U.S. and EU sanctions, and U.S.-India relations have been strained over past tariffs and H-1B visa fees. India’s Trade Secretary noted the country can import an additional $15 billion of U.S. oil, while September’s trade deficit hit $32.15 billion. Russia is India’s largest oil supplier, exporting 1.62 million bpd in September, and a move away from Russian oil would mark a major geopolitical shift.

Global News

* BOJ's Tamura signals gradual rate hikes toward neutral as inflation risks rise: Hawkish BOJ board member Naoki Tamura stated on Thursday that the Bank of Japan should raise interest rates closer to levels considered neutral for the economy in response to rising inflationary pressures. Tamura, who had unsuccessfully proposed an increase from 0.5% to 0.75% in September, indicated he might push for a rate hike again at the upcoming policy meeting on October 29-30. He said that with price risks increasingly tilted to the upside, the BOJ is now in the stage of deciding on raising rates closer to neutral. Tamura estimated Japan's neutral interest rate the level that neither restrains nor overheats growth at around 1%. Acknowledging the difficulty of pinpointing the exact neutral level, he emphasized that rates should be raised gradually while carefully observing economic and price reactions. He also noted that the current policy rate of 0.5% has had very limited impact on the Japanese economy

Technical Snapshot

Key Highlights:

NIFTY SPOT: 25323.55 (0.71%)

TRADING ZONE:

Resistance : 25350 (Pivot Level) and 25500 (Key Resistance)

Support: 25150 (Pivot Level) and 25000 (Key Support).

BROADER MARKET: OUTPERFORMED MIDCAP 150: 58970 (1.11%),

SMALLCAP 250: 18088.05 (0.82%)

VIEW: BULLISH TILL ABOVE 25000 (Key Support).

BANKNIFTY SPOT: 56799.9 (0.54%)

TRADING ZONE:

Resistance: 57000 (Pivot Level) / 57300 (Key Resistance)

Support: 56400 (Pivot Level) / 56000 (Key Support)

VIEW: BULLISH TILL ABOVE 56000 (Key Support)

Government Security Market:

* The Inter-bank call money rate traded in the range of 4.75%- 5.60% on Wednesday ended at 5.00% .

* The 10 year benchmark (6.33% GS 2035) closed at 6.4799% on Wednesday Vs 6.5063% on Tuesday .

Global Debt Market:

U.S. Treasury yields inched lower on Wednesday as investors monitored the latest developments in the U.S.-China trade war. At 5:55 a.m. ET, the 10-year Treasury yield fell less than a basis point to 4.013%, and the 2-year Treasury yield was also less than one basis point down to 3.476%. The longer maturity 30-year Treasury bond yield fell 1 basis point to 4.610%. Investors are keeping an eye out for the latest moves in the rift between China and the U.S. President Donald Trump on Tuesday threatened China with a cooking oil embargo in retaliation for Beijing not buying U.S. soybeans. Meanwhile, China put new sanctions on five U.S. subsidiaries of South Korean shipbuilder Hanwha Ocean. This came after Trump’s threats on Friday to place an additional 100% tariff on any goods coming from China after Beijing imposed strict export controls on rare earth minerals. Additionally, the government shutdown has stretched on to 15 days, continuing an economic data blackout, meaning the core CPI print for September won’t be released this week. “If it weren’t for the shutdown, we’d have been writing about today’s CPI print for September, but that’s been delayed as well, so we’re flying blind on a growing amount of economic data right now,” Deutsche Bank analysts said in a note. “That said, this CPI print is one of the few things that will come out even if the shutdown continues, as it’s used in the social security calculations, so it’s currently scheduled for October 24,” the analysts added.

10 Year Benchmark Technical View :

The 10 year Benchmark (6.33% GS 2035) yield likely to move in the range of 6.4675% to 6.48% level on Thursday.

SEBI Registration number is INH000000081.

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