Sensex, Nifty look set to pause 9-day wining streak on Wednesday; key things to know before opening bell

The momentum may reverse into a narrow-range, in the near-term, while the undercurrent of the rally is still positive

Continuing the gaining momentum for nine straight days, BSE Sensex and Nifty 50 are likely to open in the negative territory on Wednesday. In the previous session, Indian share markets traded volatile and ended with marginal gains, following Asian peers. Investors will watch quarterly earnings of IT bellwether Infosys, react to Wipro’s buyback approval, number of COVID-19 cases coupled with a high rate of recoveries, and other global cues. Besides, oil prices and rupee movement will also be keenly watched. “The momentum may reverse into a narrow-range, in the near-term, while the undercurrent of the rally is still positive and a break-up is likely based on the continuity of positive results, more fiscal measures in the future and developments in the global market,” said Vinod Nair, Head of Research at Geojit Financial Services.

SGX Nifty in red: Trends on SGX Nifty suggested that Sensex and Nifty are likely to open in the red today. Nifty futures were trading 49 points down at 11,892 on Singaporean Exchange.

Fall in COVID-19 cases: New coronavirus cases reported in India on October 12, 2020, were the lowest in the last 56 days. The high rate of recoveries and decline in new cases have led to a drop in overall active cases in the country to over 8.3 lakh from over 10 lakh in mid-September.

Infosys Q2 earnings: IT bellwether Infosys is slated to announce July-September quarter earnings later in the day today. Analysts suggest to watch out for full-year guidance, demand trends across verticals, update on deal wins, M&A strategy, commentary on the normalisation of decision-making cycle and deal pipeline, and progress on vendor consolidation decisions.

Wipro share buyback: Wipro on Tuesday announced an up to Rs 9,500 crore buyback plan at Rs 400 per equity share. Company’s board has approved a buyback proposal for purchase of up to 23.75 crore equity shares at Rs 400 per share and aggregates to an amount of up to Rs 9,500 crore.

IMF sees contraction in India GDP in FY21: The Indian economy is projected to contract by a massive 10.3 per cent this year, the International Monetary Fund said on Tuesday. However, India is likely to bounce back with an impressive 8.8 per cent growth rate in 2021, thus regaining the position of the fastest-growing emerging economy, surpassing China’s projected growth rate of 8.2 per cent.

Results today: Aditya Birla Money, Tata Elxsi, Tata Steel BSL, Titagarh Wagons, CHD Chemicals, Den Networks, Goa Carbon, International Travel House, JTL Infra, Kilburn Chemicals, Modern Steels, Reliance Industrial Infrastructure, along with Infosys are among the 16 companies scheduled to announce July-September quarterly earnings today.

FII and DII data: On Tuesday, foreign institutional investors (FIIs) lapped up shares worth Rs 832.14 crore, whereas domestic institutional investors (DIIs) offloaded shares worth Rs 1,674.46 crore in the capital market on a net basis, according to the provisional data available on the NSE.

Global markets: Asian stock markets were trading lower on Wednesday as Chinese President Xi Jinping is scheduled to deliver a speech in Shenzhen, as per the state media reports. Shanghai Composite was down 0.4 per cent while the Shenzhen component declined 0.26 per cent. In Japan, the Nikkei 225 slipped 0.18 per cent. In overnight trade on Wall Street, US stocks lost ground. The Dow Jones Industrial Average fell 0.55 per cent, the S&P 500 lost 0.64 per cent, and the Nasdaq Composite dropped 0.1 per cent.

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