Auto Giants Plan Collaboration

Aaj Ka Bazaar?

The Indian stock market is expected to open higher today, with GIFT Nifty futures crossing 26,000. In the US, important reports like the House Price Index and Consumer Confidence data will be released, while in Asia, Japan's economic data and South Korea's Producer Price Index will be watched. China's central bank lowered a key interest rate and added more money to the financial system. In India, foreign investors have put over Rs 87,000 crore into stocks this quarter, and the unemployment rate stayed at 3.2%. On the stock front, Coal India will be in focus after it partnered with Rajasthan Rajya Vidyut Utpadan Nigam for a new power project.

Markets Around Us?

BSE Sensex - 84,868.88 (-0.05%)

Nifty 50 - 25,929.60 (-0.04%)

Bank Nifty - 54,023.65?(-0.15%)

Dow Jones - 42,013.20 (-0.26%)

Nasdaq - 17,974.27 (0.14%)

FTSE - 8,259.71 (0.36%)

Nikkei 225 - 38,019.91 (0.78%)

Hang Seng - 18,841.56 (3.23%)

Sector: Automobiles

M&M and Skoda to form JV soon

Top executives from Mahindra & Mahindra (M&M) and Skoda Auto Volkswagen India (SAVWIPL) are set to meet in Mumbai to discuss forming a joint venture (JV) to manufacture cars in India. The meeting will focus on product strategy, vehicle platforms, and factory usage for the new JV. However, current models like Volkswagen's and Skoda's sedans and SUVs, as well as luxury brands Audi, Porsche, and Lamborghini, will not be included in this partnership. The talks are progressing well, and the companies are expected to sign a Memorandum of Understanding (MoU) by the end of October or early November. This JV will aim to share costs, technology, and platforms for future product development in India.

Why it Matters:

The joint venture could also pave the way for future product innovations tailored to Indian consumer preferences, potentially driving higher sales. The news of this JV will likely improve investor sentiment for both companies as it signals a strategic move towards growth and market leadership.

NIFTY 50 GAINERS

HINDALCO - 703.25?(1.84%)

TATASTEEL - 156.75?(1.79%)

JSWSTEEL - 996.75?(1.49%)

NIFTY 50 LOSERS

BAJFINANCE - 7,499.95 (-1.25%)

INFY - 1,878.25 (-0.96%)

HDDFCLIFE - 720.80?(-0.92%)

Sector: Infrastructure

NBCC arm bags Rs 1,261 crore order

NBCC's subsidiary, HSCC (India) Ltd, has won a major contract worth ?1,261 crore to build a new AIIMS hospital in Darbhanga, Bihar. This contract was awarded by the Union Health Ministry. The project will help expand healthcare infrastructure in the region. NBCC, a government-owned company, is primarily involved in project management consultancy and real estate. This new project strengthens HSCC’s portfolio in the healthcare sector and is expected to be a significant boost to NBCC’s overall business, improving its growth prospects. Investors may see this as a positive development for the company's long-term performance.

Why it Matters:

The company’s strong presence in project management consultancy (PMC) positions it for future government projects, creating a long-term growth opportunity. Investors may see this as a key driver for stock appreciation, especially as the healthcare infrastructure in India continues to expand.

Around the World

Most Asian stocks rose on Tuesday, led by gains in Chinese markets following reports of new stimulus measures from Beijing. China's Shanghai Composite and Shenzhen CSI 300 indexes were up by 0.7% and 0.5%, respectively, while Hong Kong's Hang Seng surged 1.8%. The Chinese government announced plans to lower mortgage rates and unlock 500 billion yuan ($70.8 billion) of liquidity to support the economy and local stocks. Japan's Nikkei 225 also gained 0.8%, driven by strong services sector growth, though manufacturing activity declined. Meanwhile, Australia's ASX 200 fell 0.5%, with investors awaiting the Reserve Bank of Australia’s decision on interest rates, which is expected to stay hawkish amid inflation concerns.

Option Traders Corner

Max Pain

Nifty 50 - 25,900

Bank Nifty - 56,200

Nifty 50 - 25,914 (Pivot)

Support - 25,872, 25,805, 25,763

Resistance - 25,980, 26,022, 26,089

Bank Nifty - 54,015 (Pivot)

Support - 53,832, 53,558, 53,375

Resistance - 54,288, 54,471, 54,745

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