Indian markets poised for positive open as global cues brighten; RIL, ONGC, PVR in focus

The Indian stock market was set to open on a positive note on October 1st, with early signals from Singapore suggesting a day of gains ahead. The SGX Nifty, a barometer for how the Nifty50 would perform when the Mumbai exchanges opened, was trading nearly one percent higher at 7:49 in the morning. The lift came from overnight strength in American equities, where the Dow Jones had closed up 1.20% on renewed hopes that additional stimulus measures might be coming. That kind of optimism tends to ripple across global markets, and India was no exception.

But beneath the broad market cheerfulness, individual stocks and sectors were facing their own particular pressures and opportunities. The energy sector was absorbing a significant blow. India's government had announced a 25 percent cut to natural gas prices, bringing the rate down to $1.79 per unit for the October 2020 through March 2021 period. This was the price point that governed most of the country's natural gas sales, so the reduction hit hard. Shares of Oil and Natural Gas Corp and GAIL Limited both fell two percent the previous day in anticipation. Oil India managed to buck the trend, rising nearly two percent, while investors were also watching smaller players like IGL, MGL, and Gujarat Gas to see how they would respond.

The pharmaceutical sector, by contrast, was showing signs of momentum. Lupin had just launched Lapatinib tablets in the United States, a drug used to treat advanced breast cancer. The company's partner, Natco Pharma, had received final approval from the FDA for the 250-milligram formulation, clearing the way for the American market entry. Sanofi India, meanwhile, had introduced a booster vaccine for young children designed to protect against diphtheria, pertussis, tetanus, and polio. Both companies' shares had moved higher the previous session.

The banking sector presented a mixed picture. Dhanlaxmi Bank had undergone a significant leadership change when shareholders voted out its chief executive, Sunil Gurbaxani, just over seven months into his tenure. The move came a day after the Reserve Bank of India had appointed its General Manager, D K Kashyap, to the bank's board for a two-year term. Punjab National Bank had declared a 1.2 billion rupee exposure to Sintex Industries as fraud, a disclosure that weighed on sentiment. HDFC Limited, meanwhile, had been hit with a 150,000 rupee penalty from the National Housing Bank for failing to comply with housing finance regulations. Bank of Baroda had taken the step of dissolving its wholly-owned subsidiary in the United Kingdom, effective from late September.

Two major corporate developments were also in motion. Reliance Industries, through its Reliance Retail Ventures subsidiary, had raised 1.875 billion rupees from co-investors led by Silver Lake. The company's shares had dipped slightly the previous day despite the capital raise. In the entertainment space, the government's Unlock 5.0 guidelines had cleared the way for cinema halls to reopen starting October 15th. That news had lifted shares of both PVR Limited and Inox Leisure two percent higher, as investors anticipated a return to theatrical releases and audience attendance.

The auto sector was also due for attention. Maruti, Tata Motors, and other listed manufacturers were expected to report their September sales figures during the day's trading. Brokerage estimates suggested that passenger vehicles and farm equipment would show strong growth, though the commercial vehicle segment was expected to remain under pressure. Beyond the regular trading day, three IPOs were set to close their subscription windows: Mazagon Dock, Likhitha Infrastructure, and UTI AMC. Two other companies, CAMS and Chemcon, were scheduled to list for the first time. Grey market premiums for these new entrants suggested that investors were expecting robust debuts when trading began.