Recent market behavior shows fragility despite low overall volatility, with the VIX surging on minor S&P 500 drops. This extreme reaction, exceeding past events, was amplified by option market makers covering short positions and hedging. The pattern of calm punctuated by sharp swings highlights market dynamics influenced by ETP growth.
European Central Bank Governing Council member Jose Luis Escriva expressed satisfaction with current borrowing costs, deeming them appropriate as inflation has reached the 2% target. Policymakers are widely expected to maintain the deposit rate at 2% at the upcoming October 30 meeting and again in December, with no further rate adjustments anticipated.
India's electronics exports are surging. They are set to become the country's second-largest export category, potentially replacing petroleum products. This growth is driven by global shifts and strong performance, with electronics now the fastest-growing sector. Experts predict this trend will continue, doubling exports in the coming years. This marks a significant shift in India's trade landscape.
Dr Reddy's Laboratories saw a high single-digit revenue increase in Q3, driven by India, emerging, and European markets, despite a muted US business. The company launched 24 new products, with a pipeline of 100 products expected to offset slowing Revlimid sales. Analysts remain cautious, with valuations factoring in earnings upside.
Nifty may pause its rally near record highs. Analysts suggest dips are buying opportunities. Banking and metals sectors are highlighted. Support is seen at 25,400-25,500. A potential breakout from a Cup and Handle pattern is noted. Medium-term outlook remains positive for quality stocks. Sectors like BFSI, auto, and metal are expected to outperform.
