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Will bulls manage to pull Nifty above 17200 amid uncertainty? 5 things to know before market opening bell

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Indian benchmark indices are expected to start the week and month in the red amid weak global cues. Wall Street tumbled on Friday and Asian markets too opened with losses on Monday. SGX Nifty was in red, hinting at a negative start for the Indian share market. In the previous session, BSE Sensex and NSE Nifty had snapped out of the red streak to end with gains. The Nifty trend and outlook is now neutral to positive in daily, weekly, and monthly charts, implying a balanced risk-reward, according to market analysts. The momentum has strengthened further, indicating a high probability of a trend or outlook change in this week. The preferred strategy for this week remains ‘sell the rise’ they added.

Also Read: Share Market LIVE: Nifty, Sensex stare at negative start on weak global cues; govt cuts windfall tax on crude

Global Markets: Shares in the Asia-Pacific fell on Monday as markets enter the last quarter of the year. Hong Kong’s Hang Seng index was 0.8% lower in early trade. Japan’s Nikkei 225 fell more than 1% in early trade, but recovered slightly and was last up 0.18%, while the Topix index was fractionally lower. China markets are closed for the Golden Week holiday, and South Korea’s market is also closed. Meanwhile, US stocks fell in choppy trading Friday as Wall Street closed out a terrible week, month, and quarter that brought the S&P 500 to a new 2022 low. For September, the Dow tumbled 8.8%, while the S&P 500 fell 9.3%. The Nasdaq lost 10.5%.

Nifty Technical view: Nifty on the weekly chart formed a small negative candle with long lower shadow. Such weekly chart pattern after a reasonable decline calls for bottom reversal for the market. The short term trend of Nifty has turned into positive. The placement of important support and the overall chart pattern of daily and weekly signal a crucial bottom reversal at 16747 levels, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch for: “Nifty formed an engulfing bull pattern on daily charts while forming a bullish hammer pattern on weekly charts despite a 1.35% weekly fall. This could portend an upside bounce in the coming week with 17292 and 17540 being the upside targets. The lack of breakout volumes on Sept 30 is a minor worry. 16752-16794 band could provide support,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

Stocks under F&O ban on NSE: The National Stock Exchange has not added any stock under its F&O ban list for October 3.

Also Read: Reliance, Suzlon Energy, Bharti Airtel, Zydus Lifesciences, Poonawalla Fincorp, APL Apollo stocks in focus

FII and DII data: Foreign institutional investors (FIIs) net sold equities worth Rs 1,565.31 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 3,245.45 crore on September 30, according to the provisional data available with NSE.

Govt imposes 20% export duty on non-basmati rice shipments, to hit overall rice exports in current fiscal

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The government on Thursday imposed a 20% export duty on non-basmati ‘white’ rice exports which is expected to hit overall volume of exports in the current fiscal.

According to a finance ministry notification, the export tax will be applicable from Friday.

Also Read: Govt sets 2022-23 grain production target at 328 mt, up 4% on year

“Our concern is whether this export duty will be applicable to around 2 mt white rice consignment in the transit,” V Krishna Rao, president, All India Rice Exporters Association, told FE.

Rao said imposition of export tax will definitely reduce the volume of rice export this fiscal and make rice from India costlier.

Currently, India is exporting non-basmati rice at around $360 a tonne.

The finance ministry also imposed a 20% export duty on rice in husk (paddy)and husked brown rice.

India has been the world’s largest rice exporter in the last decade — export earnings stood at $8.8 billion in 2020-21 and $9.6 billion in 2021-22.

According to the commerce ministry data, India’s value of rice exports rose 12% to $2.6 billion in the first quarter of the current fiscal compared to previous year.

“It will make the exports costlier thereby ensuring affordability of rice to the common masses,” Saurab Agarwal, tax partner, EY said. Because of 5% decline in paddy sowing this kharif season because of deficient rainfall in key paddy growing areas of West Bengall, Uttar Pradesh, Jharkhand and Bihar, rice production is expected to decline 2022-23 crop year (July-June) from a record 130 mt achieved in 2021-22 crop year.

The United States department of agriculture (USDA) in its rice outlook for August had stated that India’s rice exports are projected to increase to a record 22 MT in 2022-23. USDA has projected that country’s projected exports exceed the combined shipments of the next three-largest exporters — Thailand, Vietnam and Pakistan.

Out of the 21 mt of rice shipment in 2021-22, India exported more than 17 mt of non-basmati rice and the rest of the volume was aromatic and long grain Basmati rice. In terms of volume, Bangladesh, China, Benin and Nepal are five major export destinations of rice.

Eicher Motors, L&T Info: Stocks to buy for next 1 month; check support, resistance as Nifty continues to surge

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By Subash Gangadharan

Markets have bounced back smartly after the sharp fall seen on 26th February 2021. The Nifty found support at the 50 day SMA and has gradually climbed higher over the last two weeks.

The below picks are for the next 15-26 trading sessions

Buy Larsen & Toubro Infotech (LTI)

After correcting from a high of 4483 touched in January 2021, LTI found support around the 3570 levels in February 2021. These levels also coincide with the 20 week SMA, making it a strong support.

The stock has since then rebounded and gradually made higher tops and higher bottoms over the last two weeks. On Wednesday, the stock broke out of its recent swing highs of 4015 on the back of huge volumes, indicating that the uptrend looks set to continue.

indicators are giving positive signals as the stock is trading above the 20 and 50 day SMA and short term momentum indicators like the 14-day RSI are in rising mode and not overbought.

With the intermediate and long term technical setups too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy betweenthe 4080-4142 levels. CMP is 4138.5. Stop loss is at 3900 while targets are at 4650.

Buy Eicher Motors

Eicher Motors has recently corrected from a high of 3037 tested in January 2021. The stock found support at the 2450 levels before bouncing back in the last two weeks and consolidating in a range.

On Wednesday, the stock broke out of a narrow range on the back of above average volumes. This augurs well for the uptrend to continue.

indicators are giving positive signals as the stock trades above the 20-day SMA. Short term momentum readings like the 14-day RSI too are in rising mode and not overbought.

With the short term and intermediate technical setups looking attractive, we expect the stock to gradually move higher in the coming weeks. We therefore recommend a Buy between the 2650-2680 levels. CMP is 2673.9. Stop loss is at 2570 while targets are at 2900.

(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. The views expressed are the author’s own. Please consult your financial advisor before investing.)

Flattening of curve unusual in rate-hike cycle: Yields softening on global index inclusion buzz

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With expectations of India joining the JPMorgan Bond Index running high and the supply of state loans being low, yields have been falling across the curve, flattening it significantly.

The yield on the benchmark bond is down some 24 bps since the end of July following demand from banks, insurers and some foreign investors. The demand for this tenure is expected to be the highest if India does join the index. Experts are penciling in potential flows of $30 billion and expect India’s weight to be 10%, the maximum for a country, in the index.

Also Read: Sensex, Nifty snap 4-day gaining streak, Bank Nifty hits record closing high; check support for F&O expiry day

The flattening trend is somewhat unusual, say bond market dealers, especially during a rake-hiking cycle, but this time there are many differences. Yields on most bonds with tenures of five years or more have fallen the most – the five-year yield is down some 10-15 bps at a shade under 7%.

The fall in yields has been steeper for bonds with maturities of 10 years or more. For instance, the yield on the 40-year paper has dropped by some 40 bps while it has been about 30 bps for the 30-year paper. The demand is coming from provident funds and insurance companies. “There is a shortage of long-term paper because the quantum of state loans is below the planned levels by about Rs 1.5 trillion,” explained a dealer, adding that insurers and PFs have bought much of the long-term paper.

Radhika Rao, senior economist, DBS Research, wrote on Wednesday that there are expectations that the ongoing review might result in JPMorgan including Indian securities in its GBI-EM fixed income basket. “These hopes have led the rupee and bonds to diverge from global rates since August, barring the hit-to-risk sentiments following a strong US inflation report. Rao pointed out that while bonds initially benefitted from a pullback in commodity prices and a rise in US Treasuries, they strengthened thereafter in the wake of the global selloff.

The exclusion of Russia is one reason experts believe India could find a place in the JPMorgan & Chase Co’s emerging markets bond index as early as mid-September, with the actual entry being in the third quarter next year.

Rupee to remain steady amid strong dollar, rise in risk tolerance in markets; USDINR to trade in this range

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The Indian rupee is expected to remain steady amid strong dollar, elevated crude prices, rise in risk tolerance in equity markets. For today, spot USDINR is likely to trade in the range of 79.50 to 79.80 with a negative bias. In the previous session, rupee firmed against the US dollar amid a drop in crude prices, but gains were capped as importers and oil companies sought the American currency. The rupee ended at 79.71 per dollar, up from its previous close of 79.90. The domestic unit had strengthened to 79.66 during the session, lifted by a recovery in Asian currencies as the dollar index eased from a two-decade high.

Also Read: Nifty short-term trend positive, may move to 18000 once 17800 breached; 5 things to know before opening bell

“The Indian Rupee could open flat but heads for the second weekly gains following recovery in risk assets and foreign fund inflows. Overnight, the dollar falls in a corrective move into the weekend ahead of US inflation data next week. On Thursday, spot USDINR fell 19 paise or 0.23%, the biggest one-day fall of the September month, amid risk-on moods supported by foreign fund inflows. Technically, the pair is still in the broad range of 79 to 80 and directional movement can only be seen only after breakout or breakdown. For today, spot USDINR is likely to trade in the range of 79.50 to 79.80 with a negative bias.”

Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities

“USDINR spot closed 20 paise lower due to risk on mood in equity markets. Indian Rupee continues to be an outperformer, aided by lower oil prices and FPI inflows. RBI remains an aggressive seller near 80 handle. Global backdrop is conducive for USD strength but that would play out by way of limiting the gains in Rupee, rather than pushing it below 80 against USD. Therefore, we could see more rangebound and low volatility price action over the near term. Range: 79.30 and 80.10 on spot.”

Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services

“Rupee traded in a narrow range ahead of the important ECB policy statement that was released yesterday. The ECB Bank raised interest rates by an unprecedented 75 basis points to tame runaway inflation, even as a recession is now increasingly likely as the bloc has lost access to vital Russian natural gas.The central bank raised the main refinancing rate to 1.25%, their highest level since 2011. The large hike comes as the ECB increased its own inflation forecasts and continues to see price growth well above its 2% target throughout its entire projection horizon.”

Also Read: Share Market LIVE: Nifty, Sensex stare at positive start; ECB raises rates by an unprecedented 75 bps

“Euro did witness volatility but hawkish statement kept the currency supported at lower level. On the other hand, Federal Reserve Chair Powell reiterated that the U.S. central bank will continue to raise interest rates in order to tame surging inflation and warned against prematurely loosening monetary policy. U.S. rate futures have priced in an 87% chance the Fed will hike by another 75 bps at this month’s meeting, which would increase the Fed funds rate to 3.0% to 3.25%. Today, volatility could remain low as no major economic data is expected t be released from the US. We expect the USDINR(Spot) to trade sideways and quote in the range of 79.40 and 80.05.”

(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

Wall Street staggers to higher close as US Fed rate hike looms

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Wall Street ended a directionless session higher on Wednesday as an on-target inflation report largely stanched the flow of Tuesday’s sell-off and investors pressed the “pause” button. All three indexes wavered throughout the day, but ultimately ended in positive territory. They all failed to meaningfully recover ground lost in Tuesday’s carnage, which wrought their largest percentage plunges in more than two years. “Today is a lick-your-wounds day, after taking body blows yesterday,” said Ryan Detrick, chief market strategist at Carson Group in Omaha, Nebraska. “It’s a day of rest and that’s somewhat of a welcome sign.”

The Labor Department’s producer prices (PPI) data landed close to consensus estimates and provided some relief in the aftermath of Tuesday’s market-rattling CPI print, which came in hotter than expected. “The inflation debate continues and yesterday was a harsh reminder that this a tough battle and the Fed needs to remain aggressive to put a lid on the widespread inflationary prices we’re seeing,” Detrick added. The PPI report offered reassurance that inflation is indeed on a slow, downward trajectory.

But it still has a long way to go before it approaches the Federal Reserve’s average annual 2% inflation target, and while financial markets have fully priced in an interest rate hike of at least 75 basis points at the conclusion of the FOMC’s policy meeting next week, they see a 22% likelihood of a super-sized, 100 basis-point increase, according to CME’s FedWatch tool. Two-year U.S. Treasury yields, which reflect interest rate expectations, extended Tuesday’s rise. The size and duration of further interest rate hikes going forward have many market observers concerned over the lagging effects of the Fed’s tightening phase, with some viewing recession as unavoidable.

The transportation sector, seen as a barometer of economic health and which provides a glimpse into the supply side of the inflation picture, was weighed down by rail stocks in the face of a potential strike. “Does the White House really want rails to shut down and impact supply chains even more, less than two months before midterm elections?” Detrick asked. “We’re optimistic they can keep rails open.” Railroad operators Union Pacific, Norfolk Southern and CSX Corp lost 3.7%, 2.2% and 1.0% respectively, even as Labor Secretary Marty Walsh met with union representatives in Washington in talks aimed at preventing a rail shutdown.

The Dow Jones Industrial Average rose 30.12 points, or 0.1%, to 31,135.09, the S&P 500 gained 13.32 points, or 0.34%, to 3,946.01 and the Nasdaq Composite added 86.10 points, or 0.74%, to 11,719.68. Six of the 11 major sectors of the S&P 500 advanced, with energy stocks leading the gainers with an assist from rising crude prices due to supply concerns. Starbucks Corp shares jumped 5.5% after the company upped its three-year profit and sales outlook. Tesla Inc bounced back from Tuesday’s drop, advancing 3.6% on the same day President Joe Biden announced $900 million in funding for electric vehicle charging stations.

Also Read: Sensex, Nifty snap 4-day gaining streak, Bank Nifty hits record closing high; check support for F&O expiry day

Advancing issues outnumbered declining ones on the NYSE by a 1.05-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favored decliners. The S&P 500 posted 2 new 52-week highs and 30 new lows; the Nasdaq Composite recorded 26 new highs and 219 new lows. Volume on U.S. exchanges was 10.90 billion shares, compared with the 10.33 billion average over the last 20 trading days.

Sebi working on ASBA-like facility for secondary market transactions as well

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Sebi chairperson Madhabi Puri Buch on Wednesday said the capital markets regulator is working on an ASBA-like facility for secondary market transactions as well.Speaking at the Global Fintech Fest here, Buch said in an initial public offering (IPO), the Application Supported by Blocked Amount (ASBA) system helps ensure that money from an investor gets moved only when an allotment happens.

“We are now actively engaged in looking at ASBA-like (facility) for the secondary market. So if that can be done for the primary market, why can’t it be done for the secondary market?” Buch said.

Buch said the moves like ASBA for secondary market are aimed at reducing “structural vulnerabilities” in the system and asked fintech players to avoid a few things in their business models.

“If your business model is such that it is going to increase concentration risk or structural vulnerability, chances are that sooner or later the regulator will move to eliminate,” she said.

Also read| SC junks Yash Birla’s plea against Sebi in GDR case

The Sebi chief also said that any business model that relies on a black box not open to sunlight, where its offering or claims cannot be audited or validated, will not be permitted.

She also said since data is a public infrastructure or a public good, any attempt by any private party to own it or monetise it, will not be permitted.

Buch said startups should build themselves on public infrastructure like Aadhaar and make best use of them to build business models, which would be helpful.Sebi chief also spoke about the capital market regulator’s views on algo trading, saying the regulator is neither for or against the activity.

She said Sebi would insist on transparency and sufficient disclosure from companies, and then leave it to the individual investors.

Also read| Sebi puts Fairfax Group-backed Go Digit’s IPO in ‘abeyance’

While designing a product or a service, efforts should also be made by companies to avoid barriers to exit for an investor, she said.

Sebi will be increasing its investments on the technological tools for upping its surveillance capabilities, she said. The Sebi chief said cyber security is also important and there will be more emphasis on the same going forward.

No business should look at building anonymity in the system or have anything which does not meet the expectations on transparency, Buch said, making it clear that any such proposals will not make the regulatory cut.

MCX Gold October may drop to Rs 48400, investors must wait for a bounce; US Fed monetary policy in focus

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By Jigar Trivedi

Gold fell to the lowest since April 2020 amid expectations of more aggressive interest-rate hikes by the Federal Reserve despite a fresh round of mixed US data. MCX Gold October along with Comex gold has given clear break down amid aggressive Fed hike hopes after US inflation came in at 8.3% in August against forecast of 8.1%. Odds are now favouring 75 basis point hikes at each of the last two Fed meetings in 2022. Some are calling for a 100 bps increase which is partly reflected in the gold market, adding that a 75 bps hike could thus come as a positive surprise for the gold market.

Also Read:Reliance Jio outguns Bharti Airtel, Vodafone Idea, adds 29.4 lakh subscribers in July, TRAI data shows

Gold also lost its shine as a safer-haven asset in times of heightened economic uncertainties, with the World Bank and IMF slashing growth forecasts for key economies, while major US companies issued weak guidance on dire economic outlooks. While gold is considered a hedge against inflation and economic uncertainties, higher interest rates raise the opportunity cost of holding non-yielding bullion, denting its appeal.

US bond yields extend rise

The yield on the 10-year US Treasury noted rose above 3.45%, approaching the over 10-year peak of 3.5% hit in June as rising concerns that inflation is becoming entrenched deepened expectations that the Federal Reserve will further accelerate the pace of its monetary tightening. After this week’s CPI report surprised to the upside, the latest data showed that retail sales unexpectedly pick up and weekly unemployment claims fell to their lowest since May, ramping up bets that the Fed could raise interest rates by 100bps next week. Increasingly hawkish expectations raised Treasury yields across the board, with the yield on the policy-sensitive 2-year note surging to a 15-year high of 3.8990%, inverting the 2-to-30 year yield curve to its steepest this century.

Also Read:Patanjali to launch 4 IPOs, to list Ayurved, Wellness, Medicine, Lifestyle in few years; 3 more listings later

US inflation rate cools less than expected

The annual inflation rate in the US eased for a second straight month to 8.3% in August of 2022, the lowest in 4 months, from 8.5% in July but above market forecasts of 8.1%. The energy index increased 23.8%, below 32.9% in July. Smaller increases were reported for gasoline costs and fuel oil while inflation sped up for natural gas and electricity. On the other hand, inflation rose for food (11.4%, the most since 1979), shelter (6.2%, the most since 1984), and used cars and trucks (7.8%). Compared to the previous month, consumer prices were up 0.1%, following a flat reading in July and compared to forecasts of a 0.1% drop. Meanwhile, core CPI, which excludes volatile energy and food prices, increased 6.3% on a year, the most since March, and up markedly from the 5.9% hit in both June and July.

Outlook

Monday is a holiday in Japan and the UK. The major focus will shift to Wednesday the 21st September, when the Fed monetary policy outcome is scheduled. Due to Queen Elizabeth II’s demise, BoE postponed its policy meeting from last week to 22nd September Thursday. Amid two major monetary policies scheduled in the week, we expect the yellow metal to stay volatile. Having said that, $1,680 an ounce is a major level and if the market can climb above it, there is a possibility of $1,710 an ounce on the higher side however, in the reverse case, $1620 an ounce is a floor as of now. MCX Gold October may drop to Rs. 48,400 per 10 gram in case of a further drop. We recommend waiting for a bounce until Rs. 50,200 per 10 gram and then considering shorting the yellow metal.

(Jigar Trivedi, Senior Analyst – Currency & Commodity, Reliance Securities. Views expressed are the author’s own.)

Markets in Dussehra spirit

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Indian markets got into the festive mood on Tuesday, a day before Dussehra, with equities gaining more than 2% amid positive global cues. Weak manufacturing data in the US raised hopes that the Federal Reserve would slow its pace of policy tightening.

The BSE Sensex closed 2.25% higher at 58,065, while Nifty50 settled at 17,274, up 2.29%.

All 20 sectoral gauges compiled by BSE advanced, with metal and financial services indices surging the most at 3.1% and 2.8%, respectively. The market breadth was positive with 2,572 stocks advancing compared with 874 that fell.

Also read: Myntra rolls out new festive campaign featuring Ranbir Kapoor and Kiara Advani

FPIs shopped for equities worth `1,344 crore on Tuesday, provisional data showed. Year to date, they continue to be net sellers to the tune of $22.3 billion.

“We believe the worst of the FPIs outflow is now behind us as the strong earnings growth and economic recovery will play out for the remaining months of 2022. The market will continue to be driven by macro-economic factors such as direction of the dollar index, bond yields, direction of inflation, growth in the developed world, and trend of commodity prices,” said a strategy note by Axis Securities.

The brokerage has set a target of 18,400 for Nifty for March 2023, valuing it at 20x FY24 earnings versus 22x earlier, indicating an upside of 6.5% from the current levels. “We cut the Nifty multiple to accommodate the rising interest rate scenario. Though aggressive policy tightening will help in curbing inflationary pressure, persistently elevated oil and commodity prices would continue to pose challenges to the market multiple in the next few quarters,” the brokerage said.

Asian and European stocks rallied on Tuesday after Wall Street soared overnight, fuelled by hopes that weakening US economic data would lead to a change in global central bank policy. Nikkei 225 rose 2.9% while Taiwan Weighted and Kospi gained more than 2% each on Tuesday. Britain’s decision to let go of its controversial plan to cut taxes for the highest earners, just 10 days after announcing it, boosted investor confidence.

India is the only market other than the US where equity valuations are extended versus domestic bonds, according to CLSA. At about 2 percentage points, the difference between India’s 10 year GSec yield and the Nifty’s earnings yield is at a point at which negative equity returns usually ensue. “The Nifty’s absolute PE is slightly below one standard deviation of its historical average and at levels where positive equity returns are usually not forthcoming. At the 98-99th percentile, India’s relative valuation to EMs and Asia ex-Japan is also near record highs. A simple mean reversion could drive a deep pullback,” the brokerage cautioned in a recent note.

Also read: PMGKAY extension: FCI wheat stocks to fall to buffer by January

Cool-off in the key commodity prices coupled with the central bank’s actions on front-loading the interest rates have changed the market style in the last two months. Banks, automobiles, hospitals, discretionary consumption, and domestic industrial themes look attractive in the near term over export and commodity sector themes, said Axis Securities. “Local or domestic-oriented themes are likely to perform better in the near term. We continue to believe that profitability will shift from commodity producers to commodity consumers going forward,” the brokerage said.

A long bull candle was formed on the daily chart with gap up opening. This indicates an upside breakout of the larger consolidation movement around 16,800-17,200 levels, according to analysts.

“The short-term trend of Nifty has turned up sharply after a broader range movement of the last few sessions. A decisive move above 17,300 levels is likely to pull Nifty towards the next crucial resistances of around 17,600 and next 18,000 levels in the near term. Immediate support is placed at 17,150 levels,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

EXPLAINER: The growing relationship between cloudverse and gaming industry

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The concept of entertainment seems to not be restricted to movies, music, and TV shows anymore, with mainstream gaming coming into the picture. While the segment is considered to be developmental, introduction of new technologies is enabling the modern transition from how games used to be played. One of the technologies which is considered to be a benefactor is cloud computing, as it has the potential to help gaming reach the next phase of its growth. “I believe the integration of cloud technology in gaming allows players to access games by eliminating the need for hardware. Overall, cloud technology seems to have revolutionised the gaming market by offering convenience, accessibility and enhanced gameplay opportunities,” Rohit Bansal, founder, Super 4, an online fantasy sports gaming platform, told FE TransformX.

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The market, as it stands

In terms of benefits, cloud gaming allows increased accessibility for games to be enjoyed without the need to have expensive hardware. Market research has shown that as cloud gaming is played on servers, chances of embezzlement of gamers’ data is reduced, along with ensuring economical costs, no device-based restrictions, and real-time multiplayer gaming experiences. Overall, problems related to processing capacity and memory storage get eliminated through the cloud computing’s impact. “I think factors such as the availability of high-speed internet, the adoption of budget-friendly smartphones, and the surge in mobile gaming have contributed to the growth of cloud gaming. Additionally, the rollout of 5G Internet should enhance the cloud gaming experience by providing glitch-free gaming and enabling real-time gaming live streaming on smartphones,” Harshit Jain, co-founder and CEO, OnePlay, a cloud gaming company, stated.

Numbers, and more numbers

According to Mordor Intelligence, a market intelligence and advisory firm, the global cloud gaming market is expected to clock $1.69 billion in 2023 and should further achieve $6.8 billion by 2028, at a 32.14% compound annual growth rate (CAGR). As per reports published by Ericsson, the total count of cloud gaming subscribers should reach close to 99 million by 2031. Based on what market trends suggest, the rise in augmented reality (AR) and virtual reality (VR) technologies has been the driving force behind the cloud gaming sector.

Interestingly, India too has seen its side of developments. For instance, in January, 2023, Reliance JioGames entered into a 10-year partnership to unveil JioGamesCloud in India. Moreover, 2022 saw Microsoft introducing Xbox Cloud Gaming in New Zealand and Argentina and Nintendo completing the acquisition of SRD Co Ltd. Moreover, future predictions indicate that access to high-quality internet will amplify the level of cloud gaming, as it’s considered to be in a nascent stage. Market signs suggest that an upward trend in business collaborations between game creators and cloud gaming corporations will benefit this landscape, since developers such as Mainframe have already entered into the planning stage for cloud games.

“The trajectory of the cloud gaming market suggests an evolution ahead. As AI technology deepens its roots, its integration into gaming should transcend current boundaries. We can anticipate a shift from basic applications like chatbots to advanced AI-infused characters, possibly giving rise to digital athletes in sports simulations. Merged with advancements in VR/AR, these innovations could offer gaming experiences that mirror real-world interactions,” Krishan Deegalla, founder and CEO, Meta11, an AI-based online fantasy cricketing platform, concluded.

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