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Local equities continue upward rally; Sensex hits all-time high
Nov-20-2019

Local equity benchmarks continued their upward rally in morning session, lifted by buying in index heavyweight Reliance Industries, IndusInd Bank, Larsen & Toubro. Sensex surged more than 290 points to hit a new all-time high, while the Nifty reclaimed the crucial 12,000-mark. Energy, Telecom and Oil & Gas counters were on the priority list of the buyers. Traders took note of Union minister Piyush Goyal’s statement that the government has taken several steps like reduction in time to initiate anti-dumping cases to protect domestic companies from unfair trade practices. Meanwhile, a report stated that the government categorically stated that it does not intend to revise its fiscal deficit target of 3.3% of gross domestic product (GDP) for the current financial year notwithstanding slowdown in economic activities. However, investors ignored CARE Ratings’ report that the employment has lagged behind growth in GDP from FY15 to FY19, implying that the two have not moved in commensurate terms during the period. In fact, there has been a slowdown in growth in the last 2 fiscal years after a sharp recovery in FY17.

On the global front, Asian markets were trading in red; after US President Donald Trump threatened higher tariffs on Chinese goods if a trade deal is not reached between the two economic powerhouses. Back home, Finance Minister Nirmala Sitharaman has said Public Sector Banks (PSBs) reported frauds of over Rs 95,700 crore in the first six months of the current fiscal (H1FY20).

The BSE Sensex is currently trading at 40762.51, up by 292.81 points or 0.72% after trading in a range of 40575.96 and 40773.68. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.52%, while Small cap index was up by 0.31%.

The top gaining sectoral indices on the BSE were Energy up by 2.83%, Telecom up by 1.47%, Oil & Gas up by 1.38%, Capital Goods up by 1.13% and Industrials was up by 1.08%, while Consumer Durables down by 0.08%, Realty down by 0.06%, IT was down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were IndusInd Bank up by 4.27%, Reliance Industries up by 3.77%, Yes Bank up by 1.95%, Larsen & Toubro up by 1.86% and Sun Pharma was up by 1.50%. On the flip side, Kotak Mahindra Bank down by 0.95%, HCL Tech down by 0.63%, Infosys down by 0.58%, NTPC down by 0.34% and Bajaj Auto was down by 0.28% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said Public Sector Banks (PSBs) reported frauds of over Rs 95,700 crore in the first six months of the current fiscal (H1FY20). During the period from April 1, 2019 to September 30, 2019, as many as 5,743 cases of fraud were reported. She further said that comprehensive measures have been taken to curb the incidence of frauds in banks.

The measures included the freezing of 3,38,000 bank accounts of inoperative companies in the last two financial years in addition to the enactment of a law with a provision to confiscate the property of economic offenders. Besides, the Reserve Bank of India's (RBI) annual report for FY19 released earlier this year, cases of frauds reported by banks went up by 15 percent on a year-on-year basis from FY19.

As per the report, the sector reported 6,801 frauds cases which amounted to a loss of Rs 71,542.93 crore in FY19. This was higher than the 5,916 cases reported in FY18, which caused a loss of Rs 41,167.04 crore in FY18. Public sector banks, which constitute the largest market share in bank lending, accounted for the bulk of frauds reported in FY19.

The CNX Nifty is currently trading at 12023.90, up by 83.80 points or 0.70% after trading in a range of 11966.05 and 12024.90. There were 34 stocks advancing against 15 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were IndusInd Bank up by 4.33%, Zee Entertainment up by 3.95%, Reliance Industries up by 3.84%, Adani Ports &Special up by 3.17% and Yes Bank was up by 2.10%. On the flip side, Bharti Infratel down by 2.26%, Eicher Motors down by 1.14%, Kotak Mahindra Bank down by 1.03%, Britannia down by 0.56% and HCL Tech was down by 0.55% were the top losers.

Asian markets were trading in red; Nikkei 225 slipped 166.07 points or 0.71% to 23,126.58, Hang Seng decreased 156.62 points or 0.58% to 26,937.18, Taiwan Weighted dropped 55.04 points or 0.47% to 11,601.36, KOSPI fell 25.16 points or 1.17% to 2,128.08, Shanghai Composite declined 11.03 points or 0.38% to 2,922.96, Straits Times trembled 6.10 points or 0.19% to 3,232.77 and Jakarta Composite lost 5.02 points or 0.08% to 6,147.07.
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