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Sensex, Nifty garner strong gains on Wednesday
Nov-20-2019

Indian equity benchmarks garnered strong gains on Wednesday, with Sensex & Nifty ending higher by around 0.45% each. Key indices made a firm start, aided with the Commerce and Industry Minister Piyush Goyal’s statement the government has strengthened several trade remedial measures, with an aim to provide a level-playing field for the domestic industry and protect it from unfair trade practices in a time-bound manner. The street took a note of reports that the government categorically stated that it does not intend to revise its fiscal deficit target of 3.3% of gross domestic product for the current financial year despite slowdown in economic activities.

Firm trade persisted over markets during the whole day, amid report that the Centre is planning to set up a dedicated cell for agriculture startups and small entrepreneurs. National Rainfed Area Authority (NRRA) CEO Ashok Dalwai said there are numerous areas where startups can help farmers reduce cost and increase income. However, in the last hours of the trade, some of the gains got pared, with credit rating agency, CARE Ratings’ report that the pace of employment growth in India has slowed down in the past two years, to 3.9 percent in 2017-18 and 2.8 percent in 2018-19 as the core industries have observed virtually, negative growth in hiring.

On the global front, European markets were trading in red, as UK manufacturers continued to log a decline in orders in November but the pace of decrease slowed from October. The survey data from the Confederation of British Industry, or CBI, showed that the order book balance fell to -26 percent in November from -37 percent in October. This was well below the long-run average of -13 percent. Asian markets ended in red, after Malaysia's consumer prices logged steady growth in October. The consumer price index rose 1.1 percent year-on-year in October.

Back home, the automobile industry stocks ended higher, aided with Minister of Heavy Industries and Public Enterprises Prakash Javadekar’s statement that the government is taking various steps including release of funds worth Rs 70,000 crore to the public sector banks to help the automobile sector. Further, stocks related to the textile industry remained in focus, after the textile Ministry convened a stakeholders meeting for inputs for a new textile policy, which will include in it the need for creating an umbrella brand for the country's textiles sector for the global market.

Finally, the BSE Sensex rose 181.94 points or 0.45% to 40,651.64, while the CNX Nifty was up by 59.00 points or 0.49% to 11,999.10.

The BSE Sensex touched high and low of 40,816.38 and 40,575.96, respectively and there were 16 stocks advancing against 14 stocks declining, while 1 stock remain unchanged on the index.

The broader indices ended in green; the BSE Mid cap index surged 0.25%, while Small cap index was up by 0.07%.

The top gaining sectoral indices on the BSE were Energy up by 2.10%, Healthcare up by 2.01%, Oil & Gas up by 1.44%, Industrials up by 0.69% and Capital Goods up by 0.65%, while Realty down by 1.36%, Consumer Durables down by 0.58%, Power down by 0.29%, Telecom down by 0.23% and Utilities down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 5.73%, Indusind Bank up by 5.50%, Yes Bank up by 2.65%, Reliance Industries up by 2.47% and Maruti Suzuki up by 1.42%. On the flip side, Kotak Mahindra Bank down by 1.49%, Tata Steel down by 0.83%, Tata Motors - DVR down by 0.77%, HDFC down by 0.61% and Hindustan Unilever down by 0.49% 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 traded in a range of 12,038.60 and 11,966.05. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 8.12%, Sun Pharma up by 5.31%, Indusind Bank up by 4.91%, BPCL up by 4.83% and Dr. Reddy’s Lab up by 3.10%. On the flip side, Bharti Infratel down by 3.17%, Indian Oil Corporation down by 1.50%, Kotak Mahindra Bank down by 1.39%, Eicher Motors down by 1.21% and Tata steel down by 0.88% were the top losers.

European markets were trading in red; UK’s FTSE 100 decreased 73.15 points or 1% to 7,250.65, France’s CAC fell 39.55 points or 0.67% to 5,869.50 and Germany’s DAX was down by 117.13 points or 0.89% to 13,103.99.

Asian markets ended mostly lower on Wednesday amid fresh worries about a Sino-US trade deal after US President Donald Trump threatened higher tariffs on Chinese goods if a trade deal is not reached between the two countries. Hong Kong shares ended down on intensified tensions in the city even as the US Senate unanimously passed legislation supporting Hong Kong protesters, drawing criticism from China’s foreign ministry. Moreover, Japanese shares declined as the safe-haven yen strengthened on concerns over Sino-US trade deal, while Japan’s merchandise trade surplus for October missed expectations also dampened market sentiment.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

2,911.05
-22.94
-0.78

Hang Seng

26,889.61
-204.19
-0.75

Jakarta Composite

6,155.11
3.02
0.05

KLSE Composite

1,601.14

-4.17

-0.26

Nikkei 225

23,148.57
-144.08
-0.62

Straits Times

3,229.78
-9.09
-0.28

KOSPI Composite

2,125.32
-27.92
-1.30

Taiwan Weighted

11,631.20
-25.20
-0.22
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