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EQUITY
Post Session: Quick Review
Feb-19-2020

Indian equity benchmarks recovered from four sessions of straight fall and ended Wednesday’s session on positive note with gains of over a percent, tracking overseas trend. The markets made a gap-up opening and traded in fine fettle, as traders took encouragement after the Finance Minister Nirmala Sitharaman said that the government would announce measures to tackle the financial fallout from the coronavirus outbreak amid a fall in new cases in China.  Sentiments remained up-beat with the Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that there is no reason to doubt that the government will be able to cut fiscal deficit to 3.5% of the GDP in the fiscal beginning April 1. Das said the Budget for 2020 had announcements that certain bonds will be opened up for non-resident investment without any limit.

In the afternoon session, key bourses added more gains and traded near intraday high levels as sentiments on the street improved further with private report stating that after a substantial drop in January, consumer sentiment saw a recovery in February across the four indices of jobs, economy, personal investment, and personal finances. The consumer confidence of urban Indian sees which dropped 7.3 percentage points in January recovered by 2.5 percentage points in February. Adding to the optimism, the Minister of State for Finance Anurag Singh Thakur said that the government expects to resolve 90 per cent of the income tax disputes through 'Vivaad se Vishwas' scheme announced in the Budget for 2020-21.

On the global front, Asian markets ended mostly higher on Wednesday, while European markets were trading in green, as a decline in the number of new coronavirus cases raised hopes that the impact of the epidemic on the global supply chain would be short-lived. Back home, Agriculture sector remained in focus after latest government data showed India is set to harvest a record 106.21 million tonne wheat in 2019-20 crop year on increase in acreage owing to good rains. Wheat production has been rising year-on-year and the previous record of 103.60 million tonne was achieved during 2018-19 crop year (July-June).  

The BSE Sensex ended at 41341.03, up by 446.65 points or 1.09% after trading in a range of 41048.93 and 41357.16. There were 21 stocks advancing against 9 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 1.31%, while Small cap index was up by 1.38%. (Provisional)

The top gaining sectoral indices on the BSE were Energy up by 2.35%, Healthcare up by 2.16%, Power up by 1.63%, FMCG up by 1.59%, Oil & Gas up by 1.56%. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up by 2.71%, Bajaj Finance up by 2.67%, HDFC up by 2.61%, Reliance Industries up by 2.56% and ONGC up by 2.52%. (Provisional)

On the flip side, Sun Pharma down by 1.27%, TCS down by 0.88%, Bharti Airtel down by 0.67%, Indusind Bank down by 0.59% and HCL Technologies down by 0.26% were the top losers. (Provisional)

Meanwhile, in order to deal with the impact of coronavirus outbreak on the domestic industry and exports, Finance Minister Nirmala Sitharaman has said that the government will soon announce measures regarding it. She added that these measures will be announced in consultation with the Prime Minister's Office (PMO). Describing pharma, chemical and solar equipment segments as worst affected, the finance minister said disruptions are very visible in these sectors due to delay in shipments.

Sitharaman also said that there are no concerns about price rise so far due to coronavirus and added that it is too early to talk about the impact of Covid-19 outbreak on the Make in India initiative. She said there were no reports of shortage of medicines or medical equipment, instead, the pharma industry is asking for the lifting of the ban on exports of certain items.

About the MSME sector, she said the representatives raised concern about the delay in payment which is affecting their repayment to banks. Some MSMEs have also said that if the cycle of receiving the goods, manufacturing and sending them out is getting affected, because of delayed or staggered raw material supply, banks will also have to understand that repayments will be taking their own time. She said so to that extent they wanted flexibility from the banks. So everything got linked with raw material supply, congestion at the ports.

The CNX Nifty ended at 12129.50, up by 137.00 points or 1.14% after trading in a range of 12042.10 and 12134.70. There were 39 stocks advancing against 11 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bharti Infratel up by 7.14%, Grasim Industries up by 4.44%, Coal India up by 3.40%, Zee Entertainment up by 2.77% and Hindustan Unilever up by 2.69%. (Provisional)

On the flip side, Tata Motors down by 2.20%, JSW Steel down by 1.42%, Sun Pharma down by 1.26%, TCS down by 0.84% and Bharti Airtel down by 0.74% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 54.26 points or 0.74% to 7,436.27, France’s CAC rose 34.63 points or 0.57% to 6,091.45 and Germany’s DAX was up by 52.30 points or 0.38% to 13,733.49.

Asian markets ended mostly higher on Wednesday as investors closely monitoring China’s progress in returning to work as the country deals with the corona virus outbreak. Japanese shares ended up as the yen retreated after data showed core machinery orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, fell 12.5% month-on-month in December. Though, Chinese shares ended lower as worries persisted over the spreading corona virus epidemic, which has claimed more than 2,000 lives and weighed on business activity in the country.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

2,975.40
-9.57
-0.32

Hang Seng

27,655.81
125.61
0.46

Jakarta Composite

5,928.79
41.83
0.71

KLSE Composite

1,534.16

-2.92

-0.19

Nikkei 225

23,400.70
206.90
0.89

Straits Times

3,213.71
17.08
0.53

KOSPI Composite

2,210.34
1.46
0.07

Taiwan Weighted

11,758.84
109.86
0.94

 
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