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EQUITY
Post Session: Quick Review
Aug-07-2020

Indian equity benchmarks ended flat with a positive bias on Friday’s trading session. After a negative start of the trading day, key indices remained volatile for the whole trading session, as the Reserve Bank of India sounded a note of caution saying that protracted spread of the COVID-19 pandemic poses downside risk to the domestic economy which is expected to remain in the negative zone in the current fiscal (FY21). Adding more worries among market participants, a private report stated that business optimism for the July-September quarter slumped to a record low due to sharp rise in COVID-19 cases, the extension of lockdown in containment zones and staggered easing of restrictions.

However, in the last hour of trade, indices entered into green terrain to close the trading session above neutral lines, supported with Union Minister Jitendra Singh’s statement that India will be an important pillar of the post-coronavirus global economic recovery and that the road map for winning the battle against the pandemic lies in countries restarting the economy and strengthening cooperative federalism. Some support also came, as in a major relief to corporate and retail borrowers, the Reserve Bank permitted banks to go for a one-time restructuring of loans that are facing stress due to the COVID-19 crisis with a view to mitigating risks to financial stability. The restructuring will be allowed as per the prudential framework issued on June 7, 2019.

On the global front, European markets were trading lower after data showed coronavirus infections are picking up again in Europe. France, Germany and Spain recorded highest daily rise in infections for months, raising fears that a second wave of virus is on the march across the continent. Asian markets ended mostly lower on Friday, even after China's exports grew notably in July as most of the economies relaxed lockdown measures introduced to curb the coronavirus spread. The data from the General Administration of Customs revealed that driven by demand for medical supplies, electronics and automobiles, exports grew 7.2 percent on a yearly basis in July, confounding expectations for a drop of 0.2 percent.

The BSE Sensex ended at 38040.57, up by 15.12 points or 0.04% after trading in a range of 37787.38 and 38109.68. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.44%, while Small cap index was up by 0.78%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 1.21%, Telecom up by 0.99%, Utilities up by 0.90%, Industrials up by 0.84% and Basic Materials up by 0.79%, while Consumer Durables down by 1.73%, IT down by 1.15%, TECK down by 0.86%, Healthcare down by 0.32% and Realty down by 0.20% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Asian Paints up by 4.45%, Bajaj Finance up by 3.61%, Indusind Bank up by 2.90%, Bajaj Finserv up by 2.80% and Maruti Suzuki up by 1.84%. On the flip side, Titan Co down by 2.54%, HCL Tech. down by 2.11%, Infosys down by 1.90%, Sun Pharma down by 1.26% and Mahindra & Mahindra down by 1.07% were the top losers. (Provisional)

Meanwhile, expressing optimism, Electronics and IT secretary Ajay Prakash Sawhney has said that the government is expecting electronics manufacturing in the country to register an annual growth rate of 30 per cent over the next five years and clock Rs 11.5 lakh crore additional production during this period.

Electronics and IT secretary is also expecting the exports of electronic products to grow in the range of 40-50 per cent annually over the next five years. Further, he added that electronics manufacturing in India has been growing quite significantly and registered 23 per cent cumulative annual rate of growth over past five years.

Besides, he said that mobile manufacturing in the country has grown from 6 crore handsets five years ago to 33 crore at present, and over 90 per cent of country's mobile phone requirements are met through domestic production.

The CNX Nifty ended at 11214.05, up by 13.90 points or 0.12% after trading in a range of 11142.05 and 11231.90. There were 32 stocks advancing against 18 stocks declining on the index. (Provisional)

The top gainers on Nifty were Asian Paints up by 4.56%, Bajaj Finance up by 3.56%, UPL up by 3.54%, Indusind Bank up by 2.85% and Bajaj Finserv up by 2.72%. On the flip side, Titan Co down by 2.60%, HCL Tech. down by 2.07%, Infosys down by 2.05%, Mahindra & Mahindra down by 1.51% and Sun Pharma down by 1.18% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 0.5 points or 0.01% to 6,026.44, France’s CAC decreased 21.94 points or 0.45% to 4,863.19 and Germany’s DAX was down by 11.32 points or 0.09% to 12,580.27.

Asian markets ended mostly lower on Friday due to further escalation in Sino-US tensions after the Trump administration unveiled sweeping bans on US transactions with ByteDance's TikTok and Tencent-owned WeChat. Investors also looked forward to the jobs data from United States due later in the day, with forecasting that employment growth likely slowed in July from the previous month due to resurgence in corona virus infections. Chinese shares declined despite China's upbeat exports data in July. Driven by demand for medical supplies, electronics and automobiles, exports grew 7.2 percent on a yearly basis in July, confounding expectations for a drop of 0.2 percent, while dollar-denominated imports fell 1.4% in that same period. Japanese shares ended lower on raft of lacklustre domestic earnings along with caution ahead of key US jobs data. Though, Seoul shares ended up on hopes the United States is making progress on a new economic stimulus package.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,354.04
-32.42
-0.96

Hang Seng

24,531.62
-398.96
-1.60

Jakarta Composite

5,143.89
-34.38
-0.66

KLSE Composite

1,578.14

-10.43

-0.66

Nikkei 225

22,329.94
-88.21
-0.39

Straits Times

2,549.09
-10.01
-0.39

KOSPI Composite

2,351.67
9.06
0.39

Taiwan Weighted

12,828.87
-84.63
-0.66
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