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EQUITY
Post Session: Quick Review
Aug-10-2020

Indian equity benchmarks ended in green terrain on Monday’s trading session. After a positive start, indices remained higher for the whole trading session, after Prime Minister Narendra Modi launched a financing facility of Rs 1 lakh crore under the Agri-Infra Fund that will help create post-harvest infrastructure in villages and generate jobs. Adding more optimism, Niti Aayog CEO Amitabh Kant said that India's FDI regime is the most liberal in the world, and even during the COVID-19 pandemic, the country has attracted over $22 billion worth of direct investments. Traders also took support with Commerce and Industry Minister Piyush Goyal’s statement that the world is looking for trusted partners where there is rule of law, transparency in systems, strong judiciary and democratic traditions, and India can become a key player in global supply chains as it provides all of these.

In the last hour of the trading session, key benchmarks trimmed their strong gains but managed to end the day in green terrain, amid private reports stating that despite several businesses remaining closed during the lockdown, 81 per cent of micro enterprises polled are confident of a recovery post COVID-19 whereas 57 per cent reported not having any cash reserves to survive. Initial results of a six-month survey that is underway by GAME (Global Alliance for Mass Entrepreneurship) in association with LEAD at Krea University covering 1,500 micro enterprises also reveal that 40 per cent tried to borrow money to cover expenses. However, only 14 per cent of the overall borrowing was from formal borrowing sources.

On the global front, European markets were trading lower despite investors were hopeful of potential passage of a US stimulus bill. Asian markets ended mostly higher on Monday, even after China's consumer price inflation accelerated in July on higher food costs as regional flooding disrupted transportation, and the decline in factory gate prices slowed further reflecting the recovery in economic activity. The official data showed that inflation rose to 2.7 percent in July from 2.5 percent in June. Food prices advanced 13.2 percent annually as pork prices surged 85.7 percent amid supply disruptions. Food price inflation increased from 11.1 percent in June.

The BSE Sensex ended at 38182.08, up by 141.51 points or 0.37% after trading in a range of 38073.29 and 38430.69. There were 18 stocks advancing against 12 stocks declining on the index.(Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.42%, while Small cap index was up by 1.47%.(Provisional)

The top gaining sectoral indices on the BSE were Healthcare up by 4.69%, Capital Goods up by 3.30%, Realty up by 2.73%, Industrials up by 2.10% and Utilities up by 1.59%, while Energy down by 0.99% and Oil & Gas down by 0.13% were the only losing indices on BSE.(Provisional)

The top gainers on the Sensex were Larsen & Toubro up by 4.84%, Mahindra & Mahindra up by 4.75%, NTPC up by 3.44%, Sun Pharma up by 3.41% and Tech Mahindra up by 2.87%. On the flip side, Reliance Industries down by 1.26%, Asian Paints down by 1.17%, Maruti Suzuki down by 1.09%, Bajaj Finserv down by 1.07% and Ultratech Cement down by 0.84% were the top losers.(Provisional)

Meanwhile, in order to boost fertilizer sector towards servicing farmers, Union Minister of Chemicals and Fertilizers DV Sadananda Gowda has said that the government has taken various initiatives

Gowda also noted that with a view to disseminate knowledge on optimum usage of fertilizer nutrients to sustain the agriculture productivity and to make farmers aware of new developments in the field of fertilizer usage, Department of Fertilizers, Department of Agriculture Cooperation & Farmers Welfare and Department of Agricultural Research and Education jointly organized Fertilizer Application Awareness Programme for farmers.

Further highlighting  the efforts taken by the government, Union Minister said that in order to encourage research and innovation in fertilizer and fertilizer technology, CPSEs under Department of Fertilizers formed a separate think tank body called “Indian Council for Fertilizers and Fertilizer Technology Research (ICFFTR)”.

The CNX Nifty ended at 11270.15, up by 56.10 points or 0.50% after trading in a range of 11238.00 and 11337.30. There were 31 stocks advancing against 17 stocks declining, while 2 stocks remain unchanged on the index.(Provisional)

The top gainers on Nifty were Cipla up by 9.19%, Larsen & Toubro up by 4.85%, Mahindra & Mahindra up by 4.74%, Tata Motors up by 3.99% and Sun Pharma up by 3.40%. On the flip side, Eicher Motors down by 2.08%, Asian Paints down by 1.32%, Reliance Industries down by 1.24%, BPCL down by 1.10% and Maruti Suzuki down by 1.05% were the top losers.(Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 1.03 points or 0.02% to 6,031.15, France’s CAC decreased 9.16 points or 0.19% to 4,880.36 and Germany’s DAX was down by 60.42 points or 0.48% to 12,614.09.

Asian markets ended mostly higher on Monday on expectations for additional stimulus measures in the United States to protect the corona virus-hit economy. US President Donald Trump signed several executive orders aimed at extending corona virus relief to Americans. The orders include extending enhanced unemployment benefits and the federal eviction moratorium, imposing a payroll tax holiday and further suspending federal student loan payments. Chinese shares ended higher as improvement in factory data calmed nerves over a ramp up in Sino-US tensions ahead of trade talks at the end of the week. Meanwhile, China's consumer inflation accelerated 2.7 percent for the second straight month in July, exceeded expectations for an increase of 2.6 percent and was up from the 2.5 percent gain in June. Meanwhile, markets in Japan and Singapore were closed for Mountain Day and National Day holidays, respectively.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,379.25
25.21
0.75

Hang Seng

24,377.43
-154.19
-0.63

Jakarta Composite

5,157.83
13.94
0.27

KLSE Composite

1,571.66

-6.48

-0.41

Nikkei 225

-

-

-

Straits Times

-

-

-

KOSPI Composite

2,386.38
34.71
1.48

Taiwan Weighted

12,894.00
65.13
0.51
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