HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Bourses manage to keep heads in green terrain
Oct-27-2020

Indian equity benchmarks managed to keep heads in green terrain in morning session, on the back of buying by funds and retail investors despite negative cues from global markets. Traders were taking support from a report that in what could be a healthy sign of economic recovery, goods and services tax (GST) collections recorded in the month of October are likely to cross Rs 1 lakh crore for the first time this fiscal. Traders also took a note of Prime Minister Narendra Modi’s statement that India plans to achieve one nation one gas grid and shift towards a gas-based economy. However, gains remain capped as exporters expressed concerns over rising freight charges and shortage of containers as it would impact the country's outbound shipments, and sought Commerce Ministry's intervention in the matter.

On the global front, Asian markets were trading lower, as rising Covid-19 cases coupled with diminishing prospects for a U.S. stimulus deal added to worries about the economic outlook. Back home, on the sectoral front, auto component stocks were in watch with a private report that sales of automotive components will be dented this fiscal as demand for automobiles plunges to a decadal low after the Covid-19 pandemic acted as a brake on demand, and lockdowns caused supply-chain disruptions and labour shortages.

The BSE Sensex is currently trading at 40180.71, up by 35.21 points or 0.09% after trading in a range of 39978.39 and 40295.14. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.50%, while Small cap index was up by 0.01%.

The top gaining sectoral indices on the BSE were Power up by 1.55%, Bankex up by 1.13%, FMCG up by 1.00%, Utilities up by 1.00% and Capital Goods up by 0.96%, while IT down by 1.28%, TECK down by 1.10%, Realty down by 0.93%, Energy down by 0.66% and Telecom down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 8.55%, Nestle up by 3.62%, Asian Paints up by 3.22%, NTPC up by 2.91% and Bajaj Finance up by 2.26%. On the flip side, Infosys down by 2.24%, Indusind Bank down by 2.05%, ONGC down by 1.54%, Sun Pharma down by 1.28% and SBI down by 1.17% were the top losers.

Meanwhile, rating agency CRISIL has said that over 40% of banking system credit and 75% of borrowers are likely to benefit from interest-on-interest concession granted by the federal government. The move is expected to cost the exchequer Rs 7500 crore. The benefit will be extended to borrowers with outstanding loans (standard as on February 29, 2020) of less than Rs 2 crore under select categories, irrespective of whether the moratorium was availed of or not.

The cost to exchequer would have halved if waiver was allowed only where moratorium was availed of. To ensure effective and timely implementation, the government has asked lenders to credit the amount to eligible borrowers latest by November 05, 2020.

This will be the difference between compound interest and simple interest over six months (March 1, 2020 to August 31, 2020). While lenders have to apply for reimbursement by December 15, 2020, the timelines for receipt of funds from the government are yet to be notified.

The CNX Nifty is currently trading at 11789.75, up by 22.00 points or 0.19% after trading in a range of 11723.00 and 11818.85. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 8.62%, Shree Cement up by 4.93%, Nestle up by 3.75%, Asian Paints up by 3.10% and NTPC up by 2.91%. On the flip side, Adani Ports &SEZ down by 2.98%, Infosys down by 2.04%, Wipro down by 1.94%, Indusind Bank down by 1.76% and GAIL India down by 1.64% were the top losers.

All Asian markets were trading lower; Shanghai Composite declined 12.09 points or 0.37% to 3,239.03, Nikkei 225 slipped 57.98 points or 0.25% to 23,436.36, KOSPI fell 11.74 points or 0.5% to 2,332.17, Straits Times trembled 16.42 points or 0.65% to 2,506.89, Taiwan Weighted dropped 47.44 points or 0.37% to 12,861.59, Jakarta Composite lost 6.18 points or 0.12% to 5,137.87 and Hang Seng decreased 288.85 points or 1.16% to 24,629.93.
  RELATED NEWS >>
Most Viewed >>
April 22 , 2024
Invest lumpsum through systematic transfer pla
April 24 , 2024
Fund managers trim PSB exposure, see better va
April 22 , 2024
FPIs withdraw over Rs 5,200 crore in April so
April 23 , 2024
Why Mirae Asset MF is cautioning its ETF inves
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.