HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Post Session: Quick Review
Oct-27-2020

Indian equity benchmarks ended with notable gains on Tuesday. After a cautious start of the day, key indices traded higher for the most part of the session, amid 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. Some support also came in with British drug maker AstraZeneca Plc stating that the Covid-19 vaccine being developed by the University of Oxford produced an immune response in both elderly and young people and adverse reactions were lower among the elderly.

Sentiments remained positive during a day, after the Reserve Bank asked all lending institutions, including non-banking financial companies, to implement the waiver of interest on interest for loans up to Rs 2 crore for the six months moratorium period beginning March 1, 2020. On October 23, the government had announced the scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts. Some support also came after 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.

On the global front, European markets were trading lower as weakness in miners and automakers offset upbeat results from UK blue-chip companies HSBC and BP. Asian markets ended mostly lower on Tuesday, even after China's industrial profits increased for the fifth straight month in September. The data from the National Bureau of Statistics showed that industrial profits grew 10.1 percent on a yearly basis but slower than the 19.1 percent increase posted in August. This was the fifth consecutive rise. The statistical office cited falling factory gate prices and rising raw material prices as major reason for the slowdown in industrial profits.

The BSE Sensex ended at 40522.10, up by 376.60 points or 0.94% after trading in a range of 39978.39 and 40555.60. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.65%, while Small cap index was up by 0.60%. (Provisional)

The top gaining sectoral indices on the BSE were Bankex up by 3.53%, Power up by 2.06%, Capital Goods up by 2.00%, Consumer Discretionary up by 1.70% and Healthcare up by 1.53%, while IT down by 1.46%, TECK down by 1.24%, Realty down by 0.65%, Metal down by 0.46% and Telecom down by 0.45% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Kotak Mahindra Bank up by 11.86%, Nestle up by 6.01%, Asian Paints up by 5.64%, Bajaj Finance up by 4.89% and NTPC up by 4.13%. On the flip side, TCS down by 2.09%, ONGC down by 1.91%, Infosys down by 1.79%, HDFC down by 1.66% and SBI down by 1.09% were the top losers. (Provisional)

Meanwhile, few days after the government announcement, the Reserve Bank of India (RBI) has asked all lending institutions, including non-banking financial companies, to implement the waiver of interest on interest for loans up to Rs 2 crore for the six months moratorium period beginning March 1, 2020.

On October 23, the government had announced the scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts.

The scheme mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest for the period between March 1, 2020 to August 31, 2020 by respective lending institutions. The government had asked the lending institutions to complete the exercise of crediting the amount in the accounts of borrowers by November 5.

The CNX Nifty ended at 11889.40, up by 121.65 points or 1.03% after trading in a range of 11723.00 and 11899.05. There were 32 stocks advancing against 16 stocks declining, while 2 stocks remain unchanged on the index. (Provisional)

The top gainers on Nifty were Kotak Mahindra Bank up by 12.05%, Shree Cement up by 6.41%, Nestle up by 5.97%, Asian Paints up by 5.64% and Bajaj Finance up by 4.84%. On the flip side, TCS down by 2.16%, ONGC down by 1.98%, Infosys down by 1.94%, Wipro down by 1.69% and HDFC down by 1.54% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 13.61 points or 0.23% to 5,778.40, France’s CAC decreased 42.84 points or 0.89% to 4,773.28 and Germany’s DAX was down by 40.55 points or 0.33% to 12,136.63.

Asian markets ended mostly lower on Tuesday as concerns over resurgence in corona virus infections worldwide with anxiety ahead of the US presidential election weighed investors' sentiment. Further, fading expectations for US stimulus package too added pressure on market sentiment. Japanese shares ended almost flat as the market got some support from upbeat earnings reports. Chinese shares ended higher as investors awaited the outcome of a key policy meeting of ruling Communist Party this week to formulate economic and social policy goals for the next five years.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,254.32
3.20
0.10

Hang Seng

24,787.19
-131.59
-0.53

Jakarta Composite

5,128.23
-15.82
-0.31

KLSE Composite

1,500.35

5.74

0.38

Nikkei 225

23,485.80
-8.54
-0.04

Straits Times

2,512.87
-10.44
-0.41

KOSPI Composite

2,330.84
-13.07
-0.56

Taiwan Weighted

12,875.01
-34.02
-0.26
  RELATED NEWS >>
Most Viewed >>
April 19 , 2024
JPMorgan bullish on Indian stocks, suggests ma
April 19 , 2024
Gold mutual funds deliver 23% return in 6 mont
April 19 , 2024
Is it time to take small bets in FMCG stocks?
April 19 , 2024
Lok Sabha Elections 2024: How will they impact
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.