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Local equities continue downtrend in late afternoon session
Sep-22-2020

Local equities continued their downtrend in late afternoon session. The broader indices, BSE Mid cap and Small cap index were also trading in red with the cut of above one and half percent. Traders remained concerned with CARE Ratings’ a multi-sector survey showed that business activity is unlikely to touch pre-COVID-19 levels before March 2021, and there is a need for the government to step in and give a push to the economy as it has not done enough till now. Traders took note of former Niti Aayog vice chairman Arvind Panagariya’s statement that India will need fiscal stimulus, lower interest rates, faster bank recapitalisation and privatisation of some PSUs to return to 7 per cent growth rate. Sector wise, cement sector remained in focus, as India Ratings and Research (Ind-Ra) in its latest report has said that cement demand is expected to decline by 10 to 15 percent year-on-year in the Q2 (July-September) of FY21. 

On the global front, Asian markets are trading mostly in red as rising coronavirus cases and delays in fresh U.S. stimulus stoked worries that the quick economic recovery from the pandemic will be hampered. European markets were trading mostly in red.

The BSE Sensex is currently trading at 37761.72, down by 272.42 points or 0.72% after trading in a range of 37531.14 and 38209.97. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 1.79%, while Small cap index was down by 1.57%.

The only gaining sectoral indices on the BSE were IT up by 1.36% and TECK was up by 1.04%, while Oil & Gas down by 2.72%, Industrials down by 2.49%, Capital Goods down by 2.46%, Auto down by 1.99% and PSU was down by 1.98% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Tech up by 2.79%, TCS up by 2.67%, Tech Mahindra up by 2.14%, Sun Pharma up by 0.71% and Infosys up by 0.37%. On the flip side, Axis Bank down by 2.91%, Maruti Suzuki down by 2.90%, ONGC down by 2.53%, Indusind Bank down by 2.52% and Larsen & Toubro down by 2.45% were the top losers.

Meanwhile, in the wake of the ongoing COVID-19 crisis, International Energy Agency (IEA) in collaboration with NITI Aayog has launched a ‘Special Report on Sustainable Recovery’. The report proposed a number of actions that could be taken over the next three years to revitalize economies and boost employment while making energy systems cleaner and more resilient.

The report also mentioned key sectors for creating jobs: electricity, transportation, buildings, industry and sustainable biofuels and innovations. A combination of policy actions and targeted investments will offer huge benefits to the economy and generate jobs. However, the measures highlighted in the report remains the sovereign choice of the country.

As governments around the world respond to COVID-19, the IEA’s report, prepared in cooperation with IMF, details energy-focused policies and investments that could help boost economic growth, create jobs and put emissions into structural decline while making energy systems lower-cost, secure and resilient.

The CNX Nifty is currently trading at 11147.90, down by 102.65 points or 0.91% after trading in a range of 11084.65 and 11302.20. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were HCL Tech up by 2.74%, TCS up by 2.71%, Tech Mahindra up by 2.24%, Grasim Industries up by 2.11% and Sun Pharma up by 0.74%. On the flip side, Zee Entertainment down by 6.03%, GAIL India down by 4.76%, Adani Ports &Special down by 4.76%, Bharti Infratel down by 3.95% and BPCL down by 3.65% were the top losers.

Asian markets are trading mostly in red, Taiwan Weighted dropped 149.61 points or 1.17% to 12,645.51, Hang Seng decreased 233.84 points or 0.98% to 23,716.85, KOSPI fell 56.80 points or 2.38% to 2,332.59, Straits Times trembled 22.41 points or 0.9% to 2,463.30, Shanghai Composite declined 42.64 points or 1.29% to 3,274.30 and Jakarta Composite was down by 65.27 points or 1.31% to 4,934.09.

European markets were trading mostly in red, UK’s FTSE 100 decreased 5.05 points or 0.09% to 5,799.24, France’s CAC decreased 0.32 points or 0.01% to 4,791.72. On the flip side, Germany’s DAX was up by 90.12 points or 0.72% to 12,632.56.
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