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Local equities wipe out gains to turn negative
Oct-21-2020

Indian benchmarks erased all gains to turn negative in late afternoon session. Both Sensex and Nifty were trading below their crucial 40400 and 11850 marks, respectively. FMCG, Energy and Auto counters were on the priority list of the sellers. Sentiments on the street weakened as RBI analysis showing that aggregate sales of private sector manufacturing companies recorded a sharp contraction of 41.1 per cent year-on-year in the first quarter of 2020-21, reflecting the impact of the pandemic induced lockdown. On the sectoral front, automotive industry remained in focus, as Automotive Component Manufacturers Association of India (ACMA) has said that the uptick in the passenger vehicles segment, coupled with car parc of second-hand vehicles, on account of increased use of personal cars is expected to lead to a rise in aftermarket demand.

On the global front, Asian markets are trading mixed on signs US lawmakers are edging towards agreeing a new stimulus package for the struggling economy, while hopes for a vaccine helped temper worries about surging virus infections around the world. European markets were trading lower as losses in healthcare and construction stocks countered a lift from encouraging earnings from consumer giant Nestle and telecoms equipment maker Ericsson.

The BSE Sensex is currently trading at 40342.00, down by 202.37 points or 0.50% after trading in a range of 40278.38 and 40976.02. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.27%, while Small cap index was down by 0.52%.

The top gaining sectoral indices on the BSE were Telecom up by 1.46%, Realty up by 1.31%, Metal up by 1.25%, Utilities up by 1.05% and Power was up by 0.93%, while FMCG down by 1.25%, Energy down by 1.13%, Auto down by 0.80%, Healthcare down by 0.65% and IT was down by 0.63% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 3.12%, Bharti Airtel up by 2.19%, Tata Steel up by 1.70%, NTPC up by 1.49% and Infosys up by 0.70%. On the flip side, Bajaj Finance down by 2.51%, TCS down by 2.21%, Reliance Industries down by 1.55%, HCL Tech down by 1.55% and Hindustan Unilever down by 1.42% were the top losers.

Meanwhile, the Retirement fund body, Employees' Provident Fund Organisation (EPFO) in its latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 1005852 new jobs in the month of August 2020 as against revised figure of 748784 in July 2020.

As per the report, the maximum jobs were created in the age bracket of 22-25 and in this bracket the top sectors which have created more fresh jobs include Expert Services; Trading - Commercial Establishments; establishment engaged in manufacture, marketing servicing, usage of computers; Electric-Mechanical-or General Engineering Products; Engineers- Engineering Contractors; Building & Construction Industry; Financing Establishment and Hospitals. In the similar age bracket, Maharashtra was the first among the States to create maximum payroll, followed by Karnataka, Gujarat, Tamil Nadu, Haryana and Delhi.

According to the data report, 8301 new jobs were created in less than 18 age group category, while 247136 jobs in 18-21 age group category. Further, 22-25 age, 26-28 age, 29-35 age and more than 35 age group category witnessed 269096, 132434, 184034 and 164851 new payrolls, respectively in August 2020.

The CNX Nifty is currently trading at 11805.60, down by 91.20 points or 0.77% after trading in a range of 11804.90 and 12018.65. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 2.64%, Bharti Airtel up by 1.78%, Hindalco up by 1.69%, GAIL India up by 1.28% and Tata Steel up by 1.07%. On the flip side, Britannia down by 4.56%, Bajaj Finance down by 4.05%, Hero MotoCorp down by 3.09%, TCS down by 2.38% and Eicher Motors down by 1.97% were the top losers.

Asian markets are trading mixed; Hang Seng increased 184.88 points or 0.75% to 24,754.42, Nikkei 225 surged 72.42 points or 0.31% to 23,639.46, Taiwan Weighted strengthened 14.88 points or 0.12% to 12,877.25, KOSPI rose 12.45 points or 0.53% to 2,370.86. On the flip side, Straits Times trembled 2.04 points or 0.08% to 2,526.60, Shanghai Composite declined 3.08 points or 0.09% to 3,325.02 and Jakarta Composite was down by 3.39 points or 0.07% to 5,096.45.

European markets were trading lower; UK’s FTSE 100 decreased 91.03 points or 1.55% to 5,798.19, France’s CAC decreased 66.20 points or 1.34% to 4,863.08 and Germany’s DAX was down by 152.73 points or 1.2% to 12,584.22.
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