HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Benchmarks trade lower in early deals
Oct-22-2020

Indian equity benchmarks made slightly negative start on Thursday tracking weakness in global peers. Soon, markets extended their opening losses and are trading lower with around one third of a percent cut in early deals. Selling in Bankex, Auto and Realty weighted down on the sentiments, while buying in IT, TECK and Telecom kept down side in check. Traders remained concerned as the International Monetary Fund slashed this year's economic forecast for Asia, reflecting a sharper-than-expected contraction in countries like India, a sign the coronavirus pandemic continues to take a heavy toll on the region. However, losses remained limited as Reserve Bank Governor Shaktikanta Das said the country is at the doorstep of economic revival on the back of accommodative monetary and fiscal policies being pursued by the central bank and the government. More stimulus hopes also added support to the markets. Economic Affairs Secretary Tarun Bajaj said that the government is open to further stimulus measures to boost the coronavirus-hit economy.

On the global front, all the Asian markets were trading lower following the weak cues overnight from Wall Street amid worries that US lawmakers may not reach an agreement on a new stimulus bill before the US presidential election on November 3. Investors’ sentiment was also dampened after the International Monetary Fund or IMF lowered its 2020 growth forecast for the Asia-Pacific region.

Back home, rubber industry stocks were in focus as the commerce ministry recommended for continuation of anti-dumping duty on a Chinese synthetic rubber for five more years with a view to guard domestic players from cheap imports. In scrip specific developments, Mangalore Refinery & Petrochemicals jumped on fund raising reports. However, Asian Paints and Bajaj Auto were trading lower ahead of their earnings announcements.

The BSE Sensex is currently trading at 40561.34, down by 145.97 points or 0.36% after trading in a range of 40413.65 and 40721.57. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index lost 0.02%, while Small cap index was up by 0.13%.

The top gaining sectoral indices on the BSE were IT up by 0.64%, TECK up by 0.64%, Telecom up by 0.55%, Capital Goods up by 0.15%, Industrials up by 0.11%, while Bankex down by 0.97%, Auto down by 0.73%, Realty down by 0.72%, Energy down by 0.71%, Utilities down by 0.68% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.15%, Bajaj Finance up by 1.17%, Tech Mahindra up by 0.86%, Bharti Airtel up by 0.78% and Infosys up by 0.52%. On the flip side, ICICI Bank down by 1.97%, Power Grid down by 1.22%, Kotak Mahindra Bank down by 1.02%, Nestle down by 0.99% and NTPC down by 0.97% were the top losers.

Meanwhile, Reserve Bank of India (RBI) Governor Shaktikanta Das has said that Indian economy is nearing revival from the coronavirus disease (covid-19) pandemic. He also said that banks and non-banking financial companies (NBFCs) should have adequate capital in today's day and age when the country's economy is at the brink of revival.

Das said ‘as COVID-19 pandemic set in we had alerted and asked banks and NBFCs to undertake stress tests in the context of coronavirus. I had myself interacted with banks and NBFCs on the need to build up capital buffers proactively and adequately capitalise their financial entities, so that they not only strengthen their inherent resilience to tide over financial stress but also have adequate capital to support growth, to ensure credit flow is maintained’.

RBI Governor further said banking and NBFCs need governance reforms in the present day. He noted that banks that have robust governance practices, internal control systems, risk assessment and do not undertake smart accounting are the ones that are never overleveraged. He said they not only survive but they grow in every crisis. He added that it's not just ownership, irrespective of ownership of banks, and governance reforms is ownership agnostic, and it is required.

The CNX Nifty is currently trading at 11900.75, down by 36.90 points or 0.31% after trading in a range of 11853.55 and 11939.55. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 2.34%, Britannia Industries up by 1.82%, Bajaj Finance up by 1.43%, Wipro up by 0.87% and Tech Mahindra up by 0.72%. On the flip side, Dr. Reddy’s Lab down by 2.01%, Hero MotoCorp down by 1.61%, Hindalco down by 1.61%, ICICI Bank down by 1.61% and Eicher Motors down by 1.40% were the top losers.

All the Asian markets were trading in red; Nikkei 225 plunged 192.02 points or 0.81% to 23,447.44, Straits Times inched down 1.96 points or 0.08% to 2,523.65, Hang Seng fell 55.31 points or 0.22% to 24,699.11, Taiwan Weighted lost 25.98 points or 0.20% to 12,851.27, KOSPI declined 24.79 points or 1.05% to 2,346.07, Jakarta Composite slipped 15.53 points or 0.30% to 5,080.92 and Shanghai Composite was down by 27.70 points or 0.83% to 3,297.32.
  RELATED NEWS >>
Most Viewed >>
April 22 , 2024
Invest lumpsum through systematic transfer pla
April 22 , 2024
Investment bankers to receive hefty bonuses as
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.