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EQUITY
Post Session: Quick Review
Sep-22-2020

Indian equity benchmarks remained under a grip of bears on Tuesday’s trading session, with both the Sensex and the Nifty ending on a lower note. After a cautious start, key indices traded in red terrain for the whole trading session, after 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. In afternoon deals, markets managed to stage recovery, taking support with Federation of All India Farmer Associations’ (FAIFA) statement that the newly passed farm bills will give farmers the freedom to trade across states and empower them to turn into traders of their own produce and be in control of the process.

However, in the last hours of the trading session, indices again added losses to end in red terrain, on the back of negative cues from the global markets. Traders were seen taking a note of reports that markets regulator Sebi permitted foreign portfolio investors (FPI) to write off shares of all the companies which they are unable to sell. As per operational guidelines for FPIs and designated depository participants (DDPs) issued in November 2019, write-off of securities held by FPIs who wished to surrender their registration was permitted only in respect of shares of companies which are unlisted/ illiquid / suspended/ delisted. Market participants failed to take any sense of relief with Commerce Minister Piyush Goyal’s statement that the current crisis should be used as an opportunity to make the transition to clean energy smoother, faster, more resilient and affordable.

On the global front, European markets were trading mostly in red. Asian markets ended mostly lower on Tuesday, even after Hong Kong's consumer price declined for the second straight month in August. The data from the Census and Statistics Department showed that the consumer price index fell 0.4 percent year-on-year in August, following a 2.3 percent decrease in July. Excluding the effects of all government's one-off relief measures, core inflation was 0.1 percent in August versus 0.2 percent in the previous month.

The BSE Sensex ended at 37734.08, down by 300.06 points or 0.79% after trading in a range of 37531.14 and 38209.97. There were 9 stocks advancing against 21 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 1.70%, while Small cap index was down by 1.61%. (Provisional)

The only gaining sectoral indices on the BSE were IT up by 0.91% and TECK up by 0.67%, while Industrials down by 2.49%, Capital Goods down by 2.47%, Oil & Gas down by 2.39%, Energy down by 1.98% and Consumer Disc down by 1.84% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were HCL Tech. up by 3.02%, TCS up by 2.39%, Sun Pharma up by 2.21%, Tech Mahindra up by 2.20% and ICICI Bank up by 1.04%. On the flip side, Maruti Suzuki down by 3.15%, Larsen & Toubro down by 2.82%, Indusind Bank down by 2.79%, Axis Bank down by 2.45% and ONGC down by 2.32% were the top losers. (Provisional)

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 ended at 11153.65, down by 96.90 points or 0.86% after trading in a range of 11084.65 and 11302.20. There were 16 stocks advancing against 34 stocks declining on the index. (Provisional)

The top gainers on Nifty were TCS up by 2.34%, HCL Tech. up by 2.29%, Grasim Industries up by 1.71%, Tech Mahindra up by 1.68% and Cipla up by 1.24%. On the flip side, Zee Entertainment down by 6.45%, GAIL India down by 4.59%, Adani Ports & SEZ down by 4.47%, Bharti Infratel down by 4.42% and Tata Motors down by 3.16% were the top losers. (Provisional)

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.

Asian markets ended mostly lower on Tuesday tracking Wall Street’s overnight losses amid possible delays in fresh US stimulus with allegations of illegal accounts and funds transfers by several global banks over nearly two decades. Further, concerns of possible lockdown in Europe due to fears that second wave of corona virus infections would lead to tougher travel restrictions, too weighed investors' sentiment. Escalating Sino-US tensions too added pressure on the market. Chinese shares ended down, despite China’s cabinet unveiling steps to spur new forms of consumption, including online shopping and payments, in a bid to support the recovery of the economy. Meanwhile, the Japanese market was closed for a holiday.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,274.30-42.64-1.29

Hang Seng

23,716.85-233.84-0.98

Jakarta Composite

4,934.09-65.27-1.31

KLSE Composite

1,505.786.350.42

Nikkei 225

-

-

-

Straits Times

2,463.29-22.42-0.90

KOSPI Composite

2,332.59-56.80-2.38

Taiwan Weighted

12,645.51-149.61-1.17
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