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EQUITY
Post Session: Quick Review
Oct-20-2020

Indian equity benchmarks ended with notable gains on Tuesday’s trading session. Markets made a negative start of the trading day, with Finance Minister Nirmala Sitharaman’s statement that the government has begun an exercise to assess the impact of the pandemic on the economy and likely contraction in GDP, even as she did not rule out the possibility of another stimulus to boost growth. But soon, indices turned positive, taking support with data released by the Ministry of Statistics and Programme Implementation (MoSPI) in the quarterly bulletin of the Periodic Labour Force Survey (PLFS) showing that unemployment in urban areas fell to 8.4% in July- September 2019 from 8.9% in the June quarter last year.

Markets remained higher for the almost whole day, as domestic sentiments were optimistic, as markets regulator SEBI allowed exchanges dealing with agri-commodity derivatives to utilise the fund created for farmers and FPOs for reimbursement of mandi tax and charges incurred by them on storage and transportation of goods. The decision was taken based on the recommendations of the Commodity Derivatives Advisory Committee (CDAC). Some support also came after Finance Minister Nirmala Sitharaman exhorted large central public sector enterprises (CPSEs) to achieve by December 75 per cent of their planned capital expenditure (capex) target for 2020-21, to support economic growth hit by the COVID-19 crisis.

On the global front, European markets were trading mostly in green as strong earnings from Swiss bank UBS, consumer giant Reckitt Benckiser and others offset concerns from tighter coronavirus curbs across the continent and doubts over fresh U.S. stimulus. Asian markets ended mostly lower on Tuesday, after China's central bank left its benchmark lending rates unchanged for the sixth consecutive month after the official data revealed that the economic growth gained further momentum in the third quarter. The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent. The one-year and five-year loan prime rates were last reduced in April. The one-year loan prime rate was lowered by 20 basis points and five-year rate by 10 basis points in April.

The BSE Sensex ended at 40544.37, up by 112.77 points or 0.28% after trading in a range of 40305.59 and 40732.01. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.47%, while Small cap index was up by 0.30%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 3.77%, Telecom up by 2.62%, TECK up by 1.64%, IT up by 1.34% and Consumer Disc up by 0.88%, while Oil & Gas down by 1.30%, PSU down by 1.09%, Energy down by 0.99%, Power down by 0.96% and Utilities down by 0.89% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were HCL Tech. up by 4.19%, Tech Mahindra up by 3.05%, Asian Paints up by 2.35%, Bharti Airtel up by 1.91% and HDFC Bank up by 1.73%. On the flip side, ONGC down by 2.67%, Power Grid down by 1.44%, NTPC down by 1.22%, Reliance Industries down by 0.93% and Tata Steel down by 0.83% were the top losers. (Provisional)

Meanwhile, with an aim to address societal challenges through digital innovation, NITI Aayog has launched a Frontier Technologies Cloud Innovation Center (CIC) with Amazon Web Services (AWS) - the first of its kind in India.

This CIC is part of the AWS CIC Global Program, which provides an opportunity for government agencies, non-profits, and educational institutions, to come together on pressing challenges, apply design thinking, test new ideas, and access the technology expertise of AWS.

The NITI Aayog Frontier Technologies CIC joins a global network of AWS public sector cloud innovation centers across Australia, Bahrain, Canada, France, Germany, South Korea, and United States.

The CNX Nifty ended at 11896.80, up by 23.75 points or 0.20% after trading in a range of 11837.25 and 11949.25. There were 25 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were HCL Tech. up by 4.13%, Tech Mahindra up by 3.12%, Asian Paints up by 2.34%, Bharti Airtel up by 1.84% and HDFC Bank up by 1.69%. On the flip side, Britannia down by 5.81%, ONGC down by 2.74%, Indian Oil Corporation down by 2.28%, GAIL India down by 2.00% and UPL down by 1.62% were the top losers. (Provisional)

European markets were trading mostly in green; UK’s FTSE 100 increased 17.99 points or 0.31% to 5,902.64, France’s CAC increased 35.18 points or 0.71% to 4,964.45. On the flip side, Germany’s DAX was down by14.07 points or 0.11% to 12,840.59.

Asian markets ended mostly lower on Tuesday ahead of the deadline for a new fiscal stimulus agreement from Washington. Reports showing that US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin ‘continued to narrow their differences’ on the corona virus relief package. Japanese shares ended lower as surging corona virus cases in Europe raised investors' concerns. Though, Chinese shares ended higher as the central bank (PBOC) left its benchmark lending rates unchanged for the sixth consecutive month, as widely expected. The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,328.10
15.43
0.47

Hang Seng

24,569.54
27.28
0.11

Jakarta Composite

5,099.84
-26.49
-0.52

KLSE Composite

1,510.97

-7.14

-0.47

Nikkei 225

23,567.04
-104.09
-0.44

Straits Times

2,528.64
-14.93
-0.59

KOSPI Composite

2,358.41
11.67
0.50

Taiwan Weighted

12,862.37
-45.97
-0.36
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