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EQUITY
Post Session: Quick Review
Oct-21-2020

Indian equity benchmarks managed to end in green terrain on Wednesday’s trading session. After a positive start of the day, key indices remained strong during the first half of the session, taking support with the Commerce and Industry Ministry’s statement that foreign direct investment (FDI) in India has increased by 16 per cent year-on-year to $27.1 billion during April-August this year. During April-August last year, India had received FDI worth $23.35 billion. Adding more optimism among traders, ratings agency ICRA said India's economic recovery has broadened and strengthened in September from the pandemic-induced lows seen in April 2020. ICRA said that as many as nine of the tracked 15 non-financial high frequency indicators recorded growth in September 2020, while five posted a narrower year-on-year contraction in that month.

In noon deals, markets turned negative, 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. Sentiments got impacted, amid reports that even as brands are betting big on Diwali to light up their sales, a survey has shown below-average spending propensity among urban Indians this festive season with nearly 50 per cent respondents agreeing of being careful about their finances. However, indices cut all of their losses to end in green, after 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.

On the global front, 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. Asian markets ended mixed on Wednesday, after producer prices in South Korea were up 0.1 percent on month in September, shy of expectations for an increase of 0.8 percent and up from 0.5 percent in August. Individually, prices for agricultural, forestry & marine products rose 4.9 percent on month, while manufacturing products eased 0.1 percent, utilities added 0.3 percent and services fell 0.2 percent. On a yearly basis, producer prices were down 0.4 percent versus expectations for a fall of 0.6 percent after slipping 0.5 percent in the previous month.

The BSE Sensex ended at 40707.31, up by 162.94 points or 0.40% after trading in a range of 40150.48 and 40976.02. There were 20 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.23%, while Small cap index was up by 0.03%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 4.39%, Telecom up by 2.52%, Metal up by 2.26%, Utilities up by 1.76% and Power up by 1.55%, while Energy down by 1.01%, FMCG down by 0.89%, IT down by 0.44%, Auto down by 0.23% and Healthcare down by 0.12% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid up by 4.13%, Bharti Airtel up by 3.54%, Tata Steel up by 3.04%, NTPC up by 2.11% and HDFC Bank up by 1.87%. On the flip side, TCS down by 2.30%, Nestle down by 1.54%, Reliance Industries down by 1.50%, HCL Tech. down by 1.06% and Bajaj Finance down by 0.88% were the top losers. (Provisional)

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 ended at 11937.65, up by 40.85 points or 0.34% after trading in a range of 11775.75 and 12018.65. There were 30 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were Power Grid up by 4.17%, Bharti Airtel up by 3.46%, Tata Steel up by 2.97%, Hindalco up by 2.85% and GAIL India up by 2.28%. On the flip side, Britannia down by 4.39%, TCS down by 2.32%, SBI Life Insurance down by 1.92%, Hero MotoCorp down by 1.83% and Reliance Industries down by 1.45% were the top losers. (Provisional)

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.

Asian markets ended mixed on Wednesday on optimism that US lawmakers could reach an agreement on a stimulus package before US election day. The market sentiments improved on reports that Moderna's CEO Stephane Bancel expects interim results from the firm's Covid-19 vaccine trial in November and that the US government could give an emergency use nod in December. Further, AstraZeneca Plc's Covid-19 vaccine trial in the United States is expected to resume as early as this week. Chinese shares ended marginally lower despite growing optimism about China’s economic recovery from virus outbreak, while the Chinese yuan surged to its strongest level against the dollar in more than two years.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,325.02

-3.08

-0.09

Hang Seng

24,754.42

184.88

0.75

Jakarta Composite

5,096.45

-3.39

-0.07

KLSE Composite

1,492.40

-18.57

-1.23

Nikkei 225

23,639.46

72.42

0.31

Straits Times

2,525.61

-3.03

-0.12

KOSPI Composite

2,370.86

12.45

0.53

Taiwan Weighted

12,877.25

14.88

0.12
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