Post Session: Quick Review

Indian equity benchmarks ended lower on Friday’s trading session. Markets made a positive start of the day, taking support with report that the Reserve Bank of India (RBI) will purchase government securities under open market operations (OMOs) for an aggregate amount of Rs 10,000 crore on September 24, 2020. Some support also came in as investment through participatory notes (P-notes) in the domestic capital market surged to over Rs 74,000 crore till August-end, making it the highest level in 10 months.

Key indices remained in green terrain for the most part of the trading session, amid reports that the Employees' State Insurance Corporation (ESIC) subscribers who lost their job due to the COVID-19 situation can claim unemployment relief of 50 per cent of wages under the Atal Bimit Kalyan Yojana. The ESIC has issued instructions for submission of claims by the affected workers to claim relief under recently expanded Atal Beemit Kalyan Yojana in which relief is to be paid to those members who lost their job.

However, in the last hour of the trading session, Indian markets cut all of their gains to end the day in red terrain, as domestic ratings agency -- Icra Ratings has warned that divesting majority stake in state-run lenders by the government will be ‘credit negative’ for such public sector banks (PSBs). Domestic sentiments got hit with report that advance tax collections fell 25.5 per cent to Rs 1,59,057 crore in the second quarter of the fiscal.

On the global front, European markets were trading mostly in red as investors settled into a holding pattern while awaiting new catalysts. Asian markets ended mostly higher on Friday, after overall nationwide consumer prices in Japan were up 0.2 percent on year in August, in line with expectations and slowing from 0.3 percent in July. Core CPI, which excludes volatile food costs, sank an annual 0.4 percent - again matching forecasts following the flat reading in the previous month. Individually, prices were down for fuel, education and recreation - while prices were higher for food, housing, furniture, clothing and medical care.

The BSE Sensex ended at 38845.82, down by 134.03 points or 0.34% after trading in a range of 38635.73 and 39200.42. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.26%, while Small cap index was down by 0.32%. (Provisional)

The top gaining sectoral indices on the BSE were Healthcare up by 3.50%, Telecom up by 2.69%, Realty up by 1.96%, Utilities up by 1.18% and Power up by 0.82%, while Bankex down by 1.13%, Consumer Durables down by 0.69%, FMCG down by 0.50%, Capital Goods down by 0.43% and Metal down by 0.39% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharti Airtel up by 3.73%, Mahindra & Mahindra up by 2.79%, Tech Mahindra up by 2.67%, NTPC up by 2.48% and Sun Pharma up by 2.23%. On the flip side, HDFC Bank down by 2.39%, Maruti Suzuki down by 1.88%, Bajaj Finserv down by 1.82%, Kotak Mahindra Bank down by 1.79% and Titan Co down by 1.66% were the top losers. (Provisional)

Meanwhile, welcoming the government’s decision to amend the foreign direct investment (FDI) policy in Defence Sector, Union Minister for Commerce and Industry Piyush Goyal said that the move will enhance ease of doing business & contribute to the growth of investment, income and employment.

The Minister further said that foreign investments in the defence sector shall be subject to scrutiny on the grounds of national security and added that in line with collective vision of Aatmanirbhar Bharat, amendments will enhance self-reliance in defence production, while keeping national interests & security paramount.

Meanwhile, the Centre announced that FDI up to 74% under automatic route shall be permitted for companies seeking new industrial licenses.

The CNX Nifty ended at 11504.95, down by 11.15 points or 0.10% after trading in a range of 11446.10 and 11584.10. There were 29 stocks advancing against 21 stocks declining on the index. (Provisional)

The top gainers on Nifty were Dr. Reddy’s Lab up by 10.48%, Cipla up by 7.29%, Adani Ports & SEZ up by 3.39%, Bharti Airtel up by 3.25% and Grasim Industries up by 2.80%. On the flip side, HDFC Bank down by 2.43%, Kotak Mahindra Bank down by 2.15%, Bajaj Finserv down by 1.97%, Shree Cement down by 1.85% and Maruti Suzuki down by 1.71% were the top losers. (Provisional)

European markets were trading mostly in red; UK’s FTSE 100 decreased 23.77 points or 0.39% to 6,026.15, France’s CAC decreased 20.37 points or 0.4% to 5,019.13. On the flip side, Germany’s DAX increased 10.40 points or 0.08% to 13,218.52.

Asian markets ended mostly higher on Friday, despite slump in Wall Street overnight following Federal Reserve Chairman Jerome Powell’s dour economic outlook along with lackluster US economic data. Data showed that the number of Americans applying for unemployment benefits fell last week to 860,000. Chinese shares ended higher on expectations of fresh supportive measures to boost the virus-ravaged economy, with the Chinese yuan holding on to recent gains against the dollar. Japanese shares ended slightly up amid yen’s weakness after data showing the key inflation gauge in the country went negative again last month. Further, optimism surrounding Japan’s new Prime Minister Yoshihide Suga’s policies also offered some support.