Post Session: Quick Review

Indian equity benchmarks ended near their intraday high points on Monday’s trading session. The start of the day was on a positive note, amid report that the Finance Ministry is likely to provide capital support from the Rs 20,000 crore fund approved by Parliament in recently concluded session to some Public Sector Banks (PSBs) in the third quarter (Q3) itself. Parliament approved Rs 20,000 crore for PSB capital infusion as part of the first batch of Supplementary Demands for Grants for 2020-21 which sought additional spending of a record Rs 2.35 trillion primarily to meet expenses for combating the Covid-19 pandemic.

Indices remained higher for the whole day, after union Minister Pratap Chandra Sarangi has called for efforts by the local industry to capture the country's huge domestic market, in line with Prime Minister Narendra Modi's vision of 'Aatmanirbhar Bharat' or a self-reliant India. Adding more optimism, Reserve Bank of India (RBI) in its latest data has showed that bank credit rose by 5.26 percent to Rs 102.24 lakh crore, while deposits grew by 11.98 percent to Rs 142.48 lakh crore in the fortnight ended September 11. In the fortnight ended September 13, 2019, advances were at Rs 97.13 lakh crore and deposits stood at Rs 127.22 lakh crore.

Equity benchmarks extended their gains in the second half of the trading session, as sentiments over the street remained positive, after the DPIIT has shared a list of 24 key sectors including food processing, toys, furniture, agro chemicals and textiles with respective ministries asking them to work on an action plan with a view to boost domestic manufacturing and make India a self-reliant country. The other sectors include organic farming, iron, aluminium and copper, electronics, industrial machinery, furniture, leather and shoes, and auto parts.

On the global front, European markets were trading higher helped by upbeat industrial profits data from China and a jump in German lender Commerzbank after it appointed a new chief executive officer. Asian Markets ended mostly higher on Monday, even after South Korea's consumer confidence weakened in September for the first time in four months. The survey data from the Bank of Korea showed that the composite consumer confidence index fell to 79.4 from 84.2 in August. The index had risen in each month after falling to a low of 7.8 in May. Consumers' assessment of the current and future living standards, income and spending deteriorated. Their perceptions regarding the current and future domestic economic conditions, savings, and employment opportunities also weakened.

The BSE Sensex ended at 37981.63, up by 592.97 points or 1.59% after trading in a range of 37544.05 and 38015.91. There were 27 stocks advancing against 3 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 2.58%, while Small cap index was up by 2.50%.(Provisional)

The top gaining sectoral indices on the BSE were Power up by 3.40%, Bankex up by 3.31%, Auto up by 3.01%, PSU up by 2.95% and Realty up by 2.92%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Indusind Bank up by 7.85%, Bajaj Finance up by 6.43%, Axis Bank up by 5.83%, Power Grid up by 4.51% and ONGC up by 4.35%. On the flip side, Hindustan Unilever down by 0.61%, Infosys down by 0.15% and Nestle down by 0.12% were the top losers. (Provisional)

Meanwhile, with an aim to boost domestic manufacturing and make India a self-reliant country, the Department for Promotion of Industry and Internal Trade (DPIIT) has shared a list of 24 key sectors including food processing, toys, furniture, agro chemicals and textiles with respective ministries asking them to work on an action plan.

The other sectors include organic farming, iron, aluminium and copper, electronics, industrial machinery, furniture, leather and shoes, and auto parts. Each ministry has been sent those sectors to identify their response.

DPIIT is working actively on promoting domestic manufacturing of toys and furniture. Several meetings were held with stakeholders to identify these sectors which have the potential to become global winners and make India a strong manufacturing hub.

The CNX Nifty ended at 11227.55, up by 177.30 points or 1.60% after trading in a range of 11099.85 and 11239.35. There were 46 stocks advancing against 4 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indusind Bank up by 7.82%, Bajaj Finance up by 6.25%, Axis Bank up by 5.83%, Power Grid up by 4.60% and Tata Motors up by 4.40%. On the flip side, Hindustan Unilever down by 0.76%, Wipro down by 0.75%, Nestle down by 0.11% and Infosys down by 0.10% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 75.70 points or 1.3% to 5,918.37, France’s CAC increased 84.70 points or 1.79% to 4,814.36 and Germany’s DAX was up by 304.36 points or 2.44% to 12,773.56.

Asian Markets ended mostly higher on Monday, despite escalating tensions between Washington and Beijing. In a major blow for China’s advanced tech ambitions, the US Commerce Department reportedly ordered US companies to seek permission before selling their technologies to Chinese semiconductor giant Semiconductor Manufacturing International Corp (SMIC). Renewed hopes of more US stimulus measures further buoyed sentiment, but a cautious undertone prevailed as US President Donald Trump and former vice-president Joe Biden prepare to square off in their first pre-election debate on Tuesday. However, some gains were capped by fears of resurgence of corona virus cases in Europe, which could dent the global economic recovery.