Post Session: Quick Review

Indian equity benchmarks ended in green terrain on Wednesday’s trading session. After a cautious start of the day, key indices remained volatile for the whole day, as Nobel Laureate Abhijit Banerjee said India is among the worst performing economies in the world and the government’s economic stimulus was inadequate to tackle the problem. But, he said that the country will see a revival in growth in the July-September quarter of the current fiscal. He said the country's economic growth was slowing down even before the Covid-19 pandemic hit. Sentiments remained negative, amid private report stated that the steady rise in caseloads and the spillover effects of the strict lockdown measures will continue to undermine economic growth in the country. It said even if the growth takes the form of a V-shape, the level of Gross Domestic Product (GDP) will matter.

However, market managed to keep their heads above water in the second half of trading session, as Reserve Bank of India (RBI) extended by six months the additional flexibility provided to states to raise funds through market borrowing and overdraft. The RBI in April provided additional flexibility to states and Union Territories (UTs) to raise funds to deal with the Covid-19 crisis. The flexibility was available till September 30, 2020. Traders were seen taking a note of reports that the Reserve Bank deferred the implementation of the capital conservation buffer (CCB) requiring banks to set aside additional reserves of 0.625 per cent by a further six months due to the COVID-19 pandemic. The implementation of the regulations was to happen by September 30, and the same has been now deferred to April 1, 2021.

On the global front, European markets were trading lower as a surge in coronavirus cases and the tone of the first US campaign debate dampened risk appetite at the end of a tumultuous month for financial markets. Asian markets ended mostly lower on Wednesday, even after China's manufacturing sector logged a strong momentum in September driven by robust domestic and foreign demand after the easing of lockdown measures. The survey data from IHS Markit showed that the Caixin manufacturing Purchasing Managers' Index edged down to 53.0 in September from 53.1 in August. A score above 50 indicates expansion in the sector. Operating conditions strengthened in each of the past five months.

The BSE Sensex ended at 38067.93, up by 94.71 points or 0.25% after trading in a range of 37828.11 and 38236.34. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.05%, while Small cap index was up by 0.04%. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.72%, FMCG up by 1.42%, Capital Goods up by 0.99%, Industrials up by 0.65% and Healthcare up by 0.45%, while Telecom down by 2.86%, Metal down by 1.92%, Oil & Gas down by 1.90%, PSU down by 1.20% and Energy down by 0.82% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tech Mahindra up by 2.84%, Titan Co up by 2.83%, Nestle up by 1.92%, Hindustan Unilever up by 1.68% and HDFC Bank up by 1.57%. On the flip side, Bharti Airtel down by 3.34%, Tata Steel down by 2.77%, Indusind Bank down by 1.77%, Mahindra & Mahindra down by 1.07% and Sun Pharma down by 1.01% were the top losers. (Provisional)

Meanwhile, in order to further improve the ease of doing business, the National Highways Authority of India (NHAI) has agreed to most of the suggestions made by industry body, the Consulting Engineers Association of India (CEAI).

CEAI had made suggestions pertaining to areas that include Omnibus Bank Guarantee, Performance Parameters of Consultants, Approval of DPR, Value Engineering, Technical Capacity Provisions, Evaluation of Bids etc. NHAI agreed with most of the suggestions made by them. Suggestions which were outside the purview of NHAI have been sent to the related authorities for consideration.

Further, NHAI assured the body that all good suggestions facilitating smooth working with the Consultants shall be positively considered in the future as well. NHAI also said that it is committed to improve ease of doing business and facilitate better working relationship with all its stakeholders.

The CNX Nifty ended at 11247.55, up by 25.15 points or 0.22% after trading in a range of 11184.55 and 11295.40. There were 25 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were Grasim Industries up by 3.15%, Tech Mahindra up by 3.07%, Titan Co up by 2.92%, Shree Cement up by 2.13% and Dr. Reddy’s Lab up by 2.04%. On the flip side, BPCL down by 8.67%, Bharti Airtel down by 3.36%, Tata Steel down by 2.78%, JSW Steel down by 2.24% and HDFC Life Insurance down by 2.00% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 0.81 points or 0.01% to 5,896.69, France’s CAC decreased 18.26 points or 0.38% to 4,813.81 and Germany’s DAX decreased 65.99 points or 0.51% to 12,759.83.

Asian markets ended mostly lower on Wednesday on concerns over uncertainty surrounding the election result in the world’s largest economy. During the debate Republican President Donald Trump and his Democratic rival Joe Biden battled fiercely over Trump's leadership on the corona virus pandemic, the economy and the integrity of the upcoming election. Further, lingering worries about the spread of corona virus infections too added pressure on market sentiment. Data from China showed that its factory activity expanded at a faster pace in September, bolstering a steady recovery for the Chinese economy. The manufacturing sector in China continued to expand in September, albeit at a slower rate, the latest survey from Caixin revealed with a manufacturing PMI score of 53.0, down from 53.1 in August. Markets in Seoul were closed for Chusok - Full Moon Festival holiday.