HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Markets continue to trade in high spirit in early noon deals
Sep-20-2019

Indian equity benchmarks continued to trade in high spirit in early noon session, on account of broad based buying in blue chip counters after Finance Minister Nirmala Sitharaman announced a cut in corporate tax rate for domestic companies and new manufacturing firms. She stated that the revenue foregone on reduction in corporate tax and other relief measures will be Rs 1.45 lakh crore annually. Sentiments also remained bullish with Reserve Bank of India (RBI) governor Shaktikanta Das’ statement that he has expressed the hope the ongoing crisis in Saudi Arabia that has spiked crude prices to multi-year highs will have limited impact on inflation and fiscal numbers. Besides, most of the sectoral indices were trading firm and Auto was the top gainer on BSE, up by around 6.13% followed by Bankex and Capital Goods indices were trading up over 4.00% each. Apart from blue chips, broader indices too equally participated in the rally with both mid and small cap indices trading up by over 2.39% and 1.53%.

On the global front, Asian markets were trading mostly in green, after Sino-US trade negotiations have resumed. Mid-level talks were reported to have held in Washington on Thursday for the first time in almost two months as US and Chinese negotiators attempted to find common ground to pave the way for high-level talks scheduled for October. Back on street, in scrip specific developments, shares of Anuh Pharma jumped as USFDA completed inspection at its facility with no observations. Besides, Dilip Buildcon surged on receiving provisional completion certificate for project in Punjab.

The BSE Sensex is currently trading at 37321.08, up by 1227.61 points or 3.40% after trading in a range of 36085.74 and 37421.70. There were 29 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 2.39%, while Small cap index was up by 1.53%.

The top gaining sectoral indices on the BSE were Auto up by 6.13%, Bankex up by 4.48%, Capital Goods up by 4.43%, Metal up by 3.90% and Basic Materials was up by 3.90%, while there were no losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 8.40%, HDFC Bank up by 7.31%, Mahindra & Mahindra up by 6.59%, Larsen & Toubro up by 5.81% and Tata Steel was up by 5.62%. On the flip side, NTPC down by 0.21% and TCS was down by 0.13% were the only losers.

Meanwhile, the Manufacturers' Association of Information Technology (MAIT) has said India is looking at a foreign exchange bill of Rs 5.37 lakh crore on mobiles, personal computer (PC) and datacom product consumption by the domestic market in the year 2025 if India does not develop an export-led manufacturing ecosystem soon. It said with a meagre export of around Rs 8,500 crore, the net outflow of foreign exchange stood at Rs 1,09,265 crore in 2018-19. With India now looking at massive scaling in local manufacturing, it recommended setting up of component hub to decrease India's disability.

However, IT hardware industry body has stated if India aims and achieves 20 percent share in the global production by 2025, then it can generate a net positive foreign exchange of Rs 1.19 lakh crore and contribute Rs 4.71 lakh crore to country’s gross domestic product (GDP). Further, it said PCs as a category has the potential of generating a net foreign exchange positive of Rs 72,000 crore.

MAIT further said India's existing free-trade agreements (FTAs) have not yielded good results for the country and all the current FTAs have resulted in the loss of opportunities for Indian businesses. It also said ‘the government should now look at FTAs with consumer markets where we can get some access to market for products that we make in India.’ It has also recommended to develop export-oriented manufacturing ecosystem, and the government should encourage companies to set up global-scale manufacturing capacity in the country under the first phase and in the phase-II target increase in value addition.

The CNX Nifty is currently trading at 11075.60, up by 370.80 points or 3.46% after trading in a range of 10691.00 and 11086.75. There were 49 stocks advancing against 1 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 12.37%, Maruti Suzuki up by 8.61%, HDFC Bank up by 7.32%, Hero MotoCorp up by 7.05% and Ultratech Cement was up by 6.74%. On the flip side, Zee Entertainment down by 6.30% was the only losers.

Asian market were mostly trading in green; Shanghai Composite gained 7.63 points or 0.25% to 3,006.91, Taiwan Weighted strengthened 30.49 points or 0.28% to 10,925.19, Hang Seng increased 18.03 points or 0.07% to 26,486.98, Nikkei 225 surged 28.22 points or 0.13% to 22,072.67, KOSPI rose 10.11 points or 0.49% to 2,090.46 and Straits Times was up by 0.69 points or 0.02% to 3,159.49. On the flip side, Jakarta Composite was down by 27.14 points or 0.43% to 6,217.33.
  RELATED NEWS >>
Most Viewed >>
April 22 , 2024
Invest lumpsum through systematic transfer pla
April 24 , 2024
Fund managers trim PSB exposure, see better va
April 22 , 2024
FPIs mount bearish bets as risk aversion grows
April 22 , 2024
FPIs withdraw over Rs 5,200 crore in April so
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.