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Indian bourses continue to trade under pressure
Sep-24-2020

Indian bourses were trading under selling pressure in morning session, on the back of sustained selling activities by market-participants amid weak global cues. Sentiments remained downbeat with the Department for Promotion of Industry and Internal Trade (DPIIT) in its latest data has showed that foreign direct investment (FDI) equity inflows into India contracted by 60 per cent to $6.56 billion (Rs 49,820 crore) in first quarter of current financial year (Q1FY21). The overseas inflows during April-June 2019 stood at $16.33 billion. Market participants also took a note of the Federation of Indian Chambers of Commerce & Industry (FICCI) President Sangita Reddy’s statement that the economy can be revived only by boosting consumer sentiments, which are weak and need measures like discount vouchers from the government to spur the pending. The key indices also suffered due a sinking rupee which slipped 34 paise to quote at 73.91 against the US dollar so far in intra-day trade.

On the global front, Asian markets were trading lower, following a slump on Wall Street overnight, as a series of warnings from U.S. Federal Reserve officials underscored investor worries over the resilience of the economic recovery. U.S. Federal Reserve Vice Chair Richard Clarida said that the U.S. economy remains in a ‘deep hole’ of joblessness and weak demand, and called for more fiscal stimulus, noting that policymakers ‘are not even going to begin thinking’ about raising interest rates until inflation hits 2%. Back home, on the sectoral front, banking stocks remained under pressure despite Indian Banks' Association chief executive Sunil Mehta stating that banks are working together in removing hurdles and speeding up the process of execution of inter-creditor agreement (ICA) in order to ensure faster resolution of bad assets amid COVID-19 pandemic.

The BSE Sensex is currently trading at 37088.61, down by 579.81 points or 1.54% after trading in a range of 37058.79 and 37304.26. There were 1 stock advancing against 29 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 2.06%, while Small cap index was down by 1.99%.

The top losing sectoral indices on the BSE were Realty down by 2.83%, Consumer Durables down by 2.79%, Metal down by 2.48%, Auto down by 2.46% and Industrials down by 2.28%, while there were no gaining sectoral indices on the BSE.

The only gainer on the Sensex was Kotak Mahindra Bank up by 0.64%. On the flip side, Bajaj Finance down by 4.80%, Indusind Bank down by 4.51%, Mahindra & Mahindra down by 3.63%, Titan Company down by 3.45% and Maruti Suzuki down by 3.19% were the top losers.

Meanwhile, the Department for Promotion of Industry and Internal Trade (DPIIT) in its latest data has said foreign direct investment (FDI) equity inflows into India contracted by 60 per cent to $6.56 billion (Rs 49,820 crore) in first quarter of current financial year (Q1FY21). The overseas inflows during April-June 2019 stood at $16.33 billion.

The data showed sectors which attracted foreign inflows during the first quarter of 2020-21 included services ($1.14 billion), computer software and hardware ($1.06 billion), telecommunications ($2 million), automobile ($326 million) and trading ($426 million).

Singapore emerged as the largest source of FDI in India during the first quarter of the fiscal with $1.82 billion investments. It was followed by the Netherlands ($1.08 billion), Mauritius ($900 million), the US ($640 million), and Japan ($412 million).

During the period, states which attracted FDI included Maharashtra, Karnataka, Delhi, Gujarat and Jharkhand. Total FDI inflows, which include re-invested earnings, stood at $11.51 billion during the first quarter of this fiscal. FDI is important as the country requires major investments to overhaul its infrastructure sector to boost growth.

The CNX Nifty is currently trading at 10954.00, down by 177.85 points or 1.60% after trading in a range of 10951.80 and 11015.30. There were 3 stocks advancing against 47 stocks declining on the index.

The few gainers on Nifty were Bharti Infratel up by 1.83%, Kotak Mahindra Bank up by 0.60% and Dr. Reddys Lab up by 0.36%. On the flip side, Bajaj Finance down by 4.84%, Indusind Bank down by 4.57%, Tata Motors down by 4.30%, Hindalco down by 3.81% and Zee Entertainment down by 3.81% were the top losers.

Asian markets were trading lower; Nikkei 225 slipped 276.40 points or 1.18% to 23,070.09, Taiwan Weighted dropped 282.72 points or 2.25% to 12,301.16, Jakarta Composite lost 77.26 points or 1.57% to 4,840.70, Hang Seng decreased 422.97 points or 1.78% to 23,319.54, Straits Times trembled 26.90 points or 1.08% to 2,454.24, Shanghai Composite declined 47.93 points or 1.46% to 3,231.78 and KOSPI fell 58.77 points or 2.52% to 2,274.47.

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