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Post Session: Quick Review
Sep-24-2020

Bears held a tight grip over the Dalal Street on Thursday, as both Sensex and Nifty ended with sharp losses.  After a negative start, key indices remained lower for the whole trading session, as the Department for Promotion of Industry and Internal Trade (DPIIT) data showed that foreign direct investment (FDI) equity inflows into India contracted by 60 per cent to $6.56 billion (Rs 49,820 crore) during April-June 2020. Traders 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.

In the second half of the session, equity benchmarks extended their losses to end near their intraday low points, on the back of negative cues from the global markets. Domestic sentiments remained negative for the whole trading day, as COVID-19 and the oil price shock of 2020 are taking a heavy toll on global banks, S&P Global Ratings said adding that it will be difficult for them to return to pre-crisis levels in the next three years. To estimate the shape of recovery for banks, S&P analysed 20 of the largest banking systems globally in its report.

On the global front, European markets were trading lower. Asian markets ended mostly lower on Thursday, after Thailand's central bank left its key rate unchanged at a record low on Wednesday as the previous monetary policy easing continued to support the economic recovery. The Monetary Policy Committee of Bank of Thailand unanimously voted to retain the interest rate at 0.50 percent. The bank had reduced the rate by 25 basis points in May. The MPC reiterated that it stands ready to use additional appropriate monetary policy tools if necessary.

The BSE Sensex ended at 36700.72, down by 967.70 points or 2.57% after trading in a range of 36660.80 and 37304.26. There was 1 stock advancing against 29 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 1.95%, while Small cap index was down by 2.27%. (Provisional)

The top losing sectoral indices on the BSE were IT down by 4.35%, TECK down by 4.02%, Auto down by 3.07%, Metal down by 2.91% and Realty down by 2.85%, while there were no gaining sectoral indices on the BSE. (Provisional)

The only gainer on the Sensex was Hindustan Unilever up by 1.00%. On the flip side, TCS down by 6.04%, Mahindra & Mahindra down by 6.01%, Bajaj Finance down by 5.48%, Indusind Bank down by 5.19% and Tech Mahindra down by 4.79% were the top losers. (Provisional)

Meanwhile, with an aim of enhancing the cyber security posture of the Urban Co-operative banking sector against evolving IT and cyber threat environment, the Reserve Bank of India (RBI) has published the ‘Technology Vision for Cyber Security’ for Urban Co-operative Banks (UCBs) - 2020-2023.

The Technology Vision Document for Cyber Security for UCBs has been formalised based on inputs from various stakeholders. It envisages to achieve its objective through a five-pillared strategic approach GUARD, viz., - Governance Oversight, Utile Technology Investment, Appropriate Regulation and Supervision, Robust Collaboration and Developing necessary IT, cyber security skills set.

The cyber security landscape will continue to evolve with wider adoption of digital banking channels, thus necessitating the UCBs to manage the associated risks effectively. Active collaboration within UCBs and their stakeholders would be necessary for sharing and coordinating various measures taken on cyber security aspects. The implementation of the approach outlined in Technology Vision document will strengthen the cyber resilience of the Urban Co-operative Banks.

The CNX Nifty ended at 10805.55, down by 326.30 points or 2.93% after trading in a range of 10790.20 and 11015.30. There was 1 stock advancing against 49 stocks declining on the index. (Provisional)

The only gainer on Nifty was Hindustan Unilever up by 0.41%. On the flip side, Indusind Bank down by 7.16%, Bajaj Finance down by 6.63%, Tata Motors down by 6.54%, Mahindra & Mahindra down by 6.12% and TCS down by 5.48% were the top losers. (Provisional)

European markets were trading lower, UK’s FTSE 100 decreased 41.21 points or 0.7% to 5,858.05, France’s CAC decreased 26.60 points or 0.55% to 4,775.66 and Germany’s DAX was down by 51.50 points or 0.41% to 12,591.47.

Asian markets ended mostly lower on Thursday following sell-off on Wall Street overnight on renewed concerns over slowing global economic recovery due to resurgence of corona virus pandemic infections. Further, uncertainties surrounding the US presidential elections and economic warnings from US Federal Reserve officials also dampened investor sentiment. 'The US economy is recovering very robustly, but we are still in a deep hole,' said US Federal Vice Chairman Richard Clarida. South Korean shares plunged to hit over one-month low as tensions on the Korean Peninsula reignited and after reports that South Korea’s defense ministry said North Korea had killed a missing official from the South earlier this week. It marked the first time since July 2008 that a South Korean civilian has been shot dead in North Korea.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,223.18

-56.53

-1.72

Hang Seng

23,311.07

-431.44

-1.82

Jakarta Composite

4,842.76

-75.20

-1.53

KLSE Composite

1,500.80

4.32

0.29

Nikkei 225

23,087.82

-258.67

-1.11

Straits Times

2,450.82

-30.32

-1.22

KOSPI Composite

2,272.70

-60.54

-2.59

Taiwan Weighted

12,264.38

-319.50

-2.54


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