HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Markets trade in fine-fettle in early deals
Sep-25-2020

Indian equity benchmarks made optimistic start on Friday following overnight gains on Wall Street. Markets are trading in fine-fettle in early deals, with gains of over a percent each, supported by buying in all the sector indices led by IT, TECK and Auto stocks. Traders took encouragement with report that the government has extended the suspension of insolvency proceedings for any COVID-19 related default by a period of three months, effective from September 25. The Insolvency & Bankruptcy Code (IBC) was suspended for a period of six months with effect from March 25, 2020, by the government earlier, to protect those experiencing financial distress on account of the pandemic. Some support came in with report that the Reserve Bank of India (RBI) has announced it will conduct simultaneous purchase and sale of government securities under open market operation (OMO) for an aggregate amount of Rs 10,000 crore each on October 1. Meanwhile, India on Thursday recorded 85,919 coronavirus cases, taking its total caseload way past the 5.8-million mark. India has added over 1,000 deaths on each of the past 25 days.

On the global front, Asian markets were trading mixed amid the positive cues overnight from Wall Street and on optimism about a US stimulus package as House Democrats reportedly plan to unveil a new $2.4 trillion relief bill in the coming days. Back home, the IT stocks including Infosys, TCS and HCL Technologies climbed after Accenture reported fourth-quarter and full-year fiscal results in line with expectations. In scrip specific development, Reliance Industries rose after the latest data from TRAI showed Reliance Jio Infocomm continued to add users at the expense of its rivals in June.

The BSE Sensex is currently trading at 36972.18, up by 418.58 points or 1.15% after trading in a range of 36822.04 and 37027.99. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index jumped 1.25%, while Small cap index was up by 1.39%.

The top gaining sectoral indices on the BSE were IT up by 2.13%, TECK up by 2.07%, Auto up by 1.93%, Telecom up by 1.88%, Oil & Gas up by 1.65%, while there was no loser on the BSE sectoral front.

The top gainers on the Sensex were TCS up by 3.37%, HCL Technologies up by 2.47%, Indusind Bank up by 2.21%, Mahindra & Mahindra up by 2.00% and Maruti Suzuki up by 1.83%. On the flip side, Titan Company down by 0.50% and Kotak Mahindra Bank down by 0.43% were the only losers.

Meanwhile, domestic rating agency India Ratings and Research (Ind-Ra) has maintained a negative outlook on non-banking financial companies (NBFCs) and housing finance companies (HFCs) for the second half of 2020-21 (2HFY21) amid Coronavirus disease (COVID-19) related business disruptions. It said growth in assets under management would be flattish for NBFCs as against its earlier estimate of 8-10 percent y-o-y, and in lower single digits for HFCs in 2020-21. It noted that considering the unabated spread of the virus at pan-India level, time required for NBFC operations to return to normalcy could be prolonged. 

According to the report, although the liquidity and funding environment has improved for better-rated entities after July, there would be asset quality issues impacting overall profitability in 2020-21 and beyond. It also said the sector's capitalisation remains reasonable, given the muted growth outlook, to absorb moderate asset quality stress. It stated that NBFCs have increased their focus on collections and have tightened underwriting standards, and so portfolio growth would take a back seat.

The report further said to that extent, there could be some relief on credit costs; however, slippages could be higher for certain segments, resulting into higher credit costs. For NBFCs, it said the proportion of restructured book of the total assets under management could be in high single digits. Some of the segments which can witness higher asset quality pressure are commercial vehicles (CV), real estate loans and big ticket loans to SMEs.  

The CNX Nifty is currently trading at 10924.40, up by 118.85 points or 1.10% after trading in a range of 10881.55 and 10944.95. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Adani Ports & SEX up by 3.78%, TCS up by 3.34%, Eicher Motors up by 2.83%, HCL Technologies up by 2.49% and Indusind Bank up by 2.15%. On the flip side, Titan Company down by 0.62% and Kotak Mahindra Bank down by 0.47% were the only losers.

Asian markets were trading mixed; Nikkei 225 surged 101.73 points or 0.44% to 23,189.55, Straits Times rose 12.98 points or 0.53% to 2,463.80, KOSPI jumped 15.44 points or 0.68% to 2,288.14 and Jakarta Composite soared 62.03 points or 1.28% to 4,904.79. On other hand, Hang Seng plunged 48.93 points or 0.21% to 23,262.14, Taiwan Weighted lost 11.96 points or 0.10% to 12,252.42 and Shanghai Composite was down by 7.76 points or 0.24% to 3,215.42.
  RELATED NEWS >>
Most Viewed >>
April 19 , 2024
JPMorgan bullish on Indian stocks, suggests ma
April 19 , 2024
Gold mutual funds deliver 23% return in 6 mont
April 19 , 2024
Is it time to take small bets in FMCG stocks?
April 19 , 2024
FPIs pull out of debt, selling pressure may co
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.