HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Bourses take winning spree to 6th day
Oct-18-2019

Indian equity benchmarks took winning spree to 6th day on Friday, with both the larger peers, Sensex and Nifty, closing higher by around 0.65% each. Key indices made a negative start of the day but soon turned positive, taking support with Union Finance Minister Nirmala Sitharaman’s statement that investors can find no better place in the world than India that has a democracy loving and capitalist respecting environment. She added that the government was continuously working to bring reforms. Domestic sentiments remained enthusiastic with a private report stating that India has emerged as third largest ecosystems for more successful start-ups right behind China and US but ahead of Britain and Israel.

Bourses hold their strong gains throughout the day to settle higher, despite weak cues from global markets. Market participants got comfort, with a private report stating that corporate tax rate cut is clearly a positive for India which would move the country up the ladder in terms of attractiveness for foreign direct investment. Separately, recognizing the role of innovation as a key driver of growth and prosperity for India, NITI Aayog with Institute for Competitiveness as the knowledge partner has released the India Innovation Index (III) 2019. Karnataka, Tamil Nadu, Maharashtra, Telangana and Haryana have been ranked as top five most innovative major states in NITI Aayog's first Innovation Index.

On the global front, European markets were trading in negative terrain, after UK retail sales stagnated in September as consumers were cautious about spending amid uncertainties surrounding Brexit. The data from the Office for National Statistics revealed that retail sales volume, including auto fuel, was unchanged from the previous month, following a 0.3 percent drop in August. Sales were forecast to fall 0.2 percent. Asian markets ended mostly in red territory, as China economy expanded at the slowest pace in nearly three decades in the third quarter amid subdued investment, industrial production and domestic demand. Gross domestic product expanded 6 percent year-on-year in the third quarter after rising 6.2 percent in the second quarter.

Back home, the auto industry stocks ended higher, despite the Federation of Automobile Dealers  Associations (FADA) said that passenger vehicle retail sales in September declined 20.1 per cent to 1,57,972 units against the same period last year as the onset of festival season and never-seen-before discounts failed to lift demand. Passenger vehicle (PV) sales stood at 1,97,653 units in September 2018. Further, aviation stocks remained in focus, with the Directorate General of Civil Aviation (DGCA) data showing that domestic air passenger traffic declined for the fourth consecutive month in September, amid a slowing economy and lean travel season.

Finally, the BSE Sensex gained 246.32 points or 0.63% to 39,298.38, while the CNX Nifty was up by 75.50 points or 0.65% to 11,661.85.

The BSE Sensex touched a high and a low of 39,361.06 and 38,963.60, respectively and there were 23 stocks advancing against 07 stocks declining, while 1 stock remain unchanged on the index.

The broader indices ended in green; the BSE Mid cap index surged 1.78%, while Small cap index was up by 1.65%.

The top gaining sectoral indices on the BSE were Power up by 2.63%, PSU up by 2.18%, Capital Goods up by 2.05%, Realty up by 1.96% and Utilities up by 1.91%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Yes Bank up by 8.44%, Maruti Suzuki up by 2.74%, Power Grid up by 2.45%, NTPC up by 2.02% and Larsen & Toubro up by 1.67%. On the flip side, Tata Motors down by 1.05%, Tata Motors - DVR down by 0.89%, Bajaj Auto down by 0.69%, Bharti Airtel down by 0.65% and ICICI Bank down by 0.64% were the top losers.

Meanwhile, Minister of State for Finance, Anurag Singh Thakur has said non-banking financial companies (NBFCs) must sub-lend the money they get from banks to their customers, in order to help India fuel its economic growth. He also said that there is a need for further transmission of the credit from NBFCs to the industry especially by micro, small and medium enterprise (MSME) sector.

The minister said ‘I have spoken to the banks and requested them to ensure faster and greater disbursement of credit to ensure liquidity in the hands of NBFCs.’ Talking about the recently-held loan melas across 250 districts in the country, he said not many NBFCs were spotted there, which prompted him to reach out to the finance secretary to convey that it was very important to have NBFCs on board because they play a crucial role in the nation building process and in the growth of the economy.

To achieve the target of $5 trillion economy by 2024, Thakur said NBFCs have to play a very important role. He also said the industry needs to have right perception and sentiment in the market as he sought the help of the MSME sector in reaching out to the common man, and fuel country's economic growth.

The CNX Nifty traded in a range of 11,684.70 and 11,553.15. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 8.23%, Coal India up by 3.31%, Adani Ports & SEZ up by 3.19%, Maruti Suzuki up by 3.17% and Grasim Industries up by 2.96%. On the flip side, Zee Entertainment down by 5.58%, Tata Motors down by 2.08%, Cipla down by 1.37%, Eicher Motors down by 1.30% and Hindalco down by 1.03% were the top losers.

European markets were trading mostly in red; UK’s FTSE 100 decreased 11.37 points or 0.16% to 7,170.95 and France’s CAC fell 20.56 points or 0.36% to 5,652.51, while Germany’s DAX was up by 19.71 points or 0.16% to 12,674.66.

Asian markets ended mostly lower on Friday as worries about the health of the world's second-largest economy overshadowed optimism from a Brexit deal between the UK and the European Union. Chinese shares ended lower after the release of China’s disappointing third-quarter growth data, that raising pressure on policymakers to roll out more measures. Reports showing China's GDP grew 6 percent year-on-year in the third quarter after rising 6.2 percent in the second quarter, the National Bureau of Statistics said. This was the slowest growth since early 1990s. Growth was forecast to slow marginally to 6.1 percent. Though, Japanese shares closed at a 10-month high as investor sentiment was bolstered by US shares trading higher overnight on the back of solid corporate earnings. Sentiment was also boosted after the government said the trade deal reached between the US and Japan will boost domestic growth by about 0.8 percent.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

2,938.14
-39.19
-1.32

Hang Seng

26,719.58
-128.91
-0.48

Jakarta Composite

6,191.95
10.94
0.18

KLSE Composite

1,571.15

-3.35

-0.21

Nikkei 225

22,492.68
40.82
0.18

Straits Times

3,114.16
-11.98
-0.38

KOSPI Composite

2,060.69
-17.25
-0.83

Taiwan Weighted

11,180.22
-6.66
-0.06

 
  RELATED NEWS >>
Most Viewed >>
April 19 , 2024
Gold mutual funds deliver 23% return in 6 mont
April 19 , 2024
Best mutual funds: These 7 large cap schemes b
April 19 , 2024
Axis AMC elevates R Sivakumar as head of the c
April 18 , 2024
Bitcoin falls 8% in five days; here are 4 reas
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.