28th SEPTEMBER 2020 Highlights: Markets end 1.6% up, MPC meeting postponed, recoveries move up, & more.
-28th SEPTEMBER 2020-
Sensex 37,981.63 ▲1.59%
Nifty 11,227.55 ▲1.60%
The markets climbed a healthy 1.6% today. Positive cues from Asian markets were one of the major driving factors behind this rally. PSU bank stocks also climbed on the hopes of capital infusion by the government. The Indian markets took cues from positive sentiments in the global equity markets and started the week on an optimistic note. All sectoral indices were positive and there was broad participation, with 46 of the Nifty50 stocks ending in the green. The Nifty Media (+4.7%), Nifty Metal (+2.9%) and Nifty Bank (+3.2%) indices saw the highest gains. Among the stocks, IndusInd Bank (7.9%), Bajaj Finance (+6.4%) and Axis Bank (+5.5%) bounced back strongly after witnessing downward pressure last week.
Top Gainers (Nifty)
IndusInd Bank - Rs 555.10 ▲ 7.82%
Bajaj Finance - Rs 3335.15 ▲ 6.25%
Axis Bank - Rs 439.25 ▲ 5.83%
Zee Entertainment - Rs 208.75 ▲ 5.32%
Power Grid Corp - Rs 168.15 ▲ 4.60%
Top Losers (Nifty)
HUL - Rs 2063.30 ▼ 0.76%
Wipro - Rs 311.55 ▼ 0.75%
Nestle India - Rs 15719.80 ▼ 0.11%
Infosys - Rs 1010.40 ▼ 0.10%
RBI Postpones MPC Meet
The Reserve Bank of India announced today that its Monetary Policy Committee (MPC) meeting has been postponed.
The central bank has not stated any reason and is yet to announce the new dates.
It was earlier scheduled to be conducted between September 29 and October 1.
RBI holds MPC meets to decide the interest rates of the economy. In the last MPC meet, RBI left the repo rate unchanged at 4%.
Lakshmi Vilas Bank Shareholders Vote Out Current Management
In their AGM last week, shareholders of the Lakshmi Vilas Bank rejected the appointment of 7 directors to LVB's board.
In a separate filing, the bank informed the exchanges that RBI has appointed a board of three independent directors who will run the day-to-day functions of the bank.
This comes at a time when the bank is eager for some capital and talks for a merger with the Clix Group are underway.
Here are the top stories of the day.
Multiplex stocks rise as WB opens cinema halls
It’s showtime for multiplexes... well, sort of. The West Bengal government has allowed cinema halls to resume operations from 1 October. While this is definitely a positive development for multiplex operators such as PVR (+11.1%) and Inox (+5.8%), there are caveats. Hall capacity will be restricted to 50 viewers, who must adhere to social-distancing norms. Further, it remains to be seen whether other states will follow suit. Till that happens, major production houses may continue to postpone big-ticket releases.
Escorts rallies as new JV commences production
Shares of Tractor maker Escorts Limited gained 7.5% after the company announced that its joint venture (JV) with Kubota Corporation (Japan) has begun commercial production from 25 September. The Escorts-Kubota (40:60) JV has a production capacity of 50,000 units per year and aims to develop new products. Tractors are the only segment in the auto sector that was largely unaffected during the Covid-19 pandemic. Over June, July and August 2020, Escorts’ tractor sales grew 23%, 10% and 79%, respectively on a year-on-year basis.
IPO market buzzing with three new public offers
Let’s wind back to August 2020. It was a virtual drought in the IPO market with only two public offers in the first eight months of the year. September, on the other hand, has witnessed a deluge of IPOs, with five public issues concluded and three more launching tomorrow. First, UTI AMC (the second-largest AMC in India by total assets under management) plans to raise ₹2,160 crore primarily to provide an exit to selling shareholders. Second, Mazagon Dock Shipbuilders, which will raise ₹443 crore through its public offer, is one of India's leading Defence public sector undertakings. The IPO will help the central government to further its divestment plans. Finally, Likhitha Infrastructure, which plans to raise ₹61 crore, is in the business of laying oil and gas pipelines for companies such as Indian Oil, GAIL and ONGC.
India’s Recovery Climbs Above 50 Lakh
The number of cases in India has gone past the 60 lakh mark. At the same time, the number of recoveries has also crossed the 50 lakh mark giving the country a recovery rate of above 82.5%.
Recoveries in recent days have increased above the number of new cases which effectively means the number of total active cases in India is now shrinking.
In other news, the government has launched a portal to track all vaccine-related developments including R&D, and clinical trial information.
Closing bell
The Nifty is in bounce-back mode after falling nearly 4.0% last week. In this truncated trading week, investors are expected to turn picky in terms of sectors. Banks could witness volatility, in view of the 5 October deadline given by the Supreme Court to the government, RBI, and banks to reply on the issue of waiving interest charged during the loan moratorium announced during the Covid-19 pandemic.
🥇 Gold: Rs 49,785 ▲ 0.59% at 6 PM
🥈 Silver: Rs 59,424 ▲ 3.95% at 6 PM
🔀 USD-INR Rate: Rs 73.78/USD ▲ 0.23%
Dow Jones: 27,173.96 ▲ 1.53% - Sept 25
Nasdaq: 10,913.56 ▲ 2.63% - Sept 25
HAPPY INVESTING!!
We'll be back again tomorrow!
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