Economy and Business

Indian Equity Summary- ·         On the back of improving the country 's macro scenario and strengthening of the rupee, the domestic stock market rallied in line with returns from major global peers. With the midcap stock also having stellar rise; whopping gains over five percent for the Nifty and more than twelve percent for the Bank Nifty on a weekly basis and a broad-based rally, shows that the market feels that the uncertainty is behind us and in the foreseeable future we are likely to see some powerful rally. ·         Going forward, with the uncertainty due to US elections moving out of the way volatility will reduce substantially leading to money moving towards the riskier assets; domestic factors like ongoing Q2 corporate earnings season, supreme court moratorium decisions and FII/DII inflows and USD/INR rates ; will continue to dictate the trend of the domestic equity market. We expect the trading range f...

Indian Equity Summary- Ø In the past week, Indian Markets encountered highly volatile movements and settled in a negative territory with losses of more than 2 percent week on week, taking cues from global stock market which remained cautious as rising coronavirus virus in America and Europe, the delay in the second US stimulus package has made investors wary of the situation. As the Tug of War between bulls and bears kept the markets shaky on the basis of mixed signals from the global front, Nifty indices saw trade in a wider range from 11550-11950. We expect uncertainty to grip the market in the coming sessions, as well as in the aftermath of the U.S. election. Ø Going forward, global factors like development on the US elections front, US /China relations , and domestic factors like ongoing Q2 corporate earnings season, supreme court moratorium decisions and FII/DII inflows and USD/INR rates ; will continue to dictate the trend of the domestic equity market. We expect the tradin...

  Indian Equity Summary- ·          The week concluded on a positive note for the domestic equity market while the banking index once again outperformed the benchmark index Ø and concluded the week with the gains of 4%. On the back of strong FII fund inflows and optimistic hints from global markets, Nifty ended ~2 percent higher. The feelings of market participants were strengthened by reports that the government is open to more stimulus steps to support the corona virus-hit economy. The government is planning to boost demand, including spending on infrastructure and a potential package for the hospitality sector with more stimulus measures.   ·          Going forward, global factors like development on the US elections front, US /China relations , and domestic factors like start of the Q2 Ø corporate earnings season moratorium decisions and FII/DII inflows and USD/INR rates ; will continue t...

  Indian Equity Summary-   ·          A spectacular comeback by the bulls for the second consecutive week as the benchmark Indices Nifty closed in green, +4.6 % on the back of Ø rally in the IT and the BFSI stocks. Expectations of another fiscal stimulus by the GOI ahead of the festive season , flush in global liquidity and with RBI continuing with its pause stance on the interest rate with the accommodative approach lifted the market sentiment.   ·          Going forward, global factors like development on the US elections front, decision on US stimulus package, while domestic factors like start of Ø the Q2 corporate earnings season and CPI/IIP data ,moratorium decisions and FII/DII inflows , inflation trajectory and USD/INR rates ; will continue to dictate the trend of the domestic equity market. We expect the trading range for Nifty between 11750-12,200 in the near term. Markets may c...

  ·      The mutual fund industry witnessed net outflows to the tune of ~52,091 cr in September 2020 as against net outflows of ~INR 14,553 cr in August 2020. The equity category witnessed net outflow of Rs ~1009 cr in September 2020 as against net outflow of Rs ~ INR 4028 cr in the previous month. ·          AUMs of debt, equity and hybrid schemes in August 2020 accounted for 49.9%, 29.5% and 11.0% respectively of the overall AUMs; the balance ~9.6% was contributed by solution oriented and other schemes. ·          AUM of the mutual fund industry declined by 2.3% MoM (INR63,407 Cr) to INR26.86 Lakh Cr in Sept 2020. On QoQ basis, the total AUM of Mutual Fund increased by 5.4% and 9.6% YoY.   ·          Domestic mutual funds were net equity sellers in last 4 months. Mutual Funds v were net equity sellers to an amount of INR 904.69 Cr...

  Indian Equity Summary -   ·  The S Ø &P BSE Sensex and Nifty 50 jumped 3.5 percent and 3.3 percent , respectively as the domestic stock market bounced back on the back of a broad-based rally. Robust domestic factory activity and GST collection figures and more government relaxation on Covid-19-related constraints boosted market sentiments, while optimistic global signals, including China's bullish economic data and expectations of fresh US stimulus steps, led to more market buying.   ·  The central government, in an affidavit filed in the Supreme Court, has supported waiving compound interest or ‘interest on interest’ for small Ø  ticket loans up to Rs 2 crore which may have some negative impact on the banking stocks going forward.   ·  Going forward, global factors like development on the US -China relationship front , US elections ,India Ø  & China border issues while domestic factors like FII/DII inflows , inflation trajecto...