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CAPITALSTARS PRESENT MONDAY CURRENT MARKET NEWS : 05 October 2020

Updates

Sensex, Nifty rally in early trade.

Domestic stocks rallied in early trade as trading resumed after a long weekend. The barometer index, the S&P BSE Sensex, was up 420.50 points or 1.09% at 39,117.55. The Nifty 50 index was up 117.85 points or 1.03% at 11,534.80. Positive Asian stocks boosted sentiment.

The S&P BSE Mid-Cap index was up 0.45%. The S&P BSE Small-Cap index was up 0.53%.

The market breadth, indicating the overall health of the market, is strong. On the BSE, 1113 shares rose and 472 shares fell. A total of 107 shares were unchanged.

Loan moratorium update:

The Supreme Court is set to hear the case on the extension of the loan moratorium and waiver of the interest on interest today. The court on September 28 heard a batch of petitions seeking interest waiver during the loan moratorium period. On Friday (October 2), the Centre informed the Supreme Court that it has decided to waive interest on interest on loans up to Rs 2 crore during the six-month moratorium period, giving a big relief to retail and MSME borrowers. Those who have cleared their loan dues during the moratorium between March and August will also get the benefit.

Stocks in news:

Reliance Industries (RIL) rose 0.32%. RIL and Reliance Retail Ventures (RRVL) announced that global investment firm TPG will invest Rs 1,837.50 crore into RRVL, a subsidiary of Reliance Industries. This investment values Reliance Retail at a pre-money equity value of ₹ 4.285 lakh crore. TPG’s investment will translate into a 0.41% equity stake in RRVL on a fully diluted basis.

RIL and RRVL announced that GIC will invest Rs 5,512.5 crore into RRVL, a subsidiary of RIL. This investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore. GIC’s investment will translate into a 1.22% equity stake in RRVL on a fully diluted basis.

TCS gained 3.37% after the company said that its board of directors will consider a proposal for buyback of equity shares of the company, at its meeting to be held on 7 October 2020.

Tata Motors advanced 1.65%. The company announced its sales in the domestic & international market, for Q2 FY21, which stood at 1,10,379 vehicles, compared to 1,05,031 units during Q2 FY20.

Hero MotoCorp rose 0.64%. The company registered sales of 715,718 units in September 2020. This translates into a growth of 16.9% over the corresponding month of the previous year (September 2019), when the company had sold 612,204 units.

Route Mobile rose 0.5%. The company acquired key technologies and its related contracts on a slump sale basis from TeleDNA, a company specializing in the development of telecom related solutions like MMSC (Multimedia Messaging Service Center), SMSC (Short Message Service Center platforms, SMS HUB and SMS firewall headquartered in Bengaluru.

ITI surged 5.07%. ITI signed Rs 7,796 crore Phase IV Project of Army Static Switched Communication Network (ASCON) for deploying strategic network for secured communication across the country and subsequent maintenance for next 10 years.

Global Markets:

Overseas, Asian stocks are trading higher on Monday as investors watched for developments on U.S. President Donald Trump’s health after he tested positive for the coronavirus last week. Markets in China are closed on Monday for a holiday.

Meanwhile, Trump’s Democratic challenger at the upcoming November presidential election, former Vice President Joe Biden, tested negative for the coronavirus — according to his campaign.

Activity in Japan’s services sector contracted for the eight straight month in September. The final Jibun Bank Japan Services Purchasing Managers’ Index (PMI) rose to its highest in eight months, coming in at a seasonally adjusted 46.9 from 45.0 in the previous month.

In US, stocks droped on Friday as news that U.S. President Donald Trump tested positive for COVID-19 put investors in a risk-off mood and added to mounting uncertainties surrounding the looming election.

Back home, key domestic indices ended with stellar gains on Thursday, extending gains for the second day. Positive global cues, better-than-expected domestic macro numbers and decent auto sales in September 2020 supported buying. The barometer index, the S&P BSE Sensex, added 629.12 points or 1.65% at 38,697.05. The Nifty 50 index rallied 169.40 points or 1.51% at 11,416.95. Stock markets remained shut on Friday (2 October) on account of Mahatma Gandhi Jayanti.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,632.25 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 259.46 crore in the Indian equity market on 1 October 2020, provisional data showed.



Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.

CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.

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