Thank you readers! Here are the key highlights from today’s session
– Market Regains Most Of Its Yesterday’s Losses; Banks Outperform
– Financials Led By Kotak Mahindra Bank Help Nifty Bank Gain 3%
– Kotak Bank Gains 12% On Strong Q2 & Potential MSCI Inclusion
– Sensex Gains 377 Points To 40,522 & Nifty 122 Points To 11,889
– Nifty Bank Climbs 694 Pts To 24,770 & Midcap Index 207 Pts To 17,217
– Bajaj Fin, Nestle, Shree Cem, L&T Gain On Expected MSCI Weightage Increase
– Ipca Labs Surges 13% & PI 2% On Potential MSCI Index Inclusion
– CEAT Fails To Hold Sharp Surge Seen Post Earnings, Closes 9% Off Highs
– Amara Raja Reports Earnings Better Than Expectations; Stock Up Over 3%
– Market Breadth Still In Favour Of Declines; Advance-decline Ratio At 4:5
Closing Bell: Sensex ends 376 points higher, Nifty above 11,850; Kotak Bank jumps 12%
Indian indices ended nearly a percent higher on Tuesday led by financials, pharma and FMCG stocks. Kotak Bank jumped 11 percent post its September quarter earnings lifting Nifty Bank index to around 3 percent. Meanwhile, Nifty Pharma added 1.5 percent and Nifty FMCG was up 1.2 percent. For the day, the Sensex ended 376 points higher at 40,522 while the Nifty rose 121 points to settle at 11,889. Broader markets were also in the green with Nifty Midcap and Nifty Smallcap indices up 1.3 percent and 0.3 percent, respectively. Kotak Bank, Nestle, Asian Paints, Shree Cement, and Bajaj Finance were the top gainers on the Nifty50 index while HDFC, TCS, ONGC, Infosys, and Wipro led the losses.
Expect India to benefit from pent-up demand this quarter, says Nomura
India has been one of the most severely hit by the COVID-19 virus but there is light at the end of the tunnel for the economy now. Rob Subbaraman, Head of Global Macro Research & Co-Head of Global Markets Research at Nomura in an interview with CNBC-TV18 said that things are starting to ease out now. “India will, benefit from the pent-up demand this quarter,” he said.
“The key thing will be controlling the virus and dishing out more stimulus. We think both those things are going to happen and so we do have a bit better gross domestic product (GDP) growth forecast, we have minus 9 percent GDP growth for this year and then close to 10 percent positive growth for next year,” he added. Watch the video for more
Don’t expect the global recession to be over quickly: Crescat Capital
We are in a global recession right now led by the shutdowns due to COVID-19, said Kevin C Smith, CFA- Founder, CEO & CIO of Crescat Capital.
“I don’t think this a recession that is going to be over quickly. What we have to look forward to is more government stimulus, more deficit spending, more money printing, and ultimately it is not unquestionably a bullish thing for equity prices especially when you ultimately are going to rising inflation as a result of these policies,” he said in an interview to CNBC-TV18. Speaking about the US market, Smith said that it has much further downside. Watch video for more
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