Nifty and BankNifty, Stock Market Outlook 02 November 2020
Stock Market Today
Falling for 3rd straight session, Indian equity benchmarks ended Friday’s session with marginal losses, dragged by losses in telecom, auto and banking sectors amid weak global cues.
After making cautious start, markets gained momentum to enter into green zone, as traders found some solace with Prime Minister Narendra Modi’s statement that the Indian economy is getting back on track faster than expected as a timely lockdown and various relief measures announced by the government helped address issues faced by all sections of society and all economic sectors due to the COVID-19 pandemic.
Some respite also came with report that the Reserve Bank of India will conduct the second Open Market Operations (OMOs) purchase of State Developments Loans (SDLs), aggregating Rs 10,000 crore, on November 5, 2020.
However, key gauges erased all their gains and turned negative in late morning session, as some cautiousness came with the government data showed that the growth of eight core infrastructure industries contracted by 0.8 percent in September 2020 as compared to same period of last year, mainly due to decline in production of crude oil, natural gas, refinery products and cement.
The production of eight core sectors had contracted 5.1 percent in September 2019. Some anxiety also came as the government's fiscal deficit rose to Rs 9.14 lakh crore, about 114.8 percent of the annual budget estimate, during the first six months of the current financial year, mainly on account of poor revenue realization.
But, benchmarks managed to trim some of their losses in late trade, taking support from Union Minister Nitin Gadkari’s statement that micro, small and medium enterprises (MSMEs) are the backbone of the Indian economy and can help in boosting exports. He said ‘we are giving highest priority for how we can reduce our import and increase our exports’.
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