October 23, 2020

Market and Financial News Aggregator

Sensex, Nifty Rise Over 1% On Global Cues

3 min read

Indian shares were sharply higher in early trade on Thursday as investors cheered progress in U.S. stimulus talks and the Centre announced new guidelines for re-opening of several economic activities.

Meanwhile, the government has kept its full-year borrowing limit unchanged at Rs 12 trillion, leaving ample room for the states and the private sector to borrow from the market.

On the data front, India reported a current account surplus for the second straight quarter, suggesting a sharp slowdown in domestic consumption.

Another report showed that core industries’ output in the country contracted for the sixth straight month in August.

The benchmark S&P BSE Sensex jumped 464 points, or 1.2 percent, to 38,532 in early trade, while the broader NSE Nifty index was up 128 points, or 1.14 percent, at 11,375.

Reliance Industries rose about half a percent as Silver Lake Partners agreed to invest an additional Rs. 1,875 crore into Reliance Retail Ventures.

ONGC dropped 2 percent and Oil India declined 1.4 percent after they cut the price of locally produced gas for October 2020-March 2021 by about a quarter to a multi-year low.

Punjab National Bank advanced 0.7 percent despite the lender reporting a new borrowing fraud worth Rs. 1,203 crore by the troubled Ahmedabad-based Sintex Industries.

NTPC edged down slightly. The company said it is eyeing Rs 98,000 crore revenue from operations and about 15 million metric ton of coal output from its mines in the current fiscal year.

Godrej Properties added 1.7 percent. The realty firm has agreed to acquire 20 acres of land in Kalyan, Mumbai, to develop a housing project.

PVR soared 9 percent and Inox Leisure surged 11 percent after the central government gave a green flag for partial reopening of cinema halls, theatres, and multiplexes with effect from October 15.

Other Asian markets remain broadly higher in holiday-thinned trade after U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi said they will continue talks on a new coronavirus relief bill.

Japan’s Tokyo Stock Exchange has halted trading for all of Thursday because of a technical glitch. Elsewhere, markets in China, South Korea, Taiwan and Hong Kong are closed for holidays.

U.S. stocks rose overnight as renewed hopes for a stimulus bill and encouraging private payrolls data helped investors shrug off concerns over a disorderly presidential debate.

Markets pared some early gains after Senate Majority Leader Mitch McConnell tore into the $2.2 trillion Democratic stimulus plan, calling it “outlandish” and “too high”.

The Dow Jones Industrial Average climbed 1.2 percent, the tech-heavy Nasdaq Composite gained 0.7 percent and the S&P 500 added 0.8 percent.

European markets ended lower on Wednesday as investors reacted to the U.S. presidential debate and Germany’s warning that delays to the European Union’s recovery fund are almost inevitable due to governance disputes.

The pan European Stoxx 600 edged down 0.1 percent. The German DAX and the U.K.’s FTSE 100 both fell around half a percent, while France’s CAC 40 index shed 0.6 percent.

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2020-10-01 00:32:07


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