0

Indian market recovered on Friday with hopes from government’s meet with Foreign Portfolio Investors and other representatives of financial sectors. Market also strengthened further with the news that government could approach the GST Council to relieve the auto and real estate sector. On Friday, the stocks which gained the most were Maruti Suzuki, Vedanta, Bajaj Finance, and HDFC Bank were the top gainers while YES Bank, Tech Mahindra, Tata Steel, and ITC were the top laggards. Benchmark Nifty index also ended higher at 11110 mark which was 0.7 percent up.

Sectorally, metal, information technology (IT), pharma and public sector bank (PSBs) indices ended in the red while auto, private bank, realty, and FMCG ended with gains. Nifty auto index was the top gainers, up 2 per cent, while Nifty metal index slipped 0.68 per cent.

On Monday, Us Stocks fell as bonds fell for August, raising concern about the economy. The benchmark 10-year Treasury yield, which fell to its lowest since 2016 last week dipped to 1.63%. The spread between 2-year and 10-year Treasury yields narrowed to only 6 basis points on Monday, near its lowest level since 2007 while the ongoing trade tension between US and China brings worries of recession as Donald Trump says there would not be any deal for now. The Dow Jones Industrial Average fell 391 points, or 1.49 percent, to 25,896.44, the S&P 500 lost 35.96 points, or 1.23 percent, to 2,882.69 and the Nasdaq Composite dropped 95.73 points, or 1.2 percent, to 7,863.41.

Following the fears of recession with result from the trade war between US and China, Asian shares also falter on Monday. Trade war between these two big economies has brought worries of recession. While the protest in Hong Kong continued bringing negative effect for stocks. The protests began in opposition to a bill allowing extraditions to mainland China but have quickly morphed into the biggest challenge to China’s authority over the city since it took Hong Kong back from Britain in 1997.Nikkei tumbles more than 200 points on Tuesday while Hang Seng Index falls more than 470 points.

Oil prices rises despite worries of Global economic slowdown and worries of trade war. International benchmark Brent crude futures were at $58.53 a barrel, up 0.02% from their previous settlement on Monday. U.S. West Texas Intermediate (WTI) futures were at $54.93 per barrel, up 0.8% from their last close. Today Brent quotes at $58.47/bbl while WTI Crude quotes at $54.87/bbl.

With weakness in Asian market, domestic market opened with pressure on a lower note. Nifty is trading flat around 20 points lower on a volatile note. Shares of Reliance Industries is up more than 9% to Rs 1,262.66, after the firm made a slew of disruptive announcements and a plan to achieve a net debt of zero within the next 18 months in their Annual General Meeting yesterday Reliance Industries Ltd is set to sell a 20% stake in its oil to chemicals business to Saudi Aramco in one of the largest foreign investments in the country. The Consumer Inflation data for the month of July will be released today. Sectoral indices shows that Auto, Financial Service, FMCG, IT falls more than a percent while Media sector climbs more than a percent.

Disclaimer: https://bmresearch.co.in/ represents Bitupan Majumdar which is an independent research analyst with SEBI RA registration code INH300006962. The report is distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 includes Financial Instruments and Currency Derivatives. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent

Leave A Reply

Your email address will not be published.