Daily Markets - Sep 30, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity benchmark indices ended almost unchanged on Sept 30 for the second consecutive session after a mildly volatile session. At close Nifty was up 25.10 points or 0.22% at 11247.50. Nifty closed the month 1.2% lower.

Volumes on the NSE were below recent averages with defensive sectors like Pharma, FMCG and IT doing well while cyclical sectors like Metals, Banks, Realty and Auto underperformed. BPCL lost over 9 percent and was the biggest Nifty50 loser on September 30 after the government extended the deadline for selling a stake in the company the fourth time.

India's current account balance recorded a surplus of $19.8 billion in the April-June 2020 quarter, compared to a surplus of $0.6 billion in the preceding quarter. As a percentage of the GDP, current account balance rose 3.9% in the April-June 2020 quarter, compared to 0.1% in the preceding quarter.

An early boost to Asia's emerging stock markets from Chinese economic data faded on Wednesday as a chaotic first U.S. presidential debate weakened sentiment globally and traders reined in bets ahead of several regional market holidays. China's imports and overseas consumption support activity across the globe, was recovering strongly from the coronavirus pandemic. Industrial production in Japan added a seasonally adjusted 1.7 percent on month in August (vs forecast 1.5% and 8.7% gain in July).

European stocks traded choppy and fell mildly on the last trading day of the month and quarter, with investors rattled by U.S. politics after a messy presidential debate, and rising coronavirus cases. The U.K. recorded the largest-ever rise in new cases on Tuesday, with a jump in deaths.

Traders in India are cutting back on their exposures due to lackluster markets. However no big negative on the horizon means that there may not be a rush to the exit door in the near term.

Source : Equity Bulls

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