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Market Update: Benchmark indices down, Power sector in Focus
Sensex and Nifty both closed almost 1% down today but still maintained crucial levels of 38000 and 11300, respectively. A mixed trend observed in sectoral indices where Nifty Metal, Realty, and Media were in the green, while other sectors ended in the red.
Energy sector PSUs were the top gainers, including NTPC, ONGC, PowerGrid, COAL INDIA, and BPCL. While Tata Motors, HDFC Ltd, Axis Bank, ICICI Bank, and Wipro were the top losers on NSE.
DII/FII Data:
For the first time in the last several weeks, FIIs took away their money from domestic markets. FIIs divested Rs.268.46 crores, while DIIs on the same trend divested Rs.672.23 crores, as per the data available on the NSE website.
| CATEGORY | DATE | BUY VALUE (₹ Crores) | SELL VALUE (₹ Crores) | NET VALUE (₹ Crores) |
| DII | 20-Aug-20 | 3,438.24 | 4,110.47 | -672.23 |
| FII/FPI | 20-Aug-20 | 4,680.39 | 4,948.85 | -268.46 |
Power sector gets some power:
Govt’s decision to relax borrowing limits (currently 25% of last year’s working capital) for state-owned power distribution companies came as a significant relief for DISCOM companies on a background of weak power demand and delayed bill payments. This decision will provide much-needed liquidity to the DISCOM companies. More funds will be available now to DISCOM companies from PFC and REC under the UDAY scheme.
While in the private sector, Tata Power’s announcement of an expansion of renewable energy business, the launch of Infrastructure Investment Trust, and plan to reduce debt by promotors’ fund infusion brought cheers among investors. The stock rose as much as 8.7% during intraday and closed at Rs.61.5 (8.37%).
Infosys also trying to expand its cloud business:
After BirlaSoft announced a strategic partnership with Microsoft in the cloud business, Infosys also launched a set of solutions called ‘Cobalt’ for large enterprises to accelerate their cloud migration and transform their operations digitally. The company is eyeing to gain from pandemic led to cloud migration of enterprises.
After 4 PSBs and BPCL, Govt’s next target for divestment is IRCTC:
DIPAM has invited bids from merchant bankers and brokers to divest part of the government’s shareholding of 87.4% in the IRCTC, which was listed on exchanges last year. The stock was down by almost 1% today.