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Markets during the week:
Nifty closed slightly higher at 11464.45, while Sensex closed at 38854.55 on Friday (11th Sept). Please find below the weekly summary of Nifty50. During the week, markets managed to gain 0.92% primarily due to jump in RIL stock. PFB Nifty performance during the week:
| Date | Open | High | Low | Close |
| 07-Sep-20 | 11359.6 | 11381.15 | 11251.7 | 11355.05 |
| 08-Sep-20 | 11378.55 | 11437.25 | 11290.45 | 11317.35 |
| 09-Sep-20 | 11218.6 | 11298.15 | 11185.15 | 11278 |
| 10-Sep-20 | 11363.3 | 11464.05 | 11327.4 | 11449.25 |
| 11-Sep-20 | 11447.8 | 11493.5 | 11419.9 | 11464.45 |
FII/DII Data for the Week:
Both FII and DII divested a net amount of Rs.8.36 crore and 1501.11 crores during the week.
| Date | FII BUY VALUE(₹ Crores) | FII SELL VALUE(₹ Crores) | FII NET VALUE(₹ Crores) | DII BUY VALUE(₹ Crores) | DII SELL VALUE(₹ Crores) | DII NET VALUE(₹ Crores) |
| 07-Sep-20 | 3,496.26 | 3,503.19 | -6.93 | 2,987.83 | 3,803.65 | -815.82 |
| 08-Sep-2007-Sep-20 | 3,659.41 | 4,715.93 | -1,056.52 | 4,162.36 | 3,542.07 | 620.29 |
| 09-Sep-20 | 5,079.82 | 6,038.91 | -959.09 | 3,974.56 | 4,238.53 | -263.97 |
| 10-Sep-20 | 5,897.92 | 5,059.55 | 838.37 | 3,224.77 | 3,542.07 | -317.3 |
| 11-Sep-20 | 5,468.87 | 4,293.06 | 1,175.81 | 3,004.57 | 3,728.88 | -724.31 |
| Total | 23,602.28 | 23,610.64 | -8.36 | 17,354.09 | 18,855.20 | -1,501.11 |
Buzz in IPO Market:
This week two IPOs viz. Happiest Minds Tech ltd and Route Mobile ltd made waves in the market. Both of them got an overwhelming response with former getting subscribed by almost 151 times and later getting subscribed by 73 times. Their expected allotment date is on 14th and 16th of September respectively.
Reliance: The top market mover
RIL shares jumped by almost 10% during the week and closed at Rs.2315 on Friday, becoming the 1st Indian firm to cross 200 Billion Dollar market cap. The sudden surge in the stock is due to purchase of 1.75% stake in Reliance retail at Rs.7500 crore by US private equity firm Silver Lake. There were speculation of stake purchase by Amazon in Reliance Retail, but both companies declined such possibility. Brokerage firms are saying that the Silver Lake deal is just a start and Reliance Retail may get further investments from global firms as like of Jio.
The weightage of RIL stock in Sensex increased to 17.4%, while in Nifty it is more than 15% now.
YES Bank repays Rs.50000 crore to RBI:
Private sector Yes Bank said on September 10 that it repaid the Rs.50000 crore to RBI, which it availed as part of Special Liquidity Facility (SLF) from RBI. Yes, Bank further stated that it has no plans of the merger with SBI. The Bank is targeting to double its deposit base by the end of next FY and also planning to increase the loan book by 10% during the current FY. The shares of YES bank closed 5% higher on Friday.
Woes increase for Fin Sector as SC is looking at compound interest waiver:
During the lockdown started in March, RBI asked banks to give loan moratorium facility under which borrowers can defer their EMI payments for six months. But the interest on principal as well as interest-on-interest will continue during the moratorium period. Many borrowers have objected the interest-on-interest pact and filed a petition in Supreme Court.
If SC upholds the side of borrowers, then it will be a big blow for the Financial sector, including banks, NBFCs. Analysts predict that sector could lose anywhere between Rs.4000 to 8000 crore if SC waives off interest-on-interest or compound interest. The government had constituted a 3-member panel to assess this issue and gave a time frame of 1 week to submit the report.
SC also ordered that accounts which not categorised as NPA as on 31st August, should not be declared as NPA till its further orders.