Monday Share Market Update: New Highs, New Hopes

Share Market Update at a Glance:

It was a buying festival today in Indian Share Markets, as Investors bought whatever they could grab, over the positive sentiment of Joe Biden winning US Presidency Election. Benchmark indexes closed at new lifetime highs, with Nifty settling at 12461.05 and Sensex closing at 42597.43. Comment from Principal Economic Advisor Sanjeev Sanyal saying that more support to economy could be provided by relaxing Monetary as well as Fiscal policies, also boosted the positive sentiment of the market even further.

Banks and Financial Service sector stocks steal the show by gaining the most. Almost all sectoral indices were in green. Index heavyweight Reliance Industries also grew by 1.08% to close at Rs.2051. Broader markets of mid & small cap stocks underperformed than bluechip stocks, but they too performed well. India VIX plunged by 1.58% and settled around 20 level.

Top Gainers/Losers in Today’s Share Market:

Divis Labs, Bharti Airtel, IndusInd Bank, ICICI Bank and Axis Bank were among the top lifters in today’s session. On the other hand, CIPLA, Adani Ports, Maruti, ITC and Dr. Reddys Labs were among the top draggers today.

Share Market Update: DII/FII Data:

DIIs stick to their strategy of profit-booking and took home Rs.3036.31 crore. While, FIIs are still bullish on Indian share markets and invested Rs.4548.39 crore.

Equity Mutual Funds still bleed, Multicaps got hit the most:

As per the data released by Association of Mutual Funds in India (AMFI), in the month of October 2020, investors withdrew a net sum of Rs.2724.95 crore from equity mutual funds, which is significantly higher than September’s Rs.734.4 crore outflow. Among equity MF categories, Multi-cap MF witnessed the most outflow of around Rs.1902 crore.

On the other hand, Debt Mutual Funds had a massive inflow amounting around Rs.1.1 lakh crores. Long duration funds and credit risk funds were the only two categories that saw outflows among debt categories of Mutual Fund.

Passenger Vehicle sales dip by 8.8% In October due to Supply Shortfall:

Automobile dealers’ body, Federation of Automobile Dealers Associations (FADA) on Monday said passenger vehicle (PV) retail sales in October witnessed a YoY decline of 8.8% to 2,49,860 units, as registrations slowed down owing to supply shortfall. PV sale stood at 2,73,980 in October 2019.

Two-wheeler sales declined 26.82% to 10,41,682 units last month, as compared to 14,23,394 units in October 2019. Commercial vehicle sales also slipped 30.32% to 44,480 units, as against 63,837 units a year ago. Only Tractor sales grew significantly by 55% in October to 55,146. Total sales across categories declined 23.99% to 14,13,549 units, last month compared to 18,59,709 units in the year-ago period.

“With supply-side mismatch, most of the passenger vehicle dealers ended up with limited stock of high selling items and odd variants, which did not attract much demand. This coupled with lower discounts, compared to last festivals also played a spoilsport”, said FADA President Vinkesh Gulati. He also urged government to urgently announce an attractive incentive based Scrappage Policy.

Share Market Update: Quick Bytes:  

• Gland Pharma IPO gets a slow start, issue gets just 4% subscription on 1^st day.

Read our article on Gland Pharma IPO, should you subscribe.

• Telecom infrastructure PSU RailTel got SEBI’s nod to raise Rs.700 crore through IPO.
• SEBI introduces new category called as Flexi-cap Mutual fund to mitigate the allocation issues created after change in rules for Multi-cap category of MFs.
• L&T Finance board approves proposal to raise Rs.3000 crore by the way of Rights issue to eligible equity shareholders of the company.
• Dollar Industries Q2 net profit stood at Rs.22.36 crore compared to last year’s 13.65 crore. Share price grew by 11.11% to settle at Rs.155.55.
• Q2 Results Today: IndiaMART InterMESH, Oil India, ADF Foods, Bayer Cropscience, Delta Corp, Dredging Corporation of India, Equitas Small Finance Bank, Honeywell Automation, JK Cement, NOCIL, Parag Milk Foods, PC Jeweller, PSP Projects, PTC India, Shankara Building Products, Sun Pharma Advanced Research Company, SREI Infrastructure Finance, Triveni Engineering, Venky’s India, VIP Industries and Zuari Agro Chemicals
• Q2 Results Tomorrow: Hindalco, Gail (India), Info Edge India, Tata Power, Aarti Industries, Bata India, Exide Industries, Future Consumer, Gillette, Hindustan Copper and Ruchi Soya among names that will come out with their numbers.

Disclaimer: This information is only for educational purposes. Please consult your own financial advisor before investing.

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