Global cues were weak on Friday. Asian peers were trading with losses, mirroring the moves made by their North American counterparts.Share Market News Today | Sensex, Nifty, Share Prices LIVE: Sensex and Nifty snapped their eight-day long winning streak to end in the red on Thursday. S&P BSE Sensex closed lower at 43,357 points while the 50-stock NSE Nifty was just below the 12,700 mark. Despite the weakness in benchmarks, the midcap and smallcap indices managed to outperform and close with gains. However, technical analysts still believe that the trend is positive for domestic markets and the correction seen yesterday does not change that. Global cues were weak on Friday. Asian peers were trading with losses, mirroring the moves made by their North American counterparts. SGX Nifty was down over 100 points.
The central government has unveiled another set of stimulus measures just ahead of Diwali. Finance Minister Nirmala Sitharaman on Thursday announced a set of measures that aim at aiding job creation, helping stressed sectors and bringing much needed relief to the covid-hit Indian economy. The Finance Minister highlighted that so far all the measures announced by the government and the Reserve Bank of India amount to Rs 29.8 lakh crore which amounts to 15% of the GDP.
Highlights
India’s consumption story is set for a comeback, and HSBC India will support companies allied to it, Rajat Verma, head – commercial banking, told Shritama Bose in an interview. The RBI’s current account circular is a good step directionally and banks are looking forward to the FAQs on it, he said.
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“Earlier this year in the Budget, the Government had provided tax relief to home buyers if the agreement value was up to 10% lower than the circle rate. With the softening of prices across markets, this price difference was in excess of 10% in some cases which kept some of the home buyers at bay. The Government has increased this limit from 10% to 20% for property value within Rs. 2 crore. While this will certainly help the real estate sector liquidate inventory as it brings more home buyers to the fore, the impact will be limited as unsold inventory is highest in Mumbai and NCR markets where properties values are higher than Rs. 2 cr," said Sharad Mittal, CEO & Head, Motilal Oswal Real Estate.
With the boost given to the real estate ssector with top sops, the move could help the spirits of infrastructure related stocks. Some marqee names include, Oberoi Realty, Indiabulls Real Estate, Phoenix Mills, DLF, and Godrej Properties.
Over 500 listed companies including ONGC, Tata Steel, Equitas Holdings, Eveready Industries, Future Retail, General Insurance Corporation of India, Hindustan Aeronautics, MMTC, Sadbhav Engineering and Sunteck Realty are scheduled to announce their July-September quarter earnings today.
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"The additional allocations under the PM Awas Yojna combined with tax sops for purchase of primary residential units upto Rs 2 crore, significantly reduces the cost of acquiring a new home and provides relief to the real estate sector, which was burdened with high inventory," said Jaspal Bindra, Executive Chairman, Centrum Group.
After the Finance Minister's announcements yesterday, stocks such as HDFC, LIC Housing Finance, PNB Housing Finance, CAN Finance, and others saw a sharp uptick. Such names could be in focus today.
"At present level, the Nifty has good support at 12500-12450 levels, while on the upside resistance comes around 12770/12900 levels," said Sumeet Bagadia, Executive Director, Choice Broking.
'A small negative candle was formed with minor upper and lower shadow. Technically, this pattern indicate a formation of high wave type pattern at the lows. This pattern doesn't have any significant predictive value,' said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that the formation of minor weakness with range bound action, post sharp trended upmove of the last 7 sessions could be positive for the bulls to make a comeback.
The stimulus 3.0 unveiled on Thursday notionally involves a maximum budgetary cost of Rs 1.5 lakh crore or thereabouts in FY21, but the actual outgo is seen to be much less. Together with the Rs 2.4-2.5 lakh crore outer limit for the combined size of the first two stimulus tranches, the government endeavours to spend less than Rs 4 lakh crore or just about 2% of the gross domestic product (GDP) on the special schemes to resuscitate the pandemic-ravaged economy.
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The government on Thursday launched a new version of its Rs 3-lakh-crore guaranteed loan programme, originally meant for MSMEs, to benefit even larger firms in 27 stressed sectors ravaged by the Covid-19 pandemic, as it announced a raft of measures under the Aatmanirbhar package 3.0 to bring the economy back on its feet fast.
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