INSUBCONTINENT EXCLUSIVE:
Mumbai: Investors and stock brokers looked forward to the new lunar year, or Samvat 2076, with a dash of optimism on Sunday, muhurat trading
The Sensex opened up 339 points, or 0.8%, then pared some of its gains to close at 39,250, up 192 points, or 0.5%, in the special hourlong
The Nifty gained 44 points, or 0.4%, to close at 11,628.
While a revival in corporate earnings is expected to take some time, monetary
easing, along with the spurt in policy interventions over the past few months, will hold the key to sentiment in the new year, said market
After the big bang corporate tax cut, I am hopeful that there will be individual income tax rate cuts and see many more reforms on the
Phiroze Jeejeebhoy Towers.
Tata Motors Biggest GainerTata Motors, which announced on Friday that its promoter Tata Sons will infuse Rs 6,500
crore into the company as part of a Rs 10,000-crore fundraising by the automaker, was the biggest gainer among BSE A group stocks with a 17%
The gain was the most in a decade for the company during the special Diwali trading session.
Given the tough economic environment, markets
could remain under pressure in Samvat 2076
However, structural changes such as corporate tax cuts, interest rate cuts and other measures to boost investor confidence will revive
the BSE ended in the green during the muhurat session
The auto and industrial indexes gained 1.5% and 1.6%, respectively, while the IT, metal, capital goods and basic materials indexes were up
over 0.50%.
Samvat 2075 was an eventful year marked by a local and global economic slowdown, along with stress in the financial sector
The Nifty ended Samvat 2075 with gains of 9.5%, helped by the corporate tax cuts, which led to a rally of 9% in two trading sessions
But the broader market underperformed, with the BSE Midcap and BSE Smallcap indexes down by 3.4% and 9.8%, respectively, over the same
period.
Since the Infrastructure Leasing - Financial Services (IL-FS) default in September 2018, non-banking finance companies (NBFCs) have
been squeezed by a liquidity crunch
Many leveraged companies have become an area of concern for the banking sector
Overall economic parameters have slumped with GDP estimates being revised downward
In this context, earnings again saw continuous downgrades and hopes of recovery got pushed back further, as has been the case for almost a
decade now.
The market will focus on the next set of earnings announcements this week after the Diwali break on Monday, when the stock
market will be closed.
A consumption uptick and external factors could augur well for the future