Markets expected to be very volatile with the first half likely to see more downside and impact of COVID-19 would be known in next few months
Finishing the financial year 2019-20 on a higher note and mirroring the positive global cues headline indices ended nearly 4 per cent up on Tuesday. S&P BSE Sensex ended 1,028 points or 3.62 per cent up at 29,468.49, while the broader Nifty 50 index settled at 8,597 points. “Almost all sectoral indices were up and the volatility index was also down by 10%. Chinese economic data, Industrial production numbers improved & helped the global momentum, especially in Metals, Pharma and FMCG. FII selling also slowed down over the last 2 days, although that may not be sustainable. The performance of the global market will be the key driver for Indian market in the near-term,” Vinod Nair, Head of Research at Geojit Financial Services, said.
What edged Sensex, Nifty higher-
ITC top Sensex gainer- As many as 25 stocks out of 30 Sensex stocks finished their trade in green today. ITC was the top Sensex gainer, up 7.84 per cent, followed by RIL, ONGC and Tata Steel. Conversely, IndusInd Bank was the top laggard on the index, down 14.68 per cent. Maruti, Bajaj Finance, Titan and Kotak Mahindra Bank were other losers on Sensex.
Nifty FMCG top sectoral gainer- All the sectoral indices settled in a positive territory today. Nifty FMCG index gained 5.76 per cent driven by Britannia, ITC and Marico. Similarly, Nifty Metal index was up 5.19 per cent led by gains in SAIL, Hindalco and Hindustan Copper.
New financial year outlook for markets- “Markets expected to be very volatile with the first half likely to see more downside and impact of COVID-19 would be known in next few months. In the second half, we would see a good recovery but reaching all time high would be very difficult in FY21. By FY 22 we can possibly see all time high levels,” A K Prabhakar, Head of Research, IDBI Capital, said.
UN says except India, China, world economy to go into recession- The world economy will go into recession this year with a predicted loss of trillions of dollars of global income due to the coronavirus pandemic, spelling serious trouble for developing countries with the likely exception of India and China, according to a latest UN trade report. With two-thirds of the world’s population living in developing countries facing unprecedented economic damage from the COVID-19 crisis, the UN is calling for a USD 2.5 trillion rescue package for these nations, PTI reported.
Top 5 FY20 performers- The top 5 performers for FY 20 have been dominated by consumer or FMCG companies. “In FY 20 where Sensex and Nifty have ended almost 30% lower; HUL, Nestle, HDFC AMC, Pidilite and Abbott India were some of the few companies that have bucked the trend and ended up giving more than 30% returns. This is proof enough that even in a very volatile and a fast paced bear market like this, fundamentally strong stocks will never go out of fashion,” Abhijeet Ramachandran, Founder & Trainer at Tips2trade.