In September 2020, the Domestic market was in a consolidation phase with the benchmark Sensex and Nifty Index ending the month lower by 1.45% and 1.23% respectively. Due to SEBI’s guideline on the implementation of new margin norms, the market saw a decline in overall volumes but at the same time renewed interest came in mid and small-cap indices. Rising Coronavirus infection cases, mixed economic indicators, weak global cues and escalation in the border tensions with China weighed on the indices. However, hopes over vaccine development, further ease in lockdown, recovery in Auto sales and surge in PMI activity partially supported investor’s sentiments.
On the sectoral front, the Nifty IT index has outperformed all other major indices with a strong gain of 11.3% followed by consumer durables at a 6.6% gain and Nifty Pharma at a 6.3% gain. The Nifty Bank index declined by 10% and has been a major underperformer among the leading indices. The reason for the correction in the Bank Nifty was likely rising stress in the banking system with an expectation of an increase in NPAs. Selling pressure was witnessed in some other major indices such as Nifty Financial Services, Nifty Metal, and Nifty Realty at 6.7%, 7.4%, and 4.9% decline followed by Nifty Media at 1.6% decline. Nifty Auto index gained marginally by 0.9%.
In this issue:
- Fundamental Stocks
- Market Outlook
- Auto Sector Sep Sales
- Mutual Fund
- Key Financial Events – October 2020
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