The markets rallied post on news of Finance Ministry announcing measures to boost the economy on Friday
The markets closed in the green after three straight sessions of losses. Nifty settled above 10,800 level; 200 points off day’s low. Nifty Bank index closed marginally below 27,000 level; 400 points off day’s low. Sensex closed at 36,701 points and Nifty at 10,829 points on Friday.
For the week Nifty slipped 2 per cent, Sensex fell 1.8 per cent and Bank Nifty closed down 4.5 per cent.
Among Nifty gainers were Maruti with 4.6 per cent rise, TCS 3.8 per cent, Tech Mahindra 3.6 per cent, Infosys 3.6 per cent, Sun Pharma 3.6 per cent and HCL 3 per cent. Yes Bank -25 per cent, Indiabulls Housing Finance -15 per cent, IndusInd Bank -9 per cent, Tata Motors -8.6 per cent and Ultratech -8.1 per cent were among Nifty losers.
The markets rallied ahead of the the Finance Ministry announcing measures to boost the economy on Friday evening post-market hours. Finance Minister Nirmala Sitharaman announced a slew of measures to boost investors confidence - rollback of surcharge on FPIs, upfront payment of Rs 70,000 crore for a recap of PSU banks, and the biggest move for the corporates - making any violation of CSR norms a civil liability and not a criminal offense.
The market is expected to open gap up on Monday and a broad base rally is seen, according to Saurabh Mukherjea of Marcellus Investment Managers.
Here is a look at some of the events which will guide the markets this week:
Hope Of More Reforms
FM Sitharaman addressing the media said that the measures to boost economy announced on Friday was the first part and more measures will be announced next week. Shares of real estate companies will be in focus was the finance minister is expected to announce some measures for the ailing real estate sector.
Rally in PSU Banks, Auto Stocks
A rally in public sector banks and the auto sector is expected as the finance minister announced the upfront payment of Rs 70,000 crore for PSU banks. Sitharaman announced the purchase of BS-4 vehicles will be allowed till March 2020, and also deferred the hike in vehicle registration fee till June 2020.
RBI Board Meet
Sources have told BTVI that the RBI board may take up Jalan panel report at its meeting on Monday. The panel has recommended transfer of reserves in tranches and an incremental transfer of Rs 30,000 crore as a one-time possible scenario.
The trade war between the US and China escalated on Friday with US President Donald Trump announcing a new set of tariffs on China. The US said existing 25 per cent tariffs on some $250 billion in imports from China would rise to 30 per cent with effect from October 1. The Chinese government vowed to fight back against trade tariffs. The global market will react negatively to the development.
India's growth data for the April-June quarter will be released on August 30. Rating agency ICRA estimates Q1 GDP growth at 6 per cent and gross value added (GVA) at 5.7 per cent. The Power Secretary and Former DEA Secretary SC Garg said that first-quarter GDP is likely to be between 5.5 and 6 per cent. This is on account of subdued government expenditure on account of elections and some reduction in demand.