Daily market commentary - October 18, 2019 - BONANZA PORTFOLIO LTD

By Mr Jaipal Shetty, Fundamental Analyst

The markets closed in the green today with NIFTY 50 up by 0.65% at 11,661.85 and SENSEX closing higher by 0.63% at 39,298.38. The Indian benchmarks have closed in the green in each and every trading session of this week. The rally was led by FIIs who were net buyers for the week till Thursday. The global sentiments were positive led by resumption of talks between US and China and agreement between the UK and European Union Commission on the Brexit Deal.

BHEL closed up by 22.2% today as news emerged that Government is looking to reduce its stake from 63.2% to 26% in the company. Based on the strategic stake sale news of BHEL, other PSUs such as Hindustan Copper, SAIL etc also rallied today in anticipation of Government reducing its stake in them as well.

Aviation stocks were under pressure today with Interglobe Aviation and Spicejet falling 0.7% & 2.3% to close in the red today as the aviation data for the month of September indicated continuing slowdown in passenger growth.

ZEE Entertainment Ltd closed lower by 5.6% today as it reported negative operating cashflow and write off of certain inter-corporate deposits in its 2QFY20 result.

Lupin closed higher by 1.7% today as its Nagpur plant received USFDA's establishment inspection report.

Source : Equity Bulls

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