Market Outlook - Index to consolidate (11300-10800) amid stock specific action...

As per media sources, state run banks would invoke personal guarantees of 300 promoters for corporate loans following instructions of the finance ministry. On 26th August 2020, the Finance Ministry had asked the state-run banks to prepare a list of cases wherein personal guarantees of promoters can be invoked based on the revised IBC rules 2019. This would allow lenders to file bankruptcy against personal guarantors of corporate loans before the NCLT.

According to media sources, consumer electronics companies have witnessed a good start of festive sales with 'Onam' this year and they further expect a bounce in sales of premium appliances in the upcoming festive season.

As per media sources, loans totaling Rs. 70,590 crore have been sanctioned so far to power discoms out of the Rs. 90,000-crore liquidity package announced by the Centre. Of the sanctioned amount, Rs. 24,742 crore has been disbursed till September 16.

Indian steelmakers have turned net exporters to China with 69% of semi-finished steel and 28% of finished steel exported to China between April 2020 and August 2020.

According to the Microfinance Institutions Network (MFIN) loan disbursements by NBFC-MFIs in Q1FY21 declined 96% YoY to Rs. 570 crore with an average loan amount disbursal of Rs. 27996 (up 4% YoY). As on June 2020, MFI industry's total loan portfolio was at Rs. 227727 crore.

India's domestic crude oil output fell 6.3% YoY to 2.6 MMT in August mainly due to a reduction in production from Oil India and privately operated fields while ONGC's oil production was marginally lower. Natural gas output fell 9.5% YoY to 2.4 BCM with a decline in production from PSU and privately operated fields. However, LNG imports increased 5.4% YoY to ~3 BCM in August.

Banks have sanctioned MSME loans worth Rs. 1.77 lakh crore under the ECLGS scheme as on September 21, 2020. Disbursements during the same period were at Rs. 1.25 lakh crore. Loans sanctioned by PSBs & private banks were at Rs. 79348 crore and Rs. 88155 crore, respectively.

Brent Crude prices ended lower at US$ 41.9/barrel as compared to previous week's closing price of US $ 43.12/barrel. Gold prices ended lower at $ 1875/ounce as compared to previous week's closing price of $ 1962/ounce. Bond yields ended flattish at 6.01% as compared to previous week's closing price.

International Markets:

US Markets: The US markets ended flat to negative on fresh lockdown fears and also expected delay in the stimulus package. The number of US citizens filing new claims for unemployment benefits continued to remain near the record highs. Initial claims for state unemployment benefits came at a seasonally adjusted 0.9 million for the week ended Sep 12, 2020 vs a similar number of cases in the prior week. US Markit Manufacturing PMI has inched up higher at to 53.5 in September vs 53.2 expected and 53.1 in August, however, the services PMI closed lower at 54.6 vs 54.7 expected and 55 in August.

European Markets: The European markets ended lower as economic worries and rising COVID-19 cases continue to weigh on investor sentiments. The Eurozone manufacturing PMI rose to 53.7 vs 51.7 in August (expected 51.9), while its services PMI fell to 47.6 from 51.9 in August (expected 50.5), thereby leading the composite PMI to improve just slightly at 50.1.

Source : Equity Bulls

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