Friday turned out to be a fabulous day for Indian equity benchmarks, as both Sensex and Nifty ended with strong gains. After a positive start of the day, key indices remained higher for the whole day, amid report that the government has extended the suspension of insolvency proceedings for any COVID-19 related default by a period of three months, effective from September 25. The Insolvency & Bankruptcy Code (IBC) was suspended for a period of six months with effect from March 25, 2020, by the government earlier, to protect those experiencing financial distress on account of the pandemic.
In the second half of the trading session, markets gained more traction to end near their intraday high points, after the Department of Expenditure, Ministry of Finance, has granted permission to raise additional financial resources of Rs. 9,913 crore to 5 States through Open Market Borrowings (OMBs). These States are Andhra Pradesh, Telangana, Goa, Karnataka and Tripura. This permission has been accorded after these States successfully met the reform condition of implementation of One Nation One Ration Card System. Traders took solace with International Monetary Fund’s (IMF) statement that Prime Minister Narendra Modi’s ‘Aatmanirbhar Bharat’ is an important initiative.
On the global front, European markets were trading mostly in red as the continent grapples with a fresh wave of COVID-19 cases. Asian markets ended mostly in green, after Taiwan's retail sales rose for a second straight month in August. The official data showed that retail sales grew 8.17 percent year-on-year following a revised 2.79 percent increase in July. Automobile
Market Turnover & FII Derivative Data sales jumped 33.5 percent. Sales at non-specialized stores rose 5.7 percent,led by a 15.6 percent gain at convenience stores.