Weekly Commentary – 22nd November 2019

Nifty50 fell short of 12k and closed 0.2% over last Friday’s closing. Midcap gained 0.4% and Smallcap gained 1.0%. Amongst sectoral indices, Media (+9.2%) and Pharma (+4.5%)  gained handsomely. IT (-2.0%), FMCG (-1.5%) and Auto (-1.4%) ended lower. 

Market Updates:

• Good corporate governance gives better financial results – A survey by CII and Grant Thornton has found that 95% businesses believe that good corporate governance practices help organizations achieve better operational and financial results. The survey covered 107 companies across industries in October-November 2019.
• 2 year moratorium to Telecom for spectrum dues – COAI director general Rajan Mathews has stated that two-year moratorium, proposed tariff hikes in call and data charges and modifying adjusted gross revenue will provide a relief to debt-laden telecom sector. 
• Downturn in auto sector cyclical – Minister of Heavy Industries and Public Enterprises Prakash Javadekar has stated that the current downturn in auto sector is cyclical.  Auto sector is facing a prolonged downturn due to various reasons, including reduction in finance availability and increase in cost due to upfront collection of insurance premium.