Weekly Commentary – 20-Dec-19

Nifty50 consolidated its position to close 1.5% over last Friday’s closing. However, Midcap lost 0.2% and smallcap gained 0.7%. Amongst sectoral indices, IT +4.2%, Realty 1.5% made gains. FMCG -0.2% slipped marginally . 

Market Updates:

• IT sector to be positive hirer in FY19-20: NASSCOM President – IT industry body NASSCOM, President, Debjani Ghosh has said that the IT services and IT industry will be a positive hirer in the current financial year. Top IT companies have continued hiring momentum and top 15 companies have employed 1,00,000 people, in net job creation.
• Indian Pharma to grow at 10-12% during FY19-22: ICRA – According to ICRA, Indian pharmaceutical industry will grow ~10-12% in FY2019-22. The agency cited abating headwinds from pricing pressure in the US, increasing healthcare spending and better accessibility as key growth drivers for Indian pharma companies.
• Impact of corporate tax rate cut to be visible in next two years: CII President –  CII President Vikram Kirloskar has said that impact of corporate tax rate cut will be visible in the next two years. He also emphasized that the government listened to the industry by lowering rates.