Market Recap for 4th September 2020

Market Recap for 4th September 2020
▼Nifty: 11,333 (-1.68%) ▼Sensex: 38,357 (-1.63%)
Indian markets stumbled today amid uncertainty in US equities, which saw a major ** sell-off** on Thursday led by a steep fall in tech stocks. All major Indian indices closed in the red. Banks led the fall, with the Nifty Bank index ending 2.2% lower. In all, 49 out of the Nifty 50 stocks declined, suggesting broad-based selling in the markets.
Banking stocks dip after FM and apex court offer breather on stressed loans
The Finance Minister and Supreme Court have ** asked lenders** (banks and NBFCs) to not impair creditworthiness of borrowers under stress, after the six-month moratorium ended on August 31. As the economy passes through a challenging phase and businesses are yet to fully get back on their feet, a one-time loan restructuring could be on the cards. Selling in bank stocks continued, with Axis Bank (-3.8%), SBI (-2.7%), Bank of Baroda (-2.6%) and ICICI Bank (-2%) being the major losers.
Pipe stocks gain on strong agri demand
With 3.4% growth in Q1, the agri sector emerged as the only bright spot, as the overall Q1 GDP contracted by 23.9%. ** Demand for PVC pipes** used for irrigation appears to be inching back towards pre-Covid levels and is expected to remain robust in the year ahead. The stocks of major pipes manufacturers performed strongly in August 2020, with Finolex Industries (+8.9%), Jain Irrigation (+11.9%), Prince Pipes (+69.4%), Astral Poly (+16.3%) and Supreme Industries (+3.7%) posting healthy gains.
Bullion shines as equities fall under shadow of uncertainty
The massive sell-off in the U.S. markets on Thursday has not only created some uncertainty for equities, but has also triggered ** safe-haven** demand for bullion. Comex gold prices, which dropped nearly 4% this week, nudged up 0.5% today. Similarly, silver prices rose 1% today. On the MCX, gold and silver traded higher by 0.3% and 0.6%, respectively.
Closing bell
In the last hour of the trade, metal stocks witnessed heavy selling with the Nifty Metal index falling 0.8%, and Tata Steel and Jindal Steel & Power both ending 1.4% lower. Next week, the domestic markets will take cues from the U.S. equities, after the big sell-off yesterday. The U.S. markets are expected to react to the non-farm payroll and unemployment data for August, which will be released today.