The bottom-out effect along with the government's growth-inducing measures were the prime reasons for the Indian equity markets stellar rise on Monday

Experts have said that key indices had bottomed-out last week as investors waited for the government's measures to shore up growth. The steps were announced after market hours on Friday. 

In stock parlance, the bottom-out effect appears when any scrip or index touches the lowest possible point with respect to various market conditions and time periods. 

"Equity markets had bottomed-out on a near-term basis last Friday. Today's rise has come as a result of that trend," HDFC Securities' Retail Research Head Deepak Jasani told IANS. 

"If further steps are taken to usher in growth then the bottom-out effect will last from immediate to medium term period."

Last Friday, Finance Minister Nirmala Sitharaman gave a major economic boost to diverse sectors such as NBFCs, auto, housing, MSMEs, equity markets and banking via a slew of measures on tax surcharge, GST refunds, easier loans and demand generation.

"Multi RSI (relative strength index) divergence, record FPI futures short position and the subsequent reversal candle indicates that a swing low and bottom is in place," Edelweiss Professional Investor Research Chief Market Strategist Sahil Kapoor told IANS.

"The market rose on positive breadth with the corresponding decline in yields and stoppage of rupee depreciation. This indicates that a break above 200DMA (day moving average) for Nifty is likely to take it from 11,400 to 11,600 range."

On Monday, Indian markets advanced sharply on the back of Finance Minister Sitharaman's measures to combat slowdown and improve foreign investor confidence.

Both the Sensex and Nifty surged over 2 per cent as investors rejoiced over what many analysts are dubbing as Sitharaman's "mini-budget". The single biggest push came via the roll-back of the much-criticized tax surcharge on Foreign Portfolio Investors (FPIs).

The BSE Sensex jumped 792.96 points, or 2.16 per cent, to close on Monday at 37,494.12, while the Nifty gained 228.50 points, or 2.11 per cent, to 11,057.85.

The financial sector and public sectors banks (PSBs) led the charge on Monday. The Nifty Financial Service index closed 4 per cent higher, followed by the Nifty PSB index that was up 3.58 per cent. The Nifty Realty index surged by 3.74 per cent.

"The initial set of actions, though small, has enhanced market sentiment and confidence," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.

The market will trade in a positive bias awaiting further developments regarding additional government measures and US-China trade talks, he added.

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This is in continuation to the order received for stage III and IV (2x500 MW and 2x500 MW) in September last year

The share price of Larsen & Toubro added nearly 2 percent intraday on August 23 after the company won an order from NTPC.

The power business of Larsen and Toubro (L&T) has bagged engineering, procurement and construction (EPC) order from NTPC to set up flue gas desulphurisation (FGD) system at Vindhyachal super thermal power station, Stage-I to II (6x210 MW Ft 2x500 MW), in Madhya Pradesh, as per company release.

This is in continuation to the order received for stage III and IV (2x500 MW and 2x500 MW) in September last year.

With this, L&T will be implementing FGD systems for 12 units constituting 4,260 MW at NTPC's Vindhyachal power plant which will have the maximum number of FGD systems at one location in India.

Installation of FGD systems in existing and upcoming thermal power plants has been made mandatory by the Ministry of Environment, Forest and Climate Change (MoEFCC) Government of India, to curtail SO2 emissions.

Larsen & Toubro was quoting at Rs 1,287.30, up Rs 0.30, or 0.02 percent on the BSE

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Auto stocks were trading mixed in morning trade on August 26, after the Finance Minister Nirmala Sitharaman on August 23 announced a slew of measures to improve investor sentiment and help auto, NBFC and PSB sectors

Around 0930 hours, the BSE Auto index was 0.28 percent up at 15,772 with shares of Ashok Leyland (up 5.73 percent), Mahindra & Mahindra (up 2.64 percent), Bosch (up 1.35 percent), Exide Industries (up 1.24 percent) and Eicher Motors (up 0.87 percent) among the top gainers.

However, Motherson Sumi Systems (down 1.38 percent), Hero MotoCorp (down 1.22 percent), Maruti Suzuki (down 0.60 percent), Bajaj Auto (down 0.57 percent) and TVS Motor (down 0.19 percent) were in the red in the index.

Giving respite to the auto sector, the Finance Minister on August 23 deferred the revision of one-time registration fees till June 2020, which, analysts say, may have a significant impact on short-term demand.

Besides, the rate of depreciation for all vehicles was raised by up to 30 percent for vehicles purchased up to March 2020, which is also expected to give a boost to the CV and PV players.

Global brokerage Macquarie believes the steps will have a small positive impact on the near-term demand and the steps to improve liquidity and lower auto loan rates will benefit all segments.

"Higher depreciation rate and replacement of old vehicles by the government departments will benefit CV and PV," said the brokerage.

However, the two-wheelers will be disappointed by the steps, the brokerage added.

The market benchmarks Sensex and Nifty were in the green however both the key indices pared gains due to weak global sentiment.

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Telecom major Vodafone Idea on Thursday announced the launch of "TurboNet" 4G services in select cities of Uttar Pradesh West, Rajasthan and Rest of Bengal (excluding Kolkata) circles where it has successfully integrated the network

The company, in a statement, said that TurboNet would feature a "state of the art 4G LTE network with dual spectrum power offering higher capacity and coverage".

The launch of TurboNet 4G follows the consolidation of its radio network integration and the deployment of new-age technologies such as Dynamic Spectrum Re-farming (DSR), Spectrum Re-farming, M-MIMO, L900, TDD and Small Cells to further boost network capacity and coverage across large parts of the country, it said.

The company further said it would roll out TurboNet 4G across the country in a phased manner over the next few months.

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Budget carrier IndiGo will restart flight services between Delhi and Singapore from September

Effective from September 12 and September 16, IndiGo will operate its non-stop flights on Delhi-Singapore and second frequency on Delhi-Doha route, respectively. 

"We are committed to strengthening our international operations from Delhi to important destinations in Asia," said IndiGo's Chief Commercial Officer William Boulter. 

"As part of this expansion, we are introducing new flight services between Delhi-Singapore and second frequency on Delhi-Doha route. Singapore today is not only a tourist hub but also a shopper's paradise and there is a huge demand on the route."

At present, IndiGo has a fleet of over 200 aircraft and offers over 1,400 daily flights and connects 57 domestic destinations and 19 international destinations.

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