Indices snap 8-day rally; Sensex slips 236 pts post FM's stimulus measures

All that happened in the markets today

After rallying for eight sessions in a row, the domestic equity market took a breather on Thursday as it ended around 0.5 per cent lower even as Finance Minister Nirmala Sitharaman announced 12 measures under 'AtmanirbharBharat 3.0' to revive the economy. READ MORE

Among headline indices, the S&P BSE Sensex settled 236 points, or 0.54 per cent lower at 43,357 levels while NSE's Nifty ended at 12,691, down 58 points, or 0.46 per cent. India VIX dropped nearly 6.5 per cent to 20.6 levels. 

The broader market, however, fared better than the headline indices. The S&P BSE MidCap index ended 0.5 per cent higher at 15,741 levels while the S&P BSE SmallCap index rallied over 1 per cent to 15,466 points.

Sectorally, Nifty PSU Bank index slipped the most - down over 2 per cent to 1,400 levels while Nifty Bank fell 2 per cent to 28,279 points. 

Global markets 

Global shares were on course on Thursday to end their longest winning streak in over a year, one that has lifted them more than 10%, as the post-U.S. election and coronavirus vaccine bull run paused. 
 

For the first time in November, MSCI’s 49-country world index was in the red. Asia had finished flat.

In commodities, gold prices edged up, after dropping over 1 per cent in the previous session, as concerns over the economic fallout from surging Covid-19 cases outweighed positive development around a vaccine.

Oil prices fell, snapping three consecutive daily gains, as traders tempered expectations of an early release of a Covid-19 vaccine and the IEA raised doubts about a quick demand rebound amid surging infections in Europe and the United States.

(With inputs from Reuters)

4:11 PM

MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial services

"Market was hesitant to raise its optimism further as profit booking was triggered across the banking sector post the announcement of the stimulus. The market was waiting for the package, Atmanirbhar Bharat 3.0 was announced today which was good enough and nicely factored in the rising market. FM’s new measures will have a positive impact on developers and home buyers due to tax reliefs and will ensure demand for housing which is on a strong recovery stage. Subsidy announcement of Rs 65,000 crore for fertilisers is likely to help rural and agricultural sectors. Expansion of Production Linked Incentive (PLI) scheme to additional 10 sectors will boost domestic manufacturing, in the long-term."

3:43 PM

SECTOR WATCH | Nifty Bank slips 2%

3:42 PM

MARKET AT CLOSE | Losers and gainers on the BSE Sensex

3:36 PM

CLOSING BELL

The S&P BSE Sensex slipped 236 points, or 0.54 per cent to 43,357 levels while NSE's Nifty ended at 12,691, down 58 points, or 0.46 per cent. 

3:23 PM

MARKET CHECK

3:14 PM

BROKERAGE VIEW | Prabhudas Lilladher on LIC Housing Finance

RATING: HOLD | TARGET PRICE: Rs 316 

While NIMs stood steady this quarter, the same do not stand sustainable for FY21 as balance transfer cases to rise in light of high competitive intensities. We believe FY23 should witness revival (loan growth 15%+, NIMs 2%+ and NPAs 2.5%; current estimate 3.5%). As macro tailwinds signal beginning of bottoming out of painful home finance cycle, we upgrade LICHF to HOLD and tweak valuation multiple to 0.9x PABV Sep’22 estimates arriving at price target of Rs 316 (earlier Rs 282).

2:59 PM

Realty shares rebound after FM announces measures to boost sector

The government announced relaxations in income tax rules to allow sale of primary residential units of up to Rs 2 crore value below the circle rate. Till now, only 10 per cent difference between the circle rate and the agreement value was allowed. To boost residential real estate sector, the Finance Minister said the differential has now been increased to 20 per cent for period up to June 30, 2021 for only primary sale of residential units of value up to Rs 2 crore. READ MORE  

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2:50 PM

Sensex Heatmap at this hour

2:50 PM

Top losers on the BSE at this hour

2:38 PM

NEWS ALERT :: 15% of the GDP given as stimulus to date, says FM Sitharaman

>> 9% by the govt, remaining by RBI.

>> Stimulus announced so far is worth Rs 29.9 trillion

2:37 PM

NEWS ALERT :: Measures announced today are worth Rs 2.65 trillion, says FM Nirmala Sitharaman

2:35 PM

Markets slip again

2:33 PM

NEWS ALERT :: Govt to set aside Rs 900 cr for Covid-19 vaccine R&D

>> This will be given to the Biotech Dept 

2:32 PM

NEWS ALERT :: Govt outlays Rs 10,200 crore for capital and infra spends as additional budget spends, says FM

2:28 PM

NEWS ALERT :: Rs 3,000 crore to be given to EXIM bank to promote exports through lines of credit under IDEAS scheme, says FM