Key benchmark indices trimmed gains in mid-morning trade, dragged by HDFC twins. At 11:26 IST, the barometer index, the S&P BSE Sensex, was up 89.10 points or 0.20% to 44,707.14. The Nifty 50 index added 31.35 points or 0.24% to 13,145.10.
In the broader markets outperformed the benchmarks. The S&P BSE Mid-Cap index and the S&P BSE Small-Cap index rose by 0.67% each.
The market breadth was strong. On the BSE, 1775 shares rose and 797 shares fell. A total of 161 shares were unchanged.
HDFC slipped 1.32% to Rs 2245.55 while HDFC Bank shed 0.59% to Rs 1398.70.
HDFC Bank reversed early gains and fell as much as 1.33% to hit the day's low at Rs 1388.20 after the Reserve Bank of India asked HDFC Bank to put a temporary halt to all digital banking launches and sourcing of new credit card customers. The order from the central bank comes in the wake of a series of technical glitches faced by the private lender faced over the last two years. The RBI has asked the bank's board to examine the lapses and fix accountability.
Consequently, SBI Cards and Payment Services jumped 4.77% to Rs 834.90 in trade today. SBI Cards is the second largest credit card issuer in India after HDFC Bank.
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Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 64,447,657 with 1,491,559 deaths. India reported 422,943 active cases of COVID-19 infection and 138,648 deaths while 8,973,373 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The seasonally adjusted India Services Business Activity Index fell to 53.7 in November from 54.1 in October. The Indian services economy remained on the right path to recovery during November, with a further upturn in new work supporting business activity growth and the first rise in employment for nine months.
Moreover, the overall level of positive sentiment climbed to the highest since February amid predictions that market conditions would normalize once a vaccine for the coronavirus disease 2019 (COVID-19) is rolled out. Meanwhile, rates of inflation for input costs and output charges accelerated, both of which outpacing their respective long-run averages.
The Composite PMI Output Index was down to 56.3 in November from 58 in October. Indian private sector activity rose for the third straight month in November, but the pace of growth softened from October's near nine-year high. Rates of increase eased at manufacturers and service providers.
Primary Market:
The initial public offer (IPO) of Burger King India received bids for 32.38 crore shares on Thursday, 3 December 2020, as against 7.44 crore shares on offer, as per the National Stock Exchange of India (NSE) website data at 11:15 IST. The issue was subscribed 4.35 times.
The issue opened for subscription on Wednesday (2 December) and it will close on Friday, 4 December 2020. The price band for the IPO is set at Rs 59-60 per share. An investor can bid for a minimum lot of 250 equity shares and and in multiples thereof.
The IPO consists of fresh issue of shares amounting to Rs 450 crore and an offer of sale of 6 crore shares by the promoter selling shareholder, QSR Asia. The net proceeds from the fresh issue are proposed to be utilised in funding roll out of new company-owned Burger King restaurants; and general corporate purposes.
Buzzing Index:
The Nifty Auto index rose 0.97% to 9,182.35. The index has gained 5.12% in five sessions while the benchmark Nifty 50 index has added 3.37% during the same period.
Maruti Suzuki (up 4.07%), Ashok Leyland (up 1.18%), TVS Motor Company (up 1.08%), Hero MotoCorp (up 0.62%), Eicher Motors (up 0.49%) and Tata Motors (up 0.35%) advanced.
Bajaj Auto (down 1.21%) and Mahindra & Mahindra (down 0.22%) declined.
Bharat Forge rose 1.31% to Rs 522.40 after preliminary North American Class 8 truck net orders jumped to 52,600 units in November 2020. Orders rose 31% sequentially and have surged by almost three times the level of November 2019. Class 8 truck orders for the past twelve months continue to increase and now stand at 250,000 units.
Bharat Forge earns notable revenues from Class 8 trucks in the US market.
Global markets:
Overseas, most Asian stocks advanced on Thursday as investors reacted to the release of a private survey on China's services sector activity in November.
China's Caixin/Markit services Purchasing Managers' Index for November released Thursday came in at 57.8, rising from October's reading of 56.8. PMI readings above the 50 mark expansion, while those below that level represent contraction.
Investors also monitored developments on US coronavirus stimulus negotiations, as lawmakers race to pass a pandemic relief package before the end of the year.
US stock benchmarks finished the session slightly higher on Wednesday. The Dow and S&P 500 gained 0.2%, while the Nasdaq Composite slipped 0.05%. The slight move higher for the S&P 500 resulted in a new record high.
Markets turned positive late in the session after Democratic congressional leaders threw their weight behind a coronavirus fiscal stimulus proposal that has bipartisan support in both chambers of Congress on Wednesday.
In economic reports, U.S. businesses created 307,000 private-sector jobs in November, ADP said Wednesday.
On Wednesday evening, the House of Representatives unanimously passed a bill that would require Chinese companies to adhere to U.S. auditing standards if they want their stocks to be to be listed on exchanges in the United States. The bill now goes to President Donald Trump, who is expected sign it into law.
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