Key equity benchmarks ended near the flat line with some positive bias on Thursday. The indices witnessed bouts of volatility on account of weekly index options expiry on the NSE today. While PSU banks, metals and auto shares advanced, private banks and IT stocks declined.
As per provisional closing data, the barometer index, the S&P BSE Sensex, gained 14.61 points or 0.03% to 44,632.65. The Nifty 50 index rose 23.15 points or 0.18% at 13,136.90.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index rose 0.85%. The S&P BSE Small-Cap index gained 0.68%.
Buyers outpaced sellers. On the BSE, 1988 shares rose and 928 shares fell. A total of 170 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 6,45,08,746 with 14,92,998 deaths. India reported 4,22,943 active cases of COVID-19 infection and 1,38,648 deaths while 89,73,373 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
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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 52.58 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 15:15 IST. The issue was subscribed 7.06 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 Realty index rose 0.77% to 280.05. The index has added 10.91% in five sessions while the benchmark Nifty 50 index has gained 2.12% during the same period.
Oberoi Realty (up 6.47%), Brigade Enterprises (up 4.35%), Indiabulls Real Estate (up 3.51%), Omaxe (up 1.42%) and DLF (up 0.77%) advanced.
Stocks in Spotlight:
HDFC Bank fell 2.06% to Rs 1377.90. 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 5.36% to Rs 839.65 in trade today. SBI Cards is the second largest credit card issuer in India after HDFC Bank.
Bharat Forge added 4.49% to Rs 538.55 after preliminary North American Class 8 truck orders jumped to 52,600 units in November 2020. Orders were up 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.
Fermenta Biotech surged 7.06% to Rs 328.95. The company said that Fermenta Biotech USA, LLC, its wholly owned subsidiary, has acquired a 52% membership interest in AGD Nutrition, LLC. AGD Nutrition LLC is in the similar line of business as that of the company and Fermenta Biotech USA, LLC. The main purpose of acquisition is to facilitate exports and enhance company's footprint in North America. The aggregate consideration for the purchase of membership interest shall be $1,260,500.
Nava Bharat Ventures added 3.07% to Rs 57.10. The company has entered into a conversion agreement with Tata Steel Mining (TSML), wholly owned subsidiary of Tata Steel (TSL) for conversion of high carbon ferro chrome. The duration of the conversion agreement with TSML is from 1 December 2020 to 31 March 2025. The agreement postulates that the entire smelting capacity of the Odisha plant is dedicated to TSML to produce up to 70,000 metric tons of high carbon ferro chrome per annum. Thereby, the arrangement should provide long-term operational stability for the ferro alloy plant and associated captive power plant at Odisha, Nava Bharat said in a BSE filing.
Tata Chemicals jumped 6.42% to Rs 44.80. On Wednesday (2 December), promoter Tata Sons bought 18,07,245 shares (0.7% equity) of Tata Chemicals at Rs 420.92 per share via bulk deal on the NSE. It held 29.39% stake in the company at the end of September.
Alembic Pharmaceuticals rose 2.17% to Rs 1015 after the company said it received US drug regulator's final approval for abbreviated new drug application Metolazone tablets USP 2.5 mg, 5 mg, and 10 mg. The approved abbreviated new drug application (ANDA) is therapeutically equivalent to the reference listed drug product (RLD), Zaroxolyn tablets 2.5 mg, 5 mg, and 10 mg, of Lannett Company, Inc.
Larsen & Toubro (L&T) gained 0.97% to Rs 1124.65 after the company said its real estate business has launched North Towers at its residential project - Seawoods Residences in Navi Mumbai. As per the company's exchange filing, the project has drawn strong interest from homebuyers with over 300 expression of interest received within the first two weeks. 500 apartments of this project were sold out in a record time last year. L&T Seawoods Residences is part of India's first Transit-Oriented Development (TOD) - Seawoods Grand Central.
Global Markets:
The US Dow Futures were currently trading with a cut of 72 points, indicating a muted start to equities on Wall Street.
Most European indices edged lower while most Asian markets ended higher on Thursday.
On Wednesday, the U.K. became the first country to grant emergency approval to the COVID-19 vaccine from Pfizer and BioNTech. Regulators in the U.S. and Europe are expected to make determinations on that vaccine and a similar vaccine from Moderna soon. In Europe, the World Health Organization's regional office is said to hold an update on the pandemic and preparations for coronavirus vaccine.
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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