Don’t miss the latest developments in business and finance.

Stocks may correct on profit selling

Image
Capital Market
Last Updated : Dec 02 2020 | 9:04 AM IST

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could decline 28 points at the opening bell.

Global markets:

Overseas, Asian stocks were mixed on Wednesday as some investors booked profits after a stellar run, but hope for additional US economic stimulus and a coronavirus vaccine kept market sentiment well supported.

In the United States, the main stock indices jumped on Tuesday, adding to their sharp gains from the previous month. The Dow climbed 185 points, helped by a 3% jump in Apple's stock. The 30-stock average hit an intraday record in Tuesday's session. The S&P 500 climbed 1.13% to close at a record high. The Nasdaq Composite also notched a new record, closing up 1.28%, as the mega-cap tech stocks all closed in the green.

Sentiment got a boost after a group of lawmakers unveiled a $908 billion stimulus plan, however, Senate Majority Leader Mitch McConnell rejected the proposal later in the day. Still, investors are hopeful for a second stimulus package.

More From This Section

Meanwhile, Pfizer and BioNTech have reportedly applied to the European Medicines Agency for conditional marketing authorization of their coronavirus vaccine. If authorization is granted, it could enable use of the vaccine in Europe this month.

Despite the positive vaccine data, Federal Reserve Chairman Jerome Powell called the economic outlook extraordinarily uncertain on Tuesday when he and Treasury Secretary Steven Mnuchin spoke before Congress this week as part of mandated updates on CARES Act funding. Mnuchin did call on Congress for $300 billion in aid for restaurants heading into the winter months.

In US economic data, the IHS Markit final manufacturing purchasing managers index reading for November was unchanged at 56.7 from its initial reading. The Institute for Supply Management's November manufacturing index slipped to 57.5% from an October reading of 59.3%.

Crude oil prices were lower in the morning of Asia trading hours, with international benchmark Brent crude futures down 0.57% to $46.95 per barrel.

Domestic markets:

Back home, the domestic equity benchmarks ended with strong gains on Tuesday (1 December). Barring the Nifty FMCG index, all the sectoral indices on the NSE ended in the green. The barometer index, the S&P BSE Sensex, soared 505.72 points or 1.15% to 44,655.44. The Nifty 50 index added 140.10 points or 1.08% at 13,109.05. Both the indices attained record closing high levels.

Foreign portfolio investors (FPIs) bought shares worth Rs 3,242 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,043.21 crore in the Indian equity market on 1 December 2020, provisional data showed.

Primary Market:

The initial public offer (IPO) of Burger King India opens for subscription today (2 December). The issue 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.

Powered by Capital Market - Live News

Also Read

First Published: Dec 02 2020 | 8:12 AM IST

Next Story