The domestic equity benchmarks ended near the flat line on Tuesday. As per provisional closing data, the barometer index, the S&P BSE Sensex, added 9.71 points or 0.02% to 46,263.17. The Nifty 50 index added 9.70 points or 0.07% at 13,567.85.
The Nifty opened in the red and hit the day's low of 13,447.05 in mid-morning trade. It witnessed recovery from early afternoon trade. It bounced back in mid-afternoon trade and hit the day's high of 13,589.65. After some bouts of volatility, the indices closed with minor gains.
In the broader market, the S&P BSE Mid-Cap index gained 0.42% while the S&P BSE Small-Cap index rose 0.07%.
Buyers outpaced sellers. On the BSE, 1559 shares rose and 1409 shares fell. A total of 174 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 7,28,50,994 with 16,21,159 deaths.
India reported 3,39,820 active cases of COVID-19 infection and 1,43,709 deaths while 94,22,636 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
S&P Global Ratings raised India's 2020-21 Gross Domestic Product (GDP) forecast to a contraction of 7.7%, as against a contraction of 9% projected earlier. S&P Global, however, did not change its projection that the Indian economy would grow 10% in FY22. The revision in growth forecast reflects a faster-than-expected recovery in the quarter through September, the rating agency said.
Meanwhile, India's retail inflation declined to 6.93% in the month of November 2020 even though it remained above the Reserve Bank of India's (RBI) upper margin of 6%, data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed. The retail inflation, which is measured by the Consumer Price Index (CPI), for the month of October was 7.61%.
Buzzing Index:
The Nifty FMCG index fell 1.37% to 33,938.65. The index had gained 4.75% in the past four sessions.
Hindustan Unilever (down 2.28%), Nestle India (down 2.36%), Jubilant Foodworks (down 1.96%), Colgate-Palmolive India (down 1.43%), Marico (down 1.24%), ITC (down 1.18%) and Tata Consumer Products (down 1.02%) declined while Varun Beverages (up 1.92%) and United Breweries (up 0.23%) advanced.
Burger King India hit an upper circuit of 20% at Rs 166.05. The stock has added 43.95% in two sessions.
Yesterday, shares of Burger King debuted on the bourses at Rs 115.35 apiece, at a premium of 92.25% to the initial public offer (IPO) price of Rs 60 per share. The initial public offer (IPO) of Burger King India received bids for 1,166.93 crore shares as against 7.44 crore shares on offer. The issue was subscribed 156.65 times. The issue opened for subscription on Wednesday (2 December) and it closed on Friday (4 December). The price band for the IPO was set at Rs 59-60 per share.
Stocks in Spotlight:
Majesco rose 0.87% to Rs 982.10. The company said its board declared an interim dividend of Rs 974 per share for the financial year 2020-21. The company has fixed 25 December 2020 as the record date for determining the entitlement of the shareholder for the interim dividend. The company said the earliest dividend payout will be from 30 December 2020. Majesco further added the balance cash reserves estimated at Rs 103 crore will be distributed subject to board and regulatory approvals.
Indian Bank slipped 3.55% to Rs 92.50. The bank said that it had further raised Tier 1 capital fund through private placement of Basel III compliant AT 1 Perpetual Bonds aggregating to Rs 560 crore at a coupon of 8.44% per annum payable annually.
Bank of Maharashtra declined 1.40% to Rs 14.13. The bank has successfully a raised capital of Rs 200.70 crore through private placement of 7.75% Basel-III compliant unsecured redeemable taxable subordinate Tier-II bonds.
Borosil Renewables jumped 5.76% to Rs 167. The securities issue committee of the board, at its meeting held on 14 December 2020, authorised the opening of the QIP issue and approved the floor price of Rs 133.19 per equity share, the company said in a regulatory filing. The floor price is at a 15.65% discount to Monday's closing price of Rs 157.90 per share.
A meeting of the board's securities issue committee is scheduled to be held on 17 December 2020 to consider and approve the issue price for the equity shares as well as the number of shares to be allotted to qualified institutional buyers, pursuant to the QIP, the company said.
On 17 December 2020, the company's board will also consider issue of securities (equity shares and instruments convertible or exchangeable into equity shares) to P. K. Kheruka, the promoter of the company, through a preferential allotment. The value of the securities issued would not exceed Rs 25 crore.
Kalpataru Power Transmission (KPTL) lost 1.31% at Rs 315.60. KPTL said it has secured new orders or notification of award of about Rs 1,300 crore. The company said that the orders from India and overseas market in the transmission and distribution (T&D) business. It further said that the it had received engineering, procurement, and construction (EPC) orders for pipeline laying and associated works in India.
Kalpataru said that the order for railway electrification has been awarded by the Central Organization for Railway Electrification (CORE). The company's international subsidiary has also secured new T&D projects in Europe.
KNR Constructions jumped 5.26% to Rs 312. The company said the meeting of the board of directors of the company is scheduled on 18 December 2020 to consider declaration of bonus shares and other related issues.
Dilip Buildcon advanced 3.23% to Rs 400. The construction company received a letter of acceptance (LoA) for a road project in Gujarat. The scope of the project includes Four Laning of Dhrol - Bhadra Patiya section of NH-151A and Bhadra Patiya - Pipaliya Section of NH-151A in Gujarat through Public private Partnership (PPP). The bid project cost is Rs 882 crore and the project is to be completed in 24 months and will have an operation period of 15 years.
Global Markets:
European shares advanced as post-Brexit deal negotiations continued. Gains were capped as coronavirus developments were weighing on market sentiment with Germany and the Netherlands announcing tighter restrictions over Christmas in a bid to curb a sharp rise in infections.
Negotiations between the EU and U.K. aimed at reaching a post-Brexit trade deal continue to dominate the market sentiment. There seemed to be some positive momentum to talks on Monday with Ursula von der Leyen, president of the European Commission, saying there was some "movement" over sticking points in the talks.
Asian shares declined on Tuesday as concerns about rising coronavirus cases in various countries across the globe overshadowed optimism over the vaccine rollout in the U.S.
China's industrial production grew 7% year-on-year in November, the country's National Bureau of Statistics announced Tuesday. Meanwhile, retail sales in China increased 5% in November as compared with a year ago.
China's central bank on Tuesday rolled over maturing medium-term loans while keeping the interest rate unchanged for an eighth straight month. The People's Bank of China (PBOC) said in a statement it was keeping the rate on 950 billion yuan ($145 billion) worth of one-year medium-term lending facility (MLF) loans to financial institutions steady at 2.95% from previous operations.
In US, the Dow Jones Industrial Average and S&P 500 fell on Monday as fears of additional COVID-19 restrictions offset the optimism around a vaccine rollout. The Nasdaq Composite outperformed.
Meanwhile, lawmakers in Washington tried once again to push forward on a new coronavirus stimulus package. A bipartisan group of congressional members plans to release a $908 billion stimulus package. However, some key disagreements remain between both parties, particularly over state and local government aid.
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