Key equity barometers firmed up in afternoon trade, reacting to development on the US-China trade front. The Nifty traded above the 11,950 level. Media reports suggested that China and the U.S. have agreed to roll back tariffs on each other's goods in phases as they work toward a deal between the two sides.
At 13:40 IST, the barometer index, the S&P BSE Sensex, was up 117.19 points or 0.29% at 40,586.97. The Sensex hit an all-time high of 40,676.44 in morning trade.
The Nifty 50 index also jumped 28.20 points or 0.24% at 11,994.25. The Nifty is still 108.80 points, or 0.90% away from its all time high of 12,103.05 hit on 3 June 2019.
In the broader market, the S&P BSE Mid-Cap index was up 0.61%. The S&P BSE Small-Cap index rose 0.46%.
The market breadth was almost positive. On the BSE, 1,187 shares rose and 1,012 shares fell. A total of 175 shares were unchanged. In Nifty 50 index, 24 stocks advanced while 26 stocks declined.
Economy:
The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the establishment of a 'special window' fund to provide priority debt financing for the completion of stalled housing projects that are in the affordable and middle-income housing sector. For the purposes of the fund, the government shall act as the sponsor and the total commitment to be infused by the government would be upto Rs 10,000 crore.
The fund will be set up as a Category-11 AIF (alternate investment fund) debt fund registered with Sebi and would be professionally run. For the first AIF under the special window, it is proposed that SBICAP Ventures shall be engaged to be the investment manager. This fund would in turn provide relief to developers that require funding to complete a set of unfinished projects and consequently ensure delivery of homes to the home-buyers. Since the real estate industry is intrinsically linked with several other industries, growth in this sector will have a positive effect in releasing stress in other major sectors of the Indian economy as well.
Stocks in spotlight:
IndusInd Bank (up 3.35%), Bharti Infratel (up 2.58%), Hindalco Industries (up 1.71%), Vedanta (up 1.61%) and Ultratech Cement Company (up 1.56%) advanced.
Cipla (down 2.04%), GAIL (down 1.90%), ONGC (down 1.73%), Tata Motors (down 1.72%) and BPCL (down 1.48%) declined.
Among Nifty companies, BPCL (down 1.48%), PowerGrid Corporation of India (down 0.33%), Sun Pharmaceutical Industries (up 0.08%) and UPL (down 0.49%) will announce its Q2 September 2019 results today.
Tata Steel slipped 2.19%. The company reported 5.96% rise in consolidated profit after tax to Rs 3,302 crore on 15.44% fall in turnover to Rs 34,579 crore in Q2 September 2019 over Q2 September 2018.
Hindustan Unilever lost 1.60%. The FMCG major said that the National Company Law Tribunal, Mumbai Bench, has sanctioned the Scheme of Amalgamation by way of merger by absorption among GlaxoSmithKline Consumer Healthcare ('Transferor Company') and Hindustan Unilever (the 'Company') and their respective Shareholders and Creditors (the 'Scheme').
Yes Bank shed 1.31%. Moody's Investors Service has placed Yes Bank's foreign currency issuer rating of 'Ba3' under review for downgrade. Moody's has also placed the bank's long-term foreign and local currency bank deposit ratings of 'Ba3', foreign currency senior unsecured MTN program rating of '(P)Ba3', and Baseline Credit Assessment (BCA) and adjusted BCA of 'b1', long-term Counterparty Risk Assessment (CR Assessment) of 'Ba2(cr)' and long-term domestic and foreign currency counterparty risk rating (CRR) of 'Ba2' under review for downgrade. The announcement was made after market hours yesterday, 7 November 2019.
Zee Entertainment Enterprises was down by 0.12%. The Government of Singapore (GOS) has acquired 32.65 lakh equity shares or 0.34% stake in Zee Entertainment Enterprises. Post acquisition, Government of Singapore has increased its stake to 5.28% or 5.07 crore equity shares from 4.94% or 4.74 crore equity shares. The announcement was made after trading hours yesterday, 6 November 2019.
Hero MotoCorp dropped 0.83%. The two-wheeler company launched India's first BS-VI compliant motorcycle-the new Splendor iSmart. The Splendor iSmart is being launched in the market within a few months of Hero MotoCorp becoming the first two-wheeler manufacturer in the country to receive the BS-VI certificate from iCAT.
Foreign markets:
Trading in US index futures indicated that the Dow Jones Industrial Average could rise 100 points at the opening bell today, 7 November 2019.
Shares in Europe and Asia were trading higher as investors anticipated new developments that might scale back a bruising trade war between the US and China.
"If China, U.S. reach a phase-one deal, both sides should roll back existing additional tariffs in the same proportion simultaneously based on the content of the agreement, which is an important condition for reaching the agreement," China's Ministry of Commerce spokesperson Gao Feng said Thursday.
China's key demand since the beginning of negotiations has been the removal of tariffs imposed by US President Donald Trump, which by now apply to the majority of its exports to the U.S.
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