Domestic equity benchmarks came off record high levels in late trade and ended with decent gains on Thursday. Strength in financial stocks offset losses in IT, FMCG and auto shares. The barometer index, the S&P BSE Sensex, added 223.88 points or 0.48% to 46,890.34. The Nifty 50 index advanced 58 points or 0.42% to 13,740.70. Both the indices attained record closing high levels.
The S&P BSE Sensex hit a record high of 46,992.57 while the Nifty hit a record high of 13,773.25 in afternoon trade.
HDFC (up 2.92%), HDFC Bank (up 2.17%), Bajaj Finance (up 2.74%) and Reliance Industries (up 0.46%) were major market movers.
Investors reacted positively to comments from the U.S. Federal Reserve that it will continue to support the economy. Federal Reserve Chairman Jerome Powell also said on Wednesday that stock prices are not necessarily highly priced given how low interest rates are. Meanwhile, negotiators in Washington are shaping a new $900 billion coronavirus stimulus bill that is said to include a second stimulus check.
The US Dollar Index slipped below 90 for the first time since April 2018, following the comments from the US Federal Reserve.
After trading in the green for most part of the session, the broader market reversed trend and ended lower. The BSE Mid-Cap index fell 0.13% and the BSE Small-Cap index lost 0.23%.
The market breadth was negative. On the BSE, 1390 shares rose and 1581 shares fell. A total of 176 shares were unchanged.
COVID-19:
Total COVID-19 confirmed cases worldwide stood at 7,42,26,214 with 16,49,032 deaths. India reported 3,22,366 active cases of COVID-19 infection and 1,44,451 deaths while 94,89,740 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Numbers to Watch:
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, shed 0.56% to 89.95. It is for the first time since April 2018 that the dollar index has slipped below the 90 mark.
The yield on 10-year benchmark federal paper rose to 5.952% as compared with 5.944% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 73.59, compared with its close of 73.5875 during the previous trading session.
In the commodities market, Brent crude for February 2021 settlement rose 27 cents at $51.35 a barrel. The contract rose 32 cents, or 0.63% to settle at $51.08 a barrel in the previous trading session.
Foreign Markets:
Most shares in Europe and Asia advanced on Thursday as investors reacted to the latest announcements from the U.S. Federal Reserve.
In US, Wall Street rose on Wednesday, with the Nasdaq closing at a record high as investors awaited a potential fiscal economic stimulus package and after the Federal Reserve repeated a pledge to keep its benchmark interest rate near zero.
The U.S. central bank kept benchmark interest rates near zero, as expected, following the conclusion of its two-day meeting. The Fed said it will buy at least $120 billion of bonds each month "until substantial further progress has been made toward the Committee's maximum employment and price stability goals," according to its post-meeting statement.
Congressional leaders closed in on a $900 billion rescue deal that would include a new round of direct payments to consumers. However, that package excludes a liability shield for businesses and state and local aid, reports indicated.
US retail sales fell sharply in November, according to government data released Wednesday, a further sign of economic trouble as COVID-19 cases climbed and lawmakers remained deadlocked on approving economic stimulus. Sales fell 1.1% compared to October, when sales also dipped, the Commerce Department reported, much sharper than expected.
Buzzing Indian Segments:
The Nifty Metal index fell 1.35% to 3,227.70. The index jumped 5.34% in the past five trading sessions.
SAIL (down 4.9%), JSPL (down 2.66%), NALCO (down 2.48%), Hindalco Industries (down 2.17%), Tata Steel (down 1.42%), JSW Steel (down 1.36%), Hindustan Zinc (down 0.47%), Mishra Dhatu Nigam (down 0.41%) and APL Apollo Tubes (down 0.03%) declined.
Hindustan Copper (down 9.44%), MOIL (down 1.52%) and NMDC (down 0.92%) advanced.
Stocks in Spotlight:
Garware Polyester jumped 5.69% after the company announced that it has a commenced the production of paint protection films (PPF) for automobile paint protection. With no major domestic competition, the company estimates PPF to contribute 20% of FY23 revenue estimated at an incremental Rs 300 crore.
Jubilant FoodWorks (JFL) jumped 5.60%. The company said it has forayed into the biryani segment with a new brand 'Ekdum!' as part of its portfolio expansion. Ekdum! will offer a selection of twenty different biryanis curated from various parts of India. It will also offer an extensive range of kebabs, curries, breads, desserts and beverages. Ekdum! starts with three restaurants in Gurgaon for delivery, takeaway and dine-in, with more restaurants planned to open in NCR over the next few months.
Wonderla Holidays rose 2.63%. The company has received formal approval from the Ramanagara Deputy Commissioner to resume operations of its theme park in Bangalore. The theme park will be open to the public again from 18 December onwards.
Olectra Greentech climbed 8.88% at Rs 114 after the company said it emerged as the lowest bidder to provide 353 electric buses to state transport authorities and state government undertaking. Olectra Greentech have been declared as L-1 (least quoted) bidders for 353 electric buses from 5 state transport authorities and 1 state government undertaking including under FAME-II scheme of Government of India.
Navin Fluorine International added 2.51% to Rs 2561.15. The chemicals maker announced that its board has approved capital expenditure for setting up of a multi-purpose plant (MPP) with an outlay of Rs 195 crore. The capex will be undertaken by its wholly owned subsidiary, Navin Fluorine Advanced Science (NFASL) at Dahej, Gujarat and will be funded through a mix of internal accruals and debt. The company said its new capacity is expected to come on stream during H1 of FY23 and will create opportunities for new products in life science and crop science sectors in the specialty chemicals business.
Burger King India hit a lower circuit of 10% at Rs 179.35, snapping its three-day rising streak. The stock was frozen at a record high of Rs 219.15 for most part of the session today. Profit selling emerged in mid-afternoon trade.
Shares of Burger King were listed on the stock exchanges on Monday (14 December 2020) at Rs 115.35, a premium of 92.25% to the initial public offer (IPO) price of Rs 60. The stock is currently up 198.92% over its IPO price.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
