The domestic equity indices extended their winning run to third consecutive trading session on Monday. Barring the Nifty Realty index, all the sectoral indices on the NSE ended in the green. The barometer index, the S&P BSE Sensex, jumped 347.42 points or 0.77% at 45,426.97. The Nifty 50 index gained 97.20 points or 0.73% to 13,355.75. Both the indices attained record closing high levels.
The Sensex hit a record high of 45,458.92 while the Nifty scaled a fresh high of 13,366.65 in late trade on COVID vaccination optimism after Pfizer-BioNTech and Serum Institute (Oxford-Astra) both applied for an early EUA (emergency usage authorizations) for India.
Hindustan Unilever (up 3.09%), Bharti Airtel (up 3.05%), HDFC (up 2.54%), ICICI Bank (up 1.69%) and ITC (up 2.50%) were the major market movers.
In the broader market, the BSE Mid-Cap index rose 0.95% and the BSE Small-Cap index gained 1.30%, outperforming the Sensex.
The market breadth was strong. On the BSE, 2036 shares rose and 936 shares fell. A total of 195 shares were unchanged.
Sentiment was also upbeat after the Reserve Bank of India (RBI) on Friday (4 December) left the repo rate unchanged while upgrading India's GDP target for the current fiscal year.
"Data shows the economy is recuperating faster than expected. The contraction in Q2 was shallower than expected. The positive outlook is clouded by a rise in infection in some parts of the country. Taking these factors into consideration, the real GDP for FY21 is projected at -7.5%. For Q3 at 0.1% and 0.7% for Q4, and 21.9% to 6.5% in H1:2021-22, with risks broadly balanced," RBI governor Shaktikanta Das said.
COVID-19:
Serum Institute of India, the world's largest vaccine maker by number of doses produced, has sought government approval for emergency use authorisation of the coronavirus vaccine that it is developing with the University of Oxford and British drugmaker AstraZeneca.
The move comes close on the heels of Pfizer Inc applying for a similar authorization of its coronavirus vaccine in India. It is to be noted that Pfizer India's parent company Pfizer has already got emergency-use clearance in the United Kingdom and Bahrain.
Total COVID-19 confirmed cases worldwide stood at 6,70,73,749 with 15,36,072 deaths. India reported 3,96,729 active cases of COVID-19 infection and 1,40,573 deaths while 91,39,901 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
In the ongoing Kharif Marketing Season, the government continues to procure Kharif crops at its Minimum Support Price (MSP) from farmers as per its existing MSP schemes. About 32.92 lakh paddy farmers have benefitted from Kharif Marketing Season Procurement Operations with MSP value of over Rs 63,563 crore.
Agriculture Ministry said over 336 lakh metric tonnes of paddy have been procured against the last year corresponding purchase of around 280 lakh metric tonnes. This shows an increase of 20.27% over last year. Out of the total purchase of over 336 lakh metric tonnes, Punjab alone has purchased 202.77 lakh metric tonnes till the close of procurement season in the state on 30th of last month. It is 60.23% of total procurement in the country.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 5.925% as compared with 5.897% 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 73.9025, compared with its close of 73.80 during the previous trading session.
In the commodities market, Brent crude for February 2021 settlement fell 32 cents at $48.93 a barrel. The contract rose 54 cents, or 1.11% to settle at $49.25 a barrel in the previous trading session.
Foreign Markets:
The Dow Jones Futures 30 were down 121 points, indicating a weak start on Wall Street today amid reports that Washington was preparing sanctions on Chinese officials over their alleged role in Beijing's disqualification of elected opposition legislators in Hong Kong.
European markets were mixed on Monday. The U.K. and EU are making last efforts to reach a post-Brexit trade deal this week, with Britain's chief negotiator going to Brussels on Sunday in a bid to salvage talks that had to be paused on Friday, due to outstanding issues that remain to be resolved, including fishing rights and competition rules. British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen spoke on the phone on Saturday in an effort to revive talks and instructed their teams to resume negotiations.
Asian stocks closed on a mixed note on Monday on hopes of a much-needed U.S. stimulus package before year-end just as coronavirus vaccines roll out.
In US, Wall Street's main indexes gained as data showing the slowest U.S. jobs growth in six months raised investors' expectations for a new fiscal relief bill to help revive the coronavirus-hit economy.
The Dow Jones Industrial Average rose 248.74 points, or 0.83%, to 30,218.26, the S&P 500 gained 32.40 points, or 0.88%, to 3,699.12 and the Nasdaq Composite added 87.05 points, or 0.7%, to 12,464.23. All three of major indexes posted intraday and closing record highs.
House Speaker Nancy Pelosi reportedly said Friday that talks on a COVID-19 relief package have "momentum," and that the weaker-than-expected November jobs report gives more reason for Congress to act.
Buzzing Indian Segments:
The Nifty Pharma index rose 1.64% to 12,555.95. The index has risen 7.91% in seven sessions.
Glenmark Pharmaceuticals (up 5.74%), Strides Pharma (up 3.73%), Lupin (up 3.69%), Dr. Reddy's Laboratories (up 2.42%), Sun Pharmaceutical Industries (up 2.36%), Piramal Enterprises (up 2.18%), Alkem Laboratories (up 2.13%), Aurobindo Pharma (up 1.16%), Cipla (up 0.76%), Abbott India (up 0.29%), Cadila Healthcare (up 0.24%), Divi's Laboratories (up 0.15%) and Wockhardt (up 0.05%) jumped.
The Nifty PSU Bank index rose 2.12% to 1,733.95. The index has risen 8.63% in three sessions.
Bank of Maharashtra (up 6.27%), Canara Bank (up 5.62%), Central Bank of India (up 4.99%), IDBI Bank (up 4.03%), State Bank of India (up 2.37%), Bank of Baroda (up 1.86%), UCO Bank (up 1.7%), United Bank of India (up 1.56%), Bank of India (up 1.45%), Indian Bank (up 1.3%), Punjab & Sind Bank (up 1.22%), Union Bank of India (up 0.48%), Punjab National Bank (up 0.42%) and Allahabad Bank (up 0.13%) advanced.
Stocks in Spotlight:
ONGC rose 2.34% after the company's wholly owned overseas arm ONGC Videsh, made a significant oil discovery in its onshore block CPO-5 in Llanos Basin in Colombia.
Larsen & Toubro (L&T) rallied 1.77% after the company said it won multiple orders for construction and mining equipment business. The orders are for supplying 66 units of Komatsu 100 ton & 60 ton dump trucks, 15 units of Komatsu wheel loaders, 7 units of Komatsu hydraulic excavators and allied equipment. The scope includes supplying equipment and maintenance contracts for supporting operations over three to four years.
Goodyear India jumped 13.62% after the company said its board declared an interim dividend of Rs 80 per share for the Financial Year 2020-21. The company has fixed 15 December 2020 as the record date for determining the entitlement of the shareholder for the interim dividend.
Hindalco Industries fell 0.48%. The company announced that it plans to set up a 34,000-tonne extrusion plant at Silvassa, bordering the state of Gujarat. The new plant will service the fast-growing market for extruded aluminium products in the western and southern regions. "The Rs 730-crore project in Silvassa signals a big step forward in Hindalco's downstream strategy as the company revives its long-term downstream investment plan," it said.
Eicher Motors added 0.44% after the company's subsidiary VE Commercial Vehicles (VECV) commenced commercial production at its new truck manufacturing unit at Bagroda, Bhopal. "This is the 8th manufacturing facility of VECV in the state of Madhya Pradesh and has been set up with Industry 4.0 standards, Eicher Motors said in a statement. In its first phase, the plant will have the capacity for manufacture of 40,000 trucks.
Tata Consumer Products gained 0.67% after Earth Rules, the company's step-down Australian subsidiary, entered into an agreement to sell MAP Coffee business to Australia-based Buccheri Group. Buccheri Group is engaged in coffee manufacturing. Earth Rules will receive a total consideration of AUD 1.25 million (Rs 6.74 crore) in tranches by 28 February 2021, as per terms of the asset sale and purchase agreement dated 5 December 2020. The sale is expected to be completed by 7 December 2021.
Maruti Suzuki India slipped 0.79%. The car major said its total production increased 5.91% to 1,50,221 units in November 2020 from 1,41,834 units produced in November 2019. Total passenger vehicle production rose to 1,46,577 units in November 2020 from 1,39,084 units in November 2019.
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