Equity indices ended with strong gains on Wednesday, tracking strong global cues. Positive domestic economic data also boosted sentiment. The Nifty managed to close above the 17,150 level after hitting a day's low of 17,064.25 in mid afternoon trade. Pharma and healthcare stocks declined while banks and metal shares advanced.
The S&P BSE Sensex, gained 619.92 points or 1.09% to 57,684.79. The Nifty 50 index added 183.70 points or 1.08% to 17,166.90.
Axis Bank (up 3.46%), State Bank of India (up 3.19%), Reliance Industries (up 2.50%), ICICI Bank (up 1.95%) and HDFC (up 1.22%) boosted the indices.
The broader market lagged the main stock indices. The S&P BSE Mid-Cap index added 1% while the S&P BSE Small-Cap index rose 0.27%.
The market breadth was positive. On the BSE, 1,909 shares rose and 1,347 shares fell. A total of 136 shares were unchanged.
The Dow Jones index futures were up 270 points, indicating a positive start in US stock market today.
Economy:
India's Gross domestic product (GDP) for the second quarter of the current fiscal logged fastest growth among major economies in the world. According to the government data released yesterday, GDP of the country grew by 8.4% from a year ago. As per the National Statistics Office (NSO) data, manufacturing output increased 5.5% during the period while construction segment grew 7.5% in the second quarter.
The NSO data suggest that household consumption rose in the second quarter, July-September, of FY22 despite the second wave of the COVID-19 pandemic, boosting hopes of a quicker recovery in consumer demand in the months ahead. Economy of the country has gained momentum during the quarter as demand in the economy gradually came back to normalcy after coronavirus related disruptions. The economy had contracted 7.5% in the same period last year.
The combined Index of Eight Core Industries stood at 136.2 in October 2021, which increased by 7.5% (provisional) as compared to the Index of October 2020. Final growth rate of Index of Eight Core Industries for July 2021 is revised to 9.9% from its provisional level 9.4%.
Manufacturing PMI:
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) increased to 57.6 in November from 55.9 in October, signalling the strongest improvement in the health of the sector for ten months. Moreover, the headline figure was well above its long-run average of 53.6.
GST Collection (November 2021):
The gross GST revenue collected in the month of November 2021 stood at Rs 1,31,526 crore of which CGST is Rs 23,978 crore, SGST is RS 31,127 crore, IGST is Rs 66,815 crore (including Rs 32,165 crore collected on import of goods) and cess is Rs 9,606 crore (including Rs 653 crore collected on import of goods).
For the second straight month gross GST collection crossed Rs 1.30 lakh crore. The revenues for the month of November 2021 are 25% higher than the GST revenues in the same month last year and 27% over 2019-20.
Numbers to Track:
The yield on 10-year benchmark federal paper rose to 6.353% compared with 6.326% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 74.9100, compared with its close of 75.1350 during the previous trading session.
MCX Gold futures for 3 December 2021 settlement fell 0.01% to Rs 47601
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.02% to 95.98.
In the commodities market, Brent crude for January 2022 settlement rose $3.13 or 4.52% to $72.36 a barrel.
Global Markets:
Shares in Europe and Asia advanced on Wednesday. A private survey released Wednesday showed Chinese factory activity shrinking in November, with the Caixin/Markit manufacturing Purchasing Managers' Index coming in at 49.9 for that month. That was a decline from October's reading of 50.6.
US stocks tumbled Tuesday, reversing Monday's rebound on Wall Street, as investors reassessed risks associated with the new Covid variant, omicron. Major averages dropped to their session lows after Federal Reserve Chairman Jerome Powell said the central bank will discuss speeding up the bond-buying taper at its December meeting.
In an appearance before a Senate committee, the Fed chief said he thinks reducing the pace of monthly bond buys can move quicker than the $15 billion-a-month schedule announced earlier this month.
Meanwhile, Moderna CEO Stephane Bancel reportedly said that he expects existing vaccines to be less effective against the new variant. The CEO told there could be a material drop in the current vaccines' effectiveness against this variant. Bancel told on Monday that it could take months to develop and ship an omicron-specific vaccine.
Stocks in Spotlight:
Tata Power Company rose 3.87%. The company said that its wholly owned subsidiary Tata Power Solar Systems has received Letter of Award (LoA) from Solar Energy Corporation of India (SECI). The contract involves building 100 MW EPC solar project along with 120 MWh utility scale battery energy storage system (BESS). The total contract value of the project is approximately Rs 945 crore. The project will be executed within 18 months.
Aurionpro Solutions hit an upper circuit limit of 5% at Rs 257.70 after the company said it bagged an order worth Rs 190 crore from High Court of Madhya Pradesh. This project comprises of supply, installation, commissioning and maintenance of Integrated Video Surveillance System (MPHC-IVSS) & Court Room Live Audio-Visual Streaming System (MPHC-CLASS) across 48 District and Session Courts and 160 Civil Courts under the High Court of Madhya Pradesh.
Rail Vikas Nigam rose 1.49% after the company said that it has entered into an MoU with Economic Policy Research institute of KYRGYZ Republic, Govt of Kyrgyzstan for development of Railway corridor Projects in Kyrgyz Republic. The projects aim to connect Bishkek to Karakechenskoye.
November Auto Sales:
Maruti Suzuki India gained 2.66%. The car major's total sales fell 9.16% to 1,39,184 units in November 2021 as against 1,53,223 units in November 2020. Total sales in the month include domestic sales of 113,017 units (down 18.67% YoY), sales to other OEM of 4,774 units (down 9.29% YoY) and its highest ever monthly exports of 21,393 units (up 137.59% YoY).
Tata Motors jumped 3.61%. The auto major's sales in the domestic & international market for November 2021 stood at 62,192 vehicles, up 25.26% compared with 49,650 units during November 2020. Tata Motors total sales fell 8.31% last month compared with 67,829 vehicles in October 2021. The company's total domestic sales rose 21% year-on-year (YoY) to 58,073 units in November 2021 over November 2020. Total domestic passenger vehicles (PV) sales jumped 38% YoY to 29,778 units last month. In the electric vehicle segment, Tata Motor's domestic sales surged 324% YoY to 1,751 units as against 413 in November 2020.
Escorts fell 0.09%. The company's total tractor sales skid 30% Y-o-Y (year-on-year) to 7,116 units in November 2021 from 10,165 units sold in November 2020. On a sequential basis, Escorts recorded a 47.34% drop in total sales in November 2021 from 13,514 units sold in October 2021. Domestic tractor sales in November 2021 was at 6,492 tractors as against 9,662 tractors in November 2020, registering a decline of 32.8% Y-o-Y (year-on-year). The delayed harvest of Kharif crops owing to the late monsoon rains this year affected the rural cash flows and hence, the retail demand. This is expected to be a temporary phenomenon and cash flows should start improving soon as Kharif harvest gets fully monetized, the company highlighted in its press statement.
Mahindra & Mahindra (M&M) fell 0.40%. The company said that its overall auto sales (passenger vehicles+ commercial vehicles+exports) for the month of November 2021 stood at 40,102 vehicles, down by 6% from 42,731 vehicles sold in November 2020. While domestic passenger vehicles sales rose 7% YoY to 19,458 units, domestic commercial vehicles sales fell 23% to 17,543 units in November 2021 over November 2020. Exports for the month of November 2021 were at 3,101 vehicles (up 90% YoY).
Eicher Motors rallied 2.81% after its unlisted subsidiary VE Commercial Vehicles (VECV) sold 4,085 units of commercial vehicles in November 2021, registering a growth of 10.1% on a year-on-year (Y-o-Y) basis from 3,710 units in November 2020.
Bajaj Auto rose 0.21%. The company's total auto sales in November 2021 stood at 3,79,276 units, down by 10% from 4,22,240 units sold in November 2020. On a sequential basis, the total auto sales skid 13.72% as compared with 4,39,615 units sold in October 2021. The company's total domestic sales dropped 20% to 1,58,755 units while export sales fell 1% to 2,20,521 units in November 2021 as compared with the same period last year.
TVS Motor Company fell 1.33%. The company registered total sales of 272,693 units in November 2021, down 15.50% as against sales of 322,709 in the month of November 2020. Total sales declined 23.19% last month compared with 355,033 units sold in October 2021.
Ashok Leyland gained 1.84%. The company's total commercial vehicle (CV) sales fell 2% to 10,480 units in November 2021 from 10,659 units sold in November 2020. On a sequential basis, the company's total CV sales fell 5.4% from 11,079 units sold in October 2021. While the total sales of medium & heavy commercial vehicles (M&HCV) rose 10% to 5,608 units, sales of light commercial vehicles (LCVs) declined 12% to 4,872 units in November 2021 over November 2020.
V.S.T. Tillers Tractors fell 0.97% after the company's total tiller and tractor sales declined 6% to 2,723 units in November 2021 from 2,889 units sold in November 2020. While power tiller sales rose 4% to 2,227 units, tractor sales declined 34% to 496 units in November 2021 over November 2020.
SML Isuzu advanced 4.15% after the company's total sales grew 17% to 603 units in November 2021 compared with 516 units sold in November 2020.
Primary Market:
The initial public offer (IPO) of Tega Industries received bids for over 4.38 crore shares as against 95.68 lakh shares on offer, according to stock exchange data at 16:45 IST on Wednesday (1 December 2021). The issue was subscribed 4.59 times.
The issue opened for bidding today, 1 December 2021 and it will close on 3 December 2021. The price band of the IPO is fixed at Rs 443-453. The offer comprises an offer for sale by selling shareholders of up to 13,66,978 equity shares. The company will not receive any proceeds from the offer and all the offer proceeds will be received by the selling shareholders.
Tega Industries is a manufacturer and distributor of specialized, critical, and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry.
The initial public offer (IPO) of Star Health and Allied Insurance Company received bids for over 89.41 lakh shares as against 4.49 crore shares on offer, according to stock exchange data at 16:45 IST on Wednesday (1 December 2021). The issue was subscribed 20%.
The issue opened for bidding on 30 November 2021 and it will close on 2 December 2021. The price band of the IPO is fixed at Rs 870-900. The IPO consists of a fresh issue to raise Rs 2,000 crore and an offer of sale (OFS) comprises issuing 5.83 crore equity share.
Star Health and Allied Insurance Company is the largest private health insurer with 15.8% market share in the overall healthy industry. The company has strong retail health insurance market share at 31.3% in FY2021.
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