Key equity indices managed to end a volatile session with decent gains on Monday. As per the provisional closing data, the barometer index, the S&P BSE Sensex, rose 154.45 points or 0.34% at 46,253.46. The Nifty 50 index gained 44.30 points or 0.33% at 13,558.15.
After hitting record peaks in initial deals, the benchmark indices sharply pared gains and hit the day's low in early afternoon trade. The indices recovered sharply in afternoon trade and settled near the day's high.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index rose 0.79% while the S&P BSE Small-Cap index gained 0.74%.
Buyers outpaced sellers. On the BSE, 1918 shares rose and 1117 shares fell. A total of 181 shares were unchanged.
The undertone of the market was upbeat amid positive global cues following the progress in coronavirus vaccine. Robust inflows from foreign institutional investors and improving domestic economic scenario also boosted the investor's risk appetite.
COVID-19 Update:
In the United States, Centre for Disease Control (CDC) has accepted the advisory panel's recommendation for use of Pfizer-BioNTech's COVID-19 vaccine. The move will facilitate a massive vaccination campaign in the US beginning today (14 December). Healthcare workers and nursing home residents are likely to be first ones to get the shots.
Total COVID-19 confirmed cases worldwide stood at 7,22,53,804 with 16,12,367 deaths. India reported 3,52,586 active cases of COVID-19 infection and 1,43,355 deaths while 93,88,159 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India's COVID-19 recovery rate has improved to 94.98%, in the past 24 hours.
Economy:
The rate of inflation, based on monthly Wholesale Price Index (WPI), rose to 1.55% (provisional) in November 2020 (over November 2019) compared with 0.58% during the corresponding month of the previous year. The figure was 1.48% in October 2020.
Meanwhile, Industrial output of the country for the month of October this year stood at 3.6%, against 0.5% in the previous month. According to the Ministry of Statistics and Programme Implementation data released on Friday, the Index of Industrial Production (IIP) logged the highest growth since the end of March when the COVID-19 hit lockdowns came into the force.
As per the data, in October, manufacturing sector production witnessed a growth of 3.5% and electricity grew 11.2% while mining contracted 1.5%. For the same period in 2019, IIP had contracted 6.6%.
New Listing:
Shares of Burger King hit an upper circuit of 20% at Rs 138.40 on the BSE, a premium of 130.67% over the initial public offer (IPO) price of Rs 60.
The stock was listed at Rs 115.35, a premium of 92.25% to IPO price. The stock hit a high of Rs 138.40 and low of 108.40. On the BSE, 1.90 crore shares were traded on the counter while on the NSE, 18.67 crore shares were traded.
The 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 non-institutional investors category was subscribed 354.11 times. The qualified institutional buyers (QIBs) category was subscribed 86.64 times. The retail individual investors category was subscribed 68.15 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.
Buzzing Index:
The Nifty Auto index fell 1.14% to 9,084.45. The index has lost 2.43% in five sessions.
Eicher Motors (down 2.90%), Hero MotoCorp (down 2.28%), Mahindra & Mahindra (down 2.23%), Bharat Forge (down 2.06%), Bajaj Auto (down 1.18%), Tata Motors (down 0.75%), Maruti Suzuki (down 0.68%) declined.
Ashok Leyland (up 1.22%) and TVS Motor Company (up 0.66%) advanced.
Stocks in Spotlight:
Larsen & Toubro (L&T) surged 4.37% to Rs 1246.50 after the EPC major's construction arm secured 'significant' orders for its various businesses. As per L&T's classification, the valuation of the 'significant' contract lies between Rs 1,000 to 2,500 crore.
Cipla rose 4.41% to Rs 789.20 after the drug major announced the settlement of its litigation with Celgene Corporation relating to patents for Revlimid (lenalidomide). As part of the settlement, the parties will file consent judgments with the United States District Court for the District of New Jersey that enjoin Cipla from marketing generic lenalidomide before the expiration of the patents-in-suit, except as provided for in the settlement. In the US, Revlimid (lenalidomide) in combination with dexamethasone is indicated for the treatment of patients with multiple myeloma.
KEC International gained 1.35% to Rs 372 after the company said it has secured new orders of Rs 1,438 crore across its various businesses.
Union Bank of India rose 1.81% to Rs 33.80. The PSU bank is issuing basel III compliant perpetual debt instruments in the nature of debentures eligible for inclusion in additional tier 1 capital series XXVII of Rs 500 crore with green shoe option up to Rs 1,000 crore (maximum Rs 1,500 crore) on private placement basis.
Jindal Steel & Power advanced 1.02% to Rs 263.35. The steel major witnessed year on year growth of 15% in standalone steel production with 6,14,000 tonnes in November 2020 as against 533,000 tonnes of standalone steel production a year ago during the same period.
JSPL's standalone sales also increased with 562,000 tonnes in November 2020 compared with 557,000 tonnes in the previous year during the same period. The export sales contributed to 21% of total sales volumes in November 2020. The company's exports grew at a rate of 10% (Y-o-Y) in November 2020.
Global Markets:
US Dow Jones futures were trading 219 points higher, indicating a string start to equities on Wall Street today.
Shares in Europe and Asia advanced on Monday as investor's focused on negotiations between the U.K. and EU on a post-Brexit trade deal.
Britain and the EU agreed on Sunday to keep negotiating over a Brexit trade deal, taking talks to the wire as key differences remain. However, U.K. Prime Minister Boris Johnson still warned businesses to be ready for a "no-deal" exit on 31 December 2020 when the transition period ends.
A deal must be struck before the end of 2020 or the U.K.'s current commercial and trading ties with the EU will expire on 1 January without an agreement in place, an outcome that could roil global markets anew.
Meanwhile, Germany will go into a full lockdown over the Christmas period amid a rise in coronavirus deaths and infections. Non-essential shops and schools will close across the country starting from Wednesday.
In Asia, the Bank of Japan's quarterly tankan survey showed on Monday business sentiment in Japan improving in the three months to December.
In the US, the S&P 500 fell 0.13% on Friday as the outlook for additional fiscal stimulus remained uncertain. The Nasdaq Composite dipped 0.23% to 12,377.87. The Dow Jones Industrial Average eked out a gain of 47.11 points, or 0.16%, to 30,046.37 as shares of Disney rallied. Unsuccessful negotiations to date on Britain's trade relationship with the European Union weighed on investor sentiment.
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