Domestic indices closed at record high level on Tuesday, tracking positive global cues. The Nifty closed above the 13,050 level on broader buying support. All the sectoral indices on the NSE ended in the green.
The barometer index, the S&P BSE Sensex, rose 445.87 points or 1.01% at 44,523.02. The Nifty 50 index advanced 128.70 points or 1% at 13,055.15. Both the indices attained record closing high levels.
The Sensex hit a record high of 44,601.63 and the Nifty hit a record high of 13,079.1 in late trade today.
Global cues were upbeat as COVID-19 vaccine progress boosted sentiment and US President-elect Joe Biden was given the go-ahead to begin his White House transition.
In the broader market, the BSE Mid-Cap index gained 0.58% and the BSE Small-Cap index rose 0.89%. Both these indices underperformed the Sensex.
Buyers outpaced sellers. On the BSE, 1637 shares rose and 1172 shares fell. A total of 191 shares were unchanged.
The Nifty has risen 2.22% in three consecutive sessions. It has surged 12.13% in November so far.
Heavy buying by foreign institutional investors (FIIs) also underpinned sentiment. FIIs have bought Indian stocks worth a net Rs 44935.33 crore from the secondary equity markets in November 2020 (till 23 November 2020).
Total COVID-19 confirmed cases worldwide stood at 59,128,645 with 13,95,658 deaths. India reported 4,38,667 active cases of COVID-19 infection and 1,34,218 deaths while 86,04,955 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Finance minister Nirmala Sitharaman said the momentum of reforms has continued even during the pandemic and this will continue in future as well. Sitharaman was speaking at the National MNCs' Conference 2020 organised by Confederation of Indian Industry (CII). She added that six states were setting up special manufacturing zones for pharmaceuticals, medical devices and active pharmaceutical ingredients with an effective, unified single window. “Today not just the MNC's, but the entire industry & the economy is facing a reset exercise of doing business and this is being further strengthened by the Govt's Atmanirbhar Bharat program,” FM stated.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 5.881% as compared with 5.9% 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 74.0125, compared with its close of 74.11 during the previous trading session.
In the commodities market, Brent crude for January 2021 settlement rose 42 cents at $46.48 a barrel. The contract rose $1.10, or 2.45% to settle at $46.06 a barrel in the previous trading session.
The Dow Jones futures were up 305 points, indicating a strong opening in US market today.
European markets were trading with strong gains while most Asian markets closed higher on Tuesday as investors reacted to more positive coronavirus vaccine news. Meanwhile, the Trump administration has begun the transition process to President-elect Joe Biden, making federal resources available for his transition into office.
Biden is expected to nominate former Federal Reserve Chair Janet Yellen as U.S. Treasury secretary, breaking a 231-year gender barrier and putting a seasoned economist and labor market expert in charge of leading the country out of the steepest downturn since the Great Depression.
Meanwhile, UK Prime Minister Boris Johnson announced Monday the country's national lockdown would end on December 2 with certain conditions in place.
In US, stocks rose on Monday after AstraZeneca and the University of Oxford said their coronavirus vaccine was up to 90% effective, becoming the third inoculation this month that was revealed to be effective in trial data.
In economic data, IHS Markit said their U.S. manufacturing and services purchasing managers' indexes hit multiyear highs. The flash U.S. services index rose to 57.7, its highest level in more than five years. The manufacturing PMI popped to 56.7, its highest level in over six years.
Buzzing Indian Segments:
The Nifty Bank index jumped 2.46% to 29,737.25. It fell 0.72% in the previous session. The index has surged 24.42% in November so far.
RBL Bank (up 6.47%), Axis Bank (up 4.02%), HDFC Bank (up 3.14%), State Bank of India (up 2.16%), ICICI Bank (up 2.14%), Bandhan Bank (up 1.48%), Kotak Mahindra Bank (up 1.41%), Punjab National Bank (up 1.16%), IndusInd Bank (up 0.57%), Federal Bank (up 0.51%) and IDFC First Bank (up 0.14%) advanced.
Shares of Mumbai-focused real estate developers were in demand after the BMC Commissioner was quoted by the media as saying that BMC has requested the State Government to slash premiums on construction activities by 50%. BMC has also requested the State Government to cut premium for extra FSI, concession agreements by 50%.
Sunteck Realty (up 12.08%), Godrej Properties (up 3%), Indiabulls Real Estate (up 1.42%) and Oberoi Realty (up 0.26%) advanced.
Stocks in Spotlight:
Tube Investments of India surged 2.05%. In a BSE filing made after market hours on Monday, the company said its board will meet on Thursday (26 November 2020) to consider fund raising including through issue of capital by way of preferential issue of eligible securities to eligible investors.
Biocon gained 3.26% after the drug company announced the acquisition of 26% stake in Hinduja Renewables Two (HRTPL). The acquisition is being done for a cash consideration of Rs 5.91 crore in one or more tranches. Biocon said the acquisition will enhance renewable based power consumption and the company expects to complete the acquisition by 15 December 2020.
JK Tyre & Industries rose 0.43%. The company announced a tie-up with Kia Motors India as a tyre partner for their highest selling model Seltos. The tyre maker said it will provide its UX Royale 215/60 R17 radial tyre to Kia Seltos.
Steel Strips Wheels (SSWL) rose 2% after the company said it received new export orders worth over $878,000 (Rs 6.50 crore) from US and Europe. SSWL confirmed export orders of nearly 62,000 wheels for US & EU market. The orders are to be executed in January and February from the company's Chennai plant. The firm is anticipating orders of similar capacity from the same customer base as businesses have picked up speed.
Jubilant Industries added 3% after the company said it has executed an agreement to sell its portable liquor license for manufacturing of Indian Made Foreign Liquor on 23 November 2020. Consequently, the company shall no longer be manufacturing Indian Made Foreign Liquor.
Datamatics Global Services rallied 6.52% after the company said its wholly-owned Mauritius-based subsidiary has agreed to divest its stake in Cignex Datamatics Inc. through a stock redemption arrangement. The proposed divestment will be effected through a stock redemption agreement, under which Cignex will buyback the entire 62.51% stake held by Datamatics Global Technologies Limited, Mauritius (DGTL) in Cignex for an aggregate price of $16.57 million of which $7.97 million will be paid upfront to DGTL. The balance amount will be paid-out within the next 3 (three) years. With this, the earlier deal with Relevance Lab stands terminated.
Ingersoll-Rand (India) lost 6.35% as the offer for sale (OFS) opened for non-retail investors today. Through the OFS, the company's promoter propose to sell over 14.25 lakh shares, constituting 4.52% paid-up share capital of the company.
The floor price for the OFS was set at Rs 578.60 per shares, a 12% discount to Ingersoll-Rand's closing price of Rs 657.5 on Monday, 23 November 2020. The OFS opened on Tuesday (24 November 2020) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Wednesday (25 November 2020).
At 15:30 IST, the OFS received subscription for 35,07,843 shares or 273.36% against the offer size of 12.83 lakh shares for non-retail investors.