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Sensex, Nifty reverse gains; metal stocks decline

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Domestic equity benchmarks reversed gains and hit fresh intraday low in mid-morning trade. The Nifty slipped below 12800 mark. At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 62.73 points or 0.14% at 43,537.23. The Nifty 50 index lost 17.50 points or 0.14% at 12,754.20.

In the broader market, the S&P BSE Mid-Cap index gained 0.50% while the S&P BSE Small-Cap index rose 0.12%.

The market breadth was almost even. On the BSE, 1235 shares rose and 1236 shares fell. A total of 152 shares were unchanged.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 56,202,247 with 1,349,339 deaths.

India reported 443,303 active cases of COVID-19 infection and 131,578 deaths while 8,383,602 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

The credit ratings agency, Fitch Ratings, has said that economic reforms in India could support the country's medium-term growth. Fitch expects Indian government to undertake more reform measures over next few years and while it also expects reforms to also take place at state-level.

Meanwhile, Moody's Investors Service has revised its GDP projection for India in 2020-21 to a 10.6% contraction compared to a 11.5% drop it had estimated. The rating agency has also marginally elevated its forecast for 2021-22 GDP growth from 10.6% to 10.8%.

Further, Barclays has modestly revised its expectations of India's gross domestic product (GDP) growth for FY21 to minus 6.4% from minus 6% earlier to "reflect marginally weaker incoming data" it had earlier anticipated. However, it is upbeat about an economic revival in the economy from the next fiscal year which is FY22 and has also raised its FY22 GDP growth forecast to 8.5% from 7% earlier, to reflect a faster recovery in services amid continued policy support. Barclays also held that a "possible vaccine roll-out from Q1 21 should broaden the recovery from farm and manufacturing to services."

Buzzing Index:

The Nifty Metal index shed 0.15% to 2,748.50. The index has lost 0.86% in two sessions.

NMDC (down 3.22%), MOIL (down 1.50%), National Aluminum Co. (down 1.64%), Hindustan Zinc (down 1.56%), Hindustan Copper (down 1.48%) and Coal India (down 1.07%) declined.

Welspun Corp (up 1.48%), Ratnamani Metals Tubes (up 1.35%), JSW Steel (up 0.80%), Jindal Steel & Power (up 0.75%) and Tata Steel (up 0.40%) advanced.

Stocks in Spotlight:

Pricol rose 1.68% to Rs 60.55 after the company said its board approved the rights issue price at Rs 30 per share. The company's board at its meeting held on 19 November approved issuing 2,70,84,777 rights equity shares, for an amount aggregating up to Rs 81.25 crore.

The rights entitlement ratio is set at 2 rights shares for every 7 equity shares held by eligible shareholders as on the record date fixed on 25 November 2020. The rights issue will open on 3 December 2020 and it will close on 17 December 2020. The rights issue price of Rs 30 per share is at a 50.45% discount to the ruling market price.

L&T Technology Service (LTTS) gained 1.12% to Rs 1668 after the IT major announced that it has been selected as a consulting and professional services provider to support Amazon Alexa Voice Service integration in various connected devices. LTTS on Friday said it will implement and provide end-to-end engineering expertise from product ideation to launch for Amazon Alexa in connected products & services.

Global Markets:

US Dow Jones futures were down 192 points, indicating a negative opening in the US market today.

Asian shares were mixed on Friday as investors turned cautious over the short-term economic impact of the coronavirus as cases around the world continue to rise.

Japan's core consumer prices fell in October at their fastest pace annual in nearly a decade as the boost from last year's sales tax hike petered out, heightening fears of a return to deflation for an economy still dealing with Covid-19.

The wide core consumer prices, which excludes volatile fresh food costs, fell 0.7% in October from a year earlier, government data showed on Friday.

The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) fell to a seasonally adjusted 48.3 from a final 48.7 in October, staying below the 50.0 threshold that separates contraction from expansion for a 19th straight month.

Meanwhile, China kept its lending benchmark loan prime rate steady for the 7th straight month, in line with market expectations. The one-year rate was kept unchanged at 3.85% and the five-year rate remained at 4.65%.

The US stock market finished firmly into positive territory on Thursday, 19 November 2020, as risk sentiments improved after Senate Democratic Minority Leader Chuck Schumer said Republican Majority Leader Mitch McConnell had agreed to revive talks to craft a new fiscal relief package.

However, market gains capped after Treasury Secretary Mnuchin later asked the Federal Reserve to return money earmarked under the March pandemic relief act for emergency lending to businesses, nonprofits and local governments. Further, weighing on the market sentiment was reports of soaring coronavirus cases and an unexpected rise in weekly jobless claims which raised fears of stalling growth in the world's largest economy.

The Dow Jones Industrial Average index advanced 0.15%, the S&P 500 index grew 0.39% and the tech-heavy Nasdaq Composite Index added 0.87%.

The rising number of coronavirus cases weighed on utilities but supported 'stay-at-home' stocks in the technology sector. Shares in Alphabet (Google) rose 1% with Amazon up 0.4%. US leading economic index climbed by 0.7% in October, according to a report released by the Conference Board on Thursday.

US jobless claims climbed to 742,000 in the week ended November 14th, an increase of 31,000 from the previous week's revised level of 711,000, the Labor Department reported on Thursday.

US existing home sales jumped by 4.3% to an annual rate of 6.85 million in October after soaring by 9.9% to a revised rate of 6.57 million in September, a report released by the National Association of Realtors on Thursday showed.



Source: Capitalmarket.com