Domestic stock markets soared to record highs on Tuesday as data showing a smaller-than-expected contraction in the economy and broader optimism stemming from hopes for a COVID-19 vaccine boosted investor sentiment. The S&P BSE Sensex index jumped 581.07 points, or 1.32 per cent, to touch 44,730.79 at the strongest level recorded during the session, and the broader NSE Nifty 50 benchmark climbed to as high as 13,128.40, gaining 159.45 points, or 1.23 per cent, from its previous close. Both indices clocked gains of more than 11 per cent in November, driven by record inflows from foreign institutional investors (FIIs) and news on progress in COVID-19 vaccines. (Stocks To Watch Today)
Here are highlights of Tuesday’s (December 1) trading session:
The Sensex ended 505.72 points, or 1.15 per cent, higher at 44,655.44 and the Nifty settled at 13,109.05, up 140.10 points, or 1.08 per cent, from its previous close – both record closing highs.
How NSE Sectors Fared At Close
Nifty Realty: +3.33%
Nifty PSU Bank: +2.88%
Nifty IT: +1.87%
Nifty Media: +1.85%
Nifty Pharma: +1.74%
Nifty Metal: +1.65%
Nifty Auto: +1.07%
Nifty Private Bank: +0.75%
Nifty Bank: +0.71%
Nifty Financial Services: +0.41%
Nifty FMCG: -0.04%
Gains in heavyweights Infosys, ICICI Bank, Reliance Industries, HDFC and Tata Consultancy Services led the markets higher.
Top Nifty gainers:
- GAIL India: +8%
- Sun Pharma: +5.66%
- IndusInd Bank: +4.94%
- Tech Mahindra: +3.99%
- UPL: +3.85%
Top Nifty losers:
- Nestle India: -2.56%
- Kotak Mahindra Bank: -1.5%
- Titan: -1.3%
- Bajaj Finance: -0.99%
- HDFC Bank: -0.94%
Adani Power shares jumped as much as 7 per cent to Rs 41 apiece on the BSE amid high trading volumes. As many as 9 lakh shares changed hands on the BSE compared with a daily average of 4 lakh shares recorded over the past two weeks, exchange data showed.
CARE Ratings shares jumped as much as 15 per cent to Rs 579 apiece on the BSE on the back of heavy volumes. As many as 1.3 lakh CARE shares changed hands on the BSE compared with a daily average of 27,000 recorded over the past two weeks.
GAIL, Sun Pharma, IndusInd Bank and ONGC were the top percentage gainers in the Nifty basket 50 shares. Nestle, Kotak Mahindra Bank and Titan – down 1.84-2.56 per cent each – were the worst hit among 11 laggards in the index.
Top Nifty Gainers
Sun Pharma: +5.47%
IndusInd Bank: +4.27%
Bharti Airtel: +3.40%
Top Nifty Losers
HDFC Life: -0.46%
Bajaj Finance: -0.69%
Kotak Mahindra Bank: -1.92%
In the currency market, the rupee was last seen trading stronger by 45 paise, or 0.62 per cent, at 73.59 against the US dollar.
The government said its revenue from Goods and Services Tax (GST) came in at Rs 1,04,963 crore in November. That marked a second straight month in which the government’s GST collections crossed the Rs 1 lakh crore mark.
All sectors listed on the NSE clocked gains, led by real estate and state-run banking stocks.
How NSE Sectors Fared In Late Afternoon Deals
Nifty Realty: +3.33%
Nifty PSU Bank: +2.77%
Nifty Media: +2.34%
Nifty Pharma: +1.88%
Nifty IT: +1.49%
Nifty Metal: +1.20%
Nifty Auto: +1.13%
Nifty Private Bank: +0.81%
Nifty Bank: +0.80%
Nifty Financial Services: +0.61%
Nifty FMCG: +0.08%
In the Nifty basket of 50 shares, financial services shares have the maximum weightage of 39.28 per cent, followed by IT counters (15.75 per cent).
Brokerage Emkay said the July-September GDP reading “expectedly staged a sharp sequential recovery, driven by across-the-board improvement amid a reversion to normalcy”. Going forward, the brokerage said it will keenly watch out for sustainability of better-than-expected momentum in the coming months, especially as pent-up and festive demand tapers, inventory replenishment is possibly over, stress in the jobs market continues, and effective fiscal policy stimulus remains sub-optimal.
“The next leg of sequential recovery may emerge from services which has been a laggard so far, while government spending may also improve marginally,” said Emkay, which expects the country’s GDP to contract 7.1 per cent in financial year 2020-21, with a mild downward bias.
At 2:34 pm, the Sensex traded 511.17 points – or 1.16 per cent – higher at 44,660.89 while the Nifty was up 145.10 points – or 1.12 per cent – at 13,114.05. Gains across sectors – led by automobile, IT, pharmaceutical and metal shares – pushed the markets higher.
“After three days of break to the Indian market, Sensex and Nifty both had a great start for the week. With record foreign institutional investor buying in November series, the market is all set to move further up,” said Rahul Sharma, market strategist and head of research at Equity99 Advisors.
“The Nifty at this point will be consolidating between the low range of 12,800 and the high range of 13,200, and as soon as the index breaches these levels, another rally of 200-300 points may be witnessed on the either side of market. A stock-specific rally is expected to continue,” he added.
The benchmarks continue to trade on a strong note in afternoon trading on the back of a broad-based buying interest.
Key market statistics to watch:
- Nifty up 152 points at 13,121
- Sensex up 528 points at 44,677
- Market breadth extremely positive as 1,848 shares gain while 942 fall on the BSE
- GAIL India, Sun Pharma, ONGC, Bharti Airtel, Grasim Industries and IndusInd Bank top Nifty gainers
- Nestle India, Kotak Mahindra Bank, Titan, Bajaj Finance and NTPC among notable losers
Maruti Suzuki annual sales rose 1.7 per cent in November to 153,223 units versus 150,630 units during the same month last year.
Key sales highlights:
- Mini segment sales decline 15%
- Compact segment sales decline 1.8%
- Ciaz sales rise 29.1%
India’s manufacturing recovery faltered in November as coronavirus fears weighed on demand and output, prompting firms to cut jobs for the eighth month in a row, a survey showed.
Asia’s third-largest economy and the second most affected country by the pandemic contracted 7.5 per cent in the July-September quarter, compared to a record 23.9 per cent slump in the previous quarter amid some signs of a recovery in manufacturing, official data showed on Friday.
But the Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, declined to 56.3 in November from October’s more than a decade high of 58.9, although it well above the 50-level separating growth from contraction for a fourth month.
Sub-indexes tracking overall demand and output indicated robust growth but rates of expansion were the weakest in three months.
HDFC Securities in a note recommends buying PFC December futures contract at the current market price for target of Rs 118 with stop loss at Rs 104.50.
The brokerage also recommends selling Bajaj Finance December futures contract around Rs 4,800-4,985 with stop loss at Rs 5.060 for target of Rs 4,450.
Market breadth was extremely positive as 1,810 shares were advancing while 929 were declining on the BSE.
Real estate shares were witnessing strong buying interest as the Nifty realty index surged over 3 per cent.
Top gainers in real estate space:
- Indiabulls Real Estate up 7%
- Prestige Estates up 6.17%
- DLF up 4.35%
- Godrej Properties up 2.32%
- Oberoi Realty up 2.27%
Buying was visible across sectors as all the 11 sector gauges compiled by the National Stock Exchange, barring the index of FMCG shares, were trading higher led by Nifty Realty index’s 3 per cent gain. Pharma, PSU Bank and IT indexes were also up between 1-2.5 per cent each.
The Reserve Bank of India monetary policy committee is expected to leave interest rates unchanged when it meets on Friday, after data showing the economy contracting less than expected and persistently high inflation. Economists and market participants are closely watching the commentary from the RBI around liquidity
The overnight call money rate has fallen below the reverse repo rate on days on account of the excess liquidity in the banking system.
“The MPC’s views on liquidity will assume more importance, as the transient surplus has pushed down short-term/overnight rates sharply,” said Radhika Rao, an economist with DBS Bank.
Economists expect the RBI to announce measures to help tweak market rates through liquidity absorbtion operations or giving increased access to the reverse repo window to more market participants.
The S&P BSE Sensex and NSE Nifty 50 indexes came off intraday highs as Kotak Mahindra Bank, Bajaj Finance, Larssen & Tooubro and Titan came under selling pressure.
As of 12:42 pm, the Sensex was up 326 points at 44,476 and Nifty was up 93 points at 13,062.
Commercial vehicle maker Ashok Leyland reported its sales for vehicles which rose 5 per cent on a year-on-year basis. Stock was trading 0.2 per cent higher at Rs 92.30.
Ashok Leyland sales highlights
- Total vehicle sales rise 5 per cent to 10,659 units
- Light commercial vehicle sales up 32 per cent at 5,545 units
- Medium and heavy commercial vehicle sales down 14 per cent at 5,114
Auto companies had reported rise in passenger vehicle sales for the third straight month, in October, buoyed by heightened demand during Navratri and Dussehra festivals, and recovery in economic activity following easing of lockdown curbs.
The S&P BSE Sensex and NSE Nifty 50 indexes were trading on a strong note in noon deals led by gains in Infosys, ICICI Bank, Reliance Industries, HDFC, Bharti Airtel, and Sun Pharma.
- 26 out of 30 shares in the Sensex were trading higher
- Sun Pharma, ONGC, Bharti Airtel, Infosys and ICICI Bank were among the top gainers
- Kotak Mahindra Bank, Titan, Nestle India, Bajaj Finance and Mahindra & Mahindra were among the notable laggards
MSCI’s broadest index of Asia-Pacific shares outside Japan added 1.08 per cent, having closed November with a gain of 9 per cent. That marked the best November since 2001. China’s blue-chip CSI300 index jumped to be 1.56 per cent higher on Tuesday, after a business survey showed on Tuesday activity in China’s factory sector accelerated at the fastest pace in a decade in November. Japan’s Nikkei was up 1.34 per cent while South Korea was up 1.5 per cent.
Moderna Inc applied for US emergency authorization for its COVID-19 vaccine after full results from a late-stage study showed it was 94.1% effective with no serious safety concerns.
“13,040 – 13,146 remains an immediate resistance zone; whereas on the lower side, 12,900 – 12,868 – 12,790 can be seen as cluster of supports,” Mr Chavan added.
Mr Chavan has advised traders to trade with a positive bias as long as the Nifty stays above 12,790 – 12,730. However, he advises avoiding aggressive bets on the index and focus on individual stocks.
“With this week’s minor decline, 12,790 – 12,730 has become a sacrosanct support and till the time it is not breached convincingly, one should trade with a positive bias. Although the overall trend has been strongly up, we still believe that one should avoid aggressive bets and rather focus on individual stocks with proper risk management,” he added.
Equity markets across Asia began the new month with sharp gains, buoyed by the prospect of a COVID-19 vaccine fueling a global economic recovery, buoyant Chinese factory activity and expectations of continuing fiscal and monetary support.
US-based Moderna said on Monday that it had applied for US emergency authorisation for its COVID-19 vaccine, supporting broader Asian shares on Tuesday despite an overnight dip on Wall Street.
The current rally in domestic stock markets is set to continue and hit new record highs in 2021, according to a poll of equity strategists by news agency Reuters.
The Nifty Bank index – which tracks stocks of 12 major lenders in the country – traded 0.68 per cent higher, having gained nearly 24 per cent last month. The index moved in a range of 29,511.00-29,889.45, as against its previous close of 29,609.05.
Finance stocks would remain in a tight range until the central bank’s policy rate decision due later this week, said Gaurav Garg, head of research at CapitalVia Global Research.
Investors awaited more auto makers to report their monthly sales data due later in the day.
The Nifty Auto index – which tracks stocks of 15 auto and auto ancillary companies – fluctuated between gains and losses, and was last seen trading 0.32 per cent lower.
Maruti Suzuki shares traded 0.27 per cent higher at Rs 7,046 apiece on the BSE, while the Bajaj Auto stock was up 0.42 per cent at Rs 3,186.90.
Total Domestic Sales (November 2020 vs November 2019)
Bajaj Auto: -4.26%
Maruti Suzuki: -1.73%
“India’s GDP data has positively surprised markets, there are signs of recovery in key sectors,” said Gaurav Garg, head of research at CapitalVia Global Research.
“Most of the impact of vaccine-related news has been incorporated by markets, which we saw in the rally in November,” he added.
CapitalVia’s Mr Garg also said the domestic markets could consolidate in the coming days.
Domestic share markets registered sharp gains on the first day of December, following their best monthly gain since April, with sentiment lifted by data showing a smaller-than-expected contraction in the economy and broader optimism stemming from hopes for a COVID-19 vaccine.
Benchmark Sensex and Nifty indices closed out November with gains of more than 11 per cent each, driven by record inflows from foreign institutional investors and news on progress in COVID-19 vaccines.
Shares across segments supported the overall gains in domestic markets.
Nifty Midcap 100: +0.56%
Nifty Smallcap 100: +0.77%
S&P BSE MidCap: +0.60%
S&P BSE SmallCap: +0.67%
S&P BSE AllCap: +0.85%
Maruti Suzuki India posted total sales of 153,223 vehicles last month, marking an increase of 1.7 per cent compared to the corresponding period last year. Total sales included domestic sales of 1,38,956 vehicles.
The country’s largest carmaker exported 9,004 units in November 2020.
Maruti Suzuki said it “remains committed to the health, safety and well-being of all members across its value chain. All manufacturing, sales and service operations continue to take place fully consistent with all safety requirements for employees and customers.”
Market LIVE Updates: Infosys, ICICI Bank, RIL Top Boosts For Sensex
Infosys, ICICI Bank, Reliance Industries and HDFC were the biggest contributors to the gain in Sensex. The four accounted for nearly 200 points in the Sensex.
Banking and financial services shares fluctuated between gains and losses, whereas most other sectors continued to rise.
The NSE’s India VIX index – which measures the expectation of volatility in the near term – jumped as much as 5.29 per cent.
All sectoral indices on the NSE were up at the end of the first hour of trade.
Nifty Bank: +0.23%
Nifty Auto: +0.10%
Nifty Financial Services: 0.12%
Nifty FMCG: 0.06%
Nifty IT: 0.79%
Nifty Media: 0.60%
Nifty Metal: 0.97%
Nifty Pharma: 0.63%
Nifty PSU Bank: 1.38%
Nifty Private Bank: 0.32%
Nifty Realty: +2.43%
S&P BSE Basic Materials: +1.51%
S&P BSE Consumer Discretionary Goods & Services: v0.55%
S&P BSE Energy: +0.50%
S&P BSE Fast Moving Consumer Goods: +0.29%
S&P BSE Finance: +0.29%
S&P BSE Healthcare: +0.58%
S&P BSE Industrials: +0.74%
S&P BSE Information Technology: +1.12%
S&P BSE Telecom: +0.63%
S&P BSE Utilities: +1.58%
S&P BSE Auto: +0.33%
S&P BSE Bankex: +0.18%
S&P BSE Capital Goods: +0.82%
S&P BSE Consumer Durables: -0.25%
S&P BSE Metal: +0.91%
S&P BSE Oil & Gas: +1.16%
S&P BSE Power: +1.28%
S&P BSE Realty: +2.54%
S&P BSE Tech: +1.04%
Stock Market LIVE: Market Breadth Favours Gains
Overall market breadth favoured gains, with an advance-decline ratio of 2:1, as 1,448 shares on the Bombay Stock Exchange (BSE) traded higher against 687 that moved lower. On the National Stock Exchange, 1,144 shares rose while 579 declined.
Top percentage gainers in the Nifty basket of 50 shares at the time were GAIL, UltraTech Cement and Shree Cement, trading between 2.43 per cent and 3.46 per cent higher.
Top Nifty Gainers
UltraTech Cement: 2.54%
Shree Cement: 2.43%
IndusInd Bank: 1.98%
JSW Steel: 1.66%
Top Nifty Laggards
HDFC Bank: -0.39%
HCL Tech: -0.58%
Kotak Mahindra Bank: -1.50%
At 9:40 am, the Sensex traded 170.40 points – or 0.39 per cent – higher at 44,320.12, and the Nifty traded at 13,002.30, up 33.35 points – or 0.26 per cent – from its previous close.
The S&P BSE Sensex index rose 320.54 points – or 0.73 per cent – to touch 44,470.26 at the strongest level recorded in early deals, and the broader NSE Nifty 50 benchmark climbed to as high as 13,064.20, up 95.25 points – or 0.73 per cent – from its previous close. Buying interest in IT, pharmaceutical and metal shares supported the markets, however selling pressure in select financial stocks capped the upside.
Data released after market hours on Friday showed the country’s GDP shrank 7.5 per cent in the second quarter of current financial year. That was better than economists’ average forecast of 8.8 per cent, after the GDP contracted a record 23.9 per cent in the April-June period.
The contraction became less severe amid signs of a pickup in manufacturing, and economists expect a steady recovery next year if progress on coronavirus vaccines feeds consumer demand.
Sensex Opens Over 250 Points Higher
The S&P BSE Sensex index opened 286.11 points – or 0.65 per cent – higher at 44,435.83, and the broader NSE Nifty 50 benchmark began the day at 13,062.20, up 93.25 points – or 0.72 per cent – from its previous close.
At 8:43 am, the SGX Nifty futures traded 12.00 points – or 0.09 per cent – higher at 13,009.00.
Official data released after market hours on Friday showed the country’s gross domestic product (GDP) contracted a better-than-expected 7.5 per cent in the July-September period.
Domestic stock markets are likely to start Tuesday’s session on a positive note, resuming trade after a day’s holiday on account of Guru Nanak Jayanti.
The Singapore Exchange’s Nifty futures – an early indicator of the National Stock Exchange’s Nifty 50 benchmark index – rose 28.8 points, or 0.22 per cent, to touch 13,025.80 at the strongest level recorded ahead of the opening of Indian markets.