Markets end at record close for second session

Indian equity benchmarks staged another stellar performance on Tuesday, rallying over one percent each and settled at their fresh record closing highs aided by positive cues in the global market. Both the S&P BSE Sensex and the NSE Nifty 50 settled above crucial 43,250 and 12,600 levels, respectively. Key gauges traded on positive note since the beginning, with optimism over Covid-19 vaccine as Pfizer Inc's said its experimental COVID-19 vaccine was more than 90 percent effective based on initial trial results, and they have so far found no serious safety concerns, priming it for possible speedy regulatory approvals. Traders also reacted positively to SBI Research report stated that a number of green shoots are visible in the economy five months after easing restrictions. It also said assuming that India escapes a second wave, the pandemic will subside by February 2021.

Local indices added gains in afternoon session, as the street remained buoyed with private report stating that with economic activities gathering pace post easing of lockdowns across the country, hiring activities in most sectors have shown significant recovery in October over the previous month. The momentum in the markets was also buoyed with oil minister Dharmendra Pradhan’s statement that India has invited global firms to invest in its strategic petroleum reserves (SPRs) as the nation's energy consumption growth would be fastest among large economies in coming decades. Adding more positivity, the country's exports grew 22.47 per cent year-on-year to $6.75 billion in the first week of November, mainly driven by healthy growth in pharmaceuticals, gems and jewellery and engineering sectors. The exports during the first week of November last year was $5.51 billion.

On the global front, Asian markets ended mostly higher on Tuesday after U.S. drug maker Pfizer and its German partner BioNTech announced positive early results from their coronavirus vaccine trial, helping boost hopes of a swifter global economic recovery. Besides, a government report showed Japan posted a current account surplus of 1,660.2 billion yen in September. That was up 4.2 percent from last year. Imports were down 19.2 percent, while exports fell an annual 4.2 percent. However, the National Bureau of Statistics said in a report that Consumer prices in China were up just 0.5 percent year-on-year in October. That was shy of expectations for 0.8 percent and down sharply from 1.7 percent. European markets were trading mostly in green, after a government report showed France's industrial production grew at a faster pace in September. Industrial production increased 1.4 percent month-on-month, following a 1.1 percent rise in August. The rate was forecast to ease to 0.8 percent.

Back home, on the sectoral front, insurance industry stocks were in focus with report that the life insurance industry with public and private life insurance companies put together grew by 32 percent, collecting a total premium of Rs 22,776 crore. Power stocks too were in watch with the power ministry stated that it has mandated all electricity distribution utilities or discoms to comply with the Energy Conservation (EC) Act, 2001, which would reduce energy losses and bring in more transparency in the sector. 

Finally, the BSE Sensex rose 680.22 points or 1.60% to 43,277.65, while the CNX Nifty was up by 170.05 points or 1.36% to 12,631.10.

The BSE Sensex touched high and low of 43,316.44 and 42,660.09, respectively and there were 20 stocks advancing against 10 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.10%, while Small cap index was down by 0.48%.

The top gaining sectoral indices on the BSE were Finance up by 3.93%, Bankex up by 3.67%, Capital Goods up by 3.04%, Realty up by 2.26% and Industrials up by 2.24%, while IT down by 3.71%, Healthcare down by 3.61%, TECK down by 3.27%, Telecom down by 0.87% and Basic Materials down by 0.30% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 8.84%, Indusind Bank up by 7.71%, Larsen & Toubro up by 6.99%, Bajaj Finserv up by 6.44% and HDFC up by 5.62%. On the flip side, Tech Mahindra down by 5.73%, HCL Technologies down by 5.36%, Nestle down by 4.08%, Infosys down by 3.98% and Sun Pharma down by 3.66% were the top losers.

Meanwhile, SBI Research in its latest report has said a number of green shoots are visible in the economy five months after easing restrictions. Further, the report said that assuming that India escapes a second wave, the pandemic will subside by February 2021.

The report mentioned that corporate results for July-September quarter shows that the companies producing essential goods have mostly witnessed strong results while those producing non-essential goods and services have mostly shown weaker results. Moreover, rating upgrades to downgrade ratio, though much below one- implying downgrades are still higher than upgrades - has shown signs of improvement from the April-June quarter. Besides, it said the SBI Business Activity Index as well SBI Index continues to improve in October.

The report also quotes other indicators such as Apple Mobility, RTO transactions, PMI manufacturing, GST e-way bills, petrol consumption, vehicle sales, SBI index, food arrival and prices and Air quality all show improved economic activity in October. The numbers have also crossed the peak reached in last 1 year for some indicators including manufacturing index, GST e-way bills, vehicle sales (from the positive level reached 2 years ago).

The CNX Nifty traded in a range of 12,643.90 and 12,475.25 and there were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 8.93%, Indusind Bank up by 7.29%, Larsen & Toubro up by 6.85%, Bajaj Finserv up by 5.96% and SBI up by 5.69%. On the flip side, Tech Mahindra down by 5.73%, Cipla down by 5.37%, HCL Technologies down by 5.01%, Divis Lab down by 4.49% and Nestle down by 3.83% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 63.19 points or 1.02% to 6,249.48 and France’s CAC increased 48.29 points or 0.9% to 5,384.61, while Germany’s DAX decreased 30.46 points or 0.23% to 13,065.51.

Asian markets ended mostly higher on Tuesday after Pfizer and BioNTech announced that their vaccine candidate was more than 90 percent effective in preventing Covid-19 and that they have so far found no serious safety concerns, which fueled hopes for a quick global economic recovery from the pandemic-driven crisis. Japanese shares ended higher after its Prime Minister Yoshihide Suga instructed his ministers to compile a third extra budget for fiscal 2020, which will end in March, to finance a fresh stimulus package to fight the economic impact of the pandemic, while a cheaper yen has also supporting Japanese shares. Though, Chinese shares declined as the latest inflation data rekindled worries about deflation. Consumer prices in China were up just 0.5 percent year on year in October against expectations for 0.8 percent and down sharply from 1.7 percent, the National Bureau of Statistics said in a report. The bureau also said that producer prices were down an annual 2.1 percent, unchanged from the previous month but missing expectations for a 2 percent decline.