Post Session: Quick Review

Indian equity benchmarks managed to end the last trading day of the week in green terrain. The start of the day was on a negative note, as retail inflation soared to a 77-month high in October led by a surge in food prices. The inflation based on the Consumer Price Index (CPI) was 4.62 percent for the same period a year ago. Benchmarks remained weak for the whole day, but staged recovery from early losses, after industrial production, measured on the basis of Index of Industrial Production (IIP), grew slightly by 0.2 per cent in September 2020 with higher output of mining and power generation sectors. The IIP had contracted by 4.6 per cent in September 2019, while 7.36 per cent contraction posted in August 2020.

Key indices ended the day with notable gains, as Finance Minister Nirmala Sitharaman said the Indian economy is witnessing a strong recovery after a long and strict lockdown. She said macro-economic indicators are pointing towards recovery. Some optimism also came after Reserve Bank of India (RBI) has said it will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for an aggregate amount of Rs 10,000 crore each on November 19. RBI said that the decision was taken after a review of the current liquidity and financial conditions.

On the global front, European markets were trading mostly in red as excitement over the Covid-19 vaccine falls. Asian markets ended mostly lower on Friday, even after Malaysia's economy contracted at a slower pace in the third quarter after the reopening of the economy and better foreign demand. The official data revealed that gross domestic product fell 2.7 percent on a yearly basis in the third quarter, following a sharp 17.1 percent decline seen in the second quarter. GDP was forecast to fall 3.2 percent. Quarter-on-quarter, the economy registered a sharp growth of 18.2 percent, in contrast to a 16.5 percent fall seen in the second quarter.

The BSE Sensex ended at 43443.00, up by 85.81 points or 0.20% after trading in a range of 43053.37 and 43522.25. There were 17 stocks advancing against 13 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.86%, while Small cap index was up by 1.12%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 1.94%, Realty up by 1.37%, Healthcare up by 1.30%, Basic Materials up by 1.09% and Bankex up by 0.88%, while Capital Goods down by 0.33%, Telecom down by 0.28%, FMCG down by 0.22%, Industrials down by 0.13% and TECK down by 0.04% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finserv up by 3.84%, Tata Steel up by 2.82%, ICICI Bank up by 1.91%, Axis Bank up by 1.81% and Bajaj Finance up by 1.77%. On the flip side, Larsen & Toubro down by 2.04%, HDFC down by 1.04%, HDFC Bank down by 0.94%, Bharti Airtel down by 0.79% and Tech Mahindra down by 0.53% were the top losers. (Provisional)

Meanwhile, as part of Government of India’s stimulus to the economy, Union Minister for Finance & Corporate Affairs Nirmala Sitharaman has unveiled 12 key measures under AatmaNirbhar Bharat 3.0. The net stimulus announced amounts to Rs 2.65 Lakh crore.

AatmaNirbhar Bharat Rozgar Yojana, a new scheme to incentivize job creation during COVID-19 recovery has been launched. If EPFO-registered establishments take in new employees without EPFO registration or those who lost jobs earlier, the Yojana will benefit these employees. Emergency Credit Line Guarantee Scheme for MSMEs, businesses, MUDRA borrowers and individuals (loans for business purposes), has been extended till March 31, 2021.

Besides, 10 more Champion Sectors will be covered under the Production Linked Incentives Scheme to help boost competitiveness of domestic manufacturing. This will give a big boost to economy, investment, exports and job creation. To provide ease of doing business and relief to contractors whose money otherwise remains locked up, performance security on contracts has been reduced from 5-10% to 3%. It will also extend to ongoing contracts and Public Sector Enterprises.

The CNX Nifty ended at 12719.95, up by 29.15 points or 0.23% after trading in a range of 12607.70 and 12735.95. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Eicher Motors up by 6.97%, Bajaj Finserv up by 3.34%, Coal India up by 3.11%, Tata Steel up by 2.83% and Divis Lab up by 1.96%. On the flip side, Tata Motors down by 3.21%, Larsen & Toubro down by 2.02%, HDFC down by 1.09%, UPL down by 0.99% and HDFC Bank down by 0.94% were the top losers. (Provisional)

European markets were trading mostly in red, UK’s FTSE 100 decreased 34.37 points or 0.54% to 6,304.57 and Germany’s DAX was down by 17.19 points or 0.13% to 13,035.76. On the flip side, France’s CAC was up by 6.66 points or 0.12% to 5,369.23.

Asian markets ended mostly lower on Friday on account of concerns over resurgence of the new corona virus cases across the United States and Europe. Further, US Federal Chair Jerome Powell's cautious comments on the outlook for economic recovery during a virtual event also added pressure on market sentiment. With the virus spreading, the next few months could be challenging despite recent upbeat news about a potential vaccine, Powell said. Chinese shared ended lower after US President Donald Trump signed an executive order banning US investments in Chinese firms that are determined to be owned or controlled by the Chinese military. However, South Korean shares ended higher, even as the country reported its biggest daily jump in Covid-19 cases in 70 days. South Korea's Prime Minister Chung Sye-kyun said the viral spread could force the government to seriously consider tightening social distancing again. Japanese shares ended higher on optimism over Biden's victory in the US presidential race and American drug-maker Pfizer Inc's promising vaccine trial data.