Indian equities end Samvat 2076 on positive note

Indian equity benchmarks ended Friday's session, the last trading day of Samvat 2076 on a positive note after oscillating between gains and losses during the day, led by buying interest in metal, realty and healthcare shares. The benchmarks had a gap-down opening, as data released by the government showing that retail inflation inched up to 7.61 per cent in October, remaining above the comfort level of the Reserve Bank. Inflation stood at 7.27 per cent in September 2020. It was 4.62 per cent in October 2019. The rise in general inflation was mainly on account of elevated food prices. Volatility struck bourses in late morning session as traders remained concerned with report that India has reported 43,861 fresh Covid-19 cases in the past 24 hours. The total caseload now stands at 8,727,900. The country's death toll has mounted to 128,686. 

However, local indices gave up all of their initial losses and managed to close in green, as 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. Some support also came with Finance Minister Nirmala Sitharaman’s statement that perishable goods are putting upward pressure on inflation and the government is working on both short and medium-term measures for controlling price rise. Adding to the optimism, auto industry body SIAM said that the stimulus measures announced by the government would help in accelerating economic activity in many critical sectors. It appreciates the proactive role being played by the government for supporting a quick and sustainable revival of the economy.

On the global front, Asian markets ended mostly lower as a resurgence of the new coronavirus cases around the globe overshadowed investor optimism that vaccines under development could help to slow the spread of the novel coronavirus. Fed Chair's Jerome Powell's cautious comments on the outlook for economic recovery and media reports suggesting that U.S. Democrats and Republicans are still far apart on an economic stimulus deals also contributed to the cautious mood. European markets were trading mostly in green despite the political impasse in the U.S. over additional fiscal stimulus and rising cases of coronavirus infections in the U.S., Europe and Asia. Back home, on the sectoral front, fertilizer industry stocks were in focus after Finance Minister Nirmala Sitharaman announced Rs 65,000-crore fertilizer subsidy for farmers as part of her stimulus package to boost the economy. Stocks related to shipping sector were in watch as Ports, Shipping and Waterways Minister Mansukh Mandaviya said the government will focus on creating a port grid in the country besides development of waterways and coastal shipping. He also said that 1,400 kilometres of waterways have been fully developed and an additional 1,000 kilometres of waterways are being developed on a priority basis.

Finally, the BSE Sensex rose 85.81 points or 0.20% to 43,443.00, while the CNX Nifty was up by 29.15 points or 0.23% to 12,719.95.

The BSE Sensex touched high and low of 43,522.25 and 43,053.37, respectively and there were 17 stocks advancing against 13 stocks declining on the index.

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

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.

The top gainers on the Sensex were Bajaj Finserv up by 3.32%, 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.

Meanwhile, the 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 November 19, the RBI will purchase three government securities of different maturity dates aggregating to Rs 10,000 crore and will also sell two securities maturing at different dates aggregating to the same amount. This will be done using the multiple price auction method.

The RBI said it reserves the right to decide on the quantum of purchase/ sale of individual securities. The result of the auctions will be announced on the same day. Simultaneous purchase and sale of government securities under OMOs, popularly known as Operation Twist, involves purchasing government securities of longer maturities and selling equal amount of such securities of shorter maturities.

The CNX Nifty traded in a range of 12,735.95 and 12,607.70 and there were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 7.46%, Bajaj Finserv up by 3.74%, Coal India up by 3.07%, Tata Steel up by 2.98% and Divis Lab up by 1.90%. On the flip side, Tata Motors down by 3.34%, Larsen & Toubro down by 1.93%, HDFC down by 1.11%, HDFC Bank 1.07% and UPL down by 0.93% were the top losers.

European markets were trading mostly in green,  France’s CAC increased 27.61 points or 0.51% to 5,390.18 and Germany’s DAX increased 60.45 points or 0.46% to 13,113.40, while, UK’s FTSE 100 decreased 10.41 points or 0.16% to 6,328.53.

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.