Post Session: Quick Review

Indian equity benchmarks closed at record highs on Tuesday. The start of the day was on a positive note, amid COVID-19 vaccine hopes. US-based biotechnology firm Moderna Inc said its vaccine candidate has been found to be 94.5 percent effective in preventing COVID-19, based on Phase 3 trials. Sentiments also got a boost with a private report that the Indian economy is seen recovering faster than expected and the Reserve Bank is likely to have come to an end of the rate easing cycle. In late morning deals, key indices cut some of their early gains, as the Reserve Bank of India (RBI) showed India's services exports in September fell 1.4 per cent to $17.29 billion. The services exports (receipts) in September 2019 stood at $17.54 billion. Also, the wholesale price-based inflation rose to an eight-month high of 1.48 percent in October, as manufactured products turned costlier.

However, markets remained higher for the whole trading session, as domestic sentiments were positive, after Chairman Supratim Bandyopadhyay said pension fund regulator PFRDA will propose to the government to make employers' contribution of 14 per cent under NPS tax free for all categories of subscribers in the next Budget. Employers' contribution of 14 per cent in pension under the National Pension System (NPS) scheme for the central government employees was made tax free from April 1, 2019. Traders remain energized after Foreign portfolio investors (FPIs) have invested a massive Rs 35,109 crore in Indian markets in November so far as corporate earnings and reforms measures undertaken by the government to revive investment activities.

On the global front, European markets were trading lower, as tighter coronavirus restrictions across the continent halted a market rally that was powered by encouraging COVID-19 vaccine updates. Asian markets ended mostly higher on Tuesday, after Indonesia's trade surplus increased in October, amid fall in exports and imports. The figures from Statistics Indonesia showed that the trade surplus rose to $3.61 billion in October from $0.12 billion in the last year. In August, the trade surplus was $2.35 billion. Exports declined 3.29 percent year-on-year in October. Imports fell 26.93 percent annually in October. On a monthly basis, exports rose 3.09 percent, while imports decreased 6.79 percent in October.

The BSE Sensex ended at 43952.71, up by 314.73 points or 0.72% after trading in a range of 43699.22 and 44161.16. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.08%, while Small cap index was up by 0.88%. (Provisional)

The top gaining sectoral indices on the BSE were Industrials up by 2.27%, Metal up by 2.11%, Capital Goods up by 1.99%, Bankex up by 1.88% and Realty up by 1.79%, while Oil & Gas down by 1.08%, Healthcare down by 0.74%, IT down by 0.50%, TECK down by 0.42% and Energy down by 0.39% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 6.24%, SBI up by 4.59%, HDFC Bank up by 2.81%, Bajaj Finance up by 2.62% and Axis Bank up by 2.50%. On the flip side, NTPC down by 2.69%, HCL Tech. down by 1.87%, ONGC down by 1.86%, Infosys down by 0.85% and ITC down by 0.72% were the top losers. (Provisional)

Meanwhile, India’s inflation based on wholesale price index (WPI) surged to 1.48% in the month of October, 2020 as compared to 0.00% during the corresponding month of the previous year. Component wise, primary articles index having weight of 22.62%, increased by 1.40% to 152.4 (provisional) in October, 2020 from 150.3 (provisional) for the month of September, 2020. Prices of Non-food Articles, Food Articles and Minerals increased in October, 2020 compared to September, 2020. But, prices of crude petroleum & natural gas remain unchanged.

Fuel & Power index, having weight of 13.15%, increased by 0.11% to 91.1 (provisional) in October, 2020 from 91.0 (provisional) for the month of September, 2020. Prices of Electricity increased in October, 2020 compared to September, 2020. Prices of Mineral Oils declined in October, 2020 compared to September, 2020. Prices of coal remain unchanged.

Manufactured Products constituting the major portion of the index with weight of 64.23%, increased by 0.42% to 120.3 (provisional) in October, 2020 from 119.8 (provisional) for the month of September, 2020. Meanwhile, for the month of August, 2020 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 122.0 and 0.41% respectively.

The CNX Nifty ended at 12874.20, up by 93.95 points or 0.74% after trading in a range of 12797.10 and 12934.05. There were 32 stocks advancing against 18 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Steel up by 6.20%, Tata Motors up by 6.15%, HDFC Life Insurance up by 5.34%, SBI up by 4.59% and Adani Ports & SEZ up by 3.70%. On the flip side, BPCL down by 4.41%, Hero MotoCorp down by 2.71%, NTPC down by 2.42%, Indian Oil Corporation down by 1.96% and HCL Tech. down by 1.87% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 19.84 points or 0.31% to 6,401.45, France’s CAC decreased 9.40 points or 0.17% to 5,462.08 and Germany’s DAX was down by 17.71 points or 0.13% to 13,120.90. (Provisional)

Asian markets ended mostly higher on Tuesday as expectations of a Covid-19 vaccine bolstered investors' sentiment. After Pfizer, US pharma giant Moderna has published its own preliminary analysis indicating its own vaccine had 94.5 percent effectiveness in preventing corona virus. Japanese shares ended marginally higher as reports of another promising corona virus vaccine re-ignited hope of a quick global recovery. However,, Chinese shares weighed down by losses in healthcare stocks on worries over lofty valuations, while more bond defaults hit sentiment.