Post Session: Quick Review

Indian equity benchmarks ended sluggish day on a flat note on Wednesday. Markets made a cautious start, as ICRA in its latest report has said that debt resolution through the insolvency and bankruptcy code (IBC) and the resultant realisation for financial creditors has taken a hit so far this fiscal due to the pandemic that led to suspension of fresh proceedings. Losses got extended in noon deals, amid reports that COVID-19 has drastically affected the investment climate in all economies of the world, causing a sharp decline in the demand and supply equilibrium everywhere. India has been no exception to this unprecedented economic shock. Yet, investment sentiment in the Indian economy has been buoyed by the frequent and active intervention of the Government of India despite being hit by a world-wide pandemic.

However, in the last hour of the trade, key indices cut most of their losses to close flat, taking support with report that the Organization for Economic Co-operation and Development (OECD) has raised prospects of India’s economy by pegging contraction at 9.9 per cent, against 10.2 per cent it projected in September. Some optimism also came in as the gross Goods and Services Tax (GST) collection for November stood at Rs 1.04 lakh crore, 1.4 percent higher than the sum collected in the same month last year. Traders took note of report that 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.

On the global front, European markets were trading mostly in red. Asian markets ended mixed on Wednesday, after consumer prices in South Korea were up 0.6 percent on year in November. The Statistics Korea said that missed forecasts for an increase of 0.9 percent but was up from 0.1 percent in the previous month. On a monthly basis, inflation eased 0.1 percent - again shy of expectations for an increase of 0.2 percent but improving from the 0.6 percent contraction in October. Core CPI, which excludes volatile food costs, gained an annual 0.6 percent after slipping 0.3 percent a month earlier.

The BSE Sensex ended at 44618.04, down by 37.40 points or 0.08% after trading in a range of 44169.97 and 44729.64. There were 22 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.55%, while Small cap index was up by 0.68%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 3.05%, Metal up by 2.55%, Consumer Durables up by 2.00%, Oil & Gas up by 1.71% and Utilities up by 1.59%, while Bankex down by 1.29% was the only losing index on BSE. (Provisional)

The top gainers on the Sensex were ONGC up by 4.11%, Asian Paints up by 3.74%, Titan Co up by 3.48%, Tata Steel up by 3.19% and Bajaj Auto up by 2.86%. On the flip side, Kotak Mahindra Bank down by 3.28%, HDFC Bank down by 1.86%, HDFC down by 1.28%, ICICI Bank down by 0.99% and Nestle down by 0.87% were the top losers. (Provisional)

Meanwhile, highlighting agriculture development as the top priority for Government of India, Minister of Agriculture & Farmers Welfare Narendra Singh Tomar has said that the Government is fully committed towards the welfare of farmers.

The Minister proposed to constitute an expert committee to put forth the issues of farmers so as to resolve them with mutual consent but the representative of the Farmers Union suggested that all the representatives will attend further round of discussions with the Government to resolve the matter amicably.

Meanwhile, Narendra Singh Tomar, Piyush Goyal, Minister of Railways & Commerce and Som Prakash, Minister of State, Ministry of Commerce and Industries interacted with the representatives of Farmers Organizations of Punjab. The Ministers again explained the benefits of Farm Reform Acts to the representatives of the Farmers’ Unions. Various issues related to Farm Reform Acts were discussed at length and talks were held in a cordial atmosphere.

The CNX Nifty ended at 13113.75, up by 4.70 points or 0.04% after trading in a range of 12983.55 and 13128.50. There were 38 stocks advancing against 12 stocks declining on the index. (Provisional)

The top gainers on Nifty were GAIL India up by 5.42%, ONGC up by 4.05%, Asian Paints up by 3.85%, Titan Co up by 3.57% and Adani Ports & SEZ up by 3.40%. On the flip side, Kotak Mahindra Bank down by 3.29%, HDFC Bank down by 1.84%, HDFC down by 1.33%, Shree Cement down by 1.09% and ICICI Bank down by 0.96% were the top losers. (Provisional)

European markets were trading mostly in red, France’s CAC decreased 16.22 points or 0.29% to 5,565.42 and Germany’s DAX decreased 77.04 points or 0.58% to 13,305.26. On the flip side, UK’s FTSE 100 was up by 1.45 points or 0.02% to 6,386.18.

Asian markets ended mixed on Wednesday as investors booked profits after record November, while optimism surrounding Covid-19 vaccines after the European Medicines Agency said it received applications for emergency approval of vaccines developed by Pfizer with BioNTech and Moderna kept market sentiment well supported. Also helping sentiment, a bipartisan group of US legislators unveiled a $908 billion Covid-19 relief bill on Tuesday. Japanese shares ended almost flat despite hopes for economic recovery if vaccines are rolled out fast.