Post Session: Quick Review

Indian equity benchmarks closed at fresh record highs on Monday’s trading session. The start of the day was on a cautious note, as the Reserve Bank of India ( RBI) in its latest consumer confidence survey has showed that consumer confidence remained very low in November 2020 when compared to a year ago, though it showed a marginal improvement over the all-time low recorded in the previous round. But soon, key indices added gains, taking support with Niti Aayog vice chairman Rajiv Kumar’s statement that India's economic growth is likely to reach pre-COVID-19 levels by the end of the 2021-22 fiscal as the GDP contraction in this financial year is expected to be less than 8 per cent.

In the second half of the trading session, markets gained traction, as DPIIT data showed that foreign direct investment (FDI) equity inflows into India crossed the $500 billion milestone during April 2000 to September 2020 period. The inflows during the period stood at $500.12 billion. Traders took encouragement with reports that the Ministry of Commerce and Industry and the Ministry of AYUSH have decided to work together to set up an Export Promotion Council to boost export of AYUSH products. The decision was taken recently in a joint review meeting attended by Commerce and Industry Minister Piyush Goyal and Minister of AYUSH Shripad Naik.

On the global front, European markets were trading mostly in red. Asian markets ended mixed on Monday, even after Japan's leading index rose to its highest level in sixteen months in October. The preliminary data from the Cabinet Office showed that the leading index, which measures the future economic activity, climbed to 93.8 in October from 93.3 in September. The latest reading was the highest since June last year, when it was 94.1. The coincident index increased to 89.7 in October from 84.8 in the previous month. This was the highest since February. Meanwhile, the lagging index fell to 89.9 in October from 91.7 in the prior month. A similar lower reading was recorded since April 2011.

The BSE Sensex ended at 45426.97, up by 347.42 points or 0.77% after trading in a range of 45024.47 and 45458.92. 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 0.95%, while Small cap index was up by 1.30%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 2.78%, FMCG up by 1.60%, PSU up by 1.59%, Healthcare up by 1.57% and Oil & Gas up by 1.25%, while Consumer Durables down by 0.45%, Realty down by 0.27% and Power down by 0.01% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Hindustan Unilever up by 3.09%, Bharti Airtel up by 3.05%, HDFC up by 2.54%, ITC up by 2.50% and Indusind Bank up by 2.41%. On the flip side, Kotak Mahindra Bank down by 1.37%, Nestle down by 1.36%, Tata Steel down by 1.31%, Bajaj Finance down by 1.02% and HDFC Bank down by 0.94% were the top losers. (Provisional)

Meanwhile, the Reserve Bank of India ( RBI) in its latest consumer confidence survey has showed that consumer confidence remained very low in November 2020 when compared to a year ago, though it showed a marginal improvement over the all-time low recorded in the previous round.

The report noted that weak confidence is attributable to the consumer sentiments on general economic situation, employment scenario, price levels and household incomes. As per the report, households remain optimistic about the one year ahead situation, with the future expectations index (FEI) remaining in growth terrain at 115.9.

Respondents reported higher essential and overall spending, though discretionary expenditure contracted; non-essential spending is expected to contract further in the coming year. In view of the COVID-19 pandemic, the survey was conducted through field interviews, wherever possible, and telephonic interviews elsewhere, during October 30 - November 12, 2020 in thirteen major cities, viz., Ahmedabad; Bengaluru; Bhopal; Chennai; Delhi; Guwahati; Hyderabad; Jaipur; Kolkata; Lucknow; Mumbai; Patna; and Thiruvananthapuram.

The CNX Nifty ended at 13355.75, up by 97.20 points or 0.73% after trading in a range of 13241.95 and 13366.65. There were 32 stocks advancing against 18 stocks declining on the index. (Provisional)

The top gainers on Nifty were UPL up by 4.44%, Adani Ports & SEZ up by 3.92%, Hindustan Unilever up by 3.29%, Bharti Airtel up by 3.08% and Coal India up by 2.63%. On the flip side, Nestle down by 1.49%, JSW Steel down by 1.46%, Kotak Mahindra Bank down by 1.39%, Tata Steel down by 1.31% and SBI Life Insurance down by 1.30% were the top losers. (Provisional)

European markets were trading mostly in red, France’s CAC decreased 56.46 points or 1.01% to 5,552.69 and Germany’s DAX was down by 42.05 points or 0.32% to 13,256.91. On the flip side, UK’s FTSE 100 was up by 7.47 points or 0.11% to 6,557.70.

Asian markets ended mixed on Monday as the positive Chinese data and optimism over corona vaccine rollout got weighed down after news that US is preparing to impose sanctions on at least a dozen Chinese officials over their alleged role in Beijing's disqualification of elected opposition legislators in Hong Kong. Japanese shares settled lower, though it notched its highest level since April 1991 in the session, due to some profit booking and on record new corona virus infections .However, Shanghai finished lower on the intensified Sino-US tensions.