Benchmarks likely to make flat-to-negative start

Indian markets ended at fresh record high on Monday led by the gains from financials, pharma and FMCG stocks. Today, the markets are likely to make flat-to-negative start tracking mixed global cues. There will be some cautiousness with report that on Monday, India reported 27,107 fresh Covid-19 cases. Its case tally now stands at 9,703,908. The country's death toll has mounted to 140,994. With 18,55,341 cases, Maharashtra has the highest number of coronavirus cases, followed by Karnataka 894,004, Andhra Pradesh 872,288, Tamil Nadu 791,552, and Kerala 631,615. Though, some respite may come later in the day with Niti Aayog vice chairman Rajiv Kumar’s statement that the government is committed to improving the ease of doing business and innovation ecosystem where every school student has access to the innovative tools and trends.  Traders may take note of report that Companies raised Rs 73,215 crore from the capital markets in October, with private placement of debt instruments continuing to be the most-preferred route for funding. Meanwhile, farmers across India have called for a Bharat Bandh on December 8. They have been holding protests against agrarian laws passed recently in Parliament. The bandh was called by the protesting farmers after several rounds of talks with the Central government failed. While the Centre is firm on its stance on the laws, farmers want them rolled back as they fear, they will be at the mercy of corporates to sell their produce. Banking and financial counters may remain in focus as the Supreme Court is set to resume hearing in the Interest Waiver/Loan Moratorium case. There will be some reaction in pharma sector stocks with a private report that Pfizer and Serum Institute of India have sought emergency use approval for their respective COVID-19 vaccines from the Drug Controller General of India (DCGI) and an internal review has begun under the accelerated review process.

The US markets ended mostly lower on Monday as traders kept an eye on negotiations for additional fiscal stimulus while the US coronavirus caseload continues to rise. Asian markets are trading mixed on Tuesday as investors remained cautious over rising coronavirus cases, US stimulus negotiations as well as Brexit talks between the UK and the European Union.

Back home, Bulls continue to strengthen their position on Dalal Street with frontline gauges hitting fresh all-time highs amid persistent foreign fund inflow and hopes for a coronavirus vaccine. Markets started the session with caution on concern over increasing coronavirus cases. On Sunday, India reported 32,272 fresh Covid-19 cases. Its case tally now stands at 9,676,801. The country's death toll has mounted to 140,590. However, markets soon gained traction as traders turned optimistic 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. Some support also came in with report that foreign direct investment (FDI) equity inflows into India crossed the $500 billion milestone during April 2000 to September 2020 period, firmly establishing the country's credentials as a safe and key investment destination in the world. Markets extended rally to close near all-time highs as 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, according to an official statement on Sunday. The decision was taken recently in a joint review meeting attended by Commerce and Industry Minister Piyush Goyal and Minister of AYUSH Shripad Naik. Meanwhile, Union minister Dharmendra Pradhan expressed hope that fuel prices would stabilise as the Organization of the Petroleum Exporting Countries (OPEC) has decided to increase the crude oil production. OPEC decided to increase the crude oil production by 5 lakh barrels a day. Finally, the BSE Sensex jumped 347.42 points or 0.77% to 45,426.97, while the CNX Nifty was up by 124.65 points or 0.95% to 13,258.55.