Markets end at fresh closing high

Indian equity benchmarks inched up further and settled at record closing highs on Wednesday amid broad-based buying and positive global cues. The Sensex hit 46,100 level for the first time while Nifty also crossed 13,500 level. The markets made a positive start and continued to witness strength for whole day, as optimism over the coronavirus vaccine boosted investors' sentiment. As per a private report, an expert panel is set to review the applications of Bharat Biotech, Pfier-BioNTech and Serum Institute of India seeking emergency use authorisation for their vaccines. Some solace also came with Finance Minister Nirmala Sitharaman’s statement that India will not worry about missing its budget deficit target as it seeks to step up spending to support the economy. Traders also took note of report that India Ratings and Research expects interest rates to stabilise at the current level and the Indian currency to undergo structural changes.

Indian shares added more gains in late afternoon session, as traders remain energized with report that Corporate India is showing ‘healthy signs of recovery’ and plans to hire more people in the first three months of 2021 compared to the quarter ending December. According to report, the employment trends in the first quarter of 2021 are expected to be on the rise with a Net Employment Outlook of 5 percent. Additional support came with a ratings agency ICRA’s statement that non-bank lenders have witnessed a good rise in loan collection efficiencies in the September quarter after the reverses in the first three months of the fiscal. Adding optimism, Union Minister of Road Transport Nitin Gadkari has highlighted that Micro, Small and Medium Enterprises (MSME) is backbone of Indian economy and said the government's aim is to increase the sector's contribution to the Gross Domestic Product (GDP) to 50 per cent from the existing 30 per cent. 

On the global front, Asian markets ended mostly higher on Wednesday amid hopes of U.S. fiscal stimulus and positive vaccine news, with the U.K. starting the immunization program against the coronavirus pandemic. Johnson & Johnson said it could obtain late-stage trial results for a single-dose vaccine in January, earlier than expected. Upbeat Japanese core machine orders data also boosted sentiment. The value of core machine orders in Japan jumped a seasonally adjusted 17.1 percent on month in October, coming in at 842.5 billion yen. That blew away expectations for a gain of 2.8 percent following the 4.4 percent drop in September. European markets were trading higher, as investors shrugged off official data showing that German exports growth slowed more-than-expected in October. Exports increased 0.8 percent month-on-month in October, slower than the 2.3 percent increase seen in September. Shipments were forecast to climb 1.2 percent. At the same time, imports gained 0.3 percent, following a 0.2 percent rise in September. This was also slower than the economists' forecast of +1 percent.

Finally, the BSE Sensex surged 494.99 points or 1.09% to 46,103.50, while the CNX Nifty was up by 136.15 points or 1.02% to 13,529.10.

The BSE Sensex touched high and low of 46,164.10 and 45,792.01, respectively and there were 20 stocks advancing against 10 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.40%, while Small cap index was up by 0.49%.

The top gaining sectoral indices on the BSE were Bankex up by 1.47%, Energy up by 1.46%, Realty up by 1.39%, Finance up by 1.04% and IT up by 1.03%, while Power down by 0.25% and Basic Materials down by 0.13% were the few losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 3.37%, Kotak Mahindra Bank up by 2.67%, Axis Bank up by 2.19%, HDFC Bank up by 2.15% and Infosys up by 1.85%. On the flip side, Ultratech Cement down by 1.29%, Tata Steel down by 0.79%, Maruti Suzuki down by 0.70%, SBI down by 0.59% and Bajaj Auto down by 0.43% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said that India would not worry about missing its budget deficit target as it seeks to step up spending to support the economy. She mentioned the stimulus spending will not be wound down in a hurry. She added the government and the central bank together have done a good balancing act.

Sitharaman, who reviews government expenditure every 15 days, said she will push state firms to accelerate spending. Prime Minister Narendra Modi last month expanded support measures to Rs 30 trillion ($120 billion), or 15 per cent of the economy, to rescue companies and save jobs lost due to the Covid-19 pandemic, adding to global stimulus that has touched $12 trillion.

Besides, economists see the additional spending, along with falling tax revenue, pushing India’s budget gap wider to 8 per cent of gross domestic product (GDP) in the current financial year, more the double the targeted 3.5 per cent. ‘As regards the coming year, we need to do an assessment,’ she said ahead of the next fiscal year’s Budget due February 1. ‘I am not sure that I can immediately curtail expenditure. It will have to be a careful balance because the momentum that the economy gains should be sustained.’

The CNX Nifty traded in a range of 13,548.90 and 13,449.60 and there were 33 stocks advancing against 16 stocks declining, while 1 stock remains unchanged on the index.

The top gainers on Nifty were UPL up by 4.59%, Asian Paints up by 3.65%, Indian Oil Corporation up by 3.29%, Kotak Mahindra Bank up by 2.66% and HDFC Bank up by 2.34%. On the flip side, Hindalco down by 1.55%, Shree Cement down by 1.40%, Ultratech Cement down by 0.99%, Wipro down by 0.92% and Tata Steel down by 0.86% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 38.70 points or 0.59% to 6,597.52, France’s CAC rose 18.67 points or 0.34% to 5,579.34 and Germany’s DAX was up by 143.14 points or 1.08% to 13,421.63.

Asian markets ended mostly higher on Wednesday as optimism about the first corona virus vaccine rollouts in the United Kingdom and fresh hopes for an additional stimulus deal in the United States outweighed concerns about surging corona virus cases and new lockdowns. US pharmaceutical giant Johnson & Johnson’s corona vaccine is currently undergoing final-stage clinical trials involving 60,000 participants at more than 200 locations in the US and other countries. Results are expected in late January. Japanese shares ended higher after data showed Japan's core machinery orders rebounded sharply in October from the previous month's drop. However, Chinese shares ended lower on growing concerns over Sino-US relations, while consumer prices declined for the first time in over a decade on falling food prices.