Post Session: Quick Review

Indian equity benchmarks closed Thursday’s trading session in red terrain. After a negative start, key indices remained lower for the whole day, amid a private report stated that the public health crisis due to the COVID-19 pandemic has emerged as the top threat for Indian corporates, while cyber attacks and data frauds loom equally large. Market participants got cautious with former Deputy Governor of RBI Viral Acharya’s statement that revising up inflation bands for the central bank will hurt the poor. He also said India has to devise ways of pushing up growth in a structural manner and not by ‘pump-priming’ measures like easy credit and easy liquidity.

In the last hour of the trade, markets cut most of their losses, after the Asian Development Bank (ADB) raised the growth forecast for India in the current fiscal year to minus 8 percent from the minus 9 percent projection in September while keeping the outlook for the next fiscal year at 8 percent. At the same time, it said economic activity in developing Asia is forecast to contract by 0.4 percent this year before picking up to 6.8 percent in 2021 as the region moves toward recovery from the effects of the coronavirus disease (COVID-19) pandemic. Traders were seen taking a note of a report that the Union Cabinet has approved a memorandum of understanding between India and Suriname for cooperation in the field of health and medicine.

On the global front, European markets were trading higher ahead of a highly-awaited European Central Bank meeting, with multinational British companies getting a boost from floundering negotiations on a U.K.-European Union trade deal. Asian markets ended mostly lower on Thursday, after China's consumer prices declined for the first time in more than a decade in November due to the fall in pork prices. The data released by the National Bureau of Statistics showed that consumer prices fell unexpectedly by 0.5 percent year-on-year in November after rising 0.5 percent a month ago. This was the first decline since October 2009. Food prices decreased 2 percent annually due to a notable 12.5 percent fall in pork prices. Pork prices had logged a sharp increase in the last year due to the shortage caused by the African swine flu.

The BSE Sensex ended at 45959.88, down by 143.62 points or 0.31% after trading in a range of 45685.87 and 46043.97. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.57%, while Small cap index was down by 0.65%. (Provisional)

The top gaining sectoral indices on the BSE were FMCG up by 2.69%, Realty up by 0.54%, Telecom up by 0.28% and Metal up by 0.26%, while Basic Materials down by 1.35%, Power down by 1.07%, Auto down by 0.98%, Energy down by 0.84% and Utilities down by 0.73% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Nestle up by 4.17%, ITC up by 3.58%, Hindustan Unilever up by 2.61%, Kotak Mahindra Bank up by 1.13% and Larsen & Toubro up by 0.78%. On the flip side, Ultratech Cement down by 3.27%, Mahindra & Mahindra down by 2.50%, HDFC Bank down by 1.42%, Indusind Bank down by 1.34% and Axis Bank down by 1.10% were the top losers. (Provisional)

Meanwhile, upgrading growth projection, the Asian Development Bank (ADB) in its latest report has raised the growth forecast for India to minus 8 percent in the current fiscal year from the minus 9 percent projection in September while keeping the outlook for the next fiscal year at 8 percent.

As per the report, the economic activity in developing Asia is forecast to contract by 0.4 percent this year before picking up to 6.8 percent in 2021 as the region moves toward recovery from the effects of the coronavirus disease (COVID-19) pandemic.

ADB further noted that pandemic-induced lockdowns and restrictions have been eased in varying levels in the region with merchandise exports rebounding quickly from substantial declines in the second quarter. Besides, it said that mobility is also returning to pre-COVID-19 levels in East Asia and the Pacific where its spread has largely been contained or prevented in recent months. A recovery in tourism, however, is likely to be delayed.

The CNX Nifty ended at 13478.30, down by 50.80 points or 0.38% after trading in a range of 13399.30 and 13503.55. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were Nestle up by 4.46%, ITC up by 3.55%, Britannia up by 3.11%, Hindustan Unilever up by 2.54% and Adani Ports & SEZ up by 1.53%. On the flip side, UPL down by 10.99%, Ultratech Cement down by 3.51%, Tata Motors down by 2.79%, Shree Cement down by 2.71% and Mahindra & Mahindra down by 2.50% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 25.79 points or 0.39% to 6,590.08, France’s CAC increased 20.05 points or 0.36% to 5,566.87 and Germany’s DAX was up by 12.05 points or 0.09% to 13,352.31.

Asian markets ended mostly lower on Thursday as Brexit negotiations reached stalemate and US lawmakers failed to come to agreement over a proposed stimulus package. Japanese shares ended lower amid stalled US stimulus talks and worries about rising coronavirus cases in the US. Further, Seoul stocks ended lower on massive selling by foreign investors amid uncertainties over the quadruple expiration of key stock derivatives, including Kospi-tracking options and futures. Chinese shares ended little changed after S&P Dow Jones Indices said it would remove a total of 21 Chinese companies from its equities and bond indexes.