Post Session: Quick Review

Bulls held a tight grip over the Dalal Street on Wednesday, with both Sensex and Nifty ending with strong gains. The start of the day was on positive note, as S&P Global Ratings raised India’s growth projection for the current fiscal to (-) 7.7 percent from (-) 9 percent estimated earlier on rising demand and falling COVID infection rates. It said rising demand and falling infection rates have tempered its expectation of COVID’s hit on the Indian economy. Adding more optimism, Finance minister Nirmala Sitharaman asserted that the Budget for FY22 will be vibrant enough to sustain economic revival in the aftermath of Covid-19 disruption. Sentiments also remained positive with Union Road Transport Minister Nitin Gadkari’s statement that India holds huge investment opportunities especially in its vibrant infrastructure sector where projects worth Rs 44 lakh crore are under implementation as part of the Rs 111 lakh crore National Infrastructure Pipeline (NIP). He said as per Prime Minister Narendra Modi's vision focus was being laid on developing a world-class infrastructure under the NIP, which is first-of-its-kind exercise to bolster development.

Firm trade continued for the whole trading day, after the Securities and Exchange Board of India (SEBI) in its latest data report has showed that investments through participatory notes (P-notes) in the Indian capital market rose to a 27-month high of Rs 83,114 crore at November-end. Traders got comfort, after Union Minister Piyush Goyal said that the industry and government have to partner to achieve the target of India becoming a $5 trillion economy by 2025. The commerce and industry minister also expressed confidence in the capabilities of the business community as well as startups which can make India the top economy globally in the next 25-30 years. The street overlooked the government data showing that the country's exports dipped 8.74 per cent to $23.52 billion in November on account of contraction in shipments of key sectors like petroleum, engineering, chemicals and gems and jewellery. Besides, trade deficit during the month narrowed to $9.87 billion as imports too declined by 13.32 per cent to $33.39 billion.

On the global front, European markets were trading higher on rising hopes of a Brexit trade deal and the possible roll-out of a COVID-19 vaccine in the continent before the New Year. Asian markets ended mostly higher on Wednesday, even after the manufacturing sector in Japan continued to contract in November, albeit at a slower pace, the latest survey from Jibun Bank revealed on Wednesday with a manufacturing PMI score of 49.7. That's up from 49.0, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. Individually, employment levels among Japanese manufacturers rose for the first time since February, albeit fractionally. Business sentiment eased to its softest pace since August, although optimism remained robust.

The BSE Sensex ended at 46666.46, up by 403.29 points or 0.87% after trading in a range of 46402.20 and 46704.97. There were 21 stocks advancing against 9 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.87%, while Small cap index was up by 0.88%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 5.03%, Consumer Durables up by 2.39%, Telecom up by 1.75%, Metal up by 1.75% and Consumer Disc up by 1.42%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were HDFC up by 3.11%, ONGC up by 2.69%, Bharti Airtel up by 2.35%, Asian Paints up by 2.17% and Titan Co up by 2.14%. On the flip side, ICICI Bank down by 1.09%, Indusind Bank down by 0.94%, NTPC down by 0.90%, Ultratech Cement down by 0.76% and Tech Mahindra down by 0.59% were the top losers. (Provisional)

Meanwhile, amid continued liquidity and improvement in second quarter corporate earnings, the Securities and Exchange Board of India (SEBI) in its latest data report has showed that investments through participatory notes (P-notes) in the Indian capital market rose to a 27-month high of Rs 83,114 crore at November-end.

According to the report, the value of P-note investments in Indian markets -- equity, debt and hybrid securities -- increased to Rs 83,114 crore at November-end from Rs 78,686 crore at October-end. The investment through this route had declined to Rs 69,821 crore at the end of September 2020.

Meanwhile, the investment level was at Rs 74,027 crore, Rs 63,228 crore, Rs 62,138 crore, Rs 60,027 crore and Rs 57,100 crore at the end of August, July, June, May and April, respectively.

The CNX Nifty ended at 13682.70, up by 114.85 points or 0.85% after trading in a range of 13606.45 and 13692.35. There were 35 stocks advancing against 15 stocks declining on the index. (Provisional)

The top gainers on Nifty were HDFC up by 3.16%, Hindalco up by 2.82%, Divis Lab up by 2.47%, ONGC up by 2.44% and Titan Co up by 2.43%. On the flip side, ICICI Bank down by 1.08%, NTPC down by 0.90%, Ultratech Cement down by 0.85%, GAIL India down by 0.68% and Tech Mahindra down by 0.59% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 65.76 points or 1.01% to 6,579.08, France’s CAC increased 53.44 points or 0.97% to 5,583.75 and Germany’s DAX was up by 174.96 points or 1.31% to 13,537.83.

Asian markets ended mostly higher on Wednesday, supported by signs of progress in stimulus talks in the United States as well as the vaccination rollout. The US Food and Drug Administration said that US biotech company Moderna's vaccine candidate is safe and effective for preventing Covid-19. Japanese shares ended a tad higher after tech giant Apple's suppliers rising on report that Apple plans to increase iPhone production by about 30 percent in the first half of 2021. On the economic front, the latest survey from Jibun Bank revealed that the manufacturing sector in Japan continued to contract in November, albeit at a slower pace, with a manufacturing PMI score of 49.7, up from 49.0 in the previous month. Chinese shares ended flat after Chinese chipmaker SMIC said it had become aware of co-CEO Mong Song Liang's intention of conditional resignation and as SMIC’s stock was set to be removed from MSCI indexes.