Markets sign-off last trading session of CY 2020 on quiet note

Indian equity benchmarks concluded last trading session of calendar year (CY) 2020 on a flat note, as investors tracked news related to Covid-19 vaccines rollout across the globe for further bets. For most part of the day, benchmarks traded in a choppy manner, as future and option contracts for the month of December expired. Traders remained cautious with Finance ministry in its latest quarterly report on public debt management has said that total liabilities of the government increased to Rs 107.04 lakh crore at end of Q2 (July- September) of FY21 from Rs 101.3 lakh crore at end of Q1 (April-June) of FY21. This represented a quarter-on-quarter increase of 5.6 percent in Q2 FY21. Some anxiety also came with data showing that India’s current account surplus moderated to $15.5 billion (2.4 per cent of Gross Domestic Product) in quarter ended September 2020 (Q2FY21) from $19.2 billion (3.8 per cent of GDP) in (Q1FY21). The current account balance was in deficit to the tune of $7.6 billion in Q2 of 2019-20 (1.1 per cent of GDP).

However, traders found some support with report that President Vladimir Putin expressed hope that next year Russia and India would continue to work towards stepping up constructive bilateral cooperation as well as coordinating efforts to address topical issues on the regional and global agendas. Traders also took note of report that Federation of Indian Exports Organisations (FIEO) President Sharad Kumar Saraf stated that the country's exports may reach $290 billion by the end of this fiscal (FY21) as the outbound shipments were hit hard by the COVID-19 pandemic during the first half of the year. He also said that 2021 would bring a ray of hope and optimism for the exporting community. Meanwhile, the commerce ministry has said that an import monitoring system (IMS) is being developed for several sectors, including aluminium, copper, footwear, furniture, sports goods, and gym equipment. The system would help gather advanced information on imports of these products and make it available to the stakeholders, including government and domestic industries. The system is already in place for steel and coal.

On the global front, Asian markets ended mixed on Thursday, as investors booked profits amid thin holiday trading. Besides, Survey data from the National Bureau of Statistics showed that China's manufacturing sector growth moderated at the end of the year. The official manufacturing Purchasing Managers' Index fell to 51.9 from 52.1 in November, while it was forecast to drop marginally to 52.0. However, a reading above 50 indicates expansion in the sector. European markets were trading lower, as survey data from the KOF Swiss Economic Institute showed than an indicator of future turning points in the Swiss economy improved in December, but continued to signal subdued activity into next year in the backdrop of the coronavirus pandemic. Back home, on the sectoral front, aviation stocks were in focus with Aviation regulator -- Directorate General of Civil Aviation (DGCA) has stated that the coronavirus-induced suspension of scheduled international passenger flights has been extended till January 31. However, international scheduled flights may be allowed on selected routes by the competent authority on a case-to-case basis.

Finally, the BSE Sensex rose 5.11 points or 0.01% to 47,751.33, while the CNX Nifty was down by 0.20 points to 13,981.75.

The BSE Sensex touched high and low of 47,896.97 and 47,602.12, respectively and there were 11 stocks advancing against 19 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.20%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were Realty up by 1.18%, Consumer Durables up by 1.06%, Consumer Discretionary up by 0.81%, Metal up by 0.52% and Healthcare up by 0.47%, while Telecom down by 0.76%, FMCG down by 0.53%, Energy down by 0.46%, Basic Materials down by 0.20% and Oil & Gas down by 0.16% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 1.65%, Sun Pharma up by 1.41%, ICICI Bank up by 1.20%, Asian Paints up by 1.13% and Titan Company up by 0.93%. On the flip side, TCS down by 1.33%, Ultratech Cement down by 1.33%, Bharti Airtel down by 1.29%, Kotak Mahindra Bank down by 1.19% and Tech Mahindra down by 1.00% were the top losers.

Meanwhile, Finance ministry in its latest quarterly report on public debt management has said that total liabilities of the government increased to Rs 107.04 lakh crore at end of Q2 (July- September) of FY21 from Rs 101.3 lakh crore at end of Q1 (April-June) of FY21. This represented a quarter-on-quarter increase of 5.6 percent in Q2 FY21.

According to the report, Public debt accounted for 91.1 percent of total outstanding liabilities at end-September 2020. The weighted average yield on primary issuances of dated securities showed further moderation to 5.80 percent in Q2 of FY21 from 5.85 percent in Q1 FY21. During Q2 FY21, 13 tranches of auctions were held for issuance of dated securities aggregating to Rs 4,20,000 crore, which was slightly more than the pre-announced calendar because of exercising of greenshoe option.

The report further stated that the central government issued dated securities worth Rs 3,46,000 crore in the first quarter as against Rs 2,21,000 crore in the same period a year ago. The ownership pattern of central government securities shows that the share of commercial banks stood at 38.6 per cent at end-September 2020, lower than 40.4 percent at end-March 2020.

The CNX Nifty traded in a range of 14,024.85 and 13,936.45 and there were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were HDFC up by 1.27%, Sun Pharma up by 1.10%, Divis Lab up by 1.01%, ICICI Bank up by 0.99% and Asian paints up by 0.96%. On the flip side, Shree Cement down by 2.44%, TCS down by 1.52%, Ultratech Cement down by 1.41%, Bharti Airtel down by 1.29%, Grasim Industries down by 1.17% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 89.52 points or 1.37% to 6,466.30 and France’s CAC fell 11.68 points or 0.21% to 5,587.73.

Asian markets ended mixed on Thursday amid profit booking and as some of the regional markets were closed early for New Year's Eve, while the market remained supported after UK regulators approved a Covid-19 vaccine developed by AstraZeneca and the University of Oxford for emergency use. Chinese shares rose for a second straight day after its factory activity expanded in December. The country’s official manufacturing Purchasing Managers’ Index (PMI) for December came in at 51.9, according to data from the National Bureau of Statistics.