Post Session: Quick Review

Indian equity benchmarks ended with strong gains on Friday’s trading session. After a positive start of the day, key indices remained higher for the whole trading session, taking support with report that India in 2020 has been one of the biggest and fastest-growing technology markets in the world. Digital and technology adoption in India has been increasing at a steady rate over the last few years, and the current COVID-19 pandemic has accelerated the rate of technology adoption across sectors, including in high involvement services such as education and healthcare. Some support also came with report that the RBI will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs 10,000 crore each on January 14. The decision was taken after a review of current liquidity and financial conditions.

Markets added more gains in the last hour of the trade,  as the Central Board of Indirect Taxes & Customs (CBIC) has introduced liberalised Authorised Economic Operator package for micro, small and medium enterprises (MSMEs) for swift customs clearances. In order to attract MSMEs to become Authorised Economic Operators (AEOs) and avail various benefits, the CBIC has relaxed the compliance criteria provided the MSMEs have a valid certificate from their line-ministry. Domestic sentiments were also positive, amid private reports that there were more jobs on offer in India in December 2020 compared to the previous month. Both the Monster Employment Index and Naukri Job Speak report saw an uptick in hiring pace in December lead by sectors like healthcare and life sciences and especially in Tier 2 cities. Jobs in the travel and tourism sector continue to reel under the impact of the Coronavirus lockdown.

On the global front, European markets were trading higher as global investors anticipate that a Democratic-controlled U.S. government will lead to greater fiscal support. Asian markets finished mostly higher on Friday, after the average of household spending in Japan was up 1.1 percent on year in November, the Ministry of Internal Affairs and Communications said on Friday - coming in at 278,718 yen. That beat expectations for a decline of 1.5 percent following the 1.9 percent increase in October. On a monthly basis, household spending sank 1.8 percent, missing expectations for a loss of 1.3 percent after gaining 2.1 percent in the previous month. The average of monthly income per household stood at 473,294 yen, up 0.6 percent on year.

The BSE Sensex ended at 48782.51, up by 689.19 points or 1.43% after trading in a range of 48365.58 and 48854.34. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.01%, while Small cap index was up by 0.72%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 3.55%, Auto up by 3.37%, TECK up by 3.07%, Consumer Disc up by 2.23% and Utilities up by 1.86%, while Metal down by 0.91% and Telecom down by 0.49% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 5.94%, Tech Mahindra up by 5.64%, Infosys up by 3.95%, Ultratech Cement up by 3.55% and Power Grid up by 3.50%. On the flip side, Indusind Bank down by 1.37%, Bharti Airtel down by 0.93%, SBI down by 0.61%, ITC down by 0.59% and HDFC down by 0.31% were the top losers. (Provisional)

Meanwhile, with an aim to boost exports potential of India’s agricultural and processed food products exports, Agricultural and Processed Food Products Export Development Authority (APEDA) has organized a Virtual Buyer Seller Meet (BSM) in association with Indian Embassy in Bhutan. The meet brought together key stakeholders from the respective Governments and trade on a common platform for strengthening strategic cooperation between India and Bhutan in Agri Food Sector.

This Virtual-BSM with Bhutan is the 15th in the series of such events organized by APEDA with various countries. Earlier such virtual Virtual-BSM was first organized with the United Arab Emirates (UAE) followed by Kuwait, Indonesia, Switzerland, Belgium, Iran, South Africa, Germany, USA, Canada, Australia, Thailand and Oman.

Meanwhile, the export promotion programme was not possible to be organized physically, due to the ongoing Covid19 pandemic. APEDA took a lead to organize Virtual BSM to provide a platform to the exporters and importers of India and Bhutan.

The CNX Nifty ended at 14347.25, up by 209.90 points or 1.48% after trading in a range of 14221.65 and 14367.30. There were 41 stocks advancing against 9 stocks declining on the index. (Provisional)

The top gainers on Nifty were Maruti Suzuki up by 5.93%, Wipro up by 5.77%, Tech Mahindra up by 5.66%, UPL up by 4.38% and Eicher Motors up by 4.19%. On the flip side, Hindalco down by 1.72%, Tata Steel down by 1.34%, Indusind Bank down by 1.29%, Bharti Airtel down by 0.92% and ITC down by 0.64% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 21.05 points or 0.31% to 6,878.01, France’s CAC increased 38.88 points or 0.69% to 5,708.73 and Germany’s DAX was up by 161.70 points or 1.16% to 14,129.94.

Asian markets finished mostly higher on Friday on optimism over swift global economic recovery after US Congress formally certified Joe Biden's election victory, which paving the way for more stimulus package. Further, a mass rollout of corona virus vaccines globally and encouraging US jobless claims data also buoyed market sentiment. Japanese shares rose after data showed household spending rose an annual 1.1 percent in November compared to the same month a year earlier, while the weaker yen also lent support. Japan's capital Tokyo began its first day under a corona virus state of emergency on Friday. Though, Chinese shares ended lower amid rising Sino-US tensions after reports that the Trump administration was considering banning US entities from investing in an expanded list of Chinese companies.