Post Session: Quick Review

Indian equity benchmarks ended higher on Monday. After a cautious start, markets witnessed a sharp fall, as fears over the new variant of coronavirus kept sentiments in the markets cautious. AIIMS chief Dr Randeep Guelria said the new Omicron variant of coronavirus has reportedly got over 30 mutations in the spike protein region giving it the potential to reduce the efficacy of vaccines. Meanwhile, Industry body -- The PHD Chamber of Commerce and Industry (PHDCCI) has urged the GST Council to rationalise rates and stated that the current rates are not in sync with the demand creation and employment generation in the country.

Key indices remain volatile during early morning deals, impacted with report that as many as 438 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns totalling more than Rs 4.34 lakh crore. Traders took a note of Chief Economic Adviser (CEA) K V Subramanian’s statement that BRICS nations need to strengthen cooperation among themselves for supporting the recovery of BRICS economies and maintaining macro-economic and financial stability while protecting against future uncertainties and risks.

However, from late morning session, markets managed to trade in green terrain, as eminent economist Pinaki Chakraborty said that India's macroeconomic situation is certainly better than what it was a year ago, while expressing hope that the country will be back on the path of economic growth if there is no major third wave of the COVID-19 pandemic. Besides, asserting that this is an era of start-ups, Prime Minister Narendra Modi said India is leading the world in this field with more than 70 start-ups having crossed the valuation of USD 1 billion.

On the global front, European markets were trading higher after Friday’s rout, as investors continued to closely assess the threat of a new COVID-19 variant. Asian markets settled mostly lower on Monday, even after the value of retail sales in Japan was up 0.9 percent on year in October, the Ministry of Economy, Trade and Industry said on Monday - coming in at 12.552 trillion yen. That was shy of expectations for an annual increase of 1.1 percent following the 0.5 percent decline in September.

The BSE Sensex ended at 57260.58, up by 153.43 points or 0.27% after trading in a range of 56382.93 and 57626.51. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.93%, while Small cap index down by 1.90%. (Provisional)

The top gaining sectoral indices on the BSE were TECK up by 0.67%, IT up by 0.65%, Consumer Durables up by 0.54%, Energy up by 0.43% and Telecom up by 0.26%, while Utilities down by 2.61%, Realty down by 1.98%, Power down by 1.97%, Oil & Gas down by 1.51% and PSU down by 1.49% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Kotak Mahindra Bank up by 2.92%, HCL Tech. up by 2.25%, TCS up by 1.61%, Titan Co up by 1.42% and Bajaj Finance up by 1.41%. On the flip side, Sun Pharma down by 2.03%, NTPC down by 1.67%, Axis Bank down by 1.65%, Nestle down by 1.35% and Bajaj Auto down by 1.32% were the top losers. (Provisional)

Meanwhile, with a view to boost outbound shipments and job creation, Commerce and Industry Minister Piyush Goyal has said that the gem and jewellery industry should focus on areas like design, diversification of export product basket and lab grown diamonds with a view to boost outbound shipments and job creation. He said that exports from the sector have increased to $ 23 billion during the April-October period of this fiscal.

Goyal laid out four points to make India’s Gems & Jewellery a pioneer industry in the world including collaboration with other nations for cost-effective methods to enhance production of fusion jewellery and diversification of export products: Emphasis on products like pearls, silver, platinum, synthetic stones, artificial diamonds, fashion jewellery, non-gold jeweller, etc.

Besides, the Minister said that Surat is, perhaps, one of the fastest growing cities in the world and is home to more than 450 organised jewellery manufacturers, importers & exporters. He also added that it has the potential to become the jewellery manufacturing hub of the world.

The CNX Nifty ended at 17053.95, up by 27.50 points or 0.16% after trading in a range of 16782.40 and 17160.70. There were 18 stocks advancing against 32 stocks declining on the index. (Provisional)

The top gainers on Nifty were Kotak Mahindra Bank up by 2.82%, HCL Tech. up by 2.08%, HDFC Life Insurance up by 1.94%, TCS up by 1.60% and Wipro up by 1.47%. On the flip side, BPCL down by 2.49%, Sun Pharma down by 2.12%, UPL down by 2.05%, ONGC down by 2.04% and Adani Ports & SEZ down by 2.03% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 52.17 points or 0.74% to 7,096.20, France’s CAC increased 47.33 points or 0.7% to 6,787.06 and Germany’s DAX was up by 87.33 points or 0.57% to 15,344.37.

Asian markets settled mostly lower on Monday tracking negative cues from Wall Street last week on fears about the global economic outlook following detection of a new and possibly vaccine-resistant Covid-19 variant 'Omicron' in more countries and governments are imposing travel controls. Chinese shares ended almost flat on omicron fears, while Chinese Evergrande Group's shares declined after its chairman Hui Ka Yan divested some of his stake in the cash-strapped property developer company to raise about $344 million. Japanese shares declined after Japan’s Prime Minister Fumio Kishida announced the country will bar entry by foreigners starting Tuesday.