Post Session: Quick Review

Final session of the week turned out to be mere extension of the previous one, when the markets rallied strongly, underpinned by exit polls that predicted the victory of BJP in recent state elections, the results of which are due on December 8 and are mainly viewed as a dress rehearsal to the general elections to be held next year. However, some amount of volatility did creep in the afternoon deals as investors feared any mixed outcome of state elections and also ahead of US monthly, which is up for release later in the evening and would help set expectations about the timing of any tapering in US stimulus ahead of the Federal Reserve's policy meeting in December. Nevertheless, mood remained upbeat as buying picked up momentum in the last leg of the trade, where investors in anticipation of positive news, preferred going long on risk equities. Thus, by the close of trade, both Sensex and Nifty, clinched gains of close to half a percent and settled above the crucial 21,000 and 6,250 levels respectively. On the back of last two sessions’ gains, Sensex and Nifty clocked gains of close to a percent. Meanwhile, broader indices too added gains in line with larger peers for the session, with both Midcap and Smallcap indexes ending higher by close to half a percent. For the week, while CNX Midcap index ended up over a percent, BSE Smallcap index gained close to two percent.

On the global front, Asian markets ended mostly lower on Friday ahead of the U.S. November non-farm payrolls data, due to release later on Friday and seen as a key variable to determine whether the Federal Reserve will start to taper stimulus measures that have supported global share markets. On the flip side, European shares halting initial sell-off  and snapping five-day losing streak, were trading higher of US jobs reports.

Closer home, sentiment in the last hours of the trade also were bolstered with the uptick of sugar stocks, viz Bajaj Hindustan, Balrampur Chini, which rallied after Sharad Pawar underscored that the country is looking at providing incentives for production of raw sugar and also at doubling the mandatory blending of ethanol in gasoline to 10%. Sectorally, while there were no losers, banking, capital goods and Realty counters witnessed maximum buying activities. Meanwhile, sentiments at Dalal Street were also buttressed after Prime Minister, in order to prop up the sentiments, highlighted that the country’s growth rate had more than doubled to an annual average of over seven percent and the economy was on an upward trajectory in the last 20 years.  The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1329: 1182, while 155 scrips remained unchanged. (Provisional)

The BSE Sensex gained 81.87 points or 0.39% to settle at 21039.68. The index touched a high and a low of 21049.84 and 20922.45 respectively. Among the 30-share Sensex, 22 stocks gained, while 8 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 0.44% and 0.39% respectively. (Provisional)

On the BSE Sectoral front, Power up by 2.45%, Consumer Durables up by 1.53%, Bankex up by 1.00%, Capital Goods up by 0.92% and Metal up by 0.55% were the top gainers, while there were no losers in the space. (Provisional)

The top gainers on the Sensex were Tata Power up by 6.35%, Coal India up by 4.36%, NTPC up by 3.78%, Hero MotoCorp up by 2.53% and ONGC up by 1.65%, while, Hindalco Industries down by 1.46%, HDFC down by 1.32%, Hindustan Unilever down by 0.79%, Bharti Airtel down by 0.72% and Infosys down by 0.69% were the top losers in the index. (Provisional)

Meanwhile, as per the HSBC survey, business activity in emerging markets grew at the fastest rate in eight months in November. The composite HSBC emerging markets index increased to 52.1 in the reported month from 51.7 in October and also remained above sub-50.0 level that divides expansions in activity from contractions. The increase in index was mainly on the back of strong momentum in Chinese manufacturing activity where stronger domestic demand drove manufacturing growth to its sharpest increase since March.

China HSBC composite manufacturing and services PMI for China increased to 52.3 in November from 51.8 in October. Meanwhile, the HSBC composite manufacturing and services PMI for Brazil and Russia, though witnessed a decline over the previous month, yet remained above the 50 mark. The PMI for Brazil declined to 51.8 in November from 52 in the previous month and for Russia it fell to 52.2 from 53.3. The survey further added that other emerging markets also saw faster growth in manufacturing, with Central and Eastern Europe and Turkey benefiting from the euro zone`s ongoing recovery.

India`s large but challenged economy weighed on the index, with a fifth month of overall contraction. The HSBC index for India increased in November to 48.5 over the previous month (47.5) but remained below the 50 mark that indicates expansion. Referring to the growth in India, the HSBC said that manufacturing business conditions in the country are turning to positive after a few months of contraction. Private sector outlook in India is likely to increase in near future.  Among the largest emerging markets, Brazil continued to post a marked degree of sentiment regarding future output as compared to China and India. Meanwhile, Russian firms were less optimistic about future growth.
India VIX, a gauge for markets short term expectation of volatility gained 2.21% at 21.68 from its previous close of 21.74 on Thursday. (Provisional)

The CNX Nifty gained 31.40 points or 0.50% to settle at 6,272.50. The index touched high and low of 6,275.35 and 6,230.75 respectively. Out of the 50 stocks on the Nifty, 37 ended in the green, while 11 ended in the red and two stocks remains unchanged.

The major gainers of the Nifty were Tata Power up 6.59%, Coal India up by 4.13%, NTPC up by 3.96%, Axis Bank up by 3.66% and PNB up by 3.29%. The key losers were HDFC down by 1.50%, Ranbaxy down by 1.11%, Hindalco down by 1.07%, Hindustan Unilever down by 0.83% and Infosys down by 0.73%. (Provisional)

Most of the European markets were trading in green with, France’s CAC 40 up by 0.27%, Germany’s DAX up by 0.65% and the United Kingdom’s FTSE 100 up by 0.49%.
The Asian markets concluded Friday’s trade mostly in red while stability in the yen allowed Japanese stocks to move higher at the end of a bad week for the Nikkei Average. The Japanese government unveiled details of a Yen 5.5 trillion ($53.9 billion) spending package to mitigate the expected drag on the economy from an upcoming sales tax increase in April, bundling steps to encourage corporate investment and employment, as well as handouts for low-income households. Prime Minister Shinzo Abe had instructed his government to compile the package in October when he decided to raise the 5% sales tax to 8% in April. The measures will have an yen18.6 trillion economic impact and should lift gross domestic product by 1% point. Indonesia may see less foreign capital inflows next year, which could affect its ability to fill the gap in its external balance, as the US Federal Reserve likely begins curbing its stimulus spending. Deputy Finance Minister Bambang Brodjonegoro stated that the Fed’s reduction of purchases of US bonds could destabilize financial markets in emerging nations, including Indonesia’s. Philippines CPI rose to a seasonally adjusted annual rate of 0.4%, from 0.1% in the preceding quarter while Taiwanese CPI rose to a seasonally adjusted annual rate of 0.67%, from 0.64% in the preceding quarter.