Nifty ends near 7,950 on first day of Dec F&O series

On the first day of December F&O series, Sensex and Nifty outperformed global peers on the back of buying demand among sectors like financials, metal and capital goods.

Investors took fresh position on the first day of December series on hopes that the government would pass a key reform on a goods and services tax (GST) in the ongoing winter session of the Parliament.

The Sensex closed higher by 170 points at 26,128 and the Nifty rose 59 points to end at 7,943. Among broader markets, BSE Midcap and Smallcap indices gained between 0.4-0.5%.  

Ravi Shenoy, AVP- Research, Motilal Oswal Financial Services says, "The impressive line-up of events as well as disappointing Q2 earnings will cause investors to be cautious on frontline names. Volatility could be high due to news flows from Parliament, auto sales numbers and RBI’s Monetary Policy in India and global factors such as continued nervousness in China and war on terror in the Middle-East."  

He further adds, “Options data suggests a wide range for December at 7,500 and 8,500. We would recommend investors to be stock focused rather than focused on the Nifty \ Sensex levels as action is likely to be stock-specific. However, investors would do well to avoid temptation to jump at circuit hitters."

Further, the central bank is expected to hold its policy interest rate at 6.75 % next week to stifle inflation, while data is seen showing economic growth accelerated to 7.3 % in the September quarter, a Reuters poll of economists showed.

In the currency front, the rupee on Friday fell to a more than two-year low against the dollar, prompting the Reserve Bank of India to step to arrest the fall of the local currency. At 15:30 pm, the rupee was trading at 66.76 against dollar.  

In overseas stock markets, reports of Chinese authorities' investigations into two major Chinese brokerages over suspected violations sent stocks tumbling in mainland China.

The Shanghai Composite ended lower by almost 6%. Among other Asian markets, Hang Seng, Nikkei, Kospi and Taiwan fell between 0.3-2%.  

Back home, sectors like financials, capital goods and metal performed well today, all up between 1-2%.

Banking shares mainly public sector undertakings (PSU) were in limelight and moved higher by up to 8% on the NSE after media reports that the government is planning to set up high-level panel to tackle non-performing assets (NPA).

Oriental Bank of Commerce, Bank of Baroda, Union Bank of India and Syndicate Bank rallied more than 5% each.

State Bank of India, IDBI Bank, Andhra Bank, Bank of India, Canara Bank, Punjab National Bank and Allahabad Bank were up between 3-4%.  

SBI gained almost 3% on plans to set up a subsidiary for managing its large portfolio of real estate properties and those taken on lease or rent.

L&T surged over 2% on bagging orders worth Rs 1,038 crore in domestic and international markets so far this month.

Metal shares witnessed some buying demand on rebound in copper prices which rose to Rs 9.90 to Rs 316.30 per kg in futures trade today as speculators widened positions. Hindalco, Vedanta and Tata Steel gained between 1-3%.

On the losing side, Lupin, Tata Motors, RIL, Bajaj Auto and GAIL slipped between 1-2%.

Among midcap shares, RPG Life Sciences soared 8%, also its record high on the BSE, on reports that the company is charting out a plan to enter the skin care segment as a part of its strategy to move towards customer facing businesses.

Ashok Leyland ended higher by almost 4% after the company said it has won a contract for 3600 vehicles worth $200 million from the government of Cote D'Ivoire, a west African country formerly known as Ivory Coast.

SKS Microfinance rose over 7% on heavy volumes, after the company announced a 100 basis point (bps) reduction in the interest rate charged to borrowers.

Select logistic companies ended higher for a second straight day on the bourses on reports that the government on Thursday exuded confidence of having the Goods and Services Tax (GST) Bill passed, with several Opposition parties coming out in open support.

Transport Corporation of India, Gati, Gateway Distriparks, Snowman Logistics, Sical Logistics, TCI Industries and Patel Integrated Logistics ended higher by 1-5%.