Benchmarks hover near day's high; auto stocks correct

The domestic equity barometers were currently trading near the day's high in mid-morning trade. At 11:29 IST, the barometer index, the S&P BSE Sensex, was up 126.58 points or 0.27% to 46,793.04. The Nifty 50 index added 38.05 points or 0.28% at 13,720.75.

Investor sentiment received a boost after the US Federal Reserve strengthened its commitment to supporting the recovery in the world's largest economy, and the U.S. lawmakers continued to make progress in getting a fiscal stimulus deal over the line.

In the broader market, the S&P BSE Mid-Cap index gained 0.62% while the S&P BSE Small-Cap index rose 0.61%.

The market breadth was strong. On the BSE, 1619 shares rose and 1067 shares fell. A total of 167 shares were unchanged.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 74,167,013 with 1,648,091 deaths. India reported 322,366 active cases of COVID-19 infection and 144,451 deaths while 9,489,740 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty Auto index shed 0.20% to 9,220.75. The index had gained 1.60% in the past two sessions.

TVS Motor Company (up 0.64%), Ashok Leyland (up 0.25%) and Tata Motors (up 0.30%) advanced.

Bajaj Auto (down 1.05%), Maruti Suzuki (down 0.63%), Eicher Motors (down 0.34%), Mahindra & Mahindra (down 0.19%) and Bharat Forge (down 0.14%) declined.

Hero MotoCorp gained 0.21% to Rs 3124.35. The two-wheeler maker said it will hike prices of its products by upto Rs 1500, with effect from 1 January 2021. The increase will vary across models, and the exact quantum will be communicated to its dealers in due course.

Stocks in Spotlight:

Aster DM Healthcare added 0.35% to Rs 170.35. The company through its subsidiary, Aster DM Healthcare FZC, has acquired a company in the Cayman Islands.

Wonderla Holidays rose 2.21% to Rs 219.55. The company has received formal approval from the Ramanagara Deputy Commissioner to resume operations of its theme park in Bangalore. The theme park will be open to the public again from 18 December onwards.

Global Markets:

Most Asian stocks were trading higher on Thursday as investors reacted to the latest announcements from the U.S. Federal Reserve.

In US, Wall Street rose on Wednesday, with the Nasdaq closing at a record high as investors awaited a potential fiscal economic stimulus package and after the Federal Reserve repeated a pledge to keep its benchmark interest rate near zero.

The U.S. central bank also kept benchmark interest rates near zero, as expected, following the conclusion of its two-day meeting. The Fed said it will buy at least $120 billion of bonds each month until substantial further progress has been made toward the Committee's maximum employment and price stability goals, according to its post-meeting statement. Federal Reserve Chairman Jerome Powell also said on Wednesday that stock prices are not necessarily highly priced given how low interest rates are.

Congressional leaders closed in on a $900 billion rescue deal that would include a new round of direct payments to consumers. However, that package excludes a liability shield for businesses and state and local aid, reports indicated.

US retail sales fell sharply in November, according to government data released Wednesday, a further sign of economic trouble as COVID-19 cases climbed and lawmakers remained deadlocked on approving economic stimulus. Sales fell 1.1% compared to October, when sales also dipped, the Commerce Department reported, much sharper than expected.

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