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Barometers hover near day's high; Europe opens higher

Capital Market 

Key benchmark indices were trading near the day's high in afternoon trade. Realty and auto stocks led the broad based rally.

At 13:20 IST, the barometer index, the S&P BSE Sensex, surged 348.49 points or 0.79% at 44,425.64. The Nifty 50 index advanced 104.05 points or 0.80% at 13,030.50.

The Sensex hit a record high of 44,499.62 and the Nifty hit a record high of 13,048.75 in morning session today.

Global cues were positive as COVID-19 vaccine progress boosted sentiment and US President-elect Joe Biden was given the go-ahead to begin his White House transition.

The broader indices lagged the benchmarks. The S&P BSE Mid-Cap index rose 0.45%. The S&P BSE Small-Cap index gained 0.69%.

Buyers outpaced sellers. On the BSE, 1,518 shares rose and 1,133 shares fell. A total of 202 shares were unchanged. In Nifty 50 index, 33 stocks advanced while 17 stocks declined.

Foreign portfolio investors (FPIs) bought shares worth Rs 4,738.44 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,944.05 crore in the Indian equity market on 23 November 2020, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 5,91,75,309 with 13,96,403 deaths. India reported 4,38,667 active cases of COVID-19 infection and 1,34,218 deaths while 86,04,955 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

Finance minister Nirmala Sitharaman said the momentum of reforms has continued even during the pandemic and this will continue in future as well. Sitharaman was speaking at the National MNCs' Conference 2020 organised by Confederation of Indian Industry (CII). She added that six states were setting up special manufacturing zones for pharmaceuticals, medical devices and active pharmaceutical ingredients with an effective, unified single window. "Today not just the MNC's, but the entire industry & the economy is facing a reset exercise of doing business and this is being further strengthened by the Govt's Atmanirbhar Bharat program," FM stated.

Gainers & Losers:

Adani Ports & SEZ (up 5.68%), Mahindra & Mahindra (M&M) (up 4.61%), Eicher Motors (up 3.53%), Axis Bank (up 2.94%) and Maruti Suzuki India (up 2.64%) were major gainers in Nifty 50 index.

HDFC (down 1.36%), Shree Cement (down 1.20%), IndusInd Bank (down 1.18%), BPCL (down 1.03%) and Titan Company (down 0.95%) were major losers in Nifty 50 index.

Buzzing Segment:

Shares of Mumbai-focused real estate developers were in demand after the BMC Commissioner was quoted by the media as saying that BMC has requested the State Government to slash premiums on construction activities by 50%. BMC has also requested the State Government to cut premium for extra FSI, concession agreements by 50%, reports added.

Sunteck Realty (up 17%), Indiabulls Real Estate (up 2.33%), Godrej Properties (up 3.59%) and Oberoi Realty (up 1.45%) advanced.

Stocks in Spotlight:

Steel Strips Wheels (SSWL) rallied 4.02% after the company said it received new export orders worth over $878,000 (Rs 6.50 crore) from US and Europe. SSWL confirmed export orders of nearly 62,000 wheels for US & EU market. The orders are to be executed in January and February from the company's Chennai plant. The firm is anticipating orders of similar capacity from the same customer base as businesses have picked up speed.

JK Tyre & Industries rose 0.31%. The company announced a tie-up with Kia Motors India as a tyre partner for their highest selling model Seltos. The tyre maker said it will provide its UX Royale 215/60 R17 radial tyre to Kia Seltos.

GMR Infrastructure skid 3.78% after an arbitration tribunal has asked company's subsidiary GMR Kamalanga to pay Rs 1,005 crore to SEPCO Electric Power Construction towards project payments, prolongation costs. An arbitration award has been passed in a matter of claims between GMR Kamalanga Energy (GKEL), a stepdown subsidiary of GMR Infrastructure and its project EPC contractor, SEPCO Electric Power Construction Corporation (SEPCO).

While SEPCO had claims on GKEL for project payments, prolongation costs etc., GKEL had made claims on SEPCO towards delays in project execution and towards defect liabilities. In this regard, GKEL had in the year 2014 encashed bank guarantees of about Rs 580 crore furnished by SEPCO which amount was utilised towards repayment of GKEL terms loans and consequential reduction of interest burden on the project.

Considering and accepting mutual claims of both GKEL and SEPCO, the arbitration tribunal has confirmed a net claim of Rs 1,005 crore payable by GKEL to SEPCO. It may be noted that there is an existing provision of Rs 1,092 crore approximately in GKEL books towards any such liability, which covers the entire amount of this award and such liability, if any, is non-recourse to GIL and will have no impact on GIL's profitability.

Global Markets:

US Dow Jones futures were up 256 points, indicating a strong opening in US market today.

Shares in Europe and Asia advanced on Tuesday as investors reacted to more positive coronavirus vaccine news. Meanwhile, the Trump administration has begun the transition process to President-elect Joe Biden, making federal resources available for his transition into office.

Biden is expected to nominate former Federal Reserve Chair Janet Yellen as U.S. Treasury secretary, breaking a 231-year gender barrier and putting a seasoned economist and labor market expert in charge of leading the country out of the steepest downturn since the Great Depression.

Meanwhile, UK Prime Minister Boris Johnson announced Monday the country's national lockdown would end on December 2 with certain conditions in place.

In US, stocks rose on Monday after AstraZeneca and the University of Oxford said their coronavirus vaccine was up to 90% effective, becoming the third inoculation this month that was revealed to be effective in trial data.

In economic data, IHS Markit said their U.S. manufacturing and services purchasing managers' indexes hit multiyear highs. The flash U.S. services index rose to 57.7, its highest level in more than five years. The manufacturing PMI popped to 56.7, its highest level in over six years.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, November 24 2020. 13:30 IST
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