Key equity indices pared gains in early afternoon trade as profit selling emerged at higher levels. At 12:21 IST, the barometer index, the S&P BSE Sensex, was up 245.40 points or 0.55% to 44,878.05. The Nifty 50 index added 70.85 points or 0.54% to 13,204.75.
The Sensex hit a record high of 45,033.19 and the Nifty hit a record high of 13,250.30 in morning trade today.
In the broader markets, the S&P BSE Mid-Cap index gained 0.28% while the S&P BSE Small-Cap index rose 0.01%.
The market breadth was strong. On the BSE, 1458 shares rose and 1218 shares fell. A total of 181 shares were unchanged.
RBI MPC meet outcome:
The Reserve Bank of India (RBI) kept the policy repo rate unchanged at 4% while maintaining its 'accommodative' stance after the conclusion of the Monetary Policy Committee (MPC) meeting today, 4 December 2020.
The RBI governor said inflation is likely to remain elevated with some relief in the winter months. "CPI inflation is seen at 6.8 percent for Q3FY21 and projected CPI inflation is at 5.8 percent for Q4FY21. For H1FY22, projected CPI inflation is seen at 5.2-4.6 percent with risks broadly balanced," he added.
The governor said the recovery in rural demand is expected to strengthen further, while urban demand is also gaining momentum. Consumers remain optimistic about the outlook and business sentiment of manufacturing firms is gradually improving. Fiscal stimulus is increasingly moving beyond being supportive of consumption and liquidity to supporting growth-generating investment.
On the other hand, private investment is still slack and capacity utilization has not fully recovered. While exports are on an uneven recovery, the prospects have brightened with the progress on the vaccines.
"Taking these factors into consideration, real GDP growth is projected at (-) 7.5% in 2020-21: (+) 0.1% in Q3:2020- 21 and (+) 0.7% in Q4:2020-21; and 21.9% to 6.5% in H1:2021- 22, with risks broadly balanced," he said in a statement.
Economy:
The International Monetary Fund (IMF) on Thursday reportedly said that the Indian economy, severely affected by the coronavirus pandemic, is gradually recovering. The economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5% and held out hopes for further improvement on better consumer demand.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 65,132,317 with 1,504,443 deaths. India reported 416,082 active cases of COVID-19 infection and 139,188 deaths while 9,016,289 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 4.03% to 18.2325. The Nifty December 2020 futures were trading at 13,261.70, at a premium of 56.95 points compared with the spot at 13,204.75.
The Nifty option chain for 31 December 2020 expiry showed maximum Call OI of 26.91 lakh contracts at the 13,000 strike price. Maximum Put OI of 32.60 lakh contracts was seen at 12,000 strike price.
Primary Market:
The initial public offer (IPO) of Burger King India received bids for 230.62 crore shares on Friday, 4 December 2020, as against 7.44 crore shares on offer, as per the National Stock Exchange of India (NSE) website data at 12:15 IST. The issue was subscribed 30.96 times.
The issue had opened for subscription on Wednesday (2 December) and it will close today, 4 December 2020. The price band for the IPO is set at Rs 59-60 per share. An investor can bid for a minimum lot of 250 equity shares and in multiples thereof.
The IPO consists of fresh issue of shares amounting to Rs 450 crore and an offer of sale of 6 crore shares by the promoter selling shareholder, QSR Asia. The net proceeds from the fresh issue are proposed to be utilised in funding roll out of new company-owned Burger King restaurants; and general corporate purposes.
Buzzing Index:
The S&P BSE Telecom index rose 1.93% to 1,228.64 after the Telecom Regulatory Authority of India (TRAI) released telecom subscription data for September 2020 on Thursday, 3 December 2020.
Bharti Airtel (up 2.72%) added 37.79 lakh new subscribers in the month of September 2020 and its total subscriber based stood at 32.66 crore. Bharti Airtel pipped Reliance Jio in new mobile subscriber addition in September, according to data published by telecom regulator TRAI.
Reliance Jio added 14.61 lakh new subscriber in the month of September 2020. Jio's total subscriber base stands at 40.41 crore as of September 2020. Reliance Industries (RIL) (down 0.87%) controls Reliance Jio.
Vodafone Idea (down 1.11%) lost 46.53 subscribers in September 2020 and its subscriber base shrinked to 29.54 crore as of September 2020.
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