The benchmark indices were trading near the day's high in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, surged 389.34 points or 0.88% at 44,539.06. The Nifty 50 index rallied 111.55 points or 0.86% at 13,080.50.
The sentiment was boosted as India's economy recovered faster than expected in the September quarter. The optimism over progress in COVID-19 vaccine development also supported buying.
In the broader market, the S&P BSE Mid-Cap index rose 0.80% while the S&P BSE Small-Cap index gained 0.83%.
The market breadth was strong. On the BSE, 1,749 shares rose and 873 shares fell. A total of 183 shares were unchanged.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, advanced 4.88% to 20.7850. The Nifty December 2020 futures were trading at 13,125.55, at a premium of 36.60 points compared with the spot at 13,088.95.
The Nifty option chain for 31 December 2020 expiry showed maximum Call OI of 27.97 lakh contracts at the 13,000 strike price. Maximum Put OI of 28.53 lakh contracts was seen at 12,000 strike price.
SEBI Regulation:
The Securities and Exchange Board of India's (Sebi's) mandated peak margin reporting norms have come into force from Tuesday, 1 December 2020. The new rule is aimed at preventing brokerages from giving additional leverage to traders.
From 1 December 2020, the maximum intraday leverage that can be offered by a broker will be restricted and this maximum leverage will keep reducing until 1 September 2021 post which a broker can give maximum leverage = VAR + ELM (min 20%) or SPAN + Exposure.
Economy:
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) was reported at 56.3% in November, highlighting a strong improvement in business conditions. However, the headline number was down from 58.9 in October to a three-month low.
Meanwhile, India's economy shrank for the second straight quarter through September, recording a 7.5% contraction in its Gross Domestic Product (GDP) in July-September, according to data released by the National Statistical Office (NSO) Friday.
The latest data is a significant improvement over the unprecedented 23.9% year-on-year contraction in April-June due to damage inflicted by the pandemic-induced lockdown. However, given that there have been two consecutive quarters of contraction, the economy is technically in recession.
Further, output at India's eight core sectors shrank 2.5% in October with the contraction widening from September's revised 0.1% decline as steel production slid again after a brief revival in the preceding month.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 6,32,36,804 with 14,67,987 deaths. India reported 4,35,603 active cases of COVID-19 infection and 1,37,621 deaths while 88,89,585 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Moderna Inc. has reportedly said that it will be seeking emergency use authorisation of its COVID-19 vaccine from the USFDA and European regulators after results from a late-stage study showed its vaccine was 94.1% effective.
Union Health Minister Harsh Vardhan on 30 November 2020, informed that a COVID-19 vaccine will be provided in first 3-4 months of next year. "In the first 3-4 months of next year, there is a possibility that we will be able to provide vaccine to the people of the country. By July-August, we have a plan to provide vaccines to around 25-30 crore people and we are preparing accordingly," he reportedly said.
Buzzing Index:
The Nifty Pharma index gained 1.75% to 12,046. The index added 3.53% in three sessions.
Sun Pharmaceutical Industries (up 4.82%), Aurobindo Pharma (up 2.64%), Lupin (up 2.24%), Cipla (up 1.90%) and Torrent Pharma (up 1.62%) advanced.
Stocks in Spotlight:
Kolte-Patil Developers (KPDL) rose 1.11% after the Pune-based realty firm announced that the company has completed the third and final tranche payment of Rs 70 crore to India Advantage Fund-III (IAF-III) and India Advantage Fund-IV (IAF-IV) managed by ICICI Venture Funds Management Company (ICICI Venture) for the buyout of their 50% stake in KPDL's flagship township project - Life Republic. As intimated earlier, the payment has been largely funded through internal accruals. The current disbursement follows the second instalment of Rs 70 crore paid out in November 2019.
Manappuram Finance declined 3.14%. The Kerala-based NBFC said it is considering various options for raising funds through borrowings including by the way of issuance of various debt securities in onshore/offshore securities market by public issue, on private placement basis or through issuing commercial papers.
Based on the prevailing market conditions, the company's board may consider and approve issuances of debt securities during the month of December 2020, subject to such terms and conditions including the issue price of debt securities, as the board/respective committee may deem fit.
Maruti Suzuki India rose 0.72%. The car marker's total auto sales gained 1.7% to 1,53,223 units in November 2020 from 1,50,630 units sold in November 2019. Sequentially, the total vehicle sales fell 16% from 1,82,448 units sold in October 2020. While the total domestic sales (domestic + OEM) rose 0.4% to 1,44,219 units, total exports jumped 29.7% to 9,004 units in November 2020 over November 2019.
Ashok Leyland gained 0.22%. The commercial vehicles maker's total auto sales jumped 5% to 10,659 units in November 2020 compared with 10,175 units sold in November 2019. Sequentially, the company's total auto sales advanced 6.70% last month from 9,989 units sold in October 2020.
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