The key indices extended gains and hit fresh intraday high in mid-morning trade. 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.
At 11:26 IST, the barometer index, the S&P BSE Sensex, was up 377.52 points or 0.86% to 44,527.24. The Nifty 50 index added 104 points or 0.80% at 13,072.95.
In the broader markets, the S&P BSE Mid-Cap index gained 0.63% while the S&P BSE Small-Cap index rose 0.72%.
The market breadth was strong. On the BSE, 1697 shares rose and 847 shares fell. A total of 158 shares were unchanged.
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, the National Statistical Office (NSO) released the estimates of Gross Domestic Product (GDP) in the July-September period. Provisional estimates of gross domestic product for the second quarter of the year ending in March 2021 show economic output shrank by 7.5%, following the 23.9% contraction in the first quarter.
Further, India's eight core industries growth for October was at -2.5%. The September growth number has been revised to -0.1% from -0.8% earlier.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 63,229,355 with 1,467,673 deaths.
India reported 435,603 active cases of COVID-19 infection and 137,621 deaths while 8,889,585 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 US FDA and European regulators after results from a late-stage study showed its vaccine was 94.1 percent effective.
Union Health Minister Harsh Vardhan on November 30, 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 has reportedly said.
Buzzing Index:
The Nifty Realty index rose 2.64% to 268.10. The index has added 6.17% in three sessions.
Indiabulls Real Estate (up 5.48%), Prestige Estates (up 4.68%), DLF (up 4.06%), Oberoi Realty (up 2.65%), Sobha Developers (up 2.14%), Godrej Properties (up 2.12%), Omaxe (up 1.08%), Brigade Enterprises (up 0.59%) and The Phoenix Mills (up 0.23%) advanced.
Stocks in Spotlight:
TVS Motor Company slipped 0.67% to Rs 496. The two-wheeler company will purchase 100% stake of Intellicar Telematics for a total cash consideration of Rs 15 crore.
Intellicar Telematics provides advanced fleet management solutions through an integrated platform powered by IoT technologies coupled with strong analytics and data management capabilities. It will help accelerate the ongoing digital initiatives at TVS Motor Company that are targeted at delivering enhanced customer experience.
ICICI Lombard General Insurance gained 2.26% to Rs 1488.70. The Insurance Regulatory and Development Authority of India (IRDAI), on Friday (27 November) approved, in principle, the acquisition of the non-life insurance business of Bharti AXA General Insurance Company by ICICI Lombard General Insurance.
Global Markets:
Most Asian stocks are trading higher as investors react to the release of a private survey of China's manufacturing activity.
The Caixin/Markit manufacturing Purchasing Managers' Index for November for China came in at 54.9. PMI readings above 50 signify expansion, while those below that level represent contraction.
On Monday, the official manufacturing PMI for November came in at 52.1, according to the National Bureau of Statistics the highest reading in more than three years.
The US stocks dipped on Monday as the prospect of a vaccine-driven economic recovery and further central bank stimulus measures eclipsed immediate concerns about the spiking coronavirus pandemic.
Moderna Inc on November 30 applied for U.S. emergency authorization for its COVID-19 vaccine after full results from a late-stage study showed it was 94.1% effective with no serious safety concerns.
President-elect Joe Biden on Monday officially announced his economic team, with former Federal Reserve Chairwoman Janet Yellen chosen to head the Treasury Department and Neera Tanden picked to lead the White House's budget office.
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