The domestic equity benchmarks were trading firm in morning trade. At 10:26 IST, the barometer index, the S&P BSE Sensex, was up 248.85 points or 0.56% to 44,398.57. The Nifty 50 index added 62.50 points or 0.34% at 13,013.10. The domestic stock market was closed on Monday, 30 November 2020, on account of Gurunanak Jayanti.
In the broader markets, the S&P BSE Mid-Cap index gained 0.65% while the S&P BSE Small-Cap index rose 0.64%.
The market breadth was strong. On the BSE, 1571 shares rose and 770 shares fell. A total of 159 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.
Buzzing Index:
The Nifty PSU Bank index rose 1.13% to 1,576. The index has advanced 7.44% in five sessions.
Union Bank of India (up 2.50%), Canara Bank (up 2.31%), Jammu and Kashmir Bank (up 2.09%), Bank of Baroda (up 2.04%), Indian Bank (up 1.78%), Punjab National Bank (up 1.35%), Bank of Maharashtra (up 1.23%) and Bank of India (up 1.11%) advanced.
State Bank of India rose 0.23% to Rs 244.85. French giant Amundi has reportedly warned the public sector bank that it would sell its SBI green bonds if the bank grants Rs 5,000 crore loan to Adani's Carmichael coal mine in Australia. The project has evoked sharp criticism from environmental groups and locals, who have claimed that the mine would produce 200 million tonnes of carbon dioxide during its 60-year life, media reports said.
As per reports, Amundi is Europe's largest asset manager and ranks in the top 10 globally. It manages assets worth 1,650 billion euros. Amundi's Jean Jacques Barberis, director of the institutional and corporate clients division & ESG, was quoted by the media as saying, "We have engaged SBI asking them not to participate (in the loan) and now we are waiting for their answer."
November Auto Sales:
Escorts fell 1.29% to Rs 1384.60. The company's Agri Machinery Segment (EAM) recorded 33% jump in total tractor sales to 10,165 units in November 2020 from 7,642 units sold in November 2019. Sequentially, however, the tractor sales have declined by 25.6% from 13,664 units sold in October 2020.
Escorts said that the dealer and depot stocks continue to be low. Stock correction in the coming months would continue to push the industry upwards, supported by healthy water reservoir levels and a good harvest. The supply chain still is volatile but should improve going forward. The company has taken a price increase this month to pass on the inflation in the commodity prices.
Bajaj Auto rose 0.20% to Rs 3179.05. The two-wheeler major's total sales rose 5% to 4,22,240 units in November 2020 from 4,03,223 units in November 2019. Sequentially, the total sales declined 17.54% in November 2020 compared with 5,12,038 units sold in October 2020.
Stocks in Spotlight:
Unichem Laboratories added 2.31% to Rs 261.40. The company announced that it has received ANDA approval for its atenolol and chlorthalidone tablets, from the USFDA to market a generic version of TENORETIC tablets of Alvogen Malta Operations. Atenolol and Chlorthalidone The drug, indicated for the treatment of hypertension, will be commercialized from Unichem's Ghaziabad plant.
Glenmark Pharmaceuticals gained 1.14% to Rs 476.55 after the drug maker said it received tentative approval from US drug regulator for Axitinib tablets, the generic version of Inlyta tablets of PF Prism C.V. According to IQVIA sales data for the 12 month period ending October 2020, the Inlyta Tablets, achieved annual sales of approximately $518.8 million.
Meanwhile, Dr. Reddy's Laboratories on Saturday (28 November 2020) announced that it has entered into a definitive agreement with Glenmark Pharmaceuticals to acquire select anti-allergy brands in Russia, Ukraine, Kazakhstan and Uzbekistan.
Shares of Dr. Reddy's Laboratories slipped 0.16% to Rs 4,822, declining 1.57% in two session.
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