The market extended its winning run to eighth consecutive trading sessions and closed near record high levels on Wednesday. Pharma and auto shares rallied while PSU banks corrected.
As per the provisional closing data, the barometer index, the S&P BSE Sensex, gained 316.02 points or 0.73% at 43,593.38. The Nifty 50 index added 122.85 points or 0.97% at 12,753.40.
The Sensex hit a record high of 43,708.47 while the Nifty hit a record high of 12,769.75 in morning trade.
In the broader market, the S&P BSE Mid-Cap index rose 0.82%. The S&P BSE Small-Cap index was up 0.39%.
The market breadth was positive. On the BSE, 1,450 shares rose and 1,279 shares fell. A total of 205 shares were unchanged.
PLI scheme in 10 sectors:
The Union Cabinet on Wednesday approved a Rs 2 lakh crore production linked investment (PLI) scheme for 10 sectors in order to boost domestic manufacturing in the country.
Union minister Prakash Javadekar said, "The Union Cabinet has approved PLI scheme for ten key sectors for enhancing India's manufacturing capabilities and enhancing exports. The scheme will make Indian manufacturers globally competitive, attract investment and enhance exports, he added.
Under the scheme, production-linked incentives will be given to sectors such as auto, pharma, telecom, textile, food product, solar PV, white goods manufacturing and specialised steel.
India-China Border Conflict:
In a major development, the Indian and Chinese armies have reportedly agreed for disengagement from parts of the Eastern Ladakh sector. As part of the process, the first step would be for Chinese and Indian troops to retreat from contact points, where the troops are positioned very close to each other. The entire disengagement process is expected to be completed by April-May 2021. The two sides also agreed for a joint mechanism to verify the progress in the disengagement process through delegation meetings as well as using Unmanned Aerial Vehicles (UAVs). The disengagement plan was discussed between the two sides during the 8th Corps Commander-level talks which were held on 6 November 2020 in Chushul, the media reports added.
Total COVID-19 confirmed cases worldwide stood at 5,14,62,791 with 12,72,146 deaths. India reported 4,94,657 active cases of COVID-19 infection and 1,27,571 deaths while 80,13,783 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Bihar Election Result:
The ruling National Democratic Alliance (NDA) has retained power in Bihar. It has secured absolute majority in 243 member assembly. NDA got 125 seats, while opposition Grand Alliance got 110 seats. Others got 8 seats.
BJP has bagged 74 seats, while JD(U) won 43 seats. Hindustani Awami Morcha (HAM) and Vikas Sheel Insaan Party (VIP) secured four seats each. On the other hand, RJD won 75 seats and Congress 19. CPI and CPM got 2 seats each. CPI(ML) has won 12 seats.
The Nifty Auto index rose 1.66% to 8,262.35 after the Society of Indian Automobile Manufacturers (SIAM), an industry body, announced good auto sales figures for October 2020. The index has surged 7% in seven trading days.
Eicher Motors (up 4.25%), Hero MotoCorp (up 3.73%), Tata Motors (up 3.46%), Escorts (up 2.55%), Mahindra & Mahindra (up 2.36%), Maruti Suzuki (up 0.95%) and Bajaj Auto (up 0.9%) advanced.
According to the latest data released by SIAM, passenger vehicle wholesale in India increased by 14.19% to 3,10,294 units in October against 2,71,737 units in the same month last year. While two-wheeler sales increased by 16.88% to 20,53,814 units, sales of three-wheelers saw a dip in sales by 60.91% to 26,187 units in October 2020 over October 2019. The total production of passenger vehicles, three-wheelers, two-wheelers and quadricycle in the month of October 2020 was 28,30,153 units, as against 20,86,479 units in October 2019, witnessing a growth of 35.64%.
Stocks in Spotlight:
Gillette India advanced 1.72% after standalone net profit surged 54.3% to Rs 95.29 crore on 11.7% rise in net sales to Rs 516.40 crore in Q1 September 2020 over Q1 September 2019.
Standalone profit before tax (PBT) soared 41.2% to Rs 122.28 crore in Q1 September 2020 as against Rs 86.60 crore in Q1 September 2019. Current tax expense for the quarter jumped 19.3% to Rs 27.85 crore as against Rs 23.35 crore in Q1 September 2019. The rise in net sales was supported by strong product innovations, trusted portfolio, market recovery and strong execution of brand and retail fundamentals.
Raymond fell 1.32% to Rs 282.35 after the company reported a consolidated net loss of Rs 136.59 crore in Q2 September 2020 compared with net profit of Rs 86.24 crore in Q2 September 2019. On a consolidated basis, net sales tumbled 64.2% to Rs 674.21 crore in Q2 September 2020 over Q2 September 2019. Pre-tax loss stood at Rs 216.75 crore in Q2 September 2020 as against a pre-tax profit of Rs 75.52 crore in Q2 September 2019. The company reported negative EBITDA of Rs 52 crore in Q2 FY21 as against a positive EBITDA of Rs 237 crore in Q2 FY20. The Q2 result was declared after market hours yesterday, 10 November 2020.
Bata India fell 2.92% after the footwear major posted a consolidated net loss of Rs 44.32 crore in Q2 September 2020 as against net profit of Rs 71.30 crore in Q2 September 2019. Net sales declined 49% year on year to Rs 367.87 crore in Q2 September 2020 over Q2 September 2019. The company recorded a pre-tax loss of Rs 58.41 crore in Q2 September 2020 as against pre-tax profit of Rs 97.41 crore in Q2 September 2019. The company said that it has witnessed increasing demand in semi-urban areas and has accordingly responded by opening up its 200th franchise store at Tenali in Andhra Pradesh. As the demand was stronger in Tiers 2-5, given relatively lesser impact of pandemic, Bata said it has leveraged the opportunity to expand its presence via distributor-led multi-brand outlets route. Currently the brand is getting distributed in over 30,000 Multi Brand Outlets (MBOs).
JB Chemicals & Pharmaceuticals declined 2.51% after the company reported a 21% drop in consolidated net profit to Rs 73.82 crore in Q2 September 2020 from Rs 93.62 crore in Q2 September 2019. On a consolidated basis, net sales fell 2.8% to Rs 443.56 crore in Q2 September 2020 over Q2 September 2019. EBITDA rose 9.8% year on year to Rs 110.1 crore in Q2 September 2020 from Rs 100.3 crore in Q2 September 2019. EBITDA margin grew to 24.8% in Q2 September 2020 from 22% in Q2 September 2019.
Info Edge (India) rose 0.38%. The company reported 78.7% jump in standalone net profit to Rs 51.15 crore on a 19.1% fall in net sales to Rs 256.12 crore in Q2 FY21 over Q2 FY20. Total expenditure during the quarter declined by 30% year-on-year (YoY) to Rs 204.56 crore. Operating EBITDA fell 48.1% to Rs 51.6 crore in Q2 FY21 from Rs 99.3 crore in Q2 FY20. The company's billing declined by 17% to Rs 249.5 crore in Q2 September 2020 compared with Rs 300.5 crore in Q2 September 2019.
JSW Steel surged 2.4%. The company's crude steel production for the month of October 2020 was at 13.38 lakh tonnes showing a growth of 4% over September 2020 (M-o-M) and 7% over October 2019 (Y-o-Y). "The average capacity utilisation improved to 89% during the month of October 2020, JSW Steel said. The production flat rolled products remained flat 9.76 lakh tonnes and the production of long rolled products improved by 16.7% to 3.01 lakh tonnes in October 2020 over October 2019.
ONGC rose 1.84% after the company said ONGC Videsh will acquire 13.6667% participating interest in exploitation area and 15% participating interest in exploration area under RSSD production sharing contract, offshore Senegal. The acquisition involves an upfront consideration of $45 million with customary adjustments including the opening working capital as of 1 January 2020 and the cash calls paid or to be paid from January 2020 onwards until completion (excluding any default interest paid/payable by FAR for any delay in cash call payments).
The US Dow Jones index futures were up 214 points, indicating a strong opening in the US market.
European markets traded higher while most Asian stocks extended gains on Wednesday as hopes for a successful coronavirus vaccine lifted expectations of a swift reopening of the global economy.
In US, the Dow Jones Industrial Average rose on Tuesday, building on its sharp gains from the previous session as a market rotation out of names that thrived during the pandemic and into stocks linked to an economic recovery continued. However, the S&P 500 and Nasdaq Composite struggled amid a sharp decline in major tech names.
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