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Benchmark indices closed at lifetime high on Monday as banks and IT companies gained amid positive global cues as Joe Biden was declared winner in the US presidential election. Sensex closed 704 points higher at 42,597, while Nifty closed at 12,461 for the first time.
Nifty Bank closed 2.7% higher.
Bharti Airtel and Indusind Bank were among the top gainers, while ITC was the biggest laggard. The market breadth continued to be in favour of advances.
On the Nifty, 43 stocks advanced and 7 declined.
On the Sensex, 27 shares advanced and three closed in the red.
Equity mutual fund schemes continue to be under redemptions threat with net flow at ₹3991 crore in October, almost triple of ₹1009 crore in last month, Association of Mutual Funds in India data showed. Monthly SIP contribution grew slightly to ₹7,800 crore. Overall debt schemes saw a net inflow driven by Liquid, Money Market, Corporate Bond Fund, Short Duration, Ultra short duration, Low Duration and Banking and PSU Fund categories indicating a sectoral rotation by investors.
Auto component industry body ACMA on Monday requested the Haryana government to reconsider the 75% employment reservation for locals in private enterprises, saying the move would adversely impact the ease of doing business in the state, the PTI reported.
On November 5, the state assembly passed the Haryana State Employment of Local Candidates Bill that mandates 75% reservation in factories and other blue-collar jobs in the private sector for locals.
Asian markets closed sharply higher today with shares in Japan leading the region. The Nikkei 225 settled up 2.12% while China's Shanghai Composite rose 1.86% and Hong Kong's Hang Seng gained 1.18%. MSCI's broadest index of Asia Pacific shares outside of Japan jumped 1.3%
European stock markets rose at the start of trading on Monday after Joe Biden won the US presidential election.
London's benchmark FTSE 100 index jumped 1.5%, Frankfurt's DAX 30 rallied 1.7% and the Paris CAC 40 climbed 1.5%.
Fifteenth Finance Commission on Monday submitted its report laying the blueprint for devolution of Centre’s tax revenue to states for the FY22-26 period to President Ram Nath Kovind, addressing the major fiscal stress at the central and state level caused by the coronavirus crisis.
The report titled ‘Finance Commission in Covid Times’ seeks to address a whole range of issues including transfer of funds to local bodies, disaster management grant and performance incentives to states in several areas including power, direct benefit transfer and solid waste management, said an official statement from the Commission.
The contents of the report will be made public when the central government tables it in the Parliament.
The Delhi High court on Monday issued notice to the several media houses and other respondents in the petition filed by more than 34 production houses to seek a restraint on Republic TV and Times Now channels from making or publishing alleged “irresponsible, derogatory and defamatory" remarks against Hindi film industry and its members.
The petition has been filed in reference to the media coverage related to the death of Bollywood actor Sushant Singh Rajput.
The court while listing the matter on 17 December said that the counsels should think of what needs to be done for this.
Apple Inc. suspended new business with iPhone assembler Pegatron Corp. after discovering labor violations at a student workers’ program, taking strong action to clean up a Chinese-based production chain long accused of worker abuse, the Bloomberg reported.
The Cupertino, California-based technology giant said it discovered several weeks ago that the Taiwanese manufacturer misclassified student workers and allowed some to work nights and overtime in violation of Apple’s Supplier Code of Conduct. Employees then “went to extraordinary lengths" to cover up the violations. It’s since placed its partner on probation until corrective action is completed, the U.S. company said in a statement.
Even as benchmark indices hit record high on Monday, more than half of Nifty stocks are still underperforming massively. In early trade, the 50-share index hit all-time high of 12,451.80 while the Sensex also breached its lifetime high at 42,566.34.
Data showed that around 27 stocks that constitute the Nifty index are still in negative. Overall, 21 stocks are down 10%-45% from the last time Nifty hit a record high. Non-participation of more than half stocks in the index while the Nifty hit record high in a span of nearly 10 months indicates wide polarisation in the stock markets.
The defining feature of equity market performance in 2020, so far, has been the sharp divergences across and within sectors and companies. This highlights the differentiated impact of covid on various sectors. Clearly, the essentials (healthcare, staples) and technology/online/e-commerce businesses were impacted far lesser than the financials, cyclicals (metals, infrastructure, oil and gas) and discretionaries (travel, aviation, restaurants, hotels, etc.)
Despite high demand for vehicles during the Navratri festival, retail sales of passenger vehicles in the domestic market declined by 8.8% year-on-year to 2,49,860 units in October, due to the adverse impact of Covid-19 related disruptions and high base in the corresponding period, showed data released by Federation of Automobile Dealers Associations (FADA) on Monday.
Last year, both Dussehra and Diwali festivals were in October which resulted in a higher base on a corresponding basis.
Equitas Small Finance Bank in a communication to stock exchanges said that Reserve Bank of India has lifted the restrictions with respect to opening of new branches and remuneration freeze of MD & CEO at the then existing level. The restrictions were removed in the wake of Equitas Small Finance Bank getting listed on exchanges earlier this month.
HDFC Securities has selected 10 top stocks -- five largecaps and five midcaps for investors, where the brokerage sees potential to generate good returns for investors by next Diwali.
Stock --Add on dips --Target price --Upside
Large cap stocks
Bharti Airtel 400-403 --597-- 33%
Cadila Healthcare 385-393 -- 508 --18%
ICICI Bank 395-405 -- 503 -- 14%
Infosys 1002-1006 -- 1205 -- 8%
United Spirits 441-451 -- 645 -- 19%
Mid cap stocks
Alembic Pharma 877-885 -- 1148 -- 17%
Credit Access Grameen 520-540 -- 797 -- 18%
Gujarat Gas 270-273 -- 356 -- 14%
Mphasis 1234-1238 --1511 --13%
Radico Khaitan 380-390 -- 545 -- 26%
234 out of 298 equity mutual fund schemes have been giving positive returns in the last one year now.
Here's a list of schemes which have delivered returns over 15% in the last one year.
Ujjivan Small Finance Bank investors can count their blessings after September quarter showed improvement in the lender's profitability.
The lender reported a 4% growth in net profit for the quarter and its core interest income grew by a healthy 21%. Considering the bank caters to the more vulnerable small borrowers, an improvement in repayment collections shows that this segment too is bouncing back slowly. Small borrowers and businesses are the most hit by the pandemic and the progressive unlocking of the economy since June has meant these firms are slowly returning to normalcy. (Full report)
US President-elect Joe Biden's healthcare advisers have held talks with drugmaker executives on the U.S. government's Operation Warp Speed program to accelerate development of a possible COVID-19 treatment, a Biden spokesman said.
Under the Trump administration, Operation Warp Speed has struck deals with several drugmakers in an effort to help speed up the search for effective treatments for the disease amid the global coronavirus pandemic.
It seems like investors can’t get enough of custom research and outsourcing businesses. After a strong gain of about 83% returns in 2020, Divi’s Laboratories’ announcement of additional capital expenditures has further enthused investors. Divi’s had already announced capital expenditures of about ₹1800 crore earlier, but this time it announced new capex of about ₹400 crore. The stock jumped about 4% on Monday and touched a new 52-week high.
Custom synthesis is expected to grow at a fast pace thanks to increased outsourcing from the big pharma companies. The firm is also likely to benefit from the increased outsourcing from other geographies such as India. (Full report)
Oil prices gained more than 2% on Monday, with Brent futures rising above $40 a barrel, after Joe Biden clinched the U.S. presidency and buoyed risk appetites, offsetting worries about the impact on demand from a worsening coronavirus pandemic.
Brent crude futures for January climbed $1.06, or 2.7%, to $40.51 a barrel, and U.S. West Texas Intermediate crude for December was at $38.21 a barrel, up $1.07, or 2.9%.
The board of L&T Finance Holdings Ltd, the financial services arm of construction conglomerate Larsen & Toubro Ltd, on Monday approved a plan to raise as much as Rs3,000 crore through a rights issue.
"The Board approved the offer and issuance of fully paid-up equity shares of the Company for an amount not exceeding Rs. 3,000 Crore by way of a rights issue to the eligible equity shareholders of the Company as on the record date (to be determined and notified subsequently)," the company said in an exchange filing.
Mint reported on 19 August that L&T Finance had begun discussions with advisors on a potential Rs2,000-3,000 crore fundraise.
The consumer goods major reported a consolidated net profit of ₹3,413.44 crore for the second quarter ended September 2020. The company had posted a net profit of ₹4,174.69 crore during July-September quarter a year ago.
State-owned reported a net profit at ₹517 crore for the quarter to September on better assets leading to lower credit cost. The lender had a net loss of ₹1,194 crore in the year-ago period.
Private sector Lakshmi Vilas Bank (LVB) on Saturday reported widening of its net loss at ₹397 crore in the second quarter ended September 2020 due to rise in bad loans and provisions. The bank had posted a net loss of ₹357.18 crore in the same quarter a year ago. Sequentially also, the loss widened against ₹112.28 crore in the June quarter of this fiscal.
Divi's Laboratories hits record high after the company reported a strong 45.6 per cent year-on-year (YoY) jump in its net profit at ₹520 crore,
Rupee opens at 73.95 against Friday's close 74.20
The consumer goods major reported a consolidated net profit of ₹3,413.44 crore for the second quarter ended September 2020. The company had posted a net profit of ₹4,174.69 crore during July-September quarter a year ago.
Gold and silver prices moved higher in Indian markets today, as the precious metals extended recent gains in global markets. On MCX, gold futures rose 0.16% to ₹52,252 per 10 gram while silver surged 0.8% to ₹65,880 per kg. Gold prices had rallied sharply last week, gaining around ₹1,500 per 10 gram over 5 days. On the other hand, silver had logged weekly gain of about ₹4,000 per kg. In August, gold had hit a record high of ₹56,200 per 10 gram.
Indices hit a record high on Monday led by positive cues as US election results triggered risk appetite globally.
Sensex was at 42,417.35, up 524 points, while Nifty was 12427 at opening session.
Bank, IT, pharma were the leading sectors
Nifty, Sensex opened 1% higher in pre-open
ITC, HCL Infosystems, Adani Enterprises and Lakshmi Vilas Bank are among the top ten stocks that may be in news today. (Full report)
The combined market valuation of nine of the top-10 most valued companies zoomed by ₹2,30,219.82 crore last week, with HDFC twins leading the pack.
The market capitalisation of HDFC Bank jumped by ₹68,430.18 crore to ₹7,19,948.29 crore, emerging as the biggest gainer among the most valued companies.
The valuation of HDFC zoomed by ₹38,484.05 crore to reach ₹3,83,771.94 crore and that of ICICI Bank gained ₹34,892.98 crore to ₹3,05,629.04 crore.
Kotak Mahindra Bank's market cap jumped by ₹33,649.7 crore to ₹3,39,980.79 crore and Infosys added ₹22,489.7 crore to take its valuation to ₹4,74,242.93 crore.
The mcap of Tata Consultancy Services (TCS) rose by ₹16,285.35 crore to ₹10,16,239.59 crore.
Bharti Airtel's valuation rose by ₹8,810.72 crore to ₹2,45,363.69 crore and Hindustan Unilever gained by ₹5,169.03 crore to reach ₹4,92,067.57 crore.
Rising for the fifth straight session, equity benchmark Sensex rallied 553 points and closed at a nearly 10-month high on Friday, tracking gains in index-heavyweights Reliance Industries and HDFC twins amid largely positive global market sentiment.
The 30-share BSE index ended 552.90 points or 1.34% higher at 41,893.06, while the broader NSE Nifty surged 143.25 points or 1.18% to 12,263.55.
Asian markets headed for a fresh record high amid optimism about the outlook under a Joe Biden presidency. Monday began with a continuation of last week’s embrace of risk, after Biden was declared the winner of the US election on Saturday.
Australia's ASX All Ordinaries jumped 1.70%
China's Shanghai SE Composite Index climbed 1.08%
Hong Kong's Hang Seng 1.16%
Japan's Nikkei 225 advanced 1.88%
Taiwan's TSEC 50 Index added 0.93%
Singapore's SGX Nifty was up 0.5%
US stocks held near the unchanged mark on Friday to close out a strong week as Democratic challenger Joe Biden edged closer to victory in the presidential election, while the monthly jobs report underscored the hurdles still facing the economy.
The Dow Jones Industrial Average fell 66.78 points, or 0.24%, to 28,323.4, the S&P 500 lost 1.01 points, or 0.03%, to 3,509.44 and the Nasdaq Composite added 4.30 points, or 0.04%, to 11,895.23.
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