Indices gain for 8th day, Sensex ends 316 pts higher; Nifty near 12750; RIL down
13 min read . Updated: 11 Nov 2020, 03:51 PM IST- After slipping in the red on profit booking, stock indices staged a recovery to end higher for the eighth session in a row. Pharma, metal, auto sector were the best gainers
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Share indices gain for eighth session
Indian markets staged a smart recovery after slipping into the red in the middle of the session on Wednesday. Gains in pharma and auto stocks lifted Sensex by 316 points higher to 43,593.67, while Nifty 50 ended at 12,749.15, up 118 points.
On the Sensex, 24 stocks advanced and six declined. RIL and Indusind bank were the biggest laggards on the index, while Tata Steel and Axis Bank were the best gainers.
On the Nifty, 43 stocks advanced and 7 declined. Nifty Bank gained 0.8%.
Sensex, Nifty end higher
Cabinet-approved PLI scheme for 10 key sectors worth up to ₹2 lakh crore
The Narendra Modi government on Wednesday announced production linked incentives for 10 sectors including auto, pharmaceuticals and textiles worth almost 2 lakh crores in a bid to boost manufacturing, make India self reliant and generate employment.
The decision of the cabinet was announced by Information and broadcasting minister Prakash Javadekar alongwith finance minister Nirmala Sitharaman in Mew Delhi.
The aim of the decision is to give the right impetus to the Indian economy to in turn enable India to plug into global supply chains, Sitharaman told reporters.
The manufacturing sector currently contributes 16% to India’s GDP, Javadekar said adding that the idea was to increase this. Among sectors, auto components and automobile sectors have received the maximum incentive of ₹57,000 crore, Javadekar said. Other sectors include advance cell chemistry battery, pharmaceuticals, food products and white goods.
Auto components and automobile sectors receive maximum incentive under Cabinet-approved production linked incentive scheme
Cabinet approves Production Linked Incentive scheme for 10 sectors
Top 10 Sensex contributors
Russia says its Sputnik V covid vaccine is 92% effective
Russia's Sputnik V vaccine is 92% effective at protecting people from covid-19 according to interim trial results, the country's sovereign wealth fund said on Wednesday, as Moscow rushes to keep pace with Western drugmakers in the race for a shot.
The initial results are only the second to be published from a late-stage human trial in the global effort to produce vaccines that could halt a pandemic that has killed more than 1.2 million people and ravaged the world economy.
Russia registered its COVID-19 vaccine for public use in August, the first country to do so, though the approval came before the start of the large-scale trial in September.
Gland Pharma IPO fully subscribed on final day of subscription
The initial public offer of Gland Pharma has been fully subscribed on the final day of subscription today. The issues was subscribed 1.03 times as of 1:45 pm today. The initial public offer of Gland Pharma, the biggest IPO offering by a pharmaceutical firm in India, comprises a fresh issue of shares worth up to ₹1,250 crore and an offer for sale of 3,48,63,635 shares. Price range for the offer has been fixed at ₹1,490-1,500 per share.
HPCL to invest ₹10,000 crore in creating gas value chain
State-run Hindustan Petroleum Corporation Ltd (HPCL) will invest ₹10,000 crore to create an end-to-end natural gas value chain, said an official from the company. The investment will be spread over the next five years.
"We are trying to create a value chain from end to end, right from liquefied natural gas (LNG) buying to LNG conversion to gas as well as LNG transportation. We have got a plan of around ₹10,000 crore of investment in various LNG-related facilities, through a combination of joint ventures or private participation," Mukesh Kumar Surana, chairman and managing director, HPCL told analysts.
Asia markets end mixed
Asian markets ended mixed on Wednesday with Japan's Nikkei 225 gaining the most and settling 1.8% higher. Hang Seng ended 0.40% lower, while China's Shanghai Composite index closed down 0.5%.
BSE Healthcare Index up
European shares extend rally
European shares rose for the third straight session on Wednesday on optimism around a covid-19 vaccine. The pan-European STOXX 600 gained 0.4%.
London's benchmark FTSE 100 index gained 0.5%. Germany's DAX 30 added 0.3% and France's CAC 40 rose 0.6%.
Nifty broad market positive
Sensex up
Yes Bank up 5% on inclusion in MSCI EM index
Kotak Mahindra Bank’s addition to MSCI EM index may result in $502 million inflows
MSCI will add 12 Indian stocks to its global standard indices and remove two others after 30 November, as a part of its Semi-Annual Index Review. Kotak Mahindra Bank will be the largest beneficiary as it is one the three largest additions to the MSCI Emerging Markets Index measured by full company market capitalization. The bank’s addition to the index may result in inflows of $502 million.
Sensex slips further amid volatility
SC refuses to interfere with HC cracker ban, says preserving life more important
Supporting the ban on firecrackers in view of the COVID-19 pandemic, the Supreme Court on Wednesday dismisses a plea against the ban of firecrackers in West Bengal during the ongoing festive season including Diwali.
Bank of Baroda cuts MCLR across all tenors effective 12 November
Bank of Baroda (BoB) today announced reduction in the marginal cost of funds based lending rate (MCLR) across all tenors. BoB has slashed its MCLR by 5 basis points (bps) across all tenors effective 12 November.
E-invoicing mandatory for businesses with ₹100 crore sales from January
The government has further tightened the Goods and Services Tax (GST) compliance norms by making electronic invoice (e-invoice) mandatory from 1 January for businesses with more than ₹100 crore sales, down from ₹500 crores now.
The reduced threshold for e-invoicing which entails real time validation of transaction details in a portal run be National Informatics Centre was signed off on Tuesday, an official notification showed. (Full report)
Nifty Bank down
ICICI Bank crosses ₹2 lakh crore mark in property loans
ICICI Bank today announced that its property loan portfolio has crossed the milestone of ₹2 lakh crore, making it the first private sector bank in the country to achieve this feat. The achievement can be attributed to ICICI Bank’s focus on offering a hassle free and frictionless experience to customers by digitizing the entire mortgage process along with instant loan approvals. The growth was also aided by the Bank’s expansion of footprint far and wide across the country including tier 2, 3 and 4 cities.
Sameet Chavan, chief analyst- technical and derivatives, Angel Broking
Monday evening, global markets, especially Dow futures, just blew out after the news of advancement of COVID - 19 vaccine. At one point, SGX NIfty was indicating levels beyond 12800. But this euphoria subsided towards the close of US markets and hence, tracking some nervousness early in the morning in DOW futures, our market was less excited at the opening. We still managed to open nearly eight tenths of a percent higher and ended the session well above the 12600 mark. Yesterday, it was the seventh straight day when our markets experienced a strong Bull Run. In fact, markets are opening with an upside gap in the last four trading sessions. Generally, back to back 'Runaway Gaps' after a decisive breakout from crucial points indicates strong buying interest. Now with yesterday's rally, we are very much close to our mentioned target of the 'Bullish Flag' pattern i.e. 12700 - 12800. The real question is whether we are going to halt here or the rally is going to continue further? With a medium term view, we believe that it's just the beginning of mega Bull Run and 13000 and beyond levels are very much on cards. But for momentum traders, the low hanging fruit is gone and from hereon, the immediate price action will not be as smooth as it has been since the last few days. In between, we are likely to see some profit booking or time correction. For the coming session, the support can be seen around 12550 - 12475.
Bad loans are not going away soon for India’s banks
India’s banks are on the mend from the pandemic’s blow or so their vastly improved repayments would have investors believe so. After all, every lender has reported that collection efficiencies are back to pre-pandemic levels.
Before investors begin the celebrations, they need to focus on what banks did than what banks just reported. Lenders have either increased provisions or maintained them in the September quarter. On an aggregate basis, provisions were down a modest 4.6% year-on-year for the 31 listed banks (excluding small finance banks). That is because a moratorium and a standstill from the Supreme Court helped them keep loans standard which required no provisions. (Full report)
Oil extends gains
Oil extended gains toward $42 a barrel in New York after an industry report pointed to a bigger-than-expected decline in U.S. crude stockpiles, adding to bullish momentum after a vaccine breakthrough.
The American Petroleum Institute reported crude inventories dropped by 5.15 million barrels last week, with gasoline and diesel stockpiles also decreasing, according to people familiar with the data.
Nifty Auto, Pharma and Metal outshine
Nifty broad market at this hour
Sensex at noon
Kotak Bank and Sun Pharma best gainers, while RIL, Indusind Bank biggest losers
Indusind Bank biggest loser, down 5%
RIL down 3%
Banks give up morning gains
Sensex slips into the red
Covaxin phase 3 trials begin; AMU VC is first volunteer
The third phase of clinical trials for the coronavirus vaccine, Covaxin, has started. The Vice Chancellor of Aligarh Muslim University (AMU) Professor Tariq Mansoor got himself registered to be the first volunteer for the trials.
OTT, digital news content under I&B ministry ambit now
The ministry of information and broadcasting has brought digital audio visual content, including films and web shows on OTT (over-the-top) streaming platforms as well as news and current affairs on online platforms under its ambit. The same was announced in a gazette notification on Wednesday.
This September, the I&B ministry had refused to support the self-regulation code floated by the Internet and Mobile Association of India (IAMAI).
NMDC down 5%
The company has announced share buyback worth ₹1,378 crore. The board will buyback 13.12 crore shares at ₹105 per share, a premium of 11.7% to Tuesday's closing price.
Rupee slips 9 paise
The rupee fell 9 paise to 74.27 against the US dollar in opening trade on Wednesday, owing to increased demand for the greenback by banks and importers amid strengthening crude prices.
Positive trend in the domestic equity market and a weak US dollar supported the local unit.
Wholesale dispatches of PVs, motorcycles jump in October
Domestic wholesale of passenger vehicles and two-wheelers increased for the third consecutive month in October as vehicle manufacturers increased inventory at dealerships expecting retail sales to pick up during Diwali and Dhanteras.
Dispatches of passenger vehicles increased by 14.19% y-o-y to 310,294 units in October, as demand for compact cars and entry sport utility vehicles continued to rise in the rural, semi-urban and some part of the urban markets, data released by Society of Indian Automobile Manufacturers showed on Wednesday.
Nifty IT in positive zone
Nifty 50 crosses ₹100 trln in mcap
Nifty 50 share index on Wednesday crossed ₹100 trillion in market cap after it surged for eight consecutive sessions.
The 30-share Sensex's mcap is at ₹83 trillion. The total market cap of BSE-listed companies stood at ₹168 trillion, while total market cap of NSE all listed companies was at ₹164.21 crore.
HC to hear Amazon today on Future Retail’s plea on Reliance deal
The Delhi High court on Wednesday will hear arguments by Amazon on Future Retail Limited’s plea seeking to restrain it to approach regulatory bodies such as Competition Commission of India (CCI) and Securities and Exchange Board of India (SEBI) against their transaction with Reliance. The court after a day long hearing had adjourned the matter for Wednesday for further arguments.
Future Retail has sought injunction against Amazon taking steps to interfere with lawful contracts between FRL and Reliance to making complaints to the statutory authorities and other forums examining different aspects of the proposed transaction and the proposed scheme of arrangement.
Nifty Pharma zooms 2%
Pfizer gains 3%
The company's US parent is in talks with the Indian government to sell its covid-19 vaccine candidate, which it believes has the potential to be an important part of the early vaccine response. Govt officials also confirmed that India is in discussion with Pfizer for its RNA vaccine
Gold prices fall
Gold and silver prices edged lower today in Indian markets tracking muted global trend. On MCX, gold futures fell 0.15% to ₹50,425 while silver futures declined 0.35% to ₹62,832 per kg. This is the second day of fall in gold prices in three days.
BSE Smallcap up 0.7%
SBI up
State Bank of India's board of directors has approved to divest over 8.5% in UTI Trustee Company. "The executive committee of the central board of directors of State Bank of India approved the divestment of 8,510 equity shares constituting 8.5% of the bank's stake in UTI Trustee Company Pvt Ltd," SBI said in a regulatory filing.
Nifty Bank up 1%
Nifty gainers/losers at open
On the Nifty, 44 stocks advanced and six declined.
Sensex at open
Sensex, Nifty open higher
Nifty at pre-open
Sensex at pre-open
Markets in the green at pre-open
Oil futures gain
Oil futures rose on Wednesday after an industry report showed that U.S. crude inventories fell by more than expected as prices continued to be supported by news of successful trials of a vaccine for coronavirus.
Brent crude was up 31 cents, or 0.7%, at $43.92 a barrel by 0213 GMT, while U.S. oil gained 36 cents, or 0.9%, to $41.72 a barrel.
Govt kicks off discom privatization for UTs
India has begun the process of privatizing the electricity distribution companies (discoms) of its Union Territories, with Chandigarh taking the first step.
The Chandigarh administration on Tuesday made available the request for proposals to sell 100% government stake in its discom, two people aware of the matter told Mint. A pre-bid meeting will be held on 1 December. The last date to submit bids is 30 December.
MSCI announces changes in MSCI India Index
MSCI has announced changes in MSCI India Index. While 12 stocks will be added, two -- Bosch and LIC Housing -- will be removed from the MSCI India Index after 30 November.
Twelve stocks, including Yes Bank, PI Industries, Muthoot Finance and Adani Green will be added to the index.
Indian markets may extend gains
Indian stock indices are likely to extend gains on Wednesday while trends in SGX Nifty indicate a positive opening. On Tuesday, the BSE Sensex rose 1.6% to end trading at 43,277.65. The National Stock Exchange’s broader Nifty index gained 1.36% to 12,631.10.
Stock markets gained on Wednesday as news of a working covid-19 vaccine seemed to inoculate investors against worry about surging infections in Europe and the United States, while the kiwi rose as traders thought the central bank sounded upbeat.
Stocks to Watch: Bharti Airtel, Coal India, Wipro, Bosch
Shares of Pfizer, Bharti Airtel, Coal India and NMDC will be among stocks in focus on Wednesday. Besides Coal India, POwer Grid, Aurobindo Pharma and Petronet LNG, Indraprastha Gas will declare their results today. (Full report)
Asian indices gain
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4% and Japan's Nikkei rose 1%. In Hong Kong, the Hang Seng traded flat, while Australia's ASX was up 1.5%.
US shares end mixed
Wall Street pulled back from the celebration that followed good news on a potential Covid-19 vaccine, ending Tuesday's session mixed. Dow Jones Industrial Average finished the day with a 0.9% gain, while the broader S&P 500 dipped 0.1%. Tech-heavy Nasdaq lost 1.4%.
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