Continuing their northward
movement for the sixth straight day, Indian equity markets gained over one and
half percent to settle at record closing high levels on Monday, taking cues
from their global peers which rose following Joe Biden's victory in the US
presidential election. Hectic buying activity which took place during second
half of trade mainly drove the markets higher, with frontline gauges ending
above their crucial 42,550 (Sensex) and 12,450 (Nifty) mark. Both the indices
made gap-up opening and traded in fine-fettle for whole day, as traders got
encouragement with PHD Chamber of Commerce and Industry's President Sanjay
Aggarwal's statement that the economy is going to attain its fastest growth trajectory
from the next financial year 2021-22 onwards. He said Percolation of more and
more economic reforms at the ground level with effective implementation would
be crucial to attain the potential trajectory of $5 trillion in the next 6
financial years by FY 2026-27 (GDP at current prices; considering the exchange
rate between 74-75). Traders also drew some comfort with Dinesh Khara,
Chairman, State Bank of India's statement that the Indian economy is expected
to be on normal course by early next fiscal even while the investment demand
from corporate might take some time to pick up. Key indices extended their
gains in late afternoon session, taking support from private report stated that
eleven manufacturing value chains in India have strong potential to operate in
international markets, boosting India's power and providing long-term
employment and skill pathways to several Indians. With relevant reforms and
complementary actions by manufacturing companies, it is estimated that these 11
manufacturing value chains can generate about $320 billion more in gross value
added within the next seven years. Sentiments remained up-beat with report that
NITI Aayog member Ramesh Chand hailed the three recently enacted
agriculture-related legislations by the Centre saying if implemented in the
right spirit, they will take Indian agriculture to new heights and usher in the
transformation of the rural economy. Additional support came with Finance
Minister Nirmala Sitharaman's statement that increased digitisation will help in
making better assessment of the country's economic growth and nudged tax
practitioners to suggest their clients to shift towards digital modes of
payments. Finally, the BSE Sensex rose 704.37 points or 1.68% to 42,597.43,
while the CNX Nifty was up by 197.50 points or 1.61% to 12,461.05.
The US markets ended mostly
higher on Monday following upbeat results from a phase 3 study of the
coronavirus vaccine being developed by Pfizer (PFE) and BioNTech (BNTX). Pfizer
and BioNTech said an interim analysis of the results found the vaccine candidate
to be more than 90 percent effective in preventing COVID-19 in participants
without evidence of prior infection. Pfizer Chairman and CEO Dr. Albert Bourla
said today is a great day for science and humanity. The first set of results
from our Phase 3 COVID-19 vaccine trial provides the initial evidence of our
vaccine's ability to prevent COVID-19. The companies said they plan to submit
the vaccine for regulatory approval in the US and Europe soon after the
required safety milestone is achieved, which is currently expected to occur in
the third week of November. The vaccine reports added to positive sentiment
generated in reaction to the weekend's news that Democratic candidate Joe
Biden's is projected to win the presidential election. Besides, several major
reports organizations called the race for Biden on Saturday after projecting
the former Vice President will win Pennsylvania and its 20 electoral votes. The
apparent victory for Biden potentially sets up a divided government, with
control of the Senate likely to be decided by two run-off elections in Georgia.
However, President Donald Trump has refused to concede the race, alleging
widespread voter fraud and launching legal challenges in several key states.
Crude oil futures ended sharply
higher on Monday as positive reports about a potential coronavirus vaccine.
Pfizer Inc. and BioNTech SE announced that the first set of results from the
phase 3 COVID-19 vaccine trial provides initial evidence of the vaccine's
ability to prevent COVID-19. Democrat Joe Biden's victory in the US
presidential election also lifted optimism about positive developments in
international trade. Meanwhile, Market was also reacting positively to reported
comments by Saudi Arabia that OPEC+ will likely alter oil output to balance the
market. Crude oil futures for December gained $3.15 or 8.5% percent to settle at
$40.29 a barrel on the New York Mercantile Exchange. January Brent crude
declined 3.10 or 8 percent to settle at $42.55 a barrel on London's
Intercontinental Exchange.
Indian rupee depreciated against
dollar on Monday, on account of sustained dollar demand from importers and
banks. Sentiments were fragile despite report that foreign portfolio investors
(FPI) have put in a net Rs 8,381 crore into Indian markets in first five
trading sessions of November, with participants growing more confident in view
of resumption of business activities and better than expected quarterly
numbers, among others. Market participants took a note of report that Former
Reserve Bank Governor Bimal Jalan has opined against a fresh fiscal stimulus to
boost pandemic-hit economy saying it is more important to spend the amount
already committed by the government than to increase the fiscal deficit target
again. On the global front, Sterling edged up in early London trading on Monday
after reaching a nine-week high versus the dollar overnight, as Democrat Joe
Biden's victory in the U.S. presidential elections saw global markets at new
highs and riskier currencies gaining. Finally, the rupee ended at 74.15, 7
paise weaker from its previous close of 74.08 on Friday.
The FIIs as per Monday's data
were net buyer in both equity and debt segment. In equity segment, the gross
buying was of Rs 9472.50 crore against gross selling of Rs 4588.51 crore, while
in the debt segment, the gross purchase was of Rs 1246.43 crore with gross
sales of Rs 982.55 crore. Besides, in the hybrid segment, the gross buying was of
Rs 1.36 crore against gross selling of Rs 38.94 crore.
The US markets ended mostly in
green on Monday as investors bet that a full economic reopening was finally in
sight following the first positive data from a late-stage COVID-19 vaccine
trial. Asian markets are trading higher on Tuesday as investors reacted to the
positive developments overnight on the coronavirus vaccine front. Indian
markets ended at record high levels Monday helped by strong global cues after
the US presidential election outcome and sustained foreign capital inflow into
the domestic market. Today, the start of session is likely to be optimistic
tracking gains in global markets. Traders will be getting encouragement with
report that Pfizer Inc's said its experimental COVID-19 vaccine was more than
90 percent effective based on initial trial results, and they have so far found
no serious safety concerns, priming it for possible speedy regulatory
approvals. Sentiments may get some boost with SBI Research report stating that
a number of green shoots are visible in the economy five months after easing
restrictions. It also said assuming that India escapes a second wave, the
pandemic will subside by February 2021. Some support will come with oil
minister Dharmendra Pradhan's statement that India has invited global firms to
invest in its strategic petroleum reserves (SPRs) as the nation's energy
consumption growth would be fastest among large economies in coming decades.
Besides, market participants will track today's counting of votes for the Bihar
assembly election, with most pollsters predicting a landslide victory for the
five-party Grand Alliance led by the young RJD leader Tejashwi Yadav.
Meanwhile, the department of revenue said India extended the anti-dumping duty
on imports of carbon black used in rubber applications from China and Russia
till December 31, 2020. There will be some buzz in insurance industry stocks
with report that the Life insurance industry with public and private life
insurance companies put together grew by 32 percent, collecting a total premium
of Rs 22,776 crore. textile stocks will be in focus as the Cotton Association
of India (CAI) projected the total production of cotton at 356 lakh bales for
the crop year 2020-21, which is 4 lakh bales less than the year ago period.
There will be some reaction in power stocks with the power ministry's statement
that it has mandated all electricity distribution utilities or discoms to
comply with the Energy Conservation (EC) Act, 2001, which would reduce energy
losses and bring in more transparency in the sector.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous
close
|
Support
|
Resistance
|
NSE
Nifty
|
12,461.05
|
12,394.25
|
12,500.95
|
BSE
Sensex
|
42,597.43
|
42,358.93
|
42,740.62
|
Nifty Top volumes
Stock
|
Volume
|
Previous
close (Rs)
|
Support (Rs)
|
Resistance
(Rs)
|
(in
Lacs)
|
State
Bank of India
|
603.59
|
219.50
|
216.81
|
222.41
|
NTPC
|
427.04
|
89.45
|
88.15
|
90.30
|
ICICI
Bank
|
409.95
|
462.70
|
452.94
|
468.54
|
Tata
Motors
|
402.77
|
141.00
|
139.30
|
142.10
|
ITC
|
352.86
|
172.80
|
170.66
|
176.11
|
Cipla is looking at sustaining growth through the pandemic and has decided certain priorities for the coming quarters, including digital adoption and profitable growth.
Tata Motors is aiming to have the widest portfolio of SUVs in the domestic market.
M&M has conducted mega delivery of 500 All-New Thars across the country, between November 7 and November 8, 2020.
Eicher Motors' motorcycle arm -- Royal Enfield is planning to launch at least 28 new models in the next seven years.