ICICI Bank, HDFC Bank, Infosys, and Reliance Industries (RIL) were the major contributors to the Sensex's gain today.
Continuing their northward movement, the benchmark indices gained around 1.6 per cent to settle at record high levels on Monday.
The S&P BSE Sensex rallied 704 points, or 1.68 per cent to end the day at 42,597 levels. In the intra-day deals, the index hit a high of 42,645.33 levels. NSE's Nifty index, too, surpassed its previous high of 12,430.5 to settle at 12,461, up 198 points, or 1.61 per cent.
ICICI Bank, HDFC Bank, Infosys, and Reliance Industries (RIL) were the major contributors to the Sensex's gain today. Of 30 constituents, 27 advanced and three declined.
The broader market, however, underperformed the headline indices. The S&P BSE MidCap index gained 1 per cent to 15,560 levels and the S&P BSE SmallCap added 0.57 per cent to 15,305 levels.
Among sectoral indices on the NSE, all the indices advanced while Nifty Media remained unchanged.
World stocks hit a record high on Monday and the dollar stayed weak as expectations of better global trade ties and more monetary stimulus under US President-elect Joe Biden supported risk appetite.
E-mini futures for the S&P 500 jumped more than 1.4% on Monday. MSCI’s broadest index of Asia Pacific shares outside of Japan jumped 1.3% after hitting its highest since January 2018. European stocks, too, rallied in the trade.
In commodities, oil prices rose more than 2 per cent, with Brent futures topping $40 a barrel.
MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial services
"Firm global cues and a clear majority to favorite democrats party in the US election took main benchmark indices to all-time high. The rally in the domestic market was also led by Banking and Finance stocks on improved business outlook post Q2 results, end to the moratorium, and bounce back of economic activities. The broader market has shown underperformance compared to headline peers as investors feel safer chasing heavyweights during high market levels. We expect more stimulus measures are required to boost the economy and announcements regarding the same from the government is expected in the near future that can further accelerate our domestic market."
MARKET AT CLOSE | Gainers and losers on the BSE Sensex
The S&P BSE Sensex surged 704 points, or 1.68 per cent at 42,597 levels while NSE's Nifty ended at 12,461, up 197.5 points, or 1.61 per cent.
IndusInd Bank hits over seven-month high; advances 33% in 6 days
Shares of IndusInd Bank hit an over seven-month high of Rs 777.80, up 5 per cent on the BSE on Monday. The stock of the private sector lender was trading higher for the six straight trading session and has rallied 33 per cent during the period. It was quoting at its highest level since March 13, 2020. READ MORE
BROKERAGE VIEW | ICICI Securities on Glenmark Pharma
Despite facing Covid-related challenges in Q2FY21, the company reported a stable topline while EBITDA was higher mainly on account of reduced travel & promotional spend. Going ahead, the management expects margins to improve due to cost rationalisation measures and decline in R&D expenses as percentage of sales. Glenmark had earlier shelved API monetisation plan and plans to reduce debt through internal accruals, pipeline monetisation (ICHNOS) and divestment of non-core business. On the capex front, although things are looking a bit strained, the management expects some moderation. We believe reduction of debt, improvement in free cash flow and margins are key events to watch. We arrive at our target price of Rs 635 based on 14x FY23E EPS of Rs 45.2.
PE deals score over REITs as realtors eye fast money, avoid listing hassles
While the REIT route has gained prominence, the promoters opted for private deals to get the cash fast and, at the same time, avoid the hassle of listing an REIT that would have taken more than a year, said promoters and capital market experts. RMZ sold 12.5 million square feet in assets to Canada-based Brookfield Asset Management for over Rs 14,000 crore, while Prestige Estates has signed an initial agreement to sell its office and malls to US-based Blackstone. READ MORE
IPO ALERT :: Gland Pharma IPO subscribed 3% till 2:30 pm on Day 1
HDFC Bank, ICICI Bank, and RIL top contributors to Sensex's 600-pt rally today
Nifty at day's high
Mutual fund AUMs rise to Rs 28.22 lakh crore in October 2020
The total mutual fund AUM as on October 31, 2020 reached to highest ever Rs 28.22 lakh crore while average AUM for Oct. 2020 was Rs 28.33 lakh crore due to rise in retail SIP contribution and surge in net flows in overall debt schemes, according to the October 2020 monthly data released by the MF Industry body, the Association of Mutual Funds in India (AMFI) earlier today.
The mutual fund Industry witnessed an overall positive flows at Rs 98,575.96 crore in October 2020.
(Source: AMFI press release)
Sensex surges 700 pts
Life Insurers witness 32% growth in new business premiums in October
Life insurers earned NBP to the tune of Rs 22,776 crore in October FY21, compared to Rs 17,271.86 crore in the same period last year. In September, the NBP of life insurers was up 26.47 per cent at Rs 25,366.32 crore. NBP is the premium acquired from new policies for a particular year. READ MORE
Top losers on the BSE at this hour
Global economy to remain in tenuous position in 2021, says Moody's
In a new report, Moody's examined six key themes that will shape the credit environment in the year ahead: uneven recovery, policy challenges, rising debt levels, digital transformation, environmental impact and social trends.
"The vast policy support from the governments since the start of the crisis will propel a stronger economic recovery in advanced markets than in many emerging markets, and business and operating conditions will continue to be steadier for sectors that have more easily adapted to the pandemic-related disruption," said Moody's Associate Managing Director Elena Duggar. READ MORE
NEWS ALERT :: Pushing for up to $4 billion in tariffs against the US over illegal state aid to Boeing, says the EU
Escorts rallies 5%, hits record high on healthy outlook in current fiscal
Escorts' management stated that the overall rural sentiment is positive because of the record output of Rabi crop along with better realization, strong Kharif sowing season and easy availability of retail finance. Furthermore, the management expects demand momentum to continue with supply chain issues ironing out. Besides, the current inventory at channel level is very low and re-stocking will also aid in volume growth in the coming quarters. READ MORE
Rupee ends at 74.03 per US dollar vs Friday's close of 74.20/$
GLOBAL MARKETS UPDATE:: Risk assets cheer Biden win
Shares surged, oil prices jumped and the U.S. dollar remained weak on Monday as expectations of fewer regulatory reforms and more monetary stimulus under U.S. President-elect Joe Biden supported risk appetite.
E-mini futures for the S&P 500 jumped more than 1.5% on Monday while Nasdaq futures rallied over 2%, signalling a positive start for U.S. markets. Eurostoxx 50 futures gained 1.7%, Germany’s DAX futures climbed 1.8% and FTSE futures rose 1.4%.
The mood was also upbeat in Asia, with all major indexes in the green. MSCI’s broadest index of Asia Pacific shares outside of Japan jumped 1.4% to 614.73 points, the highest since January 2018. It climbed 6.2% last week to clock its best weekly performance since early June.
Chinese shares started higher with the blue-chip CSI300 index up 2.2% on hopes of better Sino-U.S. trade relations under Biden. Japan rose 2.4% while the main indexes of Australia, Hong Kong and South Korea gained 1.5% each.
Pharma shares underperform in a firm market; Glenmark, Ipca Labs fall 6%
Among individual stocks, Glenmark Pharmaceuticals and Ipca Laboratories slipped 6 per cent, while Cipla, Laurus Labs, Neuland Laboratories, Caplin Point Laboratories, Strides Pharma Science and Novartis India were down in the range of 2 per cent to 4 per cent on the BSE. READ MORE
Passenger vehicle retail sales dip 9% in October on supply woes: FADA
Two-wheeler sales declined 26.82 per cent to 10,41,682 units last month, as compared to 14,23,394 units in October 2019.
Commercial vehicle sales also slipped 30.32 per cent to 44,480 units, as against 63,837 units a year ago. READ MORE
OPINION | Sanity in post-Covid world, but expect no instant big changes
Donald Trump's international economic policy was a populist mix of harking back to splendid isolation, muscular 'my way or the highway' approach, and his 'art of the deal'. At its heart, though, it had a domestic focus. It was left to the bureaucracy to keep trade discussions going — distinct from Trump's tweets. As Joe Biden shapes his trade policy, he faces a vastly changed world from what he left in 2016. READ MORE
Top gainers on the BSE at this hour
Fifteen finance commission submits report on tax devolution to Prez Kovind
The 15th Finance Commission submitted its report for 2021-22 to 2025-26 to the President Ram Nath Kovind on Monday. The main task of the Commission is to recommend devolution of the central taxes among the union government and the states. The Commission, headed by former bureaucrat N K Singh, had retained the devolution at the same level in its interim report for 2020-21 as was recommended by the previous Commission, even as at the outset it seemed that it had reduced it. READ MORE
NEWS ALERT :: RBI lifts restriction on opening of new branches, says Equitas Small Fin Bank
>> Also rollaback order on freezing the remuneration of MD & CEO at the then existing level
NEWS ALERT :: 15th Finance Commission submits report to President
Voltas hits fresh record high on restructuring plan of B2B business
Shares of Voltas hit a fresh record high of Rs 772.50, up 2.5 per cent on the BSE in the intra-day trade on Monday, after the company said its board has given "in-principle" approval for restructuring of B2B businesses. The stock of the Tata Group consumer electronics company surpassed its previous high of Rs 768, touched on Friday, November 6, 2020. In the past three months, the stock outpaced the market by surging 30 per cent, as against 11 per cent rise in the S&P BSE Sensex. READ MORE
Joe Biden win, global cues: Factors behind market hitting new high today
Joe Biden wins US polls: Market participants gave a thumbs up to Democrat candidate Joe Biden's victory in the US Presidential Elections 2020. Biden's win, according to analysts, will reduce policy uncertainty and paves the way for the much-awaited economic stimulus. "His victory is most likely to be a favourable outcome for markets as it will instill confidence amongst investors by reducing ‘policy uncertainty’ considerably," analysts at Centrum Broking had said in a November 5 note. "Joe Biden’s victory is positive for risky assets including EM currencies," the brokerage had added. READ MORE
Alembic Pharma gets tentative USFDA nod for breast cancer treatment drug
The approved product is therapeutically equivalent to the reference listed drug product lbrance Capsules of Pfizer Inc.
"The company has received tentative approval from the US Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) in the strengths of Palbociclib capsules, 75 mg, 100 mg, and 125 mg," Alembic Pharmaceuticals said in a regulatory filing. READ MORE
Astral Poly Technik gains 4% on healthy operational performance in Q2
Shares of Astral Poly Technik were trading 4 per cent higher at Rs 1,211 on the BSE on Monday after the company reported 220 basis points improvement in Ebitda (earnings before interest, taxes, depreciation, and amortisation) margins at 21.02 per cent in the September quarter (Q2FY21), led by various cost optimisation measures. READ MORE
BPCL trades higher on report govt unlikely to extend EoI submission date
RBI Deputy Governor M Rajeshwar Rao delivers new curve ball to NBFCs
Reserve Bank of India (RBI) Deputy Governor M Rajeshwar Rao’s call for aligning the regulatory framework for non-banking financial companies (NBFC) with the “principle of proportionality” and scaling down their “network externalities within the financial system” throws a curve ball to the sector. Talking about incentives to convert into banks and scaling down on network externalities could mean several things. READ MORE
Sensex, Nifty at record high. Should you book profit at these levels?
S&P BSE SENSEX: The index is witnessing a clear breakout and a firm uptrend after conquering the selling pressure in the range of 41,300 to 41,000 levels, as per the weekly chart. Now at a current record high of around 42,500, the S&P BSE Sensex is set to march towards 45,000 levels. This may not be easy, but the intensity is strong and the sentiment is showing robust positivity. Going forward, till the index defends 41,000 mark on a weekly closing basis, the uptrend should prevail. READ MORE
Amber Enterprises plunges 7% on profit booking post Sept quarter results
With today's fall, the stock of Amber Enterprises has corrected 15 per cent from its all-time high level of Rs 2,544 touched on October 19, 2020. In the past six months, however, the market price of the company has more-than-doubled at the bourses, as compared to a 34 per cent rally recorded by the S&P BSE Sensex. READ MORE
Farmers to the rescue: India pins hope of economic revival on rural sector
Business leaders, policy makers and politicians alike are pinning hopes on the rural sector as bountiful rains have set the stage for another year of record crops. Higher disposable incomes with farmers are expected to boost demand from automobile to cement to gold jewelry. READ MORE
Indian IT services firms in wait-and-watch mode after Joe Biden's victory
Even though most associated with Indian IT services and technology seem to be heaving a sigh of relief with the liberal Democrats led by Joe Biden returning to power in the US, they are not celebrating as yet. Traditionally, Democrats are considered liberal in their approach compared to the heavily ‘nationalistic’ Republicans, which was evident under the regime of outgoing president Donald Trump. READ MORE
Adani Gas gains for fifth straight day after buying 3 geographical areas
Shares of Adani Gas were trading higher for the fifth straight day, up 3 per cent to a fresh record high of Rs 247 on the BSE on Monday after the company said it has acquired three geographical areas namely Ludhiana, Jalandhar and Kutch (East). The stock of the Adani Group Company rallied 13 per cent in a week. In comparison, the S&P BSE Sensex was up 7 per cent during the period. READ MORE
Sunil Sighania :: As confidence improves, broader markets will do better
As confidence improves, the broader markets will do better. Investor interest has already been seen in the mid- and small-caps, and this should only increase over the next year. Despite Covid-19-related challenges and scare, Diwali in 2020 is coming with a near all-time high. We expect the momentum to continue in the next year as well. READ FULL INTERVIEW HERE
Sunil Singhania, Founder, Abakkus Asset Manager
Gland Pharma IPO :: Expensive at a price tag of 30x the FY20 earnings
The Rs 6,400 crore initial public offering (IPO) by Hyderabad-based Gland Pharma is a play on the high margin injectables space. Injectables are difficult to manufacture and so face lower competitive intensity.
Gland Pharma, which is launching the country’s largest pharma IPO, has an extensive product range and track record of developing, manufacturing and marketing complex injectables. The company seeks to tap into the growth opportunity in the generic injectables segment which is expected to see $68 billion worth of drugs go off patent between 2021-25. READ MORE
Samvat 2077: Investors must look for safety first, tone down expectations
Small-cap indices have been the clear winners in Samvat 2076, so far, with double-digit returns, even as the benchmark indices struggled to deliver with returns under 3 per cent. This information, however, hides the fact that only two sectors — information technology and health care — were the clear outperformers with returns exceeding 40 per cent each. READ MORE
Divi's Laboratories surges 6%, hits a record high on strong Q2 numbers
Shares of Divi's Laboratories hit a record high of Rs 3,432.70, up 6 per cent on the BSE in the early morning trade on Monday after the company reported a strong 45.6 per cent year-on-year (YoY) jump in its net profit at Rs 520 crore, on the back of healthy operational performance for September quarter (Q2FY21). The stock of the pharmaceutical company surpassed its previous high of Rs 3,888, touched on September 18, 2020. READ MORE
Rupee opens higher at 73.95 per US dollar vs Friday's close of 74.20/$
NEWS ALERT :: Blue Star wins order worth Rs 128 cr from Wistron Infocomm
Alert: Infocomm is a manufacturer of iPhone for Apple
Markets cool-off a bit, still up over 1%
>> Sensex hits record high of 42,566.34 in intra-day trade
>> Nifty hits record high of 12,451.80
>> Nifty Bank index hits intra-day high of 27,384.90
>> Nifty IT index hits intra-day high of 21,926.90
Maruti adds 0.7%
>> Company reported higher total passenger vehicle production at 1.76 lakh in October 2020 against 1.17 lakh in October 2019.
Stocks that hit record highs today
Result Reaction | Union Bank of India advances over 2%
United Breweries down half a percent post Q2 nos
>> Company reported consolidated profit at Rs 3.6 crore in Q2FY21 compared to Rs 115 crore, revenue declined to Rs 2,239 crore from Rs 3,588.7 crore YoY.
Result Reaction | Ashok Leyland down 1% in a firm market
>> Company reported consolidated loss at Rs 146.7 crore in Q2FY21 against profit of Rs 38.9 crore, revenue fell to Rs 2,836.6 crore from Rs 3,929.5 crore YoY.
Tata Consumer at day's high
Sensex leaps 600 pts
IT stocks in focus; HCL Tech, Infy rally 2% each
Reliance Industries gains 1% in early deals
Nifty Bank up 1.6%
ALERT :: NIFTY HITS RECORD HIGH OF 12,430.90
>> Surpasses previous high of 12,430.5
Sectoral trends at Open
NIFTY AT OPEN
Sensex Heatmap at Open
SENSEX HITS RECORD HIGH AT OPEN
ALERT :: SENSEX HITS RECORD HIGH OF 42,273.97 IN PRE-OPEN
>> Surpasses previous high of 42,273.5 hit on Jan 20, 2020.
Top gainers and losers on the S&P BSE Sensex at Pre-open
Markets at Pre-open
Markets at Pre-open
Bidenomics: Sanity in post-Covid world, but expect no instant big changes
As Joe Biden shapes to his trade policy, he faces a vastly changed world from what he left in 2016:
Covid: "Rebuilding" the US economy (not just capital markets) will drive policy. A challenge bigger than the 'Great Depression' and the global financial crisis is exacerbated by accelerating technological changes making whole industries obsolete.
China: It has become an adversary for global dominance, not an opportunity. The China story gets even more complex with the developing Russia-China "axis" in play. READ MORE
US Elections 2020 :: Joe Biden victory unlikely to heal deep political wounds afflicting US
How much will a change at the White House herald an opportunity for the US to overcome the deeply conflicted American polity? Was Trump one of a kind aberration whose impact will begin to fade away as a new Democratic administration takes charge? Or was he merely good at exploiting the ingrained societal faultlines which have surfaced in an era of declining economic opportunity and rising inequalities? READ MORE HERE
Markets poised for fresh all-time highs
Investors are likely to cheer the outcome of the US elections with Democrat Joe Biden winning the US Presidency, putting an end to months of uncertainty over who would run the White House. Analysts expect the US dollar to weaken, oil prices to moderate, and interest rates to remain low under the Biden administration, providing a tailwind for domestic equities. Many are optimistic that President-elect Biden’s experience in handling international affairs under the Obama administration may help repair relations with China and boost global trade. READ MORE
US poll result: India to be one of the gainers despite demanding valuations
The EM index valuations are attractive at a PE of 14.5x, a 25 per cent discount to the world markets. This backdrop provides an ideal platform for mean reversion trade in favour of emerging markets. Secondly, US corporate earnings could be close to peaking while emerging markets are seeing corporate profitability well below historical averages. And here, we are not even considering the impact of any possible increase in corporate taxes. In case the Biden tax proposals get implemented, we will see a 7 per cent reduction in corporate earnings. READ MORE
Jyotivardhan Jaipuria, Founder and managing director, Valentis Advisors
Nifty set to scale new lifetime high soon: Sameet Chavan of Angel Broking
Despite some challenging times, we remained hopeful at the start of last week as long as the key support of 11,600 – 11,500 is not violated. The markets not only defended it but are very much at a comfortable position now with new record highs in sight. Technically, we can see a ‘Bullish Flag’ breakout happening along with a ‘Breakaway Gap’ on a daily chart. It is considered a strong development and hence, we are likely to move beyond previous highs soon. So, 12,430.50 is the first level to watch and post then the theoretical target of the ‘Flag’ pattern is around 12,700. Further levels can be projected as we move forward. READ MORE
'Nifty to find support in the zone of 12,100'
As per weekly option data, heavy put writing on lower strikes ranging from 12,000 to 12,200 is witnessed which shows Nifty might face support in the zone of 12,100.12,000 might act as an immediate support as maximum put OI is placed here for weekly expiry. We can witness short-covering move along with addition of fresh position only if Nifty breaches 12,300. Therefore, traders should try to create long position keeping close eye on 12,000. READ MORE
Two stocks that Vaishali Parekh of Prabhudas Lilladher is bullish on
The stock has bottomed out near 75 levels and has picked up momentum with a potential to still move upwards. The RSI indicator also showed a trend reversal recently and has indicated strength to maintain a positive bias. We anticipate further upside move in the coming days and suggest to buy and accumulate this stock for an upside target of Rs 100-105, keeping the stop loss of Rs 74. READ MORE
Dollar check :: USD languishes at two-month low after Biden clinches presidency
>> The dollar hit a 10-week low on Monday as investors heralded Joe Biden’s election as US president by buying trade-exposed currencies on expectations that a calmer White House could boost world commerce and that monetary policy will remain easy.
>> Other currencies: The Chinese yuan CNY= struck a 28-month peak, the New Zealand dollar NZD=D3 made a 19-month high and the Australian dollar AUD=D3 hit a seven-week top as the dollar index fell to its lowest since early September =USD. The South Korean won KRW= hit a 21-month high of 1,115.33 per dollar.Sterling GBP=D3 hit its highest in more than two months while the euro EUR= rose 0.1%, extending an almost 2% gain from last week to hit a two-month high of $1.1895.
FII/FPI & DII trading activity on NSE, BSE and MSEI
Brent crude tops $40 a barrel after Biden clinches US presidency
>> Oil prices gained more than 2% on Monday, with Brent futures rising above $40 a barrel, after Joe Biden clinched the US presidency and buoyed risk appetite, offsetting worries about impact on fuel demand from the worsening coronavirus pandemic.
>> Brent crude futures for January climbed 82 cents, or 2.1%, to $40.27 a barrel, while U.S. West Texas Intermediate crude CLc1 for December was at $37.98 a barrel, up 84 cents, or 2.3%.
Alert: Prices recovered from a 4% decline on Friday, rising along with other financial markets after Biden emerged as the winner in the U.S. presidential race on Sunday.
SGX Nifty hints at new peaks for indices
>> At 8:20 am, the index was at 12,416 level, up 151 points or 1.23 per cent