The Nifty and the Sensex have opened the day on a fresh all-time high.
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Markets scale new peaks; Sensex jumps 182 points
A record for high for the stock indices today.
PTI reports: "Rising for the fourth straight session, equity benchmark Sensex jumped 182 points to end at its fresh lifetime peak on Tuesday, tracking gains in index majors Reliance Industries, TCS and Infosys amid persistent foreign fund inflows.
After touching a record intra-day high of 45,742.23, the 30-share BSE index climbed 181.54 points or 0.40 per cent to finish at 45,608.51.
Similarly, the broader NSE Nifty rose for the sixth consecutive day, up 37.20 points or 0.28 per cent to 13,392.95 -- its new lifetime closing high. It touched its intra-day record of 13,435.45 in early trade.
UltraTech Cement was the top gainer in the Sensex pack, rising around 3 per cent, followed by TCS, Reliance Industries, HCL Tech, Infosys and Kotak Bank.
On the other hand, Sun Pharma, IndusInd Bank, NTPC, Tech Mahindra, ONGC and Asian Paints were among the laggards.
“Domestic equities continued to defy weak global markets by registering gains. Financials (mainly supported by PSU banks), IT and Reliance Industries supported market today, while profit bookings were seen in pharma and metal packs,” said Binod Modi, Head-Strategy at Reliance Securities.
Continued foreign portfolio investment flows remained a dominant factor and given the consistent weakening of dollar along with increased possibility of new fiscal stimulus, domestic equities are expected to continue getting support from FPIs in the near term, he added.
Foreign portfolio investors (FPIs) were net buyers in the capital market as they purchased shares worth Rs 3,792.06 crore on Monday, according to provisional exchange data.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo ended in the red.
Stock exchanges in Europe were also trading on a negative note in early deals.
Meanwhile, global oil benchmark Brent crude futures slipped 0.35 per cent to USD 48.62 per barrel."
India needs more reforms, states must take lead: Kant
A nudge at the states from the Niti Aayog CEO.
PTI reports: "Niti Aayog CEO Amitabh Kant on Tuesday said it is difficult to carry out tough reforms in India as there is ‘too much of democracy’, and emphasised that more reforms need to be done to make the country competitive.
Addressing a virtual event organised by Swarajya magazine, Kant said for the first time, the Centre has carried out hard reforms across sectors, including mining, coal, labour, agriculture, and the next wave of reforms must be pushed by the states.
“Tough reforms are very difficult in the Indian context, we have too much of democracy...You needed political will to carry out these reforms (mining, coal, labour, agriculture) and many more reforms still need to be done,” he said.
It is not easy to compete against China without hard reforms, Kant said.
“This government has demonstrated political will to carry out hard reforms,” he added.
The Niti Aayog CEO stressed that the next wave of reforms must come from states.
“If 10-12 states will grow at higher rates, then there is no reason why Indian won’t grow at higher rates. We have asked union territories to privatise discoms. Discoms must become far more competitive and provide cheap power,” he said.
Replying to a question on protests by farmers, mainly from Punjab and Haryana, against the Centre’s new farm laws, Kant said the agriculture sector needs reforms.
“It is very important to understand this that MSPs (minimum support price) will be there, mandis will remain...farmers must have a choice to sell their products as they benefit out of this,” he noted.
On sourcing of raw material for manufacturing electric batteries in India, Kant pointed out that lithium (which is used for manufacturing batteries) is available in large quantities across the world, including Australia,
“We don’t anticipate any shortage of lithium,” he said.
On Modi government’s ‘Aatmanirbhar Bharat’ initiative, he said it is not about looking inwards, but unleashing the potential of Indian companies.
The government has identified 10 champion sectors for production-linked incentives (PLI) scheme and these sectors will play a major role in making India a manufacturing hub, and give the country economies of scale, Kant said.
“The PLI scheme is going to provide a huge opportunity to these sectors for 4-5 years to export,” he added.
Noting that India must technologically leapfrog, Kant said it is also important for the country to get into sunrise industries."
India having its own 5G standards is an existential threat: Airtel
Adopting India-specific standards for 5G was an existential threat that could lock the country out of the global ecosystem, MD & CEO (India and South Asia) of Bharti Airtel Gopal Vittal on Tuesday observed and called for embracing the global 5G standards and a predictable policy environment for the success of ‘Digital India’.
“There is sometimes talk of India having its own 5G standards. This is an existential threat which could lock India out of a global ecosystem and slow down the pace of innovation. We would have let our citizens down if you allow that to happen,” he said at the India Mobile Congress 2020.
Drawing a comparison with GSM and CDMA technologies, Mr. Vittal said CDMA was a better technology but GSM won between the two as it was a more accepted technology and more companies in the world embraced GSM. “So, GSM won because it became part of the global ecosystem and CDMA died.”
Rupee soars 30 paise to end at 73.60 against US dollar
Foreign inflows into equities is boosting the rupee as well.
PTI reports: "The rupee surged by 30 paise to settle at 73.60 (provisional) against the US dollar on Tuesday, buoyed by foreign fund inflows and heavy buying in domestic equities.
At the interbank forex market, the domestic unit opened at 73.83 against the US dollar and witnessed an intra-day high of 73.59 and a low of 73.83.
The local unit finally closed at 73.60 against the American currency, registering a rise of 30 paise over its previous close.
On Monday, the rupee fell by 10 paise to settle at 73.90 against the US dollar.
“The rupee traded strong on the back of inflow of money into capital markets as rupee took support near 73.95 levels,” Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities, said.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.01 per cent to 90.80.
Meanwhile, foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 3,792.06 crore on a net basis on Monday, according to exchange data.
On the domestic equity market front, the BSE Sensex ended 181.54 points or 0.40 per cent higher at 45,608.51, while the broader NSE Nifty jumped 37.20 points or 0.28 per cent to 13,392.95.
Brent crude futures, the global oil benchmark, fell 0.35 per cent to USD 48.62 per barrel."
Nokia starts production of next generation 5G equipment in India
Telecom gear maker Nokia on Tuesday said it has started production of 5G equipment in India and the equipment are being shipped to countries that are in advanced stages of deploying the next generation technology.
The roll out of 5G services in India is dependent on spectrum auction as telecom operators need suitable wireless frequencies to start 5G in the country.
“From being the first to manufacture 5G NR in India to producing mMIMO, it demonstrates our innovative manufacturing capabilities and our belief in India’s skill and talent to produce the best-in-class equipment. This will enable us to support Indian Operators as they prepare to launch 5G,” Nokia Senior Vice President and Head of India Market Sanjay Malik said in a statement.
Nokia was the first to manufacture the 5G New Radio in India, and it is now producing the cutting-edge Nokia AirScale massive Multiple Input Multiple Output (mMIMO) solution, the company said.
Passenger vehicle retail sales rise 4% in Nov on festive demand: FADA
Pent-up demand seems to have helped a bit during the festive season.
PTI reports: "Automobile dealers’ body FADA on Tuesday said passenger vehicle (PV) retail sales in November witnessed a year-on-year increase of 4.17 per cent to 2,91,001 units as Diwali-Dhanteras period led to rise in vehicle registrations.
According to the Federation of Automobile Dealers Associations (FADA), which collected vehicle registration data from 1,265 out of the 1,472 regional transport offices (RTOs), PV sales stood at 2,79,365 units in November 2019.
Two-wheeler sales, however, declined 21.4 per cent to 14,13,378 units last month, as compared to 17,98,201 units in November 2019.
Commercial vehicle sales also slipped 31.22 per cent to 50,113 units, as against 72,863 units a year ago.
Similarly, three-wheeler sales fell 64.98 per cent to 24,185 units last month, from 69,056 units in the year-ago period.
Tractor sales, however, grew by 8.47 per cent to 49,313 units last month, against 45,462 units in the same month last year.
Total sales across categories declined 19.29 per cent to 18,27,990 units last month, compared to 22,64,947 units in the year-ago period.
“While registrations during Navratri were tepid, people came out in good numbers to purchase their dream vehicles during the Dhanteras — Diwali period,” FADA President Vinkesh Gulati said.
New launches and specially compact SUV’s continued to show good demand in the PV segment, he added.
The two-wheeler segment continued to witness a shift from 100cc to 125cc and above category due to good harvesting coupled with Dhanteras-Diwali and marriage season, Gulati said.
Commenting on small goods commercial vehicles, he said the segment continued to see good demand with increased level of transportation and last-mile connectivity needs.
With schools and colleges continuing to remain closed, demand for buses remains weak. Similarly, the medium and heavy commercial vehicle (M&HCV) segment continues to play spoilsport with excessive capacity, high prices of BS-VI models, finance issues and high fuel price, Gulati noted.
“FADA once again urges the government to increase infrastructure spending, including timely payment to vendors and introduce attractive incentive based scrappage policy to revive the M&HCV segment,” he added.
On sales outlook, Gulati said with the festive season coming to a close, demand revival now solely depends on year-end schemes.
“If the supply chain issues in the passenger vehicle segment are controlled, we may see continued growth in December,” he added.
Gulati also cautioned the two-wheeler Original Equipment Manufacturer (OEMs) and dealers to keep a check on vehicle inventory as post festivals, demand may remain subdued."
Digital currencies need to be regulated, G7 finance officials say
Finance ministers and central bankers from the Group of Seven (G7) advanced economies strongly supported the need to regulate digital currencies, the U.S. Treasury Department said in a statement on Monday after a virtual meeting of the officials.
German Finance Minister Olaf Scholz issued a sharply worded statement after the meeting, underscoring his concerns about authorizing the launch of Facebook's Libra cryptocurrency - newly renamed Diem - in Germany and Europe.
“A wolf in sheep's clothing is still a wolf,” he said. “It is clear to me that Germany and Europe cannot and will not accept its entry into the market while the regulatory risks are not adequately addressed.”
He added: “We must do everything possible to make sure the currency monopoly remains in the hands of states.”
Canara Bank shares zoom nearly 8%
A stock making the big moves this morning.
PTI reports: "Shares of Canara Bank on Tuesday gained nearly 8 per cent after the firm set the floor price for its qualified institutional placement (QIP) to raise up to Rs 2,000 crore.
The stock jumped 7.52 per cent to Rs 126.40 at the BSE.
On the NSE, it zoomed 7.70 per cent to Rs 126.45.
The lender on Monday said it has set a floor price of Rs 103.50 per share for its qualified institutional placement (QIP) to raise up to Rs 2,000 crore.
The bank had received shareholders’ nod in its annual general meeting, held in August, for raising the funds.
The sub-committee of the board, at its meeting held on December 7, authorised the opening of the QIP issue and approved the floor price of Rs 103.50 per equity share, Canara Bank said in a regulatory filing.
“A meeting of the sub-committee of the board-Capital Planning Process of board of directors of the bank is scheduled to be held on Thursday, December 10, 2020, to consider and determine the issue price for the equity shares as well as the number of shares to be allotted to qualified institutional buyers, pursuant to the QIP,” the bank said."
Fitch revises India GDP forecast, sees contraction at 9.4%
Fitch Ratings on Tuesday raised India’s GDP forecast to -9.4% in the current fiscal year to March 2021 from a previously projected contraction of 10.5% after the economy staged a sharper rebound in the second quarter.
In its Global Economic Outlook, Fitch said the coronavirus recession has inflicted severe economic scarring and the country needs to repair balance sheets and increase caution about long-term planning.
“We now expect GDP to contract 9.4% in the fiscal year to end March 2021 (FY21) (+1.1 percentage point), followed by +11% growth (unchanged) and +6.3% growth (+0.3pp) in the following years,” the rating agency said.
The projections compare to a GDP growth of 4.2% in 2019-20 (April 2019 to March 2020) fiscal and 6.7% annual expansion between 2015 and 2019.
Shorts flee the stock market amid bull run
Rupee rises 10 paise to 73.80 against US dollar in early trade
The bull run in stocks is helping the rupee.
PTI reports: "The rupee appreciated by 10 paise to 73.80 against the US dollar in the opening session on Tuesday as sustained foreign fund inflows and strong domestic equities boosted investor sentiment.
At the interbank forex market, the domestic unit opened at 73.83 against the US dollar, and gained ground to touch a high of 73.80 against the greenback, registering a rise of 10 paise over its previous close.
On Monday, the rupee fell 10 paise to settle at 73.90 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.07 per cent to 90.85.
“Asian currencies have started weaker this morning and could weigh on sentiments,” Reliance Securities said in a research note adding that “RBI’s presence in the market and a recovery of the greenback could also keep appreciation bias limited“.
Meanwhile, foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 3,792.06 crore on a net basis on Monday, according to exchange data.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 277.51 points higher at 45,704.48, and the broader NSE Nifty rose 73.65 points to 13,431.40.
Brent crude futures, the global oil benchmark, was trading 0.82 per cent lower at USD 48.39 per barrel."
UN award testimony to govt’s focus on making India world’s preferred investment destination: Modi
Prime Minister Narendra Modi on Tuesday congratulated Invest India, an investment promotion and facilitation agency of the Union government, for winning the ‘2020 United Nations Investment Promotion Award’. The award is a testimony to our government’s focus on making India the world’s preferred investment destination and improving ease of doing business, Mr. Modi said in a tweet.
The United Nations Conference on Trade and Development (UNCTAD) declared ‘Invest India’ as winner of the United Nations Investment Promotion Award 2020. The award ceremony took place on Monday at the UNCTAD headquarters in Geneva.
The award recognises and celebrates the outstanding achievements of the world’s investment promotion agencies.
“Congratulations to @investindia for winning the 2020 United Nations Investment Promotion Award given by @UNCTAD. This is a testimony to our government’s focus on making India the world’s preferred investment destination & improving ease of doing business,” Modi said.
Shares at record highs; IT stocks, Maruti lead gains
The stock indices scale fresh highs.
Reuters reports: "Indian shares inched up to record highs on Tuesday, led by gains in IT stocks and top automaker Maruti Suzuki, as hopes for a coronavirus vaccine supported risk sentiment.
The NSE Nifty 50 index rose 0.23% to 13,386.45 by 0349 GMT and looked set to extend gains for a sixth day, while the benchmark S&P BSE Sensex was up 0.2% at 45,520.01.
India, the second-worst affected country by the pandemic, is accelerating its review of COVID-19 vaccines developed by Pfizer Inc and AstraZeneca to authorise for emergency use, a senior official said on Monday.
Progress in vaccine development across the world has spurred appetite for risky assets in recent weeks. India's main indexes have gained nearly 3% so far in December, as of their last close, following a sharp rally in the previous month.
IT giant Infosys Ltd climbed 1.3%, while Maruti Suzuki India Ltd jumped 3.5%, boosting the Nifty Auto Index 1.5%.
Meanwhile, Asian shares slipped in early trade after overnight pressure on Wall Street as investors fretted over the impact of a new round of COVID-19 restrictions in some U.S. states, with the focus fixed on a new stimulus package for the world's largest economy."
Japan's economy grows 22.9% in 3Q, bouncing back from COVID-19
Japan’s economy expanded at a 22.9% annual rate in the last quarter, as businesses and personal spending recovered from COVID-19 pandemic-related shocks in the spring and early summer.
Economists said the upward revision released Tuesday was in line with forecasts and suggests Japan’s economy, the world’s third largest, is on the mend from the recession that started in late 2019, even before coronavirus outbreaks hit.
"The sizeable upward revision to Q3 GDP and the sharp rise in ‘core’ household spending in October support our view that Japan’s economy will recover from the pandemic faster than the consensus expects,” Tom Learmouth of Capital Economics said in a commentary.
"We think GDP will rise by another 2.1% (quarter-to-quarter) in this quarter and surprise to the upside next year,” he said.
Core household spending excludes costs for housing and purchases of vehicles and other volatile expenditures and is thought to best reflect consumer demand.
