Sustained foreign inflows have been helping stock markets reach new highs repeatedly.Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic benchmark indices, once again scaled to new all-time highs and finished the day’s trade at their highest ever closing levels. S&P BSE Sensex now sits at 45,608 while the 50-stock Nifty was at 13,392. Broader markets, after having outperformed benchmarks initially, witnessed profit booking and closed in the red. UltraTech Cement, TCS, and Reliance Industries were the top Sensex gainers while Sun Pharma, IndusInd Bank and NTPC were the drags. India VIX or the fear gauge of domestic markets increased over 3% during the day to close at 18.62.
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Highlights
With the run-up in equity markets, India’s market-cap-to-GDP ratio has increased to 91%, up from 56% in the previous financial year. The recent surge in m-cap-to-GDP ratio has been aided by strong surge in domestic stocks helped by healthy foreign fund inflows. With this, India now sits above its long period average of 75% market-cap-to-GDP, brokerage and research firm Motilal Oswal said in a recent report. The indicator is often called the ‘Buffet Indicator’ after ace investor Warren Buffett who popularised it. The gauge uses the market capitalization of all listed firms and compares it to the country’s GDP to assess if the stock market is undervalued or overvalued.
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Sensex and Nifty once again ended the day's trade at their highest ever closing levels on Tuesday. S&P BSE Sensex was at 45,608 while Nifty 50 closed at 13,392.
Markets have continued their march to historic highs, supported by rally not only among market leaders but among the laggards as well. Meanwhile, an uptick in index heavyweight, Reliance Industries, has also supported the early session advance and helped offset the pause in upside momentum seen among banking stocks so far today. With today's rise, Nifty has touched a key fibonacci resistance of 13390. Going forward, one needs to monitor how the index trades near this level. If it sustains above it, the rally is likely to continue towards 13530. However, if the index fails to sustain above 13390, we could see a minor correction till 13100 in the next few sessions: Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
Multi-financing including housing loans, loans against property, corporate loans to developers and SMEs, new and used vehicles and gold loans.
2021 Outlook: Negative
Equity mutual fund investors booked profits in the month of November as Sensex and Nifty surged to fresh highs, resulting in the most outflows from equity oriented schemes so far this fiscal year. In the previous month, equity oriented mutual fund schemes saw net flows of a massive Rs 12,917 crore, data from Association of Mutual Fund Investors (AMFI) showed. Experts believe that the outflows are a result of profit booking after the strong rally of the recent months has jacked up stock markets. Overall, mutual funds saw net inflows of Rs 27,194 crore in November against inflows of Rs 98,575 crore in the previous month.
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Equity mutual fund saw net inflows of Rs 27,194 crore in November. This is despite massive outflows from equity mutual funds.
Reliance Industries Ltd (RIL) chairman Mukesh Ambani said that Indian economy will soon bounce back and grow with unprecedented acceleration. Mukesh Ambani said at an event that India will prove cynics wrong by becoming a $5 trillion economy. He said that with increased incomes, employment, and improved quality of life for one billion Indians at the middle and bottom of the economic pyramid, it will be a more equal India.
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Rallis India’s share price has almost doubled since the end of March this year, having gained 92%. Rallis India stock has jumped from its March lows of Rs 149 apiece to Rs 286 per share now. However, that may not be the end to this Tata Group firm that operates in the farming sector, as analysts see Rallis India’s gaining market share in both domestic and international markets helped by the firm’s aggressive pricing strategy. Ace investor Rakesh Jhunjhunwala is also a known investor in Rallis India, holding over 10% stake in the firm.
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Sensex was trading flat with a positive bias but the 50-stock Nifty was still trading in the red, hovering near 13,350.
Sensex was down in the red as investors turned to book profits after the benchmark index scaled to fresh highs on Tuesday. Nifty was below 13,350.
In the upcoming reclassification of stocks based on the market capitalization by the Association of Mutual Funds in India (AMFI), Yes Bank, Adani Enterprises, PI Industries, and Hind Aeronautics could enter the large cap club. Brokerage and research firm ICICI Securities has forecasted what stocks could be upgraded to large caps and midcaps in the upcoming shuffle while also guessing which ones could be forced to take a step down. AMFI is expected to release the fresh list of categorisation by January 5 next year. Fund houses rejig their portfolios if necessary based on such reclassifications.
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Reliance Industries Ltd (RIL) has witnessed a huge transformation from an energy giant to becoming a market leader in digital and retail space. Research and brokerage firm Motilal Oswal Financial Services believes that with the changing global energy landscape and various developments in the post COVID-19 world, RIL’s standalone business is in the spotlight owing to its oil-to-chemical (O2C) business.
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Titan Company said that its board has decided to scale down the operations of its wholly owned subsidiary, Favre Leuba AG (FLAG), with immediate effect. The watch-to-jewellery maker had acquired global rights to the trademarks of heritage Swiss watch brand Favre Leuba for 2 million euros in 2011.
The market is moving from strength to greater strength. One must be cautiously long in this market as we are in a passage of resistance. This range is between 13400-13700 so while the odds are that we will get past these selling pressure zones, traders should consider booking profits at regular intervals while continuing to remain on the long side: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
"The market is moving from strength to greater strength. One must be cautiously long in this market as we are in a passage of resistance. This range is between 13400-13700 so while the odds are that we will get past these selling pressure zones, traders should consider booking profits at regular intervals while continuing to remain on the long side," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Rupee has been tugged between the inflows that are capping any sharp losses in the pair and RBI’s buying that is preventing gains on the other side. More so, the volatility in the USDINR pair shall be subdued as markets await concrete directional cues which seem blur as of now amid RBI’s intervention. The momentum of rupee will largely depend on RBI’s tolerance to let rupee appreciate and how aggressive is the central bank in absorbing inflows. Broadly, as long as rupee trades within 73.00-75.00 levels, dips between 73.00-73.50 levels can be taken for buying and upticks above 74.00-74.20 shall be utilized to sell for near term exposures: Amit Pabari, managing director, CR Forex Advisors
COMEX gold trades mixed near $1865/oz after a 1.4% gain yesterday. Gold trades mixed as support from general weakness in the US dollar, increased expectations of US stimulus, rising virus cases, mixed economic data from major economies, US-China tensions and Brexit uncertainty is countered by optimism about vaccine and continuing ETF outflows. Gold has rallied sharply in last few days and while a break above $1850/oz has opened path for extended gains, vaccine progress and continuing ETF outflows could limit upside: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
"This global market rally has surpassed all expectations. Europe had the best month ever, in November. Among emerging markets India has become an outstanding performer and is attracting huge FII inflows which is driving the momentum in the market. Sectoral rotation - from growth to value - is an important trend in the market now. Investors may remain invested in quality stocks, but refrain from aggressive buying at this stage," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Sensex opened at 45,568, a fresh all-time high for the index. Nifty was tradign above 13,350 and scaling to new highs.
Pre-open session took Sensex higher 141 points to sit at 45,568 while Nifty 50 was just shy of 13,400.
Sensex was near 45,600 during the pre-open session while Nifty was comfortably holding above 13,400.
S&P BSE Sensex was seen tradign above the 45,600 levels during Tuesday's pre-open session. Nifty 50 was above 13,400 as domestic markets were seen beating weak global cues.
Maximum Put OI in the current series is placed at 12,000 strike with 34.35 lakh contracts, followed by 13,000 strike with 32.41 lakh contracts.
SGX Nifty points to a flat opening with a negative bias for BSE Sensex and Nifty 50 on Tuesday. A host of factors such as newsflow related to COVID-19 vaccine, Supreme Court hearing on interest waiver or loan moratorium case, Tata versus Mistry case, oil prices, rupee movement and other global cues will set the market tone for today. Analysts expect that optimism around coronavirus vaccine may push indices higher today. Asian peers were seen trading mixed in early deals on Tuesday.
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"The short term trend of Nifty continues to be positive and the market is inching towards our upper trajectory of 13500-13600 levels gradually. Minor consolidation or intraday weakness are expected to be a buy on dips opportunity for the short term. Immediate support is now placed at 13250," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
On the charts, a long bull candle was formed on Monday on the daily timeframe chart and that registered yet another new all time high of 13366 levels. "Though, Nifty placed near the swing highs, still there is no indication of any reversal or intraday profit booking signal as of now. This is positive indication and one may expect further upside in coming sessions," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
For the December series, maximum Call Open Interest (OI) is placed at 13,000 strike with 26.45 lakh contracts. This is followed by 13,500 strike with 20.29 lakh contracts.
Nifty futures were trading flat with a negative bias in the early deals on Tuesday, suggesting a flat opening for BSE Sensex and Nifty 50. In the previous session, headline indices ended at a fresh record high levels led by robust buying in finance, FMCG and banking stocks. Analysts say that Tuesday’s session would be interesting to watch out for, as close above 13360 will push Nifty 50 higher.
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Hiring momentum seems to be stabilising with the overall job openings in November remaining largely the same as in October at 1,00,000 openings. However, the contribution of full-time opportunities dropped to 90% from 95% in October 2020, as contract hiring picked up during the month.
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We attended Mindtree’s (MTCL’s) Analyst Day, where the management shared its new 4x4x4 strategy and opportunities in digital trends. Here are the key highlights from the meet: MTCL announced its new 4x4x4 strategy, with four industry groups, four service lines, and four geographies. While the four industry groups are in its existing areas of operations, the changes in service lines (Customer Success, Data and Intelligence, Cloud and Enterprise IT) point to an elevated focus on Digital (three out of the four service lines are in the Digital domain).
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As the equity markets continue to hit new highs every week, mutual fund houses are looking for ways to diversify risk. One of the strategies adopted by the industry is to invest in global markets. Two new fund offers (NFOs) that opened for subscription last week will invest a part of the investible corpus in overseas stocks.
Pfizer has also knocked on the doors of the DGCI for its coronavirus vaccine and so has Pune-based Serum Institute of India.
After Pfizer and Serum Institute, Hyderabad-based pharmaceutical firm Bharat Biotech on Monday applied to the central drug regulator seeking emergency use authorisation for its COVID-19 vaccine Covaxin. Covaxin is being indigenously developed by Bharat Biotech in collaboration with the Indian Council of Medical Research (ICMR).