Domestic equity indices ended a volatile trading session with small gains on Monday. The Nifty managed to close above the 17,000 mark after hitting a day's low of 16,782.40 in early trade. IT and consumer durable sector stocks bucked broader weakness. Global cues were mixed amid concerns of a new COVID virus variant.
The barometer index, the S&P BSE Sensex, advanced 153.43 points or 0.27% to 57,260.58. The Nifty 50 index added 27.50 points or 0.16% to 17,053.95.
The broader market declined. The S&P BSE Mid-Cap index declined 0.93% while the S&P BSE Small-Cap index lost 1.90%.
The market breadth was weak. On the BSE, 966 shares rose and 2,435 shares fell. A total of 174 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 0.13% at 20.83.
So far in November, foreign institutional investors have sold Rs 31,124.46 crore in the domestic equity market.
Winter Session of Parliament:
The Winter Session of Parliament will begin from today. It is scheduled to conclude on 23rd December. The Session will spread over a period of 25 days and will have 19 sittings. Thirty-Six Bills and one financial item have been identified for being taken up during the Session.
Today, Farm Laws Repeal Bill 2021 has been listed for introduction and passing in the Lok Sabha. The Bill will repeal the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020, the Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, the Essential Commodities (Amendment) Act, 2020 and to amend the Essential Commodities Act, 1955.
Other important Bills which are listed in business schedule include the Cryptocurrency and Regulation of Official Digital Currency Bill, the Insolvency and Bankruptcy (Second Amendment) Bill and the Banking Laws (Amendment) Bill.
The Electricity (Amendment) Bill, The National Anti-Doping Bill and the Pension Fund Regulatory and Development Authority (Amendment) Bill will also be taken up during the session.
In Financial Business, the Second Batch of Supplementary Demands for Grants for the 2021-22 has been listed for discussion and voting. Three bills will also be taken up to replace the ordinances promulgated during inter-session.
COVID-19 Update:
On 26 November 2021, World Health Organization designated the variant B.1.1.529 a variant of concern, named Omicron. WHO said that it is not yet clear whether Omicron is more transmissible (e.g., more easily spread from person to person) compared to other variants, including Delta. The number of people testing positive has risen in areas of South Africa affected by this variant, but epidemiologic studies are underway to understand if it is because of Omicron or other factors.
Commenting on the severity of the new variant, WHO said that it is not yet clear whether infection with Omicron causes more severe disease compared to infections with other variants, including Delta. However, preliminary data suggests that there are increasing rates of hospitalization in South Africa, but this may be due to increasing overall numbers of people becoming infected, rather than a result of specific infection with Omicron.
Meanwhile, India reported 236 fatalities in the last 24 hours. According to the Union Health Ministry, the number of active cases in the country have declined to 1,03,859.
Numbers to Track:
The yield on 10-year benchmark federal paper rose to 6.335% as compared with 6.330% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 75.12, compared with its close of 74.89 during the previous trading session.
MCX Gold futures for 3 December 2021 settlement rose 0.74% to Rs 47,936.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.12% to 96.21.
In the commodities market, Brent crude for January 2022 settlement jumped $2.88 or 4.69% to $74.47 a barrel.
Global Markets:
European markets traded higher while Asian stocks ended lower on Monday, as investors in the region continued to watch for developments surrounding the recently discovered omicron COVID-19 variant. Britain and European countries have restricted travel from South Africa, where the variant was detected.
In the US, Dow Jones index futures were up 226 points, indicating a positive start in US stock market today.
US stocks dropped sharply on Friday as a new COVID-19 variant found in South Africa triggered a global shift away from risk assets. Friday was a shortened trading day because of the Thanksgiving holiday.
Stocks in Spotlight:
Kotak Mahindra Bank jumped 2.92% after the Life Insurance Corporation of India announced that the Reserve Bank of India has allowed the life insurer to raise stake in bank up to 9.99%. As of 30 September 2021, LIC holds 4.96% stake in the private sector bank.
Reliance Industries jumped 1.26% after Reliance Jio hiked tariff plans for prepaid users by 20%. The tariff hike will be effective from 1st December 2021.
One 97 Communications (Paytm) declined 2.64% after the company reported consolidated net loss of Rs 473.50 crore in Q2 FY22, higher than net loss of Rs 436.70 crore in Q2 FY21. Net sales jumped 63.64% to Rs 1086.40 crore in Q2 FY22 over Q2 FY21. Revenue growth was driven by 52% growth in non-UPI payment volumes (GMV) and more than three times growth in financial services and other revenue.
Asian Paints ended almost flat at Rs 3143.50. On Monday, the paint manufacturer informed that it will invest Rs 960 crore to expand its existing manufacturing capacity at company's Ankleshwar facility in Gujarat.
Shakti Pumps (India) soared 7.05%. The board of Shakti Pumps (India) on 29 November 2021 approved the incorporation of wholly owned subsidiary to foray in segment of EV motor, EV charger, EV controller, multi application variable-frequency drive (VFD) for automobiles.
State Bank of India (SBI) fell 1.24%. The PSU bank said that Reserve Bank of India has imposed a penalty of Rs 1 crore on the bank for contravention of provision.
Hero MotoCorp declined 1.71%. The company said that the board of directors has appointed Rajnish Kumar as an additional and independent director and Vasudha Dinodia as an additional and non-executive director, effective 25 November 2021.
Gujarat Alkalies & Chemicals fell 1.96%. The company said its product, Ortho Phosphoric Acid, has been granted license by Bureau of Indian Standards (BIS), with effective from 24 November 2021. GACL said it is the first Indian company to get license for Ortho Phosphoric Acid under this compulsory registration scheme. Ortho Phosphoric Acid is used to make phosphate salts for fertilizers. It is also used in dental cements, in the preparation of albumin derivatives, and in the sugar and textile industries.
GHCL rose 2.61% after the company said it signed a memorandum of understanding (MoU) with the government of Tamil Nadu for investing Rs 500 crore in the state.
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