Sensex, Nifty Open at Fresh Record Highs; Metal & Automobile Stocks Lead

Thu, 3 Dec 09:30 am

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Asian share markets are trading higher today. The Hang Seng is trading up by 0.7% while the Shanghai Composite is trading lower by 0.2%. The Nikkei is up 0.1%.

In US, Wall Street indices ended on a flat note on Wednesday. The Dow Jones Industrial Average gained 0.2% while the Nasdaq ended down by 0.1%.

Back home, Indian share markets have opened the day on a positive note.

The BSE Sensex is trading up by 174 points. The index hit an intra-day high of 44,953, also its fresh lifetime high.

Meanwhile, the NSE Nifty is trading higher by 56 points.

ONGC and Maruti Suzuki are among the top gainers today.

The BSE Mid Cap index and the BSE Small Cap index have opened the day up by 0.7% and 0.6%, respectively.

All sectoral indices are trading on a positive note with stocks in the auto sector and metal sector witnessing maximum buying interest.

Market participants are tracking tech stocks today after a California federal judge in the US struck down two of Donald Trump administration's recent rules meant to drastically curtail the number of visas issued to skilled foreign workers every year.

The rupee is trading at 73.80 against the US$.

Gold prices are trading up by 0.4% at Rs 48,849 per 10 grams.

To know more about gold, you can check out our detailed article on investing in gold here: How to Invest in Gold?

Speaking of stock markets, the past month was a staggering one. Benchmark indices saw huge buying interest and went on to touch record-high levels.

The BSE smallcap index was up 13% in November.

The BSE smallcap index has risen more than 10% in a month only 6 times in the last decade.

Foreign investors (FIIs) invested a net amount of around Rs 650 bn in November. This is the biggest purchase by FIIs by a big margin so far.

Will this rally in Indian share markets continue in December?

We reached out to Brijesh Bhatia, our new team member and Research Analyst of Fast Profits Reports, for his view on the Indian stock markets.

Here's what he had to say...

• The bulls celebrated Diwali with fireworks and started Samvat 2077 with a roar.
  
  The Nifty gained 11.4% in the month of November. 80% of the trading days ended on positive note. Midcap and Small Cap indices gained 15.5% and 13% respectively.
  
  We had 20 trading days in November 2020. 16 of them ended on positive note with 8 straight days of gains from 2nd to 11th November.
  
  The Nifty has now turned positive for CY2020 and has hit a new all-time high of 13,145.85.
  
  All sectorial indices ended on a positive note for the month.
  
  Metals (24.84%), Private Banks (24.25%), PSU Banks (23.63%), and Financial Services (22.84%) gained more than 20%.
  
  Sectors like IT (4.05%) and Pharma (5.30%) which has outperformed in the first leg of rally, were the underperformers.
  
  The stocks in Nifty 200 were on fire too. Out of 200 stocks, 179 ended on a positive note which means 90% stocks were in green zone.
  
  The broad-based buying indicates the momentum is still in the bull's favour. Entering the month of December, can this momentum prolong?
  
  Well, if we look at the seasonality chart for Nifty 50, December tends out to be the best month for bulls with an average return of 3.43% since 1996.
  
  Hope we have a Santa rally this Christmas too and end the pandemic year near all-time high levels!

You can read Brijesh's detailed profile here.

And in case you missed his first Equitymaster video, you can watch it now.

In latest developments from the IPO space, Burger King India shares were in huge demand yesterday as the issue was oversubscribed within hours of opening.

On the opening day of the three-day share sale that began Wednesday, Burger King India's initial public offering (IPO) was oversubscribed 3.13 times with retail investors showing keen interest in the IPO.

The portion reserved for retail investors was oversubscribed 7.9 times by the end of first day of bidding.

Burger King is planning to raise Rs 8.1 billion from the IPO and has fixed the issue price in the price band of Rs 59-60 per share. The shares are expected to debut on stock exchanges on December 14.

To know more about this IPO and our view on it, you can check our IPO note on the same here: Burger King IPO: Should You Subscribe to This QSR Chain Business?

In news from the banking sector, the Indian Banks Association (IBA) has made a representation to the Reserve Bank of India (RBI) to extend the restructuring window outlined by the KV Kamath committee by another three months to March 31, 2021.

The window to seek restructuring is set to lapse on December 31.

Bankers have requested the regulator that given the case in the Supreme Court leading to a prolonged moratorium, they haven't been able to assess borrower cash flows. Also, with borrowers pinning hopes on the Supreme Court verdict in the loan moratorium case, several customers have sought more time to submit recast requests.

The Supreme Court has been hearing petitions of borrowers seeking the waiver of interest on loans during the moratorium period. The court has said no account should be declared a non-performing asset (NPA) if hadn't been put into that category by August 31 until further orders.

To give relief to borrowers affected by the pandemic, the regulator set up a committee under veteran banker KV Kamath to define one-time recast framework. The Kamath committee defined recast thresholds for 26 stressed sectors. Banks are required to make 10% provisioning on all loans recast.

As per an article in The Economic Times, bankers had communicated to the Kamath committee that they don't expect more than seven to eight large-value cases with debt of more than Rs 15 billion each to be recast under the Covid restructuring scheme. There were approximately 387 accounts with an exposure of more than Rs 15 billion that were standard at the end of March.

In other news, market participants are tracking ICICI Bank share price and Indian Bank share price.

Many potential "fallen angel" banks including ICICI Bank and public sector lender Indian Bank face risks from a more severe economic downturn due to the Covid-19 pandemic, Standard and Poor's (S&P) has warned.

S&P terms an entity a "fallen angel" if its rating is lowered to speculative-grade (a long-term rating of 'BB+' or lower) from investment-grade (a long-term rating of 'BBB-' or higher).

Potential "fallen angels" are issuers rated 'BBB-' with negative outlook or on CreditWatch negative. There have been three fallen angels in Asia-Pacific since the Covid-19 outbreak - Axis Bank, Bajaj Finance, and Hero FinCorp - S&P said in a statement.

Speaking of the banking sector, note that the sector was one of the worst affected sectors in the Indian stock market when Covid-19 struck.

Banking stocks were severely punished. No investor wanted to touch them even with a 10-ft pole.

However, sentiment have changed now as investors are chasing banking stocks like never before.

Have a look at the monthly returns of major sectors for the month of March and October 2020 in the chart below:

Banks were among major losers with a cut of 34% in the month of March. Cut to October, they are the biggest gainers for the month with more than 11% returns!

We are closely tracking this sector and will keep you updated on all the top news from this space. Stay tuned.

Moving on to news from the engineering sector, Larsen & Toubro (L&T) is among the top buzzing stocks today.

Engineering major Larsen & Toubro has signed a pact to sell its UK-based integrated marine automation solutions unit Servowatch Systems to Rolls-Royce, the two companies announced on Wednesday.

The divestment is a part of L&T's strategy to exit non-core businesses and consolidate operations.

Rolls-Royce said the acquisition will significantly expand the ship automation division of its MTU product and solution brand of its power systems business.

L&T's wholly owned subsidiary Larsen & Toubro International FZE runs Servowatch Systems that is headquartered in Heybridge, Essex.

L&T share price has opened the day up by 1.2%.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

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INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

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