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Sensex tops 44,000, Nifty ends above 12,900; banks, autos rally
18-Nov-20   17:17 Hrs IST

Domestic equity benchmarks ended near the day's high after a volatile session on Wednesday. Global shares were positive on optimism over COVID-19 vaccine progress.

The barometer index, the S&P BSE Sensex, jumped 227.34 points or 0.52% at 44,180.05. The Nifty 50 index added 64.05 points or 0.50% at 12,938.25. Both the indices attained record closing high levels.

The Sensex and the Nifty opened lower and hovered with small losses till afternoon trade. Both the barometers bounced back in mid-afternoon trade, supported by firmness in banks, auto and realty shares.

The Sensex hit a record high of 44,215.49 and the Nifty hit a record high of 12,948.85 in late trade today.

The broader market outperformed the benchmarks. The BSE Mid-Cap index rose 1.22% and the BSE Small-Cap index gained 0.90%.

Buyers outpaced sellers. On the BSE, 1614 shares rose and 1157 shares fell. A total of 189 shares were unchanged.

COVID-19:

Total COVID-19 confirmed cases worldwide stood at 5,56,27,041 with 13,38,130 deaths. India reported 4,46,805 active cases of COVID-19 infection and 1,30,993 deaths while 83,35,109 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Lakshmi Vilas Bank under Moratorium:

The central government on Tuesday (17 November 2020) placed the cash-strapped bank under moratorium for a period of one month.

The bank's customers will be able to withdraw only Rs 25,000 from their accounts till 16 December 2020. T N Manoharan, former non-executive chairman of Canara Bank, has been appointed as the administrator of Lakshmi Vilas Bank (LVB).

Further, the Reserve bank of India (RBI) has invited comments on its draft merger scheme between LVB and with DBS Bank India (DBIL). DBIL is a wholly owned subsidiary of Singapore-based DBS Bank, which in turn is a subsidiary of Asia's leading financial services group, DBS Group Holdings. It has been issued a banking license to operate as banking company on 4 October 2018.

DBIL has a healthy balance sheet, with strong capital support. Although the DBIL is well capitalised, it will bring in additional capital of Rs 2,500 crore upfront, to support credit growth of the merged entity. Owing to comfortable level of capital, the combined balance sheet of DBIL would remain healthy after the proposed amalgamation, with CRAR at 12.51% and CET-1 capital at 9.61%, without considering the infusion of additional capital, the central bank said in a statement.

LVB posted a net loss of Rs 397 crore in Q2 September 2020 as compared to a net loss of Rs 357.18 crore in Q2 September 2019. Total income fell 25.7% year on year to Rs 494.58 crore in Q2 September 2020 over Q2 September 2019.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 5.878% as compared with 5.877% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 74.19, compared with its close of 74.46 during the previous trading session.

In the commodities market, Brent crude for January 2021 settlement rose 69 cents at $44.44 a barrel. The contract fell 7 cents, or 0.16% to settle at $43.75 a barrel in the previous trading session.

Foreign Markets:

US Dow Jones index futures were up 71 points, indicating a positive opening in the US stocks today.

Most shares in Europe and Asia advanced on Wednesday as the euphoria from vaccine trial breakthroughs offset the concerns over rising coronavirus cases and fresh lockdowns.

The US stocks corrected on Tuesday, giving back ground a day after the S&P 500 and Dow Jones Industrial Average closed at records in a rally fuelled by progress toward a COVID-19 vaccine.

However, worries about the near-term economic outlook also appeared to weigh on the market as investors tracked a surge in COVID-19 infections and slowing retail sales growth.

Data showed that October US retail sales rose 0.3% in October, confirming the weakest rise in six months. In other economic data, industrial production rose 1.1% in October, the Federal Reserve reported. Capacity utilization rose to 72.8% in October from 72% in September.

Buzzing Indian Segments:

The Nifty Auto index rose 3.10% to 8,686.60. The index has added 12.34% in eleven sessions.

Mahindra & Mahindra (up 10.76%), Tata Motors (up 9.84%), Ashok Leyland (up 3.65%), Eicher Motors (up 2.61%), Maruti Suzuki India (up 1.06%) and TVS Motor Company (up 0.85%) jumped.

The Nifty Bank index rose 1.95% to 29,749.85. The index has risen 5.20% in three consecutive sessions. It has surged 24.47% so far in November.

Federal Bank (up 6.72%), IndusInd Bank (up 5.67%), State Bank of India (up 4.93%), Bank of Baroda (up 4.31%), RBL Bank (up 4.22%), Punjab National Bank (up 3.36%), Bandhan Bank (up 2.47%), ICICI Bank (up 2.31%), IDFC First Bank (up 2.24%), Kotak Mahindra Bank (up 1.86%), Axis Bank (up 1.18%) and HDFC Bank (up 0.02%) advanced.

Stocks in Spotlight:

Larsen & Toubro (L&T) jumped 6.15% after the company said its construction and mining equipment business has secured an order from Tata Steel to supply 46 units of Komatsu mining equipment.

IIFL Securities jumped 10.28% to Rs 46.65. The company said that it will consider the proposal for buy-back of equity shares on 20 November 2020.

Tata Steel slipped 1.11%. HDFC mutual fund reduced its stake in the steel major to 2.96% on 12 November 2020 from 5.02% held earlier. On 12 November 2020, HDFC mutual fund sold 1.98 crore equity shares (2.06% equity) of Tata Steel. The transaction has taken place in open market.

Cipla advanced 0.11%. The drug major announced that it signed a licensing agreement with a Belgium-based firm, Multi G for the distribution of their COVID-19 Rapid Antibody test kit, across most Emerging markets and Europe.

Spandana Sphoorty Financial gained 4.34%. In a BSE filing made after market hours yesterday (17 November 2020), the company said that its board had approved the allotment of 7500 10-year G-Sec market linked secured listed rated senior redeemable non-convertible debentures of face value of Rs 1 lakh each, on a private placement basis to JM Financial Products in consideration of an aggregate amount of Rs 75 crore. The tenure of the instrument is 455 days and its date of maturity is 16 February 2022.

DLF added 1.25%. The realty major said it has been recognised as an index component of the Dow Jones Sustainability Indices (DJSI) in Emerging markets category. While DLF is the only real estate company from India to be included in the DJSI index, it joins the ranks of just 11 companies from India to be recognised for the benchmark for corporate sustainability. This recognition demonstrates DLF's track record for its governance, social and environmental initiatives, the realty major said after market hours yesterday, 17 November 2020.

Sadbhav Engineering rose 2.95% after the company said it has received letter of acceptance (LOA) from NHAI for 2 EPC road projects worth Rs 1,572.30 crore. The construction period for both the projects is 24 months.

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