Domestic equity indices ended a volatile session with small losses on Friday. The Nifty settled below the 13,000 mark after crossing that level in intraday trade. Barring the Nifty IT index, all the other sectoral indices on the NSE ended in the green.

The barometer index, the S&P BSE Sensex fell 110.02 points or 0.25% at 44,149.72. The Nifty 50 index declined 18.05 points or 0.14% at 12,968.95.

HDFC Bank (up 1%) and HDFC (up 0.85%) supported the indices while index heavyweight Reliance Industries (down 1.23%) dragged.

Bajaj Finance rose 1.56% to Rs 4903.30. The stock hit a record high of Rs 4957.50 in late trade.

The broader market surged. The S&P BSE Mid-Cap index climbed 1.91% while the S&P BSE Small-Cap index jumped 2.40%.

The market breadth was strong. On the BSE, 1768 shares rose and 1031 shares fell. A total of 183 shares were unchanged.

The National Statistics Office will release the July-September quarter gross domestic product data today, 27 November 2020.

The domestic equity market will remain shut on Monday, 30 November 2020, on account of Guru Nanak Jayanti.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 6,03,33,049 with 14,20,462 deaths. India reported 4,55,555 active cases of COVID-19 infection and 135,715 deaths while 87,18,517 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

Amitabh Kant, CEO, NITI Aayog has stated that India is uniquely positioned in the global landscape and has the potential to become the leading force in the new world order. India can create up to $1 trillion of the economic value by digital economy by 2025 with half of the opportunities originating in new digital ecosystems that can spring up in diverse sectors of the economy, he noted addressing the virtual session on Collaboration between Industry and Science during the Global R&D Summit 2020, organized jointly by the Department of Science and Technology, GoI and FICCI.

India could potentially see a five-fold increase in economic value from digital transformation by 2025. This will represent an attractive opportunity for global and local businesses, start-ups, and innovators to invest in emerging technologies like AI, Blockchain or drones in ways that are customized to Indian needs. Kant further said that the government is focusing on high-quality public and private R&D and digital is the future both in the private and public sector.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee depreciated to 74.05 from its previous close of 73.88.

The yield on 10-year benchmark federal paper rose to 5.911% compared with its closing of 5.872% in the previous trading session.

MCX Gold futures for 4 December 2020 settlement rose 0.17% to Rs 48,601.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.03% to 91.97.

Global Markets:

European markets were mixed while Asian indices rose across the board on Friday as investors reacted to strong Chinese data.

Profits at Chinese industrial firms rose 28.2% year-on-year in October to 642.91 billion yuan ($97.79 billion), official data showed on Friday, pointing to a steady recovery in the manufacturing sector after it was hard hit by the COVID-19 pandemic. Profits rose for a sixth straight month in October, after increasing by 10.1% year-on-year (Y-o-Y) in September, the data from the National Bureau of Statistics (NBS) showed.

Gains were, however, capped as investors were concerned over the Oxford-AstraZeneca vaccine candidate, with results and methods used in their phase three vaccine trials coming under criticism from experts in the US. AstraZeneca and the University of Oxford are defending the results, stressing the highest standards were used and that additional analysis will be conducted.

In US, financial markets were closed on Thursday for the Thanksgiving holiday while U.S. bonds and stocks will trade on a partial schedule on Friday.

Buzzing Indian Segment:

The Nifty IT index fell 0.43% to 21,764.90. The index rose 0.71% in the previous session.

HCL Technologies (down 2.39%), TCS (down 1.53%), Wipro (down 1.28%), Infosys (down 1.18%), Mphasis (down 0.74%) and Persistent Systems (down 0.15%) declined.

Shares of gas distributing companies rallied after Petroleum and Natural Gas Regulatory Board (PNGRB) notified regulations for unified gas transmission tariff structure on Thursday. The tariffs will be applicable based on two zone structure related to distance from source of gas.

Mahanagar Gas (up 14.35%), Indraprastha Gas (up 10.89%), Adani Gas (up 10%) and Gujarat Gas (up 1.15%) advanced.

The PNGRB's move will reportedly lead to higher usage of gas in areas away from LNG terminal. The media reported that unified tariff structure will lead to a 20-30% rise in transportation charges paid by users near the source but a reduction for consumers in the hinterland.

Stocks in Spotlight:

Cadila Healthcare jumped 6.57% after the media reported that the company is expected to introduce its Covid-19 vaccine by March next year. The drug maker will reportedly submit the results of its phase-2 trials next week, which will ascertain the safety, dose and efficacy of the potential vaccine. Subsequently, the company will apply for phase-3 trial which it plans to conduct on 39,000 participants in December. If all goes well, the company expects to introduce the vaccine by March next year, media reports added.

Garware Technical Fibres spurted 6.37% to Rs 2278. The company's board on Friday (27 November 2020) approved a proposal to buyback upto 3,17,391 shares (1.52% of the total number of fully paid-up equity shares as on 27 November 2020) at a price of Rs 2300 per share, aggregating upto Rs 72.99 crore. The company has fixed 11 December 2020 as the record date for the purpose of buyback.

CG Power and Industrial Solutions hit an upper circuit of 5% at Rs 41.15 after Tube Investments of India acquired a controlling stake in the company. In a BSE filing made after market hours on Thursday (26 November 2020), CG Power said that its board approved allotment of 64.25 crore preferential shares to Tube Investments of India (TII) at Rs 8.56 each, aggregating to Rs 550 crore. The company has also issued 17.52 crore warrants to TII for aggregate consideration of Rs 150 crore. About Rs 37.50 crore, or 25% of the aggregate consideration will be paid on warrant subscription. Each warrant carries a right exercisable by the warrant holder to subscribe to one equity share per warrant within 18 months from allotment.

Larsen & Toubro (L&T) fell 0.33%. The company signed contract agreement with the National High Speed Rail Corporation to design and construct 237 km length of viaduct in Gujarat. The contract also includes four stations namely Vapi, Billimora, Surat and Bharuch, Surat Depot, 14 river crossings, 42 road crossings and 6 railway crossings including one mountain tunnel of 350 metres. The letter of acceptance was issued on 28 October 2020. The duration for completion of the works is four years from the date of commencement of the contract.

Mahindra & Mahindra (M&M) fell 1.23%. The company said that Mahindra First Choice Services will integrate its operations with TVS Automobile Solutions. Mahindra First Choice Services (MFCSL) will partner with TVS ASPL, which houses TVS, a multi-brand independent automobile aftermarket brand that offers integrated solutions across the aftermarket value chain. As part of the transaction, M&M will secure a stake in TVS ASPL and in turn, MFCSL will become a subsidiary of TVS ASPL.

United Spirits declined 1.73%. The liquor maker said it is rescinding the share purchase agreement entered with Sri Balaji Implex to divest entire stake in its non-operative subsidiary Tern Distilleries (TDPL) as the buyer failed to pay consideration. Consequently, TDPL will continue to be subsidiary of the company, United Spirits said in an announcement made after market hours yesterday, 26 November 2020.

Great Eastern Shipping Co. added 2.32%. In a BSE filing made during market hours today, the company said that it had contracted to sell its 2000 built Suezmax Crude Carriers, Jag Lateef and Jag Laadki of about 147,080 deadweight tonnage (DWT) and about 150,284 DWT, respectively. The vessels will be delivered to the new buyers in H2 FY 2020-21, it added.

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