Equity benchmarks climbed for 8th session in a row; Sensex climbs 316 points to end at 43,594 & Nifty rises 0.93 pct

The market extended its winning run to eighth consecutive trading sessions and closed near record highs on Wednesday, November 11, 2020. The key domestic indices gained amid positive global cues. The BSE 30-share index, Sensex, crossed 43,500 mark while the NSE Nifty-50 index ended near 12,750 level.

The S&P BSE Sensex climbed 316.02 points or 0.73 per cent to settle at 43,593.67. The NSE Nifty-50 index also surged 118.05 points or 0.93 per cent to settle at 12,749.15. The Nifty Bank gained 239 points or 0.84 per cent to close at 28,845.

 The broader market at BSE also surged but underperformed the Sensex. The BSE Mid-Cap index rose 0.77 per cent and the BSE Small-Cap index added 0.34 per cent.

The market breadth was positive. On the BSE, 1,450 shares rose and 1,279 shares fell. On similar lines, 43 shares advanced on Nifty 50 while 7 shares declined. The major gainers on Nifty 50 were Hindalco (up 8.03 per cent), Tata Steel (up 7.66 per cent), Dr Reddy (up 4.15 per cent), Axis Bank (up 4.14 per cent), Eicher Motors (up 3.93 per cent). The major losers include IndusInd Bank (down 5.23 per cent), Reliance (down 4.13 per cent), Titan (down 2.09 per cent), Asian Paint (down 0.90 per cent) and Britannia (down 0.47 per cent).

Development related to Indo-Sino border Issue

In a major development, the Indian and Chinese armies have reportedly agreed for disengagement from parts of the Eastern Ladakh sector. As part of the process, the first step would be for Chinese and Indian troops to retreat from contact points, where the troops are positioned very close to each other. The entire disengagement process is expected to be completed by April-May 2021. The two sides also agreed to a joint mechanism to verify the progress in the disengagement process through delegation meetings as well as using Unmanned Aerial Vehicles (UAVs). The disengagement plan was discussed between the two sides during the 8th Corps Commander-level talks which were held on November 6, 2020, in Chushul, the media reports added.

COVID-19 Update

Total COVID-19 confirmed cases worldwide were at 5,14,62,791 with 12,72,146 deaths. India reported 4,94,657 active cases of Covid-19 infection and 1,27,571 deaths while 80,13,783 patients have been discharged.

Retail Inflation in India

In India, retail inflation likely stayed above 7 per cent for a second straight month in October as supply distortions led to a surge in vegetable prices, especially of onions, a poll showed, lowering the chances of further interest rate cuts.

Global cues were positive

Dow Futures, Nasdaq Futures and FTSE were up by 0.6 per cent, 1.1 per cent and 0.6 per cent respectively. If FII inflows continue, then the market will continue its momentum. The sharp rally in the market for the last few days suggests that people should be cautious on the market.