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The market has seen a gap-up opening. but it declined and remained subdued for the rest of the day. RBI’s interest rate decision is tomorrow. That’s why the movement was tepid today. Meanwhile, Asian markets ended the day on a positive note, whereas European indices were flat to negative. The Nifty PSU Bank index zoomed 4.8% with solid gains registered by nearly all major PSU banks including Bank of Baroda (+7.9%), SBI (+3.8%) and PNB (+5.3%). While The Nifty IT index was down 0.5%, mainly due to TCS (-1.4%), Infosys (-1.3%) and L&T Infotech (-1.1%).
Tata Chemicals dream run continues:-
Market is giving high valuation to this Tata group chemical company because of its expected demand recovery in the auto and real estate sectors augurs well for the demand for soda ash. As soda ash is a key component in the manufacture of glass used in windshields and windows. Tata Sons cumulatively owned 35.47% of the company which increased its stake by 0.71%. The stock surged 22% in November and has further risen 16% in December. It hit a lifetime high of 646.85 today with 6.56% surge in its price.
Maruti sky rocketed ahead on strong outlook:-
The market has seen India’s largest carmaker to become top gainer (+7.3%) in the Nifty50 today. It has come by above-average volumes and has come after two months of sideways movement. The strong investor interest was seen after the management stated that the company expects 2021 to be better than 2020 as the economy rebounds. Moreover, the rate of enquiries has sustained even after the festive season.
Services PMI plummeted in November:-
Manufacturing PMI numbers, released earlier this week, showed that the Indian manufacturing sector lost some steam in November 2020. Today, the Service PMI gave similar indications as the figure for November dropped to 53.7% from 54.1% in the previous month. Growth constraints and travel restrictions dented the Services PMI. Nonetheless, a number above 50 means expansion in activity.
Although the markets closed in the green today, the movement of the indices was against the current upward trend. The gap-up opening and decline thereafter indicate profit booking. Tomorrow, as the RBI announces its decision on interest rates, volatility is expected in rate-sensitive sectors such as banks, auto and real estate.
To get daily updates stay tuned here.