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Sensex jumps 454 pts, Nifty ends above 17,500; RIL spurts over 6%

Published on Nov 25, 2021 16:35

The benchmark indices ended with strong gains on Thursday, boosted by strength in index heavyweight Reliance Industries. Trading was volatile due to expiry of monthly derivative contracts on the NSE. After hitting the day`s low of 17,351.70 in morning trade, the Nifty settled above 17,500 mark. Banks and auto shares declined while healthcare and realty shares rallied.

The barometer index, the S&P BSE Sensex, jumped 454.10 points or 0.78% at 58,795.09. The Nifty 50 index gained 121.20 points or 0.70% at 17,536.25.

In the broader market, the S&P BSE Mid-Cap index rose 0.69% while the S&P BSE Small-Cap index added 0.87%.

The market breadth was strong. On the BSE, 2,114 shares rose and 1,178 shares fell. A total of 119 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, declined 2.52% at 16.6625.

Stocks in Spotlight:

Index major Reliance Industries (RIL) jumped 6.10% after the board decided to implement a scheme of arrangement to transfer gasification undertaking into a wholly-owned subsidiary (WOS). The board has accordingly approved a scheme to transfer the gasification undertaking as a going concern on slump sale basis for a lump sum consideration equal to the carrying value as on the appointed date.

Mukta Arts hit an upper circuit limit of 10% at Rs 50.80. Mukta A2 Cinemas, a subsidiary of Mukta Arts, announced the launch of its new properties at Ahmedabad, Punjab and Orissa. Mukta A2 Cinemas opened its 4 screen property at Rajyash Rise in Ahmedabad.

JSW Energy rose 3.79%. The company`s board approved the re-organisation of the JSW Energy`s Green (Renewable) Business and Grey (Thermal) Business. The renewable energy business will be housed under `JSW Neo Energy`, a wholly owned subsidiary of the company, while the thermal business will continue to be housed in the company.

ITC rose 1.49% after the media reported that the company is developing a nasal spray for COVID-19 prevention for which it has initiated clinical trials. ITC reportedly plans to market the nasal spray under the Savlon brand once it gets all the requisite regulatory approvals, reports added.

Pidilite Industries lost 0.30%. Madhumala Ventures (Madhumala), a wholly owned subsidiary of the company, has agreed to invest Rs 1.56 crore in Constrobot Robotics, which is engaged in the business of research, development, manufacturing and trading of robotic equipment and related software to be used in construction activities.

Siemens dropped 5.49% after the company reported a 3% decline in standalone net profit from continuing operations to Rs 323 crore in quarter ended September 2021 from Rs 333 crore posted in the corresponding quarter of the previous year. The company said profitability was dented due to increase in raw material and logistics costs. The company registered a standalone revenue of Rs 3,941 crore in quarter ended September 2021, rising by 15.2% over the corresponding quarter of the previous year, driven largely by the digital industries, energy and smart infrastructure businesses.

Aurionpro Solutions was locked in an upper circuit of 5% at Rs 217.25 after the company bagged an order in the smart transit segment from the Government of Uttar Pradesh. Aurionpro Solutions will be the system integrator for implementing "IoT based Integrated Bus ticketing System" for the Uttar Pradesh State Road Transport Corporation (UPSRTC) on a Build Own Operate and Transfer (`BOOT`) model. The project is expected to be worth more than Rs 60 crore, over five years, with the minimum guaranteed revenue.

HCL Technologies (HCL) rose 0.46%. The global tech major, opened its new facility at the Cinnamon Life complex in Sri Lanka and this new facility will be its largest in the country, accommodating 4,000 employees.

Grasim Industries added 1.19%. Life Insurance Corporation of India (LIC) sold 1,33,50,869 equity shares or 2.028% stake of Grasim Industries from 24 September 2020 to 23 November 2021. Post transaction, LIC decreased its shareholding to 9.830% from 11.858% earlier.

Economy:

A report issued by economists at HDFC Bank, which released on Wednesday, said: "India`s GDP will show a 7.8% expansion on a year-on-year basis for the September 2021 quarter. Real GDP will grow 9.4% in FY22 and decelerate to 7.5% for FY23 as the base effects result in the higher growth in the ongoing fiscal wear-off."

In FY21, the GDP had contracted 7.3% due to the pandemic. For FY22, the RBI expects GDP to clock a growth of 9.5%, which will slow to 7.8% in FY23. The GDP had expanded by over 20% for the first quarter on the lower base. The official data for the second quarter is set to be released on 30 November 2021.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.368% as compared with 6.367% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.52, compared with its close of 74.40 during the previous trading session.

MCX Gold futures for 3 December 2021 settlement rose 0.18% to Rs 47,522.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.18% to 96.7.

In the commodities market, Brent crude for January 2022 settlement fell 45 cents at $81.8 a barrel.

Foreign Markets:

European stocks advanced across the board on Thursday, 25 November 2021. Investors continued to monitor the acute COVID-19 crisis in the region this week amid rising infections that have prompted a handful of countries to introduce new COVID-19 restrictions.

Asian closed on a mixed note on Thursday. The Bank of Korea raised its policy rate by 25 basis points to 1%, a move that was largely expected. The prices Japanese companies charge each other for services rose 1.0% in October from a year earlier, their eighth straight month of gains and a sign inflationary pressure was building due to higher global commodity costs.

The services producer price index hit 105.4 in October, the highest since November 2001, Bank of Japan (BOJ) data showed on Thursday.

US stocks pushed modestly higher on Wednesday as the recent jump in bond yields took a breather, allowing tech stocks to recover. The meetings from the latest Fed meeting, released on Wednesday, showed that the central bankers were ready to accelerate the timetable for slowing asset purchases and raising the benchmark funds rate if inflation remains high. The U.S. markets will be closed for the Thanksgiving holiday on Thursday. The stock market closes early

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