Nifty50 13,466 ▲ 137 (+1.0%)
Sensex 46,006 ▲ 452 (+0.9%)
The markets staged a near-2% recovery from the day’s lows. The positive trend was primarily driven by a rally in IT stocks.
All sectoral indices ended the day in the green with the Nifty IT (+3.3%) and Nifty Pharma (+2.2%) indices leading the list.
Here are the top stories of the day.
| Top gainers | Today's change |
| Adani Ports | ▲ 5.5% |
| HCL | ▲ 5.3% |
| Tech Mahindra | ▲ 4.1% |
| Top losers | Today's change |
| Kotak Bank | ▼ 1.0% |
| HDFC | ▼ 0.6% |
| Bajaj Finance | ▼ 0.6% |
Here are the top stories for the day.
IT index hits a new high
- Amid the uncertainty in the markets created by the virus scare, the Nifty IT index hit a new lifetime high after rising 3.3% during the day. Shares of major IT companies—TCS (+1.7%), Wipro (+2.9%), Infosys (+3.6%), HCL Tech (+5.3%), Mindtree (7.2%)—closed in the green.
- The recent upward revision in revenue forecast by Accenture Plc indicates a strong demand outlook for the sector. Further, investors would also start building expectations for Q3 earnings, as IT companies typically are the first to declare results.
Hindustan Foods rises on capex plans
- The FMCG contract manufacturer has announced a ₹125 crore capex in north India. It plans to set up a food-and-beverage manufacturing facility for a leading FMCG client.
- The company is targeting revenues of ₹2,000 crore by FY22 (up from around ₹770 crore in FY20) backed by a rapidly growing need for contract manufacturing. The stock was up 8.4% today.
Shipping Corp gains on divestment news
- Shares of state-run Shipping Corporation of India were up 5.2% after the news that the government is planning to sell its entire 63.7% stake in the company. The stake is valued at an estimated ₹2,500 crore.
- The government seeks to raise ₹2,10,000 crore in this fiscal from asset sales to fill the budget gap accentuated by the pandemic-induced economic contraction.
Crude oil takes a breather
- Crude oil prices are sensitive to the demand outlook. Until last week, the buzz around the global economic recovery was fueling traders’ interest in the commodity segment and crude oil prices gained nearly 27% in November.
- However, crude prices have slipped almost 3% after the news regarding the new coronavirus strain triggered concerns over the demand recovery, especially because several countries could again resort to lockdowns or partial curfews
Closing bell
Have the markets rebounded for good, or it is just a dead-cat bounce after yesterday’s ‘viral’ news? That’s something only time will tell. Meanwhile, traders need to keep in mind that this is a truncated week since the markets are closed on Friday for Christmas and trading volumes could be low owing to the holiday season.
The Antony Waste Handling Cell IPO opens for applications today. Read more about the issue here. You can subscribe to the IPO with Upstox here.
Good to know
Dead cat bounce
A dead cat bounce is a small, short-lived recovery in the price of a declining stock or even index. The brief recovery is followed by a continuation of the downtrend.
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