Indices at 10:00 am
▲ Nifty50 13,116 (+0.47%)
▲ Sensex 44,724 (+0.45%)
▲ Nifty Midcap 100 19,417 (+0.34%)
▲ Nifty Smallcap 100 6,412 (+0.50%)
In the news
Dow hits all-time high
- The Dow Jones industrial average crossed 30,000 for the first time as president-elect Biden’s formal transition process begins and as investors expect faster economic recovery with the progress on Covid vaccines. European equity markets too showed bullish trends.
- BlackRock Inc, the world's largest asset manager, on Monday upgraded US equities to "overweight". An overweight rating on a stock usually means that it deserves a higher weighting than the benchmark's current weighting for that stock. Similarly, overweight rating on equities means greater exposure compared to other assets.
- Back home, the Nifty50 too crossed 13,000 for the first time.
Foreign inflows at record high
- So far in November, foreign portfolio investors have invested a record ₹55,552 crore in Indian equities. Similarly, in FY21 there has been a record inflow of ₹154,000 crore till November 24.
- This comes at a time when the market expects Q2 GDP to contract in the range of 5-10%. Domestic institutional investors have been net sellers in November to the tune of ₹33,518 crore.
Global airlines losses to continue in 2021
- The International Air Transport Association (IATA) projects that the global aviation industry will lose $118.5 billion this year and a further $38.7 billion in 2021.
- It expects positive effects of the vaccine on air traffic only from mid-2021 and believes industry will turn cash positive in the December quarter of 2021.
- Meanwhile, US airlines stocks traded higher on increasing air traffic and revival prospects. United Airlines (+9.8%), American Airlines (+9.2%) and Delta (+6.3%) saw significant gains. Domestic airline stocks such as Indigo (-0.1%) and Spicejet (+0.2%) are nearly flat today.
Sectoral indices
- Today, the Nifty PSU Bank index (+2.7%) and Nifty Media index (+1.8%) are top gainers among the sectoral indices. The so-called defensives are currently trading in negative territory. The Nifty IT (-1.1%), Nifty Pharma (-0.2%) and Nifty FMCG (-0.2%) are all in the red.
Global markets
- US markets continued their upward journey and closed 1.5% higher yesterday. Buoyancy was seen in key Asian markets as well. Japan’s Nikkei 225 extended yesterday’s gains and is up 1.1% today. Hong Kong’s Hang Seng broke from a two-week sideways phase and is up 0.8%. China’s SSE Composite has been in a broad consolidation since July 2020, and is down 0.2% today.
Events today
- Data releases in the US: Q3 GDP, new home sales and initial jobless claims
Fact of the day
In 1976, Apple co-founder Ronald Wayne sold his 10% stake in Apple for $800. It would have been worth $196 billion today!
Source: CNBC
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