Domestic Markets end almost flat; Sensex closes 0.07% higher & Nifty rose 10 points

Domestic equity benchmarks ended near the flat line on Tuesday, December 15, 2020. The S&P BSE Sensex added 9.71 points or 0.02 per cent to close higher at 46,263.17. The Nifty 50 index added 9.70 points or 0.07 per cent to close higher at 13,567.85. However, Nifty Bank fell 54.85 points or 0.18 per cent to settle at 30,691.05.

The broader market at BSE also gained outperforming the Sensex. The BSE Mid-Cap index rose 0.42 per cent while the BSE Small-Cap index ended 0.07 per cent up.

Gains were capped due to negative cues from other Asian markets as worries about increasing Covid deaths and lockdowns overshadowed optimism about the roll-out of coronavirus vaccinations. FMCG stocks corrected while metal stocks advanced.

Buyers outpaced sellers. On the BSE, 1559 shares rose and 1409 shares fell. On the Nifty 50 index, 26 stocks gained and 24 declined. The top five gainers on Nifty 50 were Bajaj Finance (up 5.13 per cent), Bajaj Finserv (up 4.18 per cent), Eicher Motors (up 3.10 per cent), JSW Steel (up 2.49 per cent) and Shree Cement (up 2.11 per cent). The top five stocks that declined include Hindustan Unilever (down 2.07 per cent), Nestle India (down 2.05 per cent), BPCL (down 1.76 per cent), ICICI Bank (down 1.73 per cent) and Axis Bank (down 1.46 per cent).

COVID-19 Update

Total COVID-19 confirmed cases worldwide were at 7,28,50,994 with 16,21,159 deaths. India reported 3,39,820 active cases of COVID-19 infection and 1,43,709 deaths while 94,22,636 patients have been discharged.

India's GDP forecast by S&P Global

S&P Global raised India's 2020-21 GDP forecast to a contraction of 7.7 per cent against a contraction of 9 per cent projected earlier. However, it did not change its projection that the Indian economy would grow 10 per cent in FY22. The revision in growth forecast reflects a faster-than-expected recovery in the quarter through September, it said.

Inflation Data in India

India's retail inflation declined to 6.93 per cent in November 2020 even though it remained above RBI's upper margin of 6 per cent. Retail inflation, measured by the Consumer Price Index (CPI), for October was 7.61 per cent.

The wholesale price-based inflation rose to 1.55 per cent in November, mainly due to a rise in manufactured products prices. According to government data, food prices eased during the period. Food inflation in November stood at 3.94 per cent, against 6.37 per cent in the previous month. Inflation in non-food articles was at 8.43 per cent in November.

The WPI inflation was 1.48 per cent in October 2020 and 0.58 per cent in November last year. This is the highest level of WPI inflation since February when it was 2.26 per cent.

Coronavirus stimulus package in the US

Lawmakers in Washington tried once again to push forward on a new Coronavirus stimulus package. A bipartisan group of congressional members plans to release a $908 billion stimulus package. However, some key disagreements remain between both parties, particularly over state and local government aid.