Opening Bell: Sensex Open Flat, Nifty Below 13,100; bank, IT stocks fall
Indian indices opened flat but negatively skewed on Wednesday as gains in the automotive and consumer goods sectors were constrained by losses in TI stocks and heavyweight bank stocks. At 9:18 am, the Sensex was down 59 points while the Nifty was down 15 points to 13,093. However, the broader markets outperformed the benchmark indices with the Nifty Midcap and Nifty Smallcap indices rising 0.4 percent each. Among sectors, Nifty Metal added over 1 percent, while Nifty Auto gained 0.8 percent. Nifty FMCG and Nifty Pharma were also positive, while Nifty Bank, Nifty Fin Services and Nifty IT were in the red. In the Nifty50 index, Tata Motors, UPL, Hindalco, MAruti and M&M were the main winners, while Powergrid, Tech Mahindea, RIL, Bajaj Finance and Infosys led the losses.
Volkswagen faces leadership crisis as CEO demands vote of confidence
Volkswagen, the world’s largest carmaker by sales, risked a leadership crisis Tuesday after Chief Executive Herbert Diess forced a vote of confidence in its reform efforts by requesting an early contract extension. The multi-brand car and truck maker is convening its Executive Committee to discuss Diess’s demand for the contract extension, more than a year before his current term ends in 2023, three sources told Reuters on Monday. The Austrian manager, who defected from BMW in 2015 and helped VW reform after its diesel scandal with a € 73 billion ($ 87 billion) electric vehicle investment plan, has been frustrated with the German labor leaders who blocked cost cuts. The Executive Committee of the oversight board, which is headed by VW Chairman Hans Dieter Poetsch, and includes Wolfgang Porsche and Hans Michel Piech, members of the automaker’s owning families, as well as Labor Chief Bernd Osterloh, will meet on Tuesday, the three sources. he told Reuters. More here
Infosys to establish software development center in Kolkata, construction to start in July: CM Mamata Banerjee from West Bengal
IT services giant Infosys will begin construction of a proposed software development center in the metropolis by July 2021, West Bengal Chief Minister Mamata Banerjee said on Tuesday. The project will generate massive employment in the IT sector, he said after a cabinet meeting at the secretary of state.
“We had written to Infosys to establish a software development center here for which we will give them land. The company accepted our proposal. Infosys will submit the final approved plan approved on December 20,” Banerjee said.
The prime minister said that India’s second-largest IT services company will begin construction of the development center in July next year and aims to complete it in 24 months. Infosys had previously proposed the creation of an IT / ITeS special economic zone (SEZ) in an area of 20.14 hectares in South 24 Parganas. Read more here.
Dr. Reddy’s and RDIF Begin Clinical Trials for Sputnik V Vaccine in India
Dr. Reddys Laboratories Ltd. and the Russian Direct Investment Fund (RDIF) announced on Tuesday the start of adaptive phase 2/3 clinical trials for the COVID-19 Sputnik V vaccine in India after receiving the necessary authorization from the Central Drug Laboratory, Kasauli in Himachal Pradesh. . The Indian pharmaceutical company, in a statement, said that this will be a multicenter, randomized controlled study, which will include a safety and immunogenicity study.
Clinical trials are being conducted by JSS Medical Research as a clinical research partner. Additionally, Dr. Reddys has partnered with the Biotechnology Industry Research Assistance Council (BIRAC), the Department of Biotechnology to provide advice and utilize BIRAC’s clinical trial centers for the vaccine, he said. Read more.
Oil prices fall on the accumulation of US stocks.
Oil prices extended losses on Wednesday, hit by a surprise surge in oil inventories in the United States and when OPEC and its allies left markets in limbo by delaying a formal meeting to decide whether to increase production in January. Brent crude futures were down 27 cents, or 0.6 percent, at $ 47.15 a barrel at 0131 GMT, while West Texas Intermediate crude was down 29 cents, or 0.7 percent, at 44. , 26 dollars.
Industry data from the American Petroleum Institute showed that US crude inventories rose by 4.1 million barrels last week, compared to analysts’ expectations in a Reuters poll of a 2.4 extraction. million barrels. The figures came after the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, a group known as OPEC +, postponed talks on next year’s oil production policy until Thursday from Tuesday. sources said.
Earlier this year, the group imposed production cuts of 7.7 million barrels per day (bpd) as the coronavirus pandemic reduced demand for fuel. Overall, those reductions were expected to be carried over to January-March 2021 amid spikes in COVID-19 cases. Keep reading.
Asian Stocks Rise After Vaccine Optimism Takes Wall St To All-Time Highs
Asian markets were expected to rally on Wednesday after Wall Street indices closed at record highs as investors grow increasingly hopeful for a vaccine to combat rising COVID-19 cases and an economic recovery. “We have had some positive leads and a combination of optimism around the vaccine, and the stimulus from the government and the central bank remains in place,” said Michael McCarthy, chief market strategist at CMC Markets. “It’s a sweet spot for the markets.”
MSCI’s global stock indicator gained 0.09 percent. In early trading, Australia’s S&P ASX 200 was also up about 0.11 percent. The futures contract for the Nikkei 225 index rose 0.15 percent on Wednesday, while the Hong Kong Hang Seng index futures rose 0.31 percent.
Pfizer Inc and Germany’s BioNTech SE applied for emergency approval of their vaccine candidate from the European regulator on Tuesday. Competidor Moderna Inc also applied for emergency approval from the European regulator on Tuesday. Read more here.
This is what happened in the markets on Tuesday
Indian benchmarks closed higher each on Tuesday, led by gains in the metals, IT and pharmaceutical sectors. Sentiment also lifted as India’s economy recovered faster than expected in the September quarter, as a rebound in manufacturing helped GDP shrink less than 7.5 percent in the second quarter. GDP had contracted by a record 23.9 percent in the June quarter of fiscal year 21. At the close, the Sensex closed 506 points higher at 44,655.44 while the Nifty50 index closed at 13,099.20, 130 more points. Infosys, ICICI Bank, RIL, and HDFC were the main contributors to the Nifty50 index. The broader markets were in line with the benchmarks and closed a higher percentage each. Except for the FMCG index, all sector indices finished in green. Nifty Realty remained the best performing index of the day, closing 3.5 percent higher, followed by Nifty PSU Bank and Nifty Pharma.
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