Key benchmark indices marched higher in mid afternoon trade. At 14:30 IST, the barometer index, the S&P BSE Sensex, gained 332.3 points or 0.83% at 40,477.83. The Nifty 50 index gained 110.85 points or 0.94% at 11,878.60.
Shares advanced on hopes of higher inflows after MSCI said it will make changes to its global indexes following revisions in the country's foreign ownership limits. The sentiment was also upbeat following the media reports that PM Modi and Union Finance Minister Nirmala Sitharaman will meet at 6:30 pm today to discuss the economic situation in the country. The meeting will also discuss likely steps for stimulus.
The broader market traded higher. The S&P BSE Mid-Cap index jumped 1.45% while the S&P BSE Small-Cap index was up 0.53%.
The market breadth was negative. On the BSE, 1198 shares rose and 1364 shares fell. A total of 169 shares were unchanged.
Centre Notifies Land Law:
The Centre has notified new legal guidelines, together with contemporary land legal guidelines, for the Union Territories (UTs) of Jammu & Kashmir and Ladakh and omitted any precondition on buy of land in J&k, as existed underneath Article 370 for the outsiders. Under the newly launched J&k Development Act (XIX of 1970), it notified that "omit, being permanent resident of the State".
The ministry of home affairs in its release stated that the order will be called the Union Territory of Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Third Order, 2020. The order comes into force with immediate effect.
Morgan Stanley Capital Investment (MSCI) announced that it will implement changes in Foreign Ownership Limits (FOL) in the MSCI Global Indexes containing Indian securities coinciding with the November 2020 Semi Annual Index Review. The global index major said it will implement the changes at the close of 30 November, effective 1 December 2020. The change is expected to attract billions of dollars in active and passive flows for domestic stocks where the FOL will increase.
Union Government today said that the country's COVID-19 recovery rate has crossed 90.62%. More than 63 thousand COVID patients recovered during the last 24 hours. Health Ministry said the total number of recoveries has gone up to over 72 lakh.
India reported 625,857 active cases of COVID-19 infection and 119,502 deaths while 7,201,070 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Total COVID-19 confirmed cases worldwide stood at 4,34,83,973 with 11,58,883 deaths, according to data from Johns Hopkins University.
Meanwhile, media houses reported that Union Minister Ramdas Athawale tests positive for COVID-19, admitted to the Bombay Hospital as a precautionary measure.
Shares of tyre manufacturers surged on media reports that demand for automobiles has picked up. Strong quarterly result from Ceat also boosted sentiment.
MRF (up 6.65%), Apollo Tyres (up 2.06%), Goodyear India (up 1.65%), JK Tyre & Inds (up 0.83%) and Balkrishna Inds (up 0.5%) were top gainers in tyre segment.
CEAT jumped 5.38% to Rs 1188 after the company's consolidated net profit surged to Rs 182.2 crore in Q2 FY21 from Rs 43.6 crore reported in the same period last year. Net revenue from operations increased by 77% year-on-year (YoY) to Rs 1,978.5 crore during the quarter. Raw material costs rose by 6% to Rs 1,059.2 crore in Q2 FY21 from Rs 1,691.6 crore in Q2 FY20. EBITDA jumped to Rs 305.8 crore in Q2 September 2020 from Rs 175.2 crore in Q2 September 2019. EBITDA was at 15.5% as on 30 September 2020 as against 10.4% as on 30 September 2019.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee rose to 73.71 compared with its previous closing 73.845.
The yield on 10-year benchmark federal paper rose to 5.85% compared with its closing of 5.834% in the previous trading session.
MCX Gold futures for 04 December 2020 settlement declined 0.32% to Rs 50,765.
In the commodities market, Brent crude for December 2020 settlement rose 32 cents to $40.78 a barrel.