Domestic Equity Markets closed with strong gains; Sensex rose 1.15% & Nifty 50 closed at 13,109
The domestic equity benchmarks ended with strong gains on Tuesday, December 1, 2020. Better GDP numbers and good auto sales numbers in November 2020 helped Nifty 50 to close above 13,100. The S&P BSE Sensex soared 505.72 points or 1.15 per cent to 44,655.44. The Nifty 50 index added 140.10 points or 1.08 per cent to end at 13,109.05. The Nifty Bank rose 208.80 points or 0.71 per cent and closed at 29,817.85.
The broader market at BSE outperformed the Sensex as the BSE Mid-Cap index gained 0.94 per cent while the BSE Small-Cap index rose 0.82 per cent.
Buyers outpaced sellers. On the BSE, 1925 shares rose and 974 shares fell. On the Nifty 50 index, 37 shares advanced while 12 declined and 1 remain unchanged. The major gainers on Nifty 50 were GAIL (up 8.09 per cent), Sun Pharma (up 5.66 per cent), IndusInd Bank (up 4.94 per cent), Tech Mahindra (up 3.99 per cent) and UPL (up 3.85 per cent). The major losers were Nestle India (down 2.56 per cent), Kotak Mahindra Bank (down 1.50 per cent), Titan (down 1.30 per cent), Bajaj Finance (down 0.99 per cent) and HDFC Bank (down 0.94 per cent).
OECD's Economic Outlook
In its latest economic outlook, the Organization for Economic Cooperation and Development (OECD) said it expects the global economy to contract 4.2 per cent this year. That reflects an upward revision from an estimate made in September that pointed to a 4.5 per cent fall in real GDP. Looking ahead, the group said worldwide economic growth would average 4 per cent over the next two years. It expects real GDP growth to hit 4.2 per cent in 2021 and 3.7 per cent in 2022.
India's Manufacturing PMI
The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) was reported at 56.3 per cent in November, highlighting a strong improvement in business conditions. However, the headline number was down from 58.9 in October to a three-month low. India's economy shrank for the second straight quarter through September, recording a 7.5 per cent contraction in its GDP in July-September, showed on Friday.
Output of India's Core Sector
Further, output at India's eight core sectors shrank 2.5 per cent in October with the contraction widening from September's revised 0.1 per cent decline as steel production slid again after a brief revival in the preceding month.
Economic Team of President-elect Joe Biden
President-elect Joe Biden on Monday officially announced his economic team, with former Federal Reserve Chairwoman Janet Yellen chosen to head the Treasury Department and Neera Tanden picked to lead the White House's budget office.