Business Live: Stocks scale record high levels on vaccine boost; China factory output faster than expected

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The benchmark stock indices have opened the day on a positive note once again on encouraging news on the vaccine front.

Join us as we follow the top business news through the day.

11:30 AM

China factory output faster than expected: National Statistics Bureau

China’s factory output rose faster than expected in October and retail sales sped up, as the recovery from its COVID-19 slump gathered momentum.

Industrial production climbed 6.9% in October from a year earlier, data from the National Statistics Bureau showed on Monday, in line with September’s gain and faster than the 6.5% rise expected in a Reuters poll of analysts.

The upbeat figures came as other Asian powerhouses also climbed out from their pandemic depths with Japan’s economy reporting its fastest quarterly growth on record.

China’s industrial sector has staged an impressive turnaround from the pandemic paralysis seen earlier this year, helped by resilient exports. Now, with the coronavirus largely under control in China, consumers are opening up their wallets again in a further boost to activity.

11:00 AM

Italy risk premium drops on ECB support

10:40 AM

Rupee rises 24 paise to 74.38 against US dollar in early trade

The rupee had a bullish opening against the US dollar this morning.

PTI reports: “The rupee appreciated by 24 paise to 74.38 against the US dollar in opening trade on Tuesday, tracking positive domestic equities amid improved risk appetite.

Forex dealers said a weak dollar overseas supported the local unit.

At the interbank forex market, the domestic unit opened strong at 74.43 against the US dollar, then gained further ground to touch 74.38, registering a rise of 24 paise over its last close.

In the previous session, the rupee had settled at 74.62 against the US dollar.

“Global risk sentiment continues to remain positive. After Pfizer, Moderna’s vaccine trials have yielded promising results (trials it is 94.5 per cent effective in preventing coronavirus and vaccine also does not need to be stored at ultra-low temperatures unlike Pfizer’s), ”said Abhishek Goenka, Founder and CEO, IFA Global.

Goenka further said that “The Rupee has been the worst performing Asian currency year to date. With inflation currently high primarily on account of higher food prices, we believe the RBI will continue to weaken the Rupee in relative terms while continuing to manage volatility ”.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, dipped 0.15 per cent to 92.50.

According to a Reliance Securities research note, “the safe-haven appeal for the greenback reduced after Moderna Inc became the second US company in a week to report positive results from its COVID-19 vaccine trial.

On the equity front, the 30-share BSE index rallied 274.66 points or 0.63 per cent to scale the fresh peak of 43,912.64. Like, the broader NSE Nifty gained 74.45 points or 0.58 per cent to a lifetime high of 12,854.70.

Brent crude futures, the global oil benchmark, rose 0.68 per cent to USD 44.12 per barrel. “

10:20 AM

A day after RCEP, Jaishankar slams trade pacts, globalisation

India has allowed other countries “unfair” trade and manufacturing advantages “in the name of openness”, asserted External Affairs Minister S. Jaishankar, in a speech criticizing the effects of globalization on Monday. Speaking just a day after the 15-nation Regional Comprehensive Economic Partnership (RCEP) was signed, Mr. Jaishankar was particularly scathing of trade agreements, which he said had forced India to “deindustrialize”.

“In the name of openness, we have allowed subsidized products and unfair production advantages from abroad to prevail. And all the while, this was justified by the mantra of an open and globalized economy, ”Mr. Jaishankar said at the Deccan Dialogue conference supported by the Ministry of External Affairs.

Without directly referring to the RCEP, the world’s largest trading bloc that India decided to walk out of a year ago, Mr. Jaishankar said that the government had decided to move away from trading arrangements, towards an “Aatmanirbhar Bharat (self-dependent India)” policy where India could decide the rules and consolidate “comprehensive national power”.

10:00 am

Sensex, Nifty scale record high levels supported by positive vaccine news

The good news keep pouring in for stocks.

PTI reports: “Equity benchmark indices Sensex and Nifty opened on a bullish note and hit record high levels in early trade on Tuesday, tracking positive cues from global markets amid improved risk appetite supported by fresh vaccine news.

The 30-share BSE index rallied 274.66 points or 0.63 per cent to scale the fresh peak of 43,912.64.

Like, the broader NSE Nifty gained 74.45 points or 0.58 per cent to a lifetime high of 12,854.70.

Tata Steel was the top gainer in the Sensex pack, rising over 4 per cent, followed by Bharti Airtel, SBI, HDFC Bank, M&M, Asian Paints and Reliance Industries.

On the other hand, HCL Tech, Infosys, Bajaj Auto, ITC, Axis Bank and Bajaj Finance were among the losers.

In the special Muhurat trading session to mark the beginning of Hindu Samvat year 2077 on Saturday, BSE Sensex soared 194.98 points or 0.45 per cent to close at a record 43,637.98. The broader NSE Nifty advanced 60.30 points, or 0.47 per cent, to finish at its lifetime high of 12,780.25.

Equity markets were closed on Monday on account of Balipratipada.

On the global front, US equities surged to record high after biotech group Moderna said its COVID-19 vaccine was highly effective.

Elsewhere in Asia, bourses in Hong Kong, Seoul and Tokyo were trading higher in mid-session deals, while Shanghai was in the red.

The wholesale price-based inflation on Monday rose to an eight-month high of 1.48 per cent in October, as manufactured products turned costlier.

Brent crude futures, the global oil benchmark, rose 0.75 per cent to USD 44.15 per barrel. “

9:30 AM

S&P 500, Dow close at all-time highs on reignited vaccine hopes

The S&P 500 and Dow Jones industrial average notched record closing highs on Monday as news of another promising coronavirus vaccine fanned hopes of eradicating COVID-19, while spiking infections and new shutdowns threatened to hobble a recovery from the pandemic recession.

All three major US stock indexes advanced and with its new closing record, the blue-chip Dow is the last of the three to reclaim levels reached in February, before lockdowns sent the markets into free-fall.

The Russell 2000 also hit an all-time closing high.

Value, cyclical and small cap shares outperformed the broader market.

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Disclaimer: This post has not been edited by our staff and is published from a syndicated feed. The Original Source of this post can be found at Source link

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