The domestic equity benchmark ended near the day's high on Tuesday. PSU banks, auto and realty stocks rallied while IT, pharma and FMCG shares declined. The barometer index, the S&P BSE Sensex, jumped, 247.79 points or 0.50% to 49,517.11. The Nifty 50 index added 78.70 points or 0.54% to 14,563.45. Both the indices attained record closing high levels.
The Sensex hit a record high of 49,569.14 and the Nifty hit a record high of 14,590.65 in late trade today. Positive Asian cues and robust FII inflows boosted sentiment. Developments on the vaccine front and signs of economic recovery also supported buying.
Bharti Airtel (up 3.41%), Reliance Industries (up 3.14%) and HDFC Bank (up 2.10%) were major index movers.
In the broader market, the BSE Mid-Cap index rose 0.44% and the BSE Small-Cap index gained 0.25%.
Buyers outpaced sellers. On the BSE, 1,664 shares rose and 1,435 shares fell. A total of 154 shares were unchanged.
COVID-19:
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Total COVID-19 confirmed cases worldwide stood at 9,08,94,797 with 19,44,754 deaths. India reported 2,16,558 active cases of COVID-19 infection and 1,51,327 deaths while 1,01,11,294 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Bharat Biotech reportedly inked a purchase agreement with the Government of India on January 11 to provide 55 lakh doses of COVID-19 vaccine Covaxin at Rs 295 per dose. The pharma firm will be providing its coronavirus vaccine directly to 12 states, and the process will be completed in two days by January 14. Dispatches will begin from Hyderabad starting January 12. Bharat Biotech will be providing 38.5 lakh doses of the COVID-19 vaccine in stage 1 and 16.5 doses in stage 2.
Economy:
RBI Governor Shaktikanta Das, in his foreword for the financial stability report released on Monday, said: "Stretched valuations of financial assets pose risks to financial stability. Banks and financial intermediaries need to be cognizant of these risks and spillovers in an interconnected financial system."
The financial stability report has also warned that banks' bad loans may double by September 2021. The RBI sees gross bad loans account for 13.5% of total loans by September even in a base case scenario.
The RBI expects banks' capital ratios will erode to 14% in September from 15.6% in September 2020, the report showed. This may worsen to 12.5% in a very severe stress scenario, under which nine banks may fall short of meeting the minimum capital requirement of 9%.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 5.933% as compared with 5.924% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 73.2550, compared with its close of 73.4025 during the previous trading session.
In the commodities market, Brent crude for March 2021 settlement rose 89 cents at $56.55 a barrel. The contract fell 33 cents, or 0.59% to settle at $55.66 a barrel in the previous trading session.
Foreign Markets:
Most European stocks were trading lower on Tuesday as investors remain focused on the latest coronavirus developments and the state of U.S. politics. Rising infections in Europe are dominating investor concerns although there is hope amid a mass rollout of vaccinations across the continent.
Most Asian shares ended higher on Tuesday. However, South Korea's Kospi declined nearly 2% in trade today.
Malaysia's King on Tuesday reportedly declared a state of emergency in the country. That came after Malaysian Prime Minister Muhyiddin Yassin reportedly announced Monday that the country would tighten COVID-19 restrictions from Wednesday, with multiple states coming under a lockdown. Consequently, the FTSE Bursa Malaysia KLCI index slipped 0.74%.
President Donald Trump on Monday reportedly approved an emergency declaration for Washington that lasts through January 24, after authorities warned of security threats to President-elect Joe Biden's inauguration next week.
US stocks declined from record high on Monday, 11 January 2021, with major indices- S&P 500 index, the Dow Jones Industrial Average, and the technology-heavy Nasdaq Composite all settling lower, as investors elected to book some profit amid concerns about stocks valuations after record-setting runs. Rising coronavirus cases across the world and concerns about developments in Washington also weighed on stocks.
At the close of trade, the Dow Jones Industrial Average index declined 0.29%, the S&P 500 index slipped 0.66% and the tech-heavy Nasdaq Composite Index lost 1.25%.
Political uncertainty continues to hang over markets. House Democrats are preparing to impeach Donald Trump even though the president has less than two weeks left in his term. After the siege of the U.S. Capitol building by Trump supporters last week, Democrats are concerned about additional incitement by the president in his final days in office.
Buzzing Indian Segment:
The Nifty PSU Bank index surged 5.97% to 1,910.15. The index fell 1.94% in the past two sessions.
Bank of Baroda (up 10.66%), J&K Bank (up 9.88%), Bank of India (up 7.92%), Canara Bank (up 6.87%), Union Bank of India (up 5.74%), Indian Bank (up 5.67%), Bank of Maharashtra (up 5.42%), Central Bank of India (up 5.05%), Punjab National Bank (up 4.3%), State Bank of India (up 3.79%), Indian Overseas Bank (up 3.62%) and UCO Bank (up 2.71%) jumped.
Stocks in Spotlight:
GAIL (India) advanced 4.16%. The natural gas distributor said its board will consider share buyback on 15 January 2021.
Karnataka Bank surged 5.62% after the bank's net profit grew 10% to Rs 135.38 crore on a 6.2% decline in total income to Rs 1868.62 crore in Q3 December 2020 over Q3 December 2019. The bank's profit before tax stood at Rs 223.79 crore in Q3 December 2020, rising 19.6% year on year from Rs 187.09 crore in Q3 December 2019. Total tax expense rose by 38.2% to Rs 88.41 crore in Q3 December 2020 over Q3 December 2019.
Sunteck Realty rose 2.87%. The real estate developer said it saw a robust growth in pre-sales for Q3 December 2020 at Rs 349 crore. The company's pre-sales have grown by 75% quarter on quarter (QoQ) and increased 7% year on year (YoY) in Q3 December 2020. Collections grew at 79% QoQ and surged by 52% YoY to Rs 252 crore in Q3 December 2020.
IndiaMART InterMESH gained 2.83%. The e-commerce company said that its board will meet on 18 January 2020 to consider raising funds via the equity route. The board will also consider Q3 results on the same day.
Tata Motors rallied 8.04% after the company's foreign arm, Jaguar Land Rover (JLR), marked the end of 2020 with a second successive quarter-on-quarter recovery in sales, despite the continuing impact of COVID-19. Retail sales for the quarter ending 31 December 2020 stood at 1.28 lakh vehicles, registering a 13.1% growth over 1.13 lakh vehicles sold in the preceding quarter, but down 9% on the same period last year.
Force Motors rose 3.01%. The company's board has approved raising up to Rs 500 crore via NCDs.
Burger King India slipped 1.40%. According to NSE bulk deal data, Eastspring Investments India Consumer Equity Open on Monday (11 January 2021), offloaded 27,55,323 equity shares (representing 0.72% stake) of Burger King India at average price of Rs 154.92.
Talbros Automotive Components surged 6.57%. Marelli Talbros Chassis Systems, the 50% joint venture company of Talbros Automotive Components has received multi-year order from a large European car manufacturer. The order is for supplying BIW (body in white design) parts. The order value is estimated at approximately Rs 92 crore over the life of the contract.
Steel Strips Wheels (SSWL) added 1.84% after the company's net profit soared 4.57 times to Rs 28.75 crore in Q3 FY21 from Rs 6.29 crore in Q3 FY20. Revenue from operations during the quarter increased by 52.66% year-on-year (YoY) to Rs 524.54 crore in Q3 FY21.
Mahindra Lifespace Developers rose 2% after the company signed a Memorandum of Understanding (MoU) with State Bank of India. As part of the agreement, which includes various co-promotional activities and outreach initiatives, customers and employees of SBI and Mahindra Lifespaces will be able to avail the benefits of faster home loan processing and approvals, and special discounts and schemes.
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