Benchmarks hit day's low; Bank Nifty below 32,000

Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade. The Nifty regained 14,500 mark after slipping below that level. Banks and financial shares tumbled.

At 11:29 IST, the barometer index, the S&P BSE Sensex, was down 325.87 points or 0.66% at 49,298.11. The Nifty 50 index slipped 85.9 points or 0.59% at 14,504.90.

In broader market, the S&P BSE Mid-Cap index declined 0.82% while the S&P BSE Small-Cap index slipped 0.79%.

The market breadth turned negative. On the BSE, 927 shares rose and 1725 shares fell. A total of 118 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 97,475,579 with 2,088,783 deaths. India reported 1,88,688 active cases of COVID-19 infection and 1,53,032 deaths while 1,02,83,708 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

The RBI's January bulletin made a bullish prediction about the state of the economy in 2021. India's GDP, which shrank by double-digits last year, is within striking distance of attaining positive growth, it says, forecasting a quick 'V'-shaped recovery. RBI said Structural changes in the Indian economy and shifts in pattern of India's foreign trade warrant updates to the broad (existing 36-currency-based) indices of nominal/real effective exchange rate (NEER/REER) of the Indian rupee. This base year is shifted from 2004-05 to 2015-16; and the existing basket is expanded from 36 to 40 currencies, with the inclusion of eight new currencies and exclusion of four currencies.

Primary Market:

The initial public offer (IPO) of Indigo Paints received bids for 6.16 crore shares as against 55.18 lakh shares on offer on Thursday (21 January 2021), according to the stock exchange data at 11:15 IST. The issue was subscribed 11.17 times. The issue opened for subscription on Wednesday (20 January 2021) and it will close today (22 January 2021). The price band for the IPO is set at Rs 1488-1490 per share. An investor can bid for minimum of 10 equity shares and in multiples thereof. The IPO consists of fresh issue of equity shares aggregating to Rs 300 crore and an offer of sale of up to 58.40 lakh equity shares by the selling shareholders. Shares of Indigo Paints will list on 2 February 2021 on stock exchanges.

The initial public offer (IPO) of Home First Finance Company India received bids for 1.94 crore shares as against offer size of 1.56crore share on offer on Friday (22 January 2021), according to the stock exchange data at 11:15 IST. The issue was subscribed 1.25 times. The issue opened for subscription on Thursday (21 January 2021) and it will close on Monday (25 January 2021). The price band for the IPO is set at Rs 517-518 per share. An investor can bid for minimum of 28 equity shares and in multiples thereof. The IPO consists of fresh issue of equity shares aggregating to Rs 265 crore and an offer of sale of equity shares aggregating up to Rs 888.71 crore (including anchor portion of 66.81 lakh equity shares). The company proposes to utilize the net proceeds from the offer for augmenting equity capital base to meet future capital requirements arising out of growth in business. Shares of Home First Finance will get listed on 3 February 2021.

Buzzing Index:

The Nifty Bank index declined 546 points or 1.7% to 31,640.60, extending losses to second trading session. The banking index has lost 2.78% in two trading sessions.

RBL Bank (down 4.83%), Bandhan Bank (down 4.59%), Axis Bank (down 2.62%), Federal Bank (down 2.49%), Punjab National Bank (down 1.82%), ICICI Bank (down 1.57%) and Bank of Baroda (down 1.31%) were top losers in banking space.

Global Markets:

Asian stocks were trading lower on Friday as investors took some money off the table after a recent rally that was driven by hopes a massive U.S. economic stimulus plan by incoming President Joe Biden will help temper the COVID-19 impact.

Japan's core consumer prices slumped in December at the fastest annual pace in a decade. The nationwide core consumer price index (CPI), which includes oil but excludes fresh food costs, fell 1% in December from a year earlier, government data showed.

In US, the S&P 500 and Nasdaq closed at record highs on Thursday, propelled by optimism about more pandemic relief under the Biden administration to support the economy.

Investors are watching if President Joe Biden can get his proposed $1.9 trillion coronavirus relief bill through Congress. House Speaker Nancy Pelosi said Thursday the chamber is ready to pass the bill in the first week of February.

Biden released details of his Covid plan on his first full day in office, including 10 executive orders and his intent to use the Defense Production Act to ramp up protective equipment production. Biden will seek to accelerate the rollout of vaccines by providing more local and state funding, creating more vaccination sites and launching a national education campaign.

In Europe, the European Central Bank left its key bond-purchase program unchanged Thursday and also pledged to provide more support for the economy if needed as the 19-country eurozone endures a winter economic slowdown due to the pandemic.

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