At 10:27 IST, the barometer index, the S&P BSE Sensex, was up 496.37 points or 0.84% at 59,637.84. The Nifty 50 index gained 135.60 points or 0.77% at 17,765.85.
The Sensex hit record high of 59,668.37 while the Nifty hit an all-time high of 17,774.95 in early trade.
Government support measures for some beleaguered sectors along with provisions for PLI schemes buoyed investors sentiment. A rebounding rupee and persistent foreign capital inflows added to the momentum.
The broader market lagged benchmark indices. The S&P BSE Mid-Cap index was up 0.01% while the S&P BSE Small-Cap index was down 0.12%.
The market breadth, indicating the overall health of the market, turned negative. On the BSE, 1396 shares rose and 1530 shares fell. A total of 150 shares were unchanged.
COVID-19 Update:
More From This Section
Total COVID-19 confirmed cases worldwide stood at 227,019,435 with 4,669,895 deaths. India reported 342,923 active cases of COVID-19 infection and 443928deaths according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The Union Cabinet has approved central government guarantee up to Rs 30,600 crore to back security receipts (SRs) to be issued by National Asset Reconstruction Company Limited (NARCL) for acquiring stressed loan assets. The government guarantee, which will be valid for five years, can be invoked by NARCL for meeting the shortfall between the face value of the SRs and the actual realization upon resolution or liquidation. GoI's guarantee will also enhance liquidity of SRs as such SRs are tradable.
NARCL proposes to acquire stressed assets of about Rs 2 lakh crore in phases within extant regulations of Reserve Bank of India (RBI). It intends to acquire these through 15% cash and 85% in SRs. NARCL has been incorporated under the Companies Act and has applied to RBI for license as an Asset Reconstruction Company (ARC). NARCL has been set up by banks to aggregate and consolidate stressed assets for their subsequent resolution. PSBs will maintain 51% ownership in NARCL.
The government is also setting up an India Debt Resolution Company Ltd (IDRCL) to manage the Non-Performing Assets (NPAs). IDRCL is a service company/operational entity which will manage the asset and engage market professionals and turnaround experts. Public Sector Banks (PSBs) and Public FIs will hold a maximum of 49% stake and the rest will be with private sector lenders. The NARCL will acquire assets by making an offer to the lead bank. Once NARCL's offer is accepted, then, IDRCL will be engaged for management and value addition.
Buzzing Index:
The Nifty Metal index slipped 1.7% to 5,723.25, extending its losing run to second trading day. The index has lost 2.32% in two days.
Tata Steel (down 3.07%), Steel Authority of India (down 2.59%), Vedanta (down 2.35%), NMDC (down 2.2%) and Jindal Steel & Power (down 1.84%) were the top losers. Among the other losers were JSW Steel (down 1.52%), Hindustan Zinc (down 0.67%) and Hindalco Industries (down 0.59%).
Stocks in Spotlight:
Poonawalla Fincorp hit a lower circuit of 5% at Rs 163.55 after the company's managing director, Abhay Bhutada, resigned on Thursday, a day after being barred from the securities markets by Sebi for alleged insider trading. The Securities and Exchange Board of India (Sebi) on Wednesday passed an interim order banning Poonawalla Fincorp's MD and CEO Ajay Bhutada and seven others from the securities market after they were found guilty in an insider trading case.
Intellect Design Arena advanced 3.17% to Rs 683.30 after the company bagged a large multiple-year digital transformation destiny deal from Resurs Bank. The bank has chosen Intellect to implement Intellect Digital Core (IDC) and iKredit360.
Powered by Capital Market - Live News