The domestic equity benchmarks were almost flat in early afternoon trade. The Nifty slipped below the 14,750 mark. Firmness in auto and bank stocks supported the indices.
At 12:20 IST, the barometer index, the S&P BSE Sensex, rose 17.76 points or 0.04% at 49,789.05. The Nifty 50 index gained 5.85 points or 0.04% at 14,742.25.
The broader market was trading firm. The S&P BSE Mid-Cap index rose 0.70% while the S&P BSE Small-Cap index added 0.52%.
The market breadth was positive. On the BSE, 1,543 shares rose and 1,211 shares fell. A total of 180 shares were unchanged.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, advanced 3.67% to 21.2450. The Nifty 25 March 2021 futures were trading at 14,754.05, at a premium of 11.80 points as compared with the spot at 14,742.25.
The Nifty option chain for 25 March 2021 expiry showed maximum Call OI of 51.7 lakh contracts at the 15,000 strike price. Maximum Put OI of 45.1 lakh contracts was seen at 14,500 strike price.
Supreme Court Judgement:
The Supreme Court on Tuesday stated that the government cannot be directed to ask banks to waive off interest on loans during the lockdown period amid Covid-19 pandemic. It also mentioned that the moratorium on EMIs (equated monthly instalments) towards repayment of loans could not be extended beyond 31 August 2020.
The top court further said that any amount collected during moratorium period by banks as interest on interest, penal interest or compound interest, should either be refunded or adjusted against the next EMIs payable by the borrowers.
SC was pronouncing its verdict on a batch of pleas by various trade associations seeking an extension of loan moratorium and other reliefs in view of the COVID-19 pandemic.
The RBI had on 27 March 2020 issued the circular which allowed lending institutions to grant a moratorium on payment of instalments of term loans falling due between 1 March and 31 May 2020, due to the pandemic. Later, the moratorium was extended till 31 August 2020.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 12,36,76,236 with 27,22,914 deaths. India reported 3,45,377 active cases of COVID-19 infection and 1,60,166 deaths while 1,11,81,253 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Yesterday, the country saw 46,951 fresh infections, the biggest single-day spike since early November. As per the Health Ministry data, Maharashtra (24,645), Punjab (2,299), Gujarat (1,640), Chhattisgarh (1,525) and Karnataka (1,445) are the five states with the highest surge in cases in the last 24 hours.
Buzzing Index:
The Nifty Auto index rose 0.57% to 10,198. Tata Motors (up 1.14%), Maruti Suzuki India (up 1.10%), Eicher Motors (up 1.03%), Ashok Leyland (up 0.97%) and Mahindra & Mahindra (M&M) (up 0.62%) were the top gainers in Auto segment.
Maruti Suzuki India rose 1.10% after the car major on Monday announced that it will hike vehicle prices from April 2021 due to increase in various input costs. Maruti Suzuki India said, "Over the past year the cost of company's vehicles has been impacted adversely due to increase in various input costs. Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase in April 2021." The car major added that price increase shall vary for different models.
Mahindra & Mahindra grew 0.62%. The Ministry of Defence (MoD) signed a contract with Mahindra Defence Systems (MDSL) worth Rs 1,056 crore. The contract is for supplying 1,300 light specialist vehicles to the Indian Army. The light specialist vehicle is a modern fighting vehicle and will be authorised to various fighting units for carriage of medium machine guns, automatic grenade launchers as well as anti-tank guided missiles.
Stocks in Spotlight:
Glenmark Pharmaceuticals gained 1.04% after the company received final approval from the US drug regulator for diltiazem hydrochloride extended‐release capsules. The product is the generic version of Cardizem SR extended‐release capsules, 60 mg, 90 mg, and 120 mg, of Biovail Laboratories Inc. The drug is indicated for the treatment of hypertension. It may be used alone or in combination with other antihypertensive medications.
Adani Ports and Special Economic Zone (APSEZ) advanced 2.66% after the company said it is acquiring the 58.1% stake held by DVS Raju and family in Gangavaram Port (GPL). The acquisition is valued at Rs 3,604 crore and subject to regulatory approvals. APSEZ had announced acquisition of Warburg Pincus's 31.5% stake in GPL on 3 March 2021 and together with this acquisition, APSEZ would have 89.6% stake in GPL. This acquisition continues the strategy of APSEZ to transform into a pan India cargo utility from a predominantly west coast port company.
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