The equity barometers extended gains and hit fresh intraday high in afternoon trade. Realty, auto and metal shares advanced while pharma and FMCG shares declined. At 13:20 IST, the barometer index, the S&P BSE Sensex, jumped 174.08 points or 0.35% at 49,443.40. The Nifty 50 index gained 60.70 points or 0.42% at 14,545.45.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index rose 0.69%. The S&P BSE Small-Cap index added 0.48%.
Buyers outpaced sellers. On the BSE, 1647 shares rose and 1282 shares fell. A total of 166 shares were unchanged. In Nifty 50 index, 30 stocks advanced while 20 stocks declined.
Foreign portfolio investors (FPIs) bought shares worth Rs 3,138.90 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,610.13 crore in the Indian equity market on 11 January 2021, provisional data showed.
COVID-19 Update:
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%.
Meanwhile, a foreign broker stated in its research report that with number of active COVID-19 cases falling sharply, India's economy is expected to clock the fastest growth among Asian peers with higher than 11.5% growth in FY 2022.
Gainers & Losers:
Tata Motors (up 9.81%), Eicher Motors (up 4.92%), GAIL (India) (up 3.91%), Coal India (up 3.25%) and Bharti Airtel (up 2.59%) were major gainers in Nifty 50 index.
Asian Paints (down 2.01%), Divis' Laboratories (down 1.89%), Sun Pharmaceutical Industries (down 1.85%), Hindustan Unilever (down 1.82%) and Tech Mahindra (down 1.77%) were major losers in Nifty 50 index.
Stocks in Spotlight:
Burger King India slipped 1.43% after Eastspring Investments India Consumer Equity Open sold 27,55,323 equity shares of the company at Rs 154.92 per share on the NSE. 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 7.01% after the company said it won a multi-year order for supplying body in white (BIW) parts to a large European car manufacturer. 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 supplies will begin in Q1 FY22 from the JV company's plant in Pune, Maharashtra. The annual order value is estimated at Rs 14.4 crore. The order value is estimated at approximately Rs 92 crore over the life of the contract. No major investments will be required to fulfill this order as the JV company has sufficient capacity.
Global Markets:
European stocks were mixed 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 were mostly trading 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.
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