Domestic indices were hovering in a narrow range with robust gains in mid-morning trade. The Nifty traded above the crucial 14,500 mark. The Bank Nifty index hit a record high in morning trade today. Shares rallied for the second day as investors cheered Union Budget announcements. Positive global cues also lifted the sentiment.
At 11:28 IST, the barometer index, the S&P BSE Sensex, jumped 1021.63 points or 2.1% at 49,622.27. The Nifty 50 index was up 304.65 points or 2.13% at 14,585.65.
In broader market, the S&P BSE Mid-Cap index was up 1.55% while the S&P BSE Small-Cap index was up 1.24%.
The market breadth was strong. On the BSE, 1642 shares rose and 961 shares fell. A total of 183 shares were unchanged.
The Union Budget 2021 unveiled on 1 February 2021 supported all the essential aspects of growth by an increase in government spending without an increase in indirect taxes. The Budget offered huge stimulus to infrastructure, capex, healthcare and boosted the credit flow by taking out the toxic assets of the banking system. Increased FDI limit in insurance improved the overall outlook of the sector.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 103,395,781 with 2,237,294 deaths. India reported 163,353 active cases of COVID-19 infection and 154,486 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
New Listing:
Shares of Indigo Paints were trading 4.12% lower at Rs 2500 at 11:28 IST on the BSE, at a premium of 67.79% over the initial public offer price of Rs 1490. The stock was listed at Rs 2607.50, at a premium of 75% or 1117.5 points to the initial public offer (IPO) price. So far the stock hit a high of Rs 2756.30 and low of Rs 2475.20. On the BSE, 4.13 lakh shares were traded on the counter so far. The initial public offer (IPO) of Indigo Paints was subscribed 117.02 times. The issue received bids for 64.57 crore shares as against 55.18 lakh shares on offer, according to the stock exchange data. The issue opened for subscription on 20 January 2021 and closed on 22 January 2021. The price band for the IPO was set at Rs 1488-1490 per share.
Buzzing Index:
The Nifty Auto index surged 3.51% to 10,587.35, rising for second trading session. The Auto index has rallied 8% in two trading sessions.
Finance minister Nirmala Sitharaman announced in her Union Budget 2021 speech that the government intends to go ahead with a 'Vehicle Scrappage Policy'. The new vehicle scrappage policy and its details will be shared with the public within the next 15 days. The policy will allow owners to scrap their 20-year old vehicles and avail incentives on the purchase of new personal vehicles. For commercial vehicles, the scrappage policy will be applicable for 15-year old commercial vehicles without a fitness certificate.
Tata Motors (up 8.15%), Ashok Leyland (up 5.89%), Maruti Suzuki India (up 3.6%), Escorts (up 3.5%), TVS Motor Company (up 3.28%), Amara Raja Batteries (up 3.05%), MRF (up 2.82%), Mahindra & Mahindra (up 2.78%), Exide Industries (up 2.75%) and Bosch (up 1.31%) were top gainers in auto segment.
Bajaj Auto rose 2.30% to Rs 4,208.75 after the two-wheeler maker's total sales rose 8% to 4,25,199 units in January 2021 from 3,94,473 units in January 2020. While total domestic sales declined 11% to 1,70,757 units, total exports improved 26% to 2,54,442 units in January 2021 over January 2020. During the month, the company's total two-wheeler sales jumped 16% year-on-year (YoY) to 3,84,936 units. Total commercial vehicles sales declined 35% year-on-year to 40,263 units in December 2020.
VST Tillers & Tractors rose 2.16% to Rs 1,869.80 after the company's total sales jumped 16.80% to 2,905 units in January 2021 from 2,487 units in January 2020. While the company's power tiller sales jumped 14.56% to 2,258 units, tractor sales increased by 25.38% to 647 units in January 2021 over January 2020
Stocks in Spotlight:
Coal India rose 1.78%. The state-run company's coal production, on a provisional basis, fell 4.1% to 60.5 million tonnes (MT) in January 2021 from 63.1 MT in January 2020. Coal India's coal offtake in January 2021 stood at 53.3 MT, down 4.6% from 55.9 MT in January 2020.
Coromandel International lost 0.45%. On a consolidated basis, the company reported 26.2% jump in net profit to Rs 333.80 crore on a 7.8% increase in net sales to Rs 3533.01 crore in Q3 FY21 over Q3 FY20. While the company's total expenditure rose 6.6% to Rs 3033.75 crore, interest payments declined by 55.3% to Rs 20.54 crore in Q3 December 2020 over Q3 December 2019. Profit before tax in the third quarter was at Rs 446.87 crore, up by 26.1% from Rs 354.42 crore reported in the same period last year. EBITDA for the quarter ended Dec 2020 has grown by 16% to Rs. 501 crore as compared to Rs 432 crore during corresponding quarter of last year.
Global Markets:
Asian markets advanced on Tuesday following an overnight jump on Wall Street. The Japanese government is set to extend the state of emergency covering Tokyo and other regions till March 7 in order to contain the coronavirus, as per media reports.
US stocks jumped on Monday, the first session of February, as Wall Street appeared to shake off concerns about a speculative retail trading mania that largely drove the market's worst weekly sell-off since October.
Meanwhile, a group of 10 Republican senators sent President Joe Biden a letter on Sunday, urging him to consider a smaller, scaled-down Covid-19 relief proposal. His current plan calls for $1.9 trillion in additional fiscal stimulus.
The Republican proposal would reduce the size of a new round of checks Biden wants to send to Americans, from $1,400 per individual to $1,000. It would also make the income limits that determine eligibility for the stimulus payments far stricter. For individual filers the checks would start to phase out for those making more than $40,000.
The alternative proposal comes after House Speaker Nancy Pelosi said the chamber will move to pass a budget resolution, the first step toward approving legislation through reconciliation. The process would enable Senate Democrats to approve an aid measure without GOP votes.
In economic data, US manufacturing activity slowed slightly in January. The Institute for Supply Management (ISM) said on Monday its index of national factory activity fell to a reading of 58.7 last month from 60.5 in December.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
