Key equity indices reversed gains in afternoon trade as profit selling emerged at higher levels. At 13:20 IST, the barometer index, the S&P BSE Sensex, fell 46.49 points or 0.10% at 48,130.31. The Nifty 50 index slipped 17.10 points or 0.12% at 14,115.80.
Investors locked profits after the S&P BSE Sensex hit a record high at 48,283.13 and the Nifty hit a record high of 14,155.10 in mid-morning trade.
The broader market was trading higher. The S&P BSE Mid-Cap index added 0.42%. The S&P BSE Small-Cap index gained 0.22%.
Buyers outpaced sellers. On the BSE, 1,572 shares rose and 1,338 shares fell. A total of 176 shares were unchanged. In Nifty 50 index, 15 stocks advanced while 35 stocks declined.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,843.22 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 715.21 crore in the Indian equity market on 4 January 2021, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 8,56,75,442 with 18,53,344 deaths. India reported 2,31,036 active cases of COVID-19 infection and 1,49,850 deaths while 99,75,958 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
A total of 38 people have tested positive for the new UK variant of SARS-CoV-2 in India so far, the Union Health Ministry said on Monday. These include the 29 cases which were announced till Friday.
The new variant of coronavirus disease - B.1.1.7 - has been dubbed as highly infectious by scientists and medical experts as the UK government has confirmed that the infection rates have increased faster than expected in the affected areas.
Economy:
The Ministry of Finance has released the 10th weekly installment of Rs 6,000 crore to the states to meet the GST compensation shortfall. Now, more than 50% of the estimated GST compensation shortfall has been released to the States and UTs with the Legislative Assembly. The government had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of implementation of GST. The borrowings are being done through this window by the Central Government on behalf of the States and UTs. The amount released this week was the 10th installment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 4.1526%. So far, an amount of Rs 60,000 crore has been borrowed by the central government.
Gainers & Losers:
Axis Bank (up 3.87%), HDFC (up 2.54%), Wipro (up 2.01%), TCS (up 1.43%) and HDFC Life Insurance Company (up 1.36%) were major gainers in Nifty 50 index.
Hindalco Industries (down 2.48%), Bajaj Finance (down 2.48%), Tata Motors (down 2.43%), JSW Steel (down 2.26%) and ONGC (down 2.06%) were major losers in Nifty 50 index.
Stocks in Spotlight:
IndusInd Bank gained 0.82%. The private lender said its deposits increased 11% to Rs 2,39,600 crore in Q3 December 2020 from Rs 2,16,713 crore in Q3 December 2019. Deposits rose 4.96% last month compared with Rs 2,28,279 crore in Q2 September 2020. Retail deposits and deposits from small business customers amounted to Rs 85,914 crore in Q3 FY21, up by 13.63% from Rs 75,610 crore in Q2 FY21.
IndusInd Bank's net advances stood at Rs 2,07,691 crore in Q3 FY21, a tad higher compared with Rs 2,07,413 crore in the same period last year. Sequentially, the bank's net advances rose 3.20% in December 2020 from Rs 2,01,247 crore in Q2 FY21. CASA ratio was at 40.5% as on 30 December 2020 as against 42.4% as on 30 December 2019 and 40.4% as on 30 September 2020.
Wonderla Holidays rose 0.95%. The company said its amusement park is set to reopen in Hyderabad from 9 January 2021 onwards. Wonderla Holidays will open its gates to the common public in Hyderabad starting 9 January 2021. The theme park has announced reopening offer of Rs 699 for all age groups, with access to all water and dry/land rides. The theme park will be open every day during festive period from 9 to 17 January from 11 am onwards.
Tata Power added 1.96% after the company partnered with SIDBI to launch affordable and collateral-free financing for rooftop solar for MSMEs consumers. The financing scheme is exclusively for MSME customers of Tata Power for both off-grid and on-grid connections.
Global Markets:
Shares in Europe and Asia were trading higher on Tuesday. The sentiment was fragile as fears surrounding the coronavirus pandemic lingered.
UK Prime Minister Boris Johnson imposed a national lockdown on England to curb the spread of the new coronavirus variant. As part of the new restrictions, people can only leave their homes for essentials, work if they can't from home and exercise. Most schools will also move to remote learning, including universities.
Meanwhile, Germany is also expected to extend its own lockdown measures later on Tuesday. According to media reports, the current restrictions - which include the closure of schools, retailers and restaurants - are all set to continue until at least the end of January.
US stocks dropped on Monday, the first trading day of 2021, amid concerns about global coronavirus cases and the Georgia runoff elections. Investors are keeping eye on Tuesday's Senate runoffs in Georgia, which could have a big impact on incoming U.S. President Joe Biden's economic policies.
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