The benchmark indices traded with minor gains in early afternoon trade. Auto, IT and realty indices witnessed selling pressure. At 12:20 IST, the barometer index, the S&P BSE Sensex, rose 30.37 points or 0.07% at 46,129.38. The Nifty 50 index gained 8.80 points or 0.07% at 13,522.65.
In the broader market, the S&P BSE Mid-Cap index added 0.73% while the S&P BSE Small-Cap index rose 0.67%. Both these indices outperformed the Sensex.
The market breadth was strong. On the BSE, 1,754 shares rose and 1,056 shares fell. A total of 190 shares were unchanged.
The undertone of the market was upbeat amid positive global cues following the progress in coronavirus vaccine. Robust inflows from foreign institutional investors and improving domestic economic scenario also boosted the investor's risk appetite.
Foreign portfolio investors (FPIs) bought shares worth Rs 4,195.43 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 2,359 crore in the Indian equity market on 11 December 2020, provisional data showed.
Economy:
The rate of inflation, based on monthly Wholesale Price Index (WPI), rose to 1.55% (provisional) in November 2020 (over November 2019) compared with 0.58% during the corresponding month of the previous year. The figure was 1.48% in October 2020.
Meanwhile, Industrial output of the country for the month of October this year stood at 3.6%, against 0.5% in the previous month. According to the Ministry of Statistics and Programme Implementation data released on Friday, the Index of Industrial Production (IIP) logged the highest growth since the end of March when the COVID-19 hit lockdowns came into the force.
As per the data, in October, manufacturing sector production witnessed a growth of 3.5% and electricity grew 11.2% while mining contracted 1.5%. For the same period in 2019, IIP had contracted 6.6%.
Coronavirus Update:
In the United States, Centre for Disease Control (CDC) has accepted the advisory panel's recommendation for use of Pfizer-BioNTech's COVID-19 vaccine. The move will facilitate a massive vaccination campaign in the US beginning today (14 December). Healthcare workers and nursing home residents are likely to be first ones to get the shots.
Total COVID-19 confirmed cases worldwide stood at 7,22,52,541 with 16,12,362 deaths.
India reported 3,52,586 active cases of COVID-19 infection and 1,43,355 deaths while 93,88,159 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India's Covid-19 recovery rate has improved to 94.98%, in the past 24 hours.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 4.37% to 19.6125. The Nifty December 2020 futures were trading at 13,544.65, at a premium of 27.40 points compared with the spot at 13,517.25.
The Nifty option chain for 31 December 2020 expiry showed maximum Call OI of 23.89 lakh contracts at the 13,000 strike price. Maximum Put OI of 39.10 lakh contracts was seen at 13,000 strike price.
Buzzing Index:
The Nifty Media index gained 1.51% to 1,683.75. The index added 2.28% in two sessions.
Dish TV India (up 11.71%), Jagran Prakashan (up 5.10%), D B Corp (up 2.80%), Sun TV Network (up 2.67%) and Zee Entertainment Enterprises (up 1.39%) were the top gainers in Media segment.
Stocks in Spotlight:
Union Bank of India rose 1.96% after the PSU Bank announced that it will issue Basel-III compliant bonds to raise up to Rs 1,500 crore. In a regulatory filing, the bank said, "The bank is issuing Basel III compliant perpetual debt instruments in the nature of debentures eligible for inclusion in additional tier 1 capital series XXVII of Rs 500 crore with green shoe option up to Rs 1,000 crore (maximum Rs 1,500 crore) on private placement basis."
The coupon on the bonds is fixed at 8.73% per annum and have a face value of Rs 10 lakh per bond. The bonds are rated IND AA/ Stable by India Rating & Research and BWR AA/Negative by Brickwork Rating India.
Power Grid Corporation of India rose 0.18%. The company said its board approved the payment of interim dividend of Rs 5 per equity share for the financial year 2020-21.
Central Bank of India gained 1.75% after the bank's board approved the proposal to raise up to Rs 500 crore by issuing non-convertible redeemable unsecured Basel III compliant tier 2 bonds in the nature of promissory notes.
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