At 10:27 IST, the barometer index, the S&P BSE Sensex, gained 321.90 points or 0.81% at 39,896.68. The Nifty 50 index rose 82.90 points or 0.71% at 11,745.85.
In the broader market, the S&P BSE Mid-Cap index was down 0.22% while the S&P BSE Small-Cap index was up 0.23%. Both these indices underperformed the Sensex.
The market breadth was negative. On the BSE, 993 shares rose and 1051 shares fell. A total of 123 shares were unchanged.
COVID-19 Update:
India reported 907,883 active cases of COVID-19 infection and 104,555 deaths while 5,774,693 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India. Total COVID-19 confirmed cases worldwide stood at 35,731,494 with 1,048,714 deaths.
SEBI Regulations:
Market regulator Securities and Exchange Board of India (Sebi) on Tuesday tightened its regulations of additional tier-1 bonds (AT-1 bonds). The regulator ensured that these risky instruments are less accessible to retail investors.
AT1 bonds are also known as perpetual non-cumulative preference shares, innovative perpetual debt instruments, and perpetual debt instruments. Typically, these are issued by banks to augment their capital base.
In a circular, the markets regulator said issuing AT1 bonds must be done compulsorily on the electronic book provider platform. Issuers and stock exchanges have to ensure that only qualified institutional buyers are issued these bonds. Further, the minimum allotment and trading lot size shall be Rs 1 crore.
Economy:
The Ministry of Electronics and Information and Technology has cleared 16 proposals from domestic and international companies entailing investment of Rs 11000 crore under the production linked incentive (PLI) scheme to manufacture mobile phones worth Rs 10.5 lakh crore over the next five years.
The companies include iPhone maker Apple's contract manufacturers Foxconn Hon Hai, Wistron and Pegatron, apart from Samsung and Rising Star. Domestic companies whose proposals have been approved include Lava, Bhagwati (Micromax), Padget Electronics (Dixon Technologies), UTL Neolyncs and Optiemus.
The Ministry said, it will generate more than 2 lakh direct jobs and nearly 6 lakh indirect employment opportunities. Proposals of six companies in the electronic components segment have also been approved. These companies are AT&S, Ascent Circuits, Visicon, Walsin, Sahasra, and Neolync.
Under the PLI scheme, mobile phones of foreign companies priced above 15 thousand rupees a unit are eligible for incentives, while there is no such price limit for domestic firms.
Earnings Today:
IT major TCS was down 0.09%. The company will announce its quarterly result for 30 September 2020. Another IT firm Majesco (up 0.7%) will also disclose its July-September quarterly earnings today.
Buzzing Index:
The Nifty Auto index gained 0.73% to 8,116.95. The index has added 2.64% in four trading days.
Maruti Suzuki India (up 1.49%), Balkrishna Industries (up 1.13%), Mahindra & Mahindra (up 0.97%), Hero MotoCorp (up 0.97%), Bajaj Auto Ltd (up 0.74%) and Eicher Motors (up 0.69%) advanced.
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