Benchmark indices extended gains and hit record high levels in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, rose 198.75 points or 0.43% at 46,865.21. The Nifty 50 index advanced 57.95 points or 0.42% at 13,740.65.
The S&P BSE Sensex hit a record high of 46,873.71 while the Nifty hit a record high of 13,742.40 in early afternoon trade. Investors reacted positively to comments from the U.S. Federal Reserve that it will continue to support the economy. Federal Reserve Chairman Jerome Powell also said on Wednesday that stock prices are not necessarily highly priced given how low interest rates are. Meanwhile, negotiators in Washington are shaping a new $900 billion coronavirus stimulus bill that is said to include a second stimulus check.
In the broader market, the S&P BSE Mid-Cap index rose 0.67% while the S&P BSE Small-Cap index gained 0.62%.
The market breadth was positive. On the BSE, 1,667 shares rose and 1,114 shares fell. A total of 177 shares were unchanged.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 0.05% to 19.21. The Nifty December 2020 futures were trading at 13,754.60, at a premium of 27.10 points compared with the spot at 13,727.50.
The Nifty option chain for 31 December 2020 expiry showed maximum Call OI of 23.02 lakh contracts at the 13,000 strike price. Maximum Put OI of 44.20 lakh contracts was seen at 13,000 strike price.
Primary Market:
The initial public offer (IPO) of Mrs. Bectors Food Specialities received bids for 23.26 crore shares as against 1.32 crore shares on offer on Thursday (17 December 2020), according to the stock exchange data at 11:45 IST. The issue was subscribed 17.58 times.
The issue opened for subscription on Wednesday (15 December 2020) and it will close today (17 December 2020). The price band for the IPO is set at Rs 286-288 per share.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 7,42,10,350 with 16,48,956 deaths.
India reported 3,22,366 active cases of COVID-19 infection and 1,44,451 deaths while 94,89,740 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
The media reported that India will have to spend $1.4 billion to $1.8 billion in the first phase of a coronavirus vaccination programme, even after getting support under the Covax global vaccine-sharing scheme. India, which currently has the world's second highest caseload of coronavirus behind the United States, plans to inoculate 300 million people over the next six to eight months, likely with vaccines from AstraZeneca, Russia's Sputnik, Zydus Cadila and India's Bharat BioTech.
Buzzing Index:
The Nifty Media index rose 1.12% to 1,746.65. The index added 6.10% in five sessions.
TV18 Broadcast (up 2.42%), Zee Entertainment Enterprises (up 1.66%), D B Corp (up 1.27%), DishTV India (up 1.05%) and Sun TV Network (up 0.89%) advanced.
Stocks in Spotlight:
Navin Fluorine International spurted 2.93% after the chemicals maker announced that its board has approved capital expenditure for setting up of a multi-purpose plant (MPP) with an outlay of Rs 195 crore. The capex will be undertaken by its wholly owned subsidiary, Navin Fluorine Advanced Science (NFASL) at Dahej, Gujarat and will be funded through a mix of internal accruals and debt. The company said its new capacity is expected to come on stream during H1 of FY23 and will create opportunities for new products in life science and crop science sectors in the specialty chemicals business.
Tata Motors gained 0.27%. The auto major on Thursday (17 December 2020) said it will purchase the balance 49% shareholding in Tata Marcopolo Motors (TMML) for a cash consideration of Rs 99.96 crore. TMML is a 51:49 joint venture formed in 2006 between the Tata Motors and Marcopolo S.A. The JV has manufacturing facilities in Dharwad and Lucknow where it builds bus bodies on chassis supplied and marketed by Tata Motors under the 'Starbus' and 'Starbus Ultra' bus brands. The acquisition is likely to complete by 28 February 2021.
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