The benchmark indices were trading in narrow range in early afternoon trade. The Nifty was hovering above 15,250 level. The moderation in daily new COVID-19 cases in India improved investors' risk appetite. Upbeat Asian stocks also boosted sentiment.
At 12:20 IST, the barometer index, the S&P BSE Sensex, rose 114.73 points or 0.23% at 50,766.63. The Nifty 50 index gained 52.35 points or 0.34% at 15,250.05.
In the broader market, the S&P BSE Mid-Cap index rose 0.07% while the S&P BSE Small-Cap index added 0.53%.
The market breadth was strong. On the BSE, 1,853 shares rose and 1,096 shares fell. A total of 145 shares were unchanged.
Economy:
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Domestic ratings agency ICRA on Monday, 24 May 2021, forecast a 2% GDP growth in the fourth quarter of 2020-21, and a 7.3% contraction for the full fiscal year. From a GVA (gross value added) perspective, the agency pegs Q4 growth at 3% and the fully year contraction at 6.3%. According the agency, the 2% projected GDP growth will help the economy avoid a double-dip recession as indicated by the National Statistical Office (NSO) for fourth quarter.
Meanwhile, global forecasting firm Oxford Economics has lowered India's growth projections for the current financial year to 9.1% from 10.2% because of slow COVID-19 vaccination drive and the need to extend state-imposed lockdowns for a longer period to contain the spread of virus.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 16,73,19,100 with 34,73,500 deaths. India reported 25,86,782 active cases of COVID-19 infection and 3,07,231 deaths while 2,40,54,861 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India reportedly recorded over 1.96 lakh new COVID-19 cases in the last 24 hours ending 8 AM Tuesday, 25 May 2021 taking the country's total infections to over 2.69 crore. The daily spike in new cases have fallen below two lakh after a month.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 1.45% to 18.8525. The Nifty 27 May 2021 futures were trading at 15,257, at a premium of 6.95 points as compared with the spot at 15,250.05.
The Nifty option chain for 27 May 2021 expiry showed maximum Call OI of 52 lakh contracts at the 15,500 strike price. Maximum Put OI of 49.3 lakh contracts was seen at 14,500 strike price.
Buzzing Index:
The Nifty IT index rose 1.19% to 26,455.15. The index added 2.16% in three sessions.
Mphasis (up 2.05%), TCS (up 1.77%), Coforge (up 1.74%), MindTree (up 1.74%) and Larsen & Toubro Infotech (LTI) (up 1.67%) were the top gainers in IT segment.
Stocks in Spotlight:
GMM Pfaudler rose 0.12%. The company announced that it has commenced manufacturing operations at its facility at Vatva near Ahmedabad (Gujarat) on 24 May 2021. The new facility will immediately enhance the company's capacity in Heavy Engineering while freeing up capacity in Karamsad to expand its Glass Lining business. The facility in Vatva, spread over 11.9 acres with seven manufacturing bays (built-up area of 23,617 square meters) is equipped to manufacture a wide range of Heavy Engineering equipment with a crane lifting capacity of 200 metric tonnes, deep-hole drilling (up to 1 meter) capabilities, plate rolling capabilities up to 110 milimeters, strip cladding capabilities, orbital welding capabilities, a 308.6 square meters clean room for fabrication of high alloy materials, vertical turret lathes and other machine tools.
Bank of India declined 1.08%. On Monday, the bank announced it has decided to exercise call option on Tier II Bonds Series XIII and declare 6 June 2021 as the record date for this purpose. The bonds were issued on 7 July 2016 and carry a coupon rate of 8.57% per annum, payable annually with call option on 7 July 2021. Upon payment of broken period interest and call option amount (principal), by the bank on 7 July 2021, to the holders of the bonds, the bank's liability to the bondholders towards all their right including for the payment or otherwise shall be ceased and stand extinguished.
Bal Pharma hit an upper circuit of 5% at Rs 98.40 after the company announced the launch of favipiravir formulation into Indian market, under the brand name BALflu. Favipiravir is an emerging anti-viral drug used for patients with mild to moderate COVID-19 infection. This formulation is available in tablets form with 400 mg strength.
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