The Sensex scaled record high of 50,377.52 while the Nifty recorded an all time high of 14,828.85.
The rally was broad based. The S&P BSE Mid-Cap index was up 1.45% while the S&P BSE Small-Cap index was up 1.47%.
The market breadth was strong. On the BSE, 1726 shares rose and 898 shares fell. A total of 175 shares were unchanged.
The Union Budget 2021 unveiled on 1 February 2021 supported all the essential aspects of growth by an increase in government spending without an increase in indirect taxes. The Budget offered huge stimulus to infrastructure, capex, healthcare and boosted the credit flow by taking out the toxic assets of the banking system. Increased FDI limit in insurance improved the overall outlook of the sector.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 10,38,51,556 with 22,52,034 deaths. India reported 160,057 active cases of COVID-19 infection and 154,596 deaths while 104,62,631 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
New Listing:
Shares of Home First Finance Company India were trading at Rs 586.95 at 11:25 IST on the BSE, at a premium of 13.31% over the initial public offer price of Rs 518. The stock was listed at Rs 612.15, at a premium of 18.18% to the initial public offer (IPO) price. So far the stock hit a high of Rs 639.50 and low of Rs 565. On the BSE, 12.56 lakh shares were traded on the counter so far. The initial public offer (IPO) of Home First Finance Company India received bids for 41.64 crore shares as against 1.56 crore shares, according to the stock e xchange data. The issue was subscribed 26.66 times.
Buzzing Index:
The Nifty Auto index surged 1.26% to 10,772.40, rising for third trading session. The index has rallied 9.78% in three trading sessions.
Finance minister Nirmala Sitharaman announced in her Union Budget 2021 speech that the government intends to go ahead with a 'Vehicle Scrappage Policy'. The new vehicle scrappage policy and its details will be shared with the public within the next 15 days. The policy will allow owners to scrap their 20-year old vehicles and avail incentives on the purchase of new personal vehicles. For commercial vehicles, the scrappage policy will be applicable for 15-year old commercial vehicles without a fitness certificate.
Mahindra & Mahindra (up 4.71%), Escorts (up 4.78%), Tata Motors (up 2.47%), Ashok Leyland (up 2.42%), TVS Motor Company (up 1.68%) and Bajaj Auto (up 0.71%) climbed.
Earnings Impact:
Neuland Laboratories jumped 6.64% to Rs 1483 after the company's consolidated net profit surged 140.7% to Rs 26.74 crore on a 20.4% rise in net sales to Rs 245.39 crore in Q3 FY21 over Q3 FY20. EBITDA increased by 60.6% to Rs 46.7 crore in Q3 December 2020 from Rs 29.1 crore in Q3 December 2019. EBITDA margin was at 19% as on 31 December 2020 as against 14.2% as on 31 December 2019. Profit before tax in Q3 FY21 stood at Rs 31.95 crore, up by 103.9% from Rs 15.67 crore in Q3 FY20. Current tax outgo rose by 37% to Rs 4.33 crore in Q3 December 2020 over Q3 December 2019. Interest expenses during the quarter declined by 22% year-on-year (YoY) to Rs 4.44 crore.
Ratnamani Metals & Tubes declined 2.95% to Rs 1,582 after the company's consolidated net profit tanked 40.5% to Rs 60.15 crore on 41.7% decline in net sales to Rs 440.79 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) dropped 27.5% to Rs 74.14 crore in Q3 December 2020 as against Rs 102.33 crore in Q3 December 2019.
Global Markets:
Asian markets advanced on Wednesday following an overnight surge on Wall Street.
Japan's services sector shrank at the fastest pace in five months in January. The final au Jibun Bank Japan Services Purchasing Managers' Index (PMI) dropped to a seasonally adjusted 46.1 from the prior month's 47.7, marking the lowest reading since August.
US stocks finished sharply higher for a second straight day on Tuesday, helped by gains in Amazon.com and Google-parent Alphabet ahead of their results and by optimism over progress on a US pandemic relief package.
Meanwhile, investors will be following stimulus negotiations in Washington, after congressional Republicans made a counteroffer to President Joe Biden's $1.9 trillion stimulus plan on Sunday.
Biden met with those lawmakers on Monday as congressional Democrats moved toward passing a reconciliation bill without bipartisan support. White House Press Secretary Jen Psaki described the meeting as substantive and productive.
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