Benchmark indices firmed up in the afternoon trade amid positive global cues. At 13:20 IST, the barometer index, the S&P BSE Sensex, jumped 171.37 points or 0.36% at 48,345.43. The Nifty 50 index gained 64.55 points or 0.46% at 14,210.80.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index added 1.25%. The S&P BSE Small-Cap index rose 1.20%.
Buyers outpaced sellers. On the BSE, 2,049 shares rose and 901 shares fell. A total of 154 shares were unchanged. In Nifty 50 index, 30 stocks advanced while 19 stocks declined. 1 stock remained unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 483.64 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 380.41 crore in the Indian equity market on 6 January 2021, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 8,71,97,387 with 18,83,914 deaths. India reported 2,28,083 active cases of COVID-19 infection and 1,50,336 deaths while 1,00,16,859 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Total coronavirus (COVID-19) recoveries in India crossed the 1-crore mark with over 1.50 lakh deaths on Thursday.
Economy:
The Reserve Bank of India (RBI) reported that currency in circulation contracted by 0.3% on the week to stand at Rs 27.70 lakh crore as on 1 January 2021. The central bank stated further that the overall reserve money rose by 0.2% on the week to Rs 33.22 lakh crore. Currency in circulation rose around 22.1% on a year ago basis compared to 11.8% growth at the same time last year. In the current fiscal, the currency in circulation has expanded by 13.2% so far while the reserve money has increased by 9.7%.
Sebi Regulation:
The markets regulator, Securities Exchange Board of India (Sebi) on 6 January 2021 proposed to ease ownership norms for entities that plan to start new stock exchanges in India, a move that may allow entry of foreign exchanges and lower the trading costs for investors.
The Sebi has floated a discussion paper on review of ownership and governance norms to facilitate new entrants to set up stock exchanges and depositories, otherwise called as market infrastructure institutions (MIIs). As per the key proposals, a resident promoter setting up an MII may hold up to 100% shareholding, which will be brought down to not more than (either 51% or 26%) in 10 years.
A foreign promoter from Financial Action Task Force FATF member jurisdictions setting up an MII may hold up to 49% shareholding, which shall be brought down to not more than (either 26% or 15%) in 10 years.
Currently, NSE, BSE and Metropolitan Stock Exchange are the three nationwide bourses in India, with NSE being the largest in terms of trade volumes both in cash and derivatives segments.
Gainers & Losers:
Tata Steel (up 5.53%), Hindalco Industries (up 4.96%), Bharti Airtel (up 4.77%), Adani Ports & Special Economic Zones (up 4.53%) and IndusInd Bank (up 3.63%) were major gainers in Nifty 50 index.
Titan Company (down 1.91%), Hindustan Unilever (down 1.67%), Nestle India (down 1.65%), Divi's Laboratories (down 1.62%) and HDFC Life Insurance Company (down 1.24%) were major losers in Nifty 50 index.
Stocks in Spotlight:
Sobha jumped 4.66% after the realty firm reported its best ever quarterly sales volume in Q3 December 2020 without any major launch during the quarter. During Q3 FY21, Sobha achieved total sales volume of 11,33,574 square feet of super built-up area valued at Rs 888 crore, with a total average realization of Rs 7,830 per square feet. Sales volume, total sales value are up by 27% and 29% respectively as compared to Q2 FY21. The company said it posted better sales numbers during Q3 FY21 compared with the pre- COVID 19 level Q3 FY20 due to good demand witnessed across all product categories where Sobha is operating.
Steel Strips Wheels (SSWL) gained 1.24% after the company said that it received new orders worth approximately Rs 4.62 crore. SSWL confirmed export orders of nearly 63,000 wheels. The orders are to be executed in January and February 2021 from the company's Chennai & Dappar plants.
G M Breweries hit an upper circuit of 5% at Rs 459.55 after the company's net profit jumped 51% to Rs 21.11 crore on a 6.4% decline in net sales to Rs 111.94 crore in Q3 FY21 over Q3 FY20. Total expenses during the quarter declined by 6.7% year-on-year (Y-o-Y) to Rs 383.45 crore in Q3 FY21. Profit before tax (PBT) in Q3 December 2020 stood at Rs 28.22 crore, up by 51.2% from Rs 18.67 crore in Q3 December 2019. Tax expenses surged 51.6% Y-o-Y to Rs 7.11 crore in the third quarter.
Global Markets:
European market opened higher on Thursday following a projected win for Democrats in the U.S. Senate following dramatic scenes when pro-Trump rioters stormed the U.S. Capitol building. In Europe, the COVID-19 pandemic remains a key concern. The U.K. reported more than 60,000 new daily cases on Wednesday and a further 1,000 deaths of people with the virus.
Asian markets mostly advanced on Thursday after the Dow Jones Industrial Average surged to an all-time high overnight despite unrest in Washington. In US, the Dow and the S&P 500 ended higher, soaring to all-time highs on Wednesday, as investors piled into financial and industrial stocks on bets a Democratic sweep in Georgia would lead to more fiscal stimulus and infrastructure spending.
Stocks closed off their highs as pro-Trump rioters stormed the U.S. Capitol and caused Congress to suspend proceedings to confirm the election of Joe Biden as president. The Capitol was finally secured late Wednesday afternoon, and Congress resumed the process of counting electoral votes and confirming President-elect Joe Biden's victory.
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