The key indices firmed up in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, jumped 418.25 points or 0.86% at 49,200.76. The Nifty 50 index gained 105 points or 0.73% at 14,452.25.
The broader market was trading lower. The S&P BSE Mid-Cap index fell 0.56%. The S&P BSE Small-Cap index lost 0.37%.
Sellers outpaced buyers. On the BSE, 1,283 shares rose and 1,707 shares fell. A total of 163 shares were unchanged. In Nifty 50 index, 29 stocks advanced while 21 stocks declined.
Foreign portfolio investors (FPIs) bought shares worth Rs 6,029.83 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,372.54 crore in the Indian equity market on 8 January 2021, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 9,02,79,510 with 19,34,786 deaths. India reported 2,22,526 active cases of COVID-19 infection and 1,51,160 deaths while 1,00,92,909 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India kickstarts the world's biggest inoculation drive, PM Narendra Modi will hold a virtual meeting with chief ministers of all states and union territories on Monday and review the preparedness for COVID-19 vaccine administration across the nation.
In India's vaccination drive, set to start on 16 January 2021, priority will be given to about 3 crore frontline workers, followed by around 27 crore people above the age of 50 and others with co-morbidities. The country has also conducted two dry runs to understand the best way to administer vaccine shots and plug loopholes in logistics and training.
Economy:
Assocham on Sunday (10 January) said that India's economy is showing decisive signs of a 'V-shaped' recovery in 2021 with the return of consumer confidence, robust financial markets, an uptick in manufacturing and exporters braving it out in the global market with never-say-die spirit. The industry chamber further added that it expects immense accruals of economic benefits from the COVID-19 vaccination programme about to be rolled out.
Gainers & Losers:
Infosys (up 5.01%), Tata Motors (up 4.97%), HCL Technologies (up 4.25%), Wipro (up 4.18%) and Maruti Suzuki India (up 3.06%) were major gainers in Nifty 50 index.
Tata Steel (down 2.97%), Hindalco Industries (down 2.70%), Adani Ports & Special Economic Zones (down 2.15%), Bajaj Finance (down 2.01%) and JSW Steel (down 1.90%) were major losers in Nifty 50 index.
Earning Impact:
TCS gained 1.69% after the IT major reported 16.4% rise in consolidated net profit to Rs 8,701 crore on a 4.7% increase in revenue to Rs 42,015 crore in Q3 December 2020 (Q3 FY21) over Q2 September 2020 (Q2 FY21). The company's September quarter net profit had a post-tax one-time impact of Rs 958 crore due to provision for ongoing litigation with EPIC.
The company's consolidated net profit has grown by 7.2% and revenue has risen by 5.4% in Q3 FY21 over Q3 FY20.
TCS said that constant currency revenue for Q3 FY21 rose 4.1% quarter-on-quarter and 0.4% year-on-year. The IT major's operating margin stood at 26.6% in Q3FY21 compared with 26.2% in Q2FY21. Net margin stood at 20.7% in Q3FY21.
TCS said that all its verticals showed good sequential growth, led by Manufacturing (+7.1%), BFSI (+2%), Life Sciences and Healthcare (+5.2%), Communications & Media (+5.5%) and Retail and CPG (+3.1%). On a year on year, constant currency basis, Life Sciences and Healthcare continued to grow in double digits at 18.2%. BFSI (+2.4%) and Technology & Services (+2.4%) also moved into positive territory.
The IT firm continued to witness a strong rebound in growth and transformation services as customers seek to operationalize new models. Growth in the quarter was led by Cloud Services, Analytics & Insights, Cognitive Business Operations, IoT and Quality Engineering & Transformation Platform Services.
As on 31 December 2020, the company has applied for 5,634 patents, including 134 applied during the quarter, and has been granted 1,713 patents. The company's net cash from operations in Q3 FY21 was Rs 11,952 crore.
Avenue Supermarts fell 0.14%. The company's consolidated net profit surged 16.4% to Rs 446.97 crore on a 10.8% rise in net sales to Rs 7542 crore in Q3 December 2020 over Q3 December 2019.
EBITDA for Q3 December 2020 stood at Rs 689 crore, rising 15.4% from Rs 597 crore posted in the corresponding quarter of last year. EBITDA margin improved to 9.1% in Q3 December 2020 from 8.8% in Q3 December 2019.
Stocks in Spotlight:
Sadbhav Engineering rose 1.85% after the construction firm said its joint venture received a letter of acceptance (LOA) from Gujarat Metro Rail Corporation (GMRC) for a metro rail project worth Rs 779.73 crore.
The order is for construction of 11.6 km elevated viaduct from Kadarsha Ni Nal to Dream City Dead End Including Ramp for Depot entry near Dream City and 10 stations (Excl. E&M, architectural finishing and roofing) for Surat Metro Rail Project Phase-1, Package-CS1. Construction period of metro rail project will be 30 months from date of issue of letter of acceptance, i.e. 8 January 2021.
Apollo Micro Systems surged 17.05% after the company said it bagged a supply order from Bharat Electronics worth Rs 49.86 crore.
Global Markets:
European stocks were trading lower on Monday. In Europe, investors are focused on the alarming surge in coronavirus cases globally as countries race to vaccinate their elderly, the most vulnerable members of society, and healthcare workers against COVID-19 as fast as they can. At the weekend, the U.K.'s Queen Elizabeth and her husband Philip, both in their nineties, received vaccinations against COVID-19, the Buckingham Palace said.
Most Asian stocks advanced on Monday. Markets in Japan are closed on Monday for a holiday. Shares in South Korea's auto sector surged again on Monday following reports that Hyundai Motor and Apple are set to sign a partnership deal on autonomous electric cars.
China's producer price index fell 0.4% in December as compared to a year earlier, according to the country's Bureau of Statistics. Meanwhile, China's consumer price index rose 0.2% year-on-year in December.
In US, Wall Street scaled new highs on Friday as hopes of more stimulus from Washington were bolstered after U.S. President-elect Joe Biden said his economic package will be in the trillions of dollars.
In economic data, the US economy shed jobs for the first time in eight months in December. Nonfarm payrolls decreased by 140,000 jobs last month, the Labor Department said on Friday. Data for November was revised up to show 336,000 jobs added instead of 245,000 as previously reported.
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