Key domestic indices ended with strong gains on Wednesday, supported by rally in IT stocks. The Nifty closed above the crucial 13,600 mark. All the sectoral indices on the NSE ended in the green. Positive global cues boosted sentiment.
The BSE Sensex rallied 437.49 points or 0.95% to 46,444.18. The Nifty 50 index added 134.80 points or 1% to 13,601.10.
Hindustan Unilever (up 2.67%), ITC (up 2.14%) and Reliance Industries (up 0.37%) advanced.
The broader market rallied. The BSE Mid-Cap index rose 2.40% and the BSE Small-Cap index gained 2.65%.
Buyers outpaced sellers. On the BSE, 2,296 shares rose and 650 shares fell. A total of 151 shares were unchanged.
COVID-19:
Total COVID-19 confirmed cases worldwide stood at 7,80,18,199 with 17,17,124 deaths. India reported 2,89,240 active cases of COVID-19 infection and 1,46,444 deaths while 96,63,382 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
J&K District Development Council (DDC) polls:
The People's Alliance for Gupkar Declaration (PAGD), a conglomeration of seven parties, on Tuesday took a significant lead in the first-ever District Development Council (DDC) elections in Jammu and Kashmir even as the alliance's main opponent, the BJP, emerged as the single largest party, sweeping the polls in many districts in the Jammu region while making some inroads in the valley.
The Gupkar alliance, a grouping of seven mainstream J&K-based parties including rivals National Conference and Mehbooba Mufti's People's Democratic Party (PDP), won 112 seats; the BJP has emerged as the single largest party as it won 75 seats. The Congress has won 26 seats.
Numbers to Watch:
The yield on 10-year benchmark federal paper was almost flat at 5.951% as compared with 5.951% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 73.7650, compared with its close of 73.8450 during the previous trading session.
In the commodities market, Brent crude for February 2021 settlement rose 15 cents at $50.23 a barrel. The contract fell 83 cents, or 1.63% to settle at $50.08 a barrel in the previous trading session.
Foreign Markets:
The US Dow Jones futures were up 80 points, indicating a positive start in the US market today.
Shares in Europe and Asia advanced on Wednesday on hopes that more U.S. fiscal aid would propel an economic recovery.
In Europe, France reopened its border to England on Wednesday, requiring passengers arriving at the border to have a negative coronavirus test result. It comes after France imposed a ban on people and freight coming from the U.K. amid concerns over a fast-spreading COVID-19 mutation first identified in southeast England.
On Tuesday, EU chief Brexit negotiator Michel Barnier said the bloc was making a "final push" to strike a Brexit trade deal with Britain, but disagreements over fishing rights remain. There have been positive reports about the talks, claiming a deal could be reached on Wednesday.
In US, the S&P 500 fell for a third straight session on Tuesday even after Congress approved a long-delayed coronavirus relief package. The broad equity benchmark dipped 0.2%, or 7.66 points, to 3,687.26 in relatively thin trading. The Dow Jones Industrial Average slipped 200.94 points, or 0.7%, to 30,015.51. The Nasdaq Composite eked out a 0.5% gain to close at 12,807.92, a new record.
Congressional leaders had attached $900 billion in pandemic aid to a $1.4 trillion measure to fund the government through 30 September 2020.
On the data front, a final reading showed third-quarter gross domestic product grew 33.4% on an annualized basis. That was revised slightly up from the 33.1% pace reported last month. The US economy contracted at a 31.4% rate in the April-June quarter.
Buzzing Indian Segment:
The Nifty IT index rose 2.36% to 24,167.75. The index has risen 5.79% in two sessions. It is up 11.04% so far this month.
Mphasis (up 8.51%), Mindtree (up 4.32%), L&T Infotech (up 2.71%), Coforge (up 2.22%), TCS (up 1.21%), HCL Technologies (up 0.89%), Info Edge (India) (up 0.30%) and Tech Mahindra (up 0.23%) advanced.
Infosys rose 2.58% after IT major and Daimler AG announced a long-term strategic partnership for a technology-driven IT infrastructure transformation. The stock hit a record high of Rs 1,259 in intraday today.
Wipro spurted 5.70% after the company announced a strategic digital and IT partnership deal with Metro AG. The estimated deal value for the duration of the first five years is approximately $700 million. With the intention to extend up to 4 additional years, it can be a potential spend of up to $1 billion. Wipro will deliver a complete technology, engineering and solutions transformation program for Metro AG as it positions itself as a Wholesale 360-degree provider in the hotel, restaurant and catering food industry fuelled by quality, focus and flexibility.
Separately, Wipro announced that its proposed share buyback offer will open on Tuesday, 29 December 2020 and close on Monday, 11 January 2021. The company plans to buyback upto 23.75 crore equity shares at Rs 400 each.
Ramco Systems rallied 7.04% after the company signed a multi-million-dollar agreement with a Global Fortune 500 major to unify and transform its payroll for 18 countries in Asia Pacific region on its managed payroll services. With this order win, the company has added three Fortune 500 brands as its clients for Ramco Global Payroll in Q3 2020.
Stocks in Spotlight:
Mahindra & Mahindra (M&M) advanced 2.35%. Life Insurance Corporation of India (LIC) sold 2.006% stake in M&M through market sale between 10 May 2019 and 21 December 2020. Post transaction, LIC's stake in M&M reduced to 8.430% from 10.436% earlier.
Meanwhile, JP Morgan has issued a notice to M&M's SsangYong Motor Company (SYMC), a material subsidiary, demanding the repayment of outstanding loan amount of 40 billion KRW (Korean Won) (approximately Rs 268 crore) along with interest. SYMC has intimated to the Korean Stock Exchange that it could not repay the loan amount of 40 billion KRW to JP Morgan on account of SYMC's application for rehabilitation.
Bajaj Auto rose 1.22% after the two-wheel maker announced that it has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to set up a manufacturing facility on a proposed investment of Rs 650 crore in Chakan, Maharashtra. The facility is expected to commence production in 2023. This facility will be utilised for manufacturing high end KTM, Husqvarna and Triumph motorcycles as well as for electric vehicles starting with Chetak.
Jubilant Foodworks gained 1.67%. Domino's Pizza franchise introduced "The Unthinkable Pizza", India's first plant protein-based product, which is made entirely from plant-based proteins, is 100% vegetarian and yet has the sensory properties of chicken. The Unthinkable Pizza is expected to provide both vegetarians and non-vegetarians a good and innovative option in the menu. The pizza would be available at all Domino's Pizza restaurants across Delhi NCR, Mumbai and Bangalore.
Glenmark Pharmaceuticals rose 2.47% after the company's Swiss subsidiary and Menarini entered into a licensing pact for commercializing Ryaltris nasal spray in Europe. The licensing agreement will be effective in 33 countries throughout the Europe, including the Balkan region. Under the terms of the agreement, Glenmark will be responsible for the development and regulatory approval of Ryaltris by relevant European Regulatory Authorities, while Menarini Group will be responsible for the commercialization of Ryaltris across these markets.
Dilip Buildcon rallied 6.16% after the company said its joint venture has received the letter of acceptance (LoA) on 22 December 2020 from the National Highway Authority of India (NHAI) for a new EPC project in Rajasthan. Dilip Buildcon, through its joint venture (JV) i.e. Dilip Buildcon - Altis Holding Corporation has received the LoA from NHAI. The 8.30-km long project has bid cost of Rs 1,000.08 crore and has a completion period of 30 months.
IPO Update:
The initial public offer (IPO) of Antony Waste Handling Cell received bids for 10.02 crore shares as against 66.66 lakh shares on offer as on 24 December 2020, according to the National Stock Exchange (NSE) data at 17:00 IST. The issue was subscribed 15.04 times.
The issue opened for subscription on Monday (21 December 2020) and closes today (23 December 2020). The price band for the IPO is set at Rs 313-315 per share. An investor can bid for a minimum of 47 equity shares and in multiples thereof.
The issue comprises of a fresh issue worth Rs 85 crore and an offer for sale (OFS) of 6,824,933 equity shares by existing shareholders.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
