Key equity indices ended with small gains on Friday (18 December 2020). As per provisional closing data, the barometer index, the S&P BSE Sensex, rose 70.35 points or 0.15% to 46,960.69. The Nifty 50 index added 19.85 points or 0.14% at 13,760.55.
After a dull start, the benchmark indices declined and hit the day's low in the morning trade. The indices traded with modest losses till the afternoon trade. Bargain hunting in the mid-afternoon session pushed the indices in the green and both the indices managed to extend their winning streak to the sixth consecutive session.
The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index fell 0.35% while the S&P BSE Small-Cap index lost 0.24%.
Sellers outpaced buyers. On the BSE, 1276 shares rose and 1706 shares fell. A total of 168 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 7,49,58,938 with 16,62,228 deaths. India reported 3,13,831 active cases of COVID-19 infection and 1,44,789 deaths while 95,20,827 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Meanwhile, Russian Direct Investment Fund (RDF) CEO Kirill Dmitriev said that Russia has been testing the first samples of Sputnik V COVID-19 vaccine that were produced in India. 300 million doses will be produced by India in 2021.
Buzzing Index:
Shares of IT companies were in demand after IT major Accenture Plc reported strong first-quarter results and raised business outlook for fiscal 2021.
The Nifty IT index rose 1.59% to 23,256.55. The index hit an all-time high of 23,416.50 today.
Infosys (up 2.49%), Mphasis (up 2.10%) Wipro (up 1.82%), Coforge (up 1.73%), Larsen & Toubro Infotech (up 1.58%), Mindtree (up 1.55%), HCL Technologies (up 0.98%), TCS (up 0.61%) and Tech Mahindra (up 0.33%) advanced.
Accenture reported financial results for the first quarter of fiscal 2021, ended 30 November 2020, with revenues of $11.8 billion, an increase of 4% in U.S. dollars and 2% in local currency over the same period last year. Revenue growth for the quarter was reduced approximately 2 percentage points by a decline in revenues from reimbursable travel costs.
GAAP diluted earnings per share were $2.32, an 11% increase from $2.09 for the first quarter last year, including gains on an investment of $0.15 and $0.08, respectively. On an adjusted basis, EPS of $2.17 increased 8% from $2.01 for the first quarter last year.
Operating income was $1.89 billion, a 7% increase over the same period last year, and operating margin was 16.1%, an expansion of 50 basis points.
The company expects revenues for the second quarter of fiscal 2021 to be in the range of $11.55 billion to $11.95 billion, 1% to 4% growth in local currency, reflecting the company's assumption of a positive 3% foreign-exchange impact compared with the second quarter of fiscal 2020. For fiscal 2021, the company expects revenue growth to be in the range of 4% to 6% in local currency, compared with 2% to 5% previously, including a reduction of approximately 1 percentage point from a decline in revenues from reimbursable travel costs.
Stocks in Spotlight:
Godrej Agrovet rose 1.22% to Rs 556.30. In a BSE filing made post market close yesterday, the company said that the Department of Horticulture, Government of Telangana, had allotted area admeasuring 28,164 hectares in the Mahabubabad district of Telangana to the company, for the purpose of oil palm cultivation/expansion.
The National Stock Exchange (NSE) on Thursday (17 December) announced inclusion of Aarti Industries, Dr. Lal Path Labs and HDFC Asset Management Company in the Futures & Options (F&O) segment with effect from 1 January 2021. The market lot, scheme of strikes and quantity freeze limit will be informed on 31 December 2020 through a separate circular, NSE stated.
Aarti Industries (down 0.10%), Dr. Lal Path Labs (up 1.14%) and HDFC Asset Management Company (up 0.42%) advanced.
KNR Constructions added 3.88% to Rs 330.35 after the company said its board recommended issuing one bonus shares for each share held.
Mazagon Dock Shipbuilders jumped 6.94% to Rs 221.90. The company informed that the Basin Trials (BT) of the first Ship of Project 15B (Yard 12704, Vishakhapatnam) was successfully completed at MDL, in the presence of Overseeing and Trials teams of the Indian Navy. The Ship is slated to complete sea trials by April 2021.
Isgec Heavy Engineering added 1.89% to Rs 315.15. The company has secured a new order from KPR Sugar & Apparels to set up a 10,000 TCD Sulphurless Sugar Plant, 40 MW CoGeneration Plant, 60 TPH Incineration Boiler and 7.5 MW Power Plant for Zero Liquid Discharge system for client's distillery plant on EPC basis. The order is valued at Rs 431 crore.
Borosil Renewables rose 1.74% to Rs 166.20. The company's board approved allotment of 1,58,04,030 equity shares at a price of Rs 126.55 per share, aggregating to Rs 200 crore, to the eligible qualified institutional buyers in the qualified institutions placement (QIP). The issue price is at 4.99% discount to the floor price of Rs 133.19 per equity share. The QIP issue opened December 14 and closed on December 17.
Surya Roshni advanced 3.15% to Rs 345.35. The company has bagged a Rs 72.62 crore order for supplying API 5L Grade 3LPE coated and bare pipes to Indian Oil Corporation.
Global Markets:
European shares advanced on Friday. On Thursday, the Bank of England kept its main lending rate at 0.1%, having earlier cut twice from 0.75% since the onset of the pandemic in March 2020, and retained its target stock of asset purchases at 895 billion ($1.2 trillion).
Britain and the European Union struck a pessimistic tone in trade talks on Thursday, with a spokesman for Prime Minister Boris Johnson saying it was "very likely" that there would be no agreement unless the bloc changed its position "substantially".
Both sides have reportedly called on the other to shift position to try to safeguard almost a trillion dollars' worth of trade from tariffs and quotas when a so-called transition period ends on 31 December 2020.
Most Asian stocks declined today. The Bank of Japan on Friday announced a six-month extension of its special program aimed at easing corporate financing pressures amid the coronavirus pandemic. Meanwhile, the yield target on the 10-year Japan government bond was set at around 0% while the short-term interest target was set to -0.1%.
The Japanese central bank also said it will "conduct an assessment for further effective and sustainable monetary easing" as it looks to support the economy and achieve its ever elusive inflation target, with the findings likely to be out in March.
The US stocks finished firmly positive on Thursday (17 December 2020), with the technology-heavy Nasdaq Composite, the S&P 500, and Dow Jones Industrial Average all finishing near record territory after data showing a slowdown in the US labour market stoked investor bets that US Congressional leaders will clinch a $900 billion stimulus deal.
US initial jobless claims rose to 885,000 in the week ended December 12th, an increase of 23,000 from the previous week's revised level of 862,000, the Labor Department reported on Thursday. With the unexpected increase, jobless claims climbed to their highest level since hitting 893,000 in the week ended September 5th.
The lawmakers signaled progress toward an agreement on a new relief package. Senate Minority Leader Chuck Schumer, D-N.Y., agreed that the two sides are "close to an agreement" but cautioned that it's "not a done deal yet."
On the vaccine front, US experts were set to meet to decide whether to recommend approval of Moderna's COVID-19 vaccine, potentially paving the way for a second vaccine early next week after the Pfizer-BioNTech vaccine.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
