Sensex, Nifty trade flat; PSU banks rally

Domestic indices came off the day's low and traded near the flat line in early afternoon trade. The Nifty regained 13,000 mark. At 12:27 IST, the barometer index, the S&P BSE Sensex was flat at 44,259.77. The Nifty 50 index was up 2.15 points or 0.02% at 12,989.15.

The broader market outperformed benchmark indices. The S&P BSE Mid-Cap index surged 2% while the S&P BSE Small-Cap index gained 1.59%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1700 shares rose and 878 shares fell. A total of 172 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, dropped 2.22% to 19.5775. The Nifty December 2020 futures were trading at 13,036.65, at a premium of 49.9 points compared with the spot at 12,986.75.

 

The Nifty option chain for 31 December 2020 expiry showed maximum Call OI of 26.01 lakh contracts at the 13,000 strike price. Maximum Put OI of 27.39 lakh contracts was seen at 12,000 strike price.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 6,03,33,049 with 14,20,462 deaths. India reported 4,55,555 active cases of COVID-19 infection and 135,715 deaths while 87,18,517 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty PSU Bank index surged 1.48% to 1,561.90. The index has gained 6.5% in four days.

J&K Bank (up 6.64%), Bank of Maharashtra (up 5.08%), Canara Bank (up 4.4%), Punjab National Bank (up 3.59%), Union Bank of India (up 2.94%), Bank of India (up 2.69%), Central Bank of India (up 2%) and UCO Bank (up 1.64%) advanced.

Stock in Spotlight:

CG Power and Industrial Solutions hit an upper circuit of 5% at Rs 41.15 after Tube Investments of India acquired a controlling stake in the company. In a BSE filing made after market hours on Thursday (26 November 2020), CG Power said that its board approved allotment of 64.25 crore preferential shares to Tube Investments of India (TII) at Rs 8.56 each, aggregating to Rs 550 crore.

The company has also issued 17.52 crore warrants to TII for aggregate consideration of Rs 150 crore. About Rs 37.50 crore, or 25% of the aggregate consideration will be paid on warrant subscription. Each warrant carries a right exercisable by the warrant holder to subscribe to one equity share per warrant within 18 months from allotment.

"Post the allotment of securities to TII as stated above, TII has acquired a controlling interest in the company and holds 50.62% of the paid up equity share capital of the company, CG Power said in a statement.

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