Benchmark indices ended a volatile session with strong gains on Tuesday. The Nifty closed above the crucial 13,450 mark after slipping below that level in intraday. IT and pharma shares led the broader recovery.
The S&P BSE Sensex jumped 452.73 points or 0.99% to 46,006.69. The Nifty 50 index added 137.90 points or 1.03% to 13,466.30.
The Nifty opened higher at 13,373.65 today, but shortly changed its trend and hit the day's low of 13,192.90 in morning trade. After displaying some volatility, the index bounced back in afternoon trade. It extended gains and hit the day's high of 13,492.05 in late trade.
In the broader market, the BSE Mid-Cap index rose 1.09% and the BSE Small-Cap index gained 0.95%.
The market breadth was positive. On the BSE, 1,569 shares rose and 1,352 shares fell. A total of 171 shares were unchanged.
COVID-19:
Total COVID-19 confirmed cases worldwide stood at 7,73,64,959 with 17,02,600 deaths. India reported 2,92,518 active cases of COVID-19 infection and 1,46,111 deaths while 96,36,487 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
In the backdrop of a new strain of the coronavirus emerging in the United Kingdom, the Maharashtra government decided to impose a night curfew from 22 December in all the municipal areas of the state. The curfew will be in place from 11 pm to 6 am till 5 January 2020.
IBC suspension extended till March 2021:
The Centre has decided to extend the suspension of the Insolvency and Bankruptcy Code (IBC) till 31 March 2021, to help businesses cope with major stress posed by the Covid-19 pandemic, Union Finance Minister Nirmala Sitharaman said on Monday.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 5.951% as compared with 5.957% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 73.8450, compared with its close of 73.7975 during the previous trading session.
In the commodities market, Brent crude for February 2021 settlement fell 53 cents at $50.38 a barrel. The contract fell $1.35, or 2.58% to settle at $50.91 a barrel in the previous trading session.
Foreign Markets:
European shares advanced after yesterday's rout. Britain's Q3 GDP grew by a record 16%. The country is yet to make up for its 18.8% slump in the April-June period when much of the economy was shut down.
Trading was cautious amid the ongoing concerns around a fast-spreading COVID-19 mutation, that was first identified in Britain. The new variant forced the U.K. government to shut down London and other parts of southeast England and backtrack on the mixing of households over the Christmas break.
Meanwhile, the U.K. and EU remain deadlocked over post-Brexit trade relations as the 31 December 2020 deadline approaches, with disputes over issues such as fisheries plaguing talks.
Asian markets ended lower on Tuesday, as developments surrounding the coronavirus pandemic continued to weigh on investor sentiment.
In US, the S&P 500 closed lower on Monday, having clawed its way back from steep losses early in the session as investors juggled the outbreak of an ominous new strain of COVID-19 with the passage of a long-anticipated stimulus package.
The Dow Jones Industrial Average rose 37.4 points, or 0.12%, to 30,216.45, the S&P 500 lost 14.49 points, or 0.39%, to 3,694.92 and the Nasdaq Composite dropped 13.12 points, or 0.1%, to 12,742.52.
The US House of Representatives passed a $892 billion coronavirus aid package aimed at throwing a lifeline to the nation's pandemic-battered economy. The relief bill, which will become law if passed by the Senate and signed by President Donald Trump, includes $600 payments to most Americans as well as additional payments to the millions of people thrown out of work during the pandemic.
The White House has said Trump will sign the bill. The legislation also expands a small-business lending program by about $284 billion and steers money to schools, airlines, transit systems and vaccine distribution. The small-business loan and grant program, known as the paycheck protection program, will exclude publicly traded companies from eligibility.
Primary Market:
The initial public offer (IPO) of Antony Waste Handling Cell received bids for 2.47 crore shares as against 66.66 lakh shares on offer as on 22 December 2020, according to the National Stock Exchange (NSE) data at 16:30 IST. The issue was subscribed 3.71 times.
The issue opened for subscription yesterday (21 December 2020) and closes on Wednesday (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.
Buzzing Indian Segment:
The Nifty IT index jumped 3.36% to 23,611.60. It fell 1.77% in the previous session.
Coforge (up 7.53%), Mindtree (up 7.2%), HCL Technologies (up 5.35%), Larsen & Toubro Infotech (up 5.23%), Tech Mahindra (up 4.1%), Infosys (up 3.62%), Info Edge (India) (up 3.17%), Wipro (up 2.94%), Mphasis (up 2.81%) and TCS (up 1.79%) surged.
Cyient advanced 4.16%. Beijing Administration for Industry and Commerce has approved the de-registration of Cyient's wholly-owned subsidiary, "Cyient Engineering (Beijing)".
Stocks in Spotlight:
Mahindra & Mahindra (M&M) rose 1.29%. M&M on Monday said its loss-making South Korean arm SsangYong Motor Company (SYMC) has filed for bankruptcy.
Tata Motors rose 0.30%. The automobile maker announced that there will be a price increase across its commercial vehicle range, effective 1 January 2021. The steady rise in material and other input costs, impact of forex and transition to BS6 norms, have cumulatively escalated the cost of manufacturing vehicles. The company had thus far been absorbing the addition in costs but with their steady rise in line with market trend, it has become imperative to pass at least some portion of the cost increase to customers via appropriate price revisions, Tata Motors said in a filing.
Lupin rose 2.59% after the drug major received approval for its Rufinamide Oral Suspension from USFDA to market a generic equivalent of Banzel Oral Suspension of Eisai Inc. Rufinamide Oral Suspension, 40 mg/ml, is indicated for adjunctive treatment of seizures associated with Lennox-Gastaut syndrome (LGS) in pediatric patients 1 year of age and older, and in adults.
Sadbhav Engineering jumped 6.96%. The EPC's joint venture (JV) emerged as lowest bidder for a metro rail project in Surat, Gujarat. The construction period for the same is 30 months.
Hindustan Foods soared 7.78% after the company said that it will undertake a capital expenditure of Rs 125 crore in the Northern region of India, via its wholly owned subsidiary HFL Consumer Products.
JSW Steel gained 3.10%. JSW Steel Italy, the company's subsidiary, entered into a share purchase agreement (SPA) dated 21 December 2020 with Industrial Development Corporation (IDC), South Africa, for acquisition of 30.73% share capital of GSI Lucchini for a cash consideration of 1 million euros. The balance 69.67% of GSI is held by JSW Steel Italy. GSI's manufacturing unit is located in Piombino, Tuscany Region in Italy.
Thermax lost 3.06%. The company has acquired remaining 24% stake in First Energy (FEPL) effective 21 December 2020. Accordingly, the equity shareholding of the company in FEPL stands increased to 100% from 76% stake, making it a wholly owned subsidiary of the company. FEPL is an alternative energy solution company and is engaged in the business of manufacture & supply of biomass pellets, gasification technology and cooking stoves.
UFO Moviez India added 1.20%. The board of UFO Moviez India on Monday (21 December 2020) approved the company's foray into film distribution business. The company has adopted a fee-based distribution model in which it does not take any financial risk in the content.
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