Domestic shares clocked modest gains on the first day of the calendar year 2021. The barometer index, the S&P BSE Sensex, gained 117.65 points or 0.25% to 47,868.98. The Nifty 50 index added 36.75 points or 0.26% to 14,018.50. Both the indices attained record closing high levels.
The Sensex hit a record high of 47,980.36 while the Nifty 50 index hit a record high of 14,049.85 in afternoon trade.
ITC (up 2.32%), TCS (up 2.02%) and HDFC (up 0.43%) were major market movers.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index rose 1.24% while the S&P BSE Small-Cap index gained 0.90%.
Buyers outpaced sellers. On the BSE, 2049 shares rose and 951 shares fell. A total of 170 shares were unchanged.
Domestic shares extended recent gains on hopes of full economic recovery backed by COVID vaccine availability in second half of 2021. A combination of moderate inflation and dollar depreciation also boosted sentiment.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 8,34,45,600 with 18,18,387 deaths. India reported 2,54,254 active cases of COVID-19 infection and 1,48,994 deaths while 98,83,461 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The gross GST revenue collected in the month of December 2020 is Rs 1,15,174 crore of which CGST is Rs 21,365 crore, SGST is Rs 27,804 crore, IGST is Rs 57,426 crore (including Rs 27,050 crore collected on import of goods) and Cess is Rs 8,579 crore (including Rs 971 crore collected on import of goods). The total number of GSTR-3B Returns filed for the month of November up to 31st December 2020 is 87 lakhs.
The government's fiscal deficit for April-November 2020 soared to Rs 10.76 lakh crore, or 135% of the full year budgeted target of Rs 7.96 lakh crore, as the government's finances continued to be stretched due to lower revenues arising from the COVID-19 pandemic and the economic slowdown. Expenditure for the period has been 62% of the Budgeted estimate vs 65.3% last year.
Contracting for the ninth consecutive month, the output of India's eight core infrastructure sectors dropped by 2.6% in November, mainly due to decline in production of natural gas, refinery products, steel and cement. The production of eight core sectors had recorded a growth of 0.7% in November 2019.
Barring coal, fertiliser and electricity, all sectors - crude oil, natural gas, refinery products, steel and cement - recorded negative growth in November 2020.
During April-November, the sectors' output dropped by 11.4% as compared to a growth of 0.3% in the same period of the previous year.
The government on Thursday said that foreign direct investment (FDI) equity inflows into India grew 21% to $35.33 billion in the April-October period of FY21 from $29.31 billion a year ago. In a statement on its highlights for 2020, the Department for Promotion of Industry & Internal Trade (DPIIT) also said that 26 FDI applications marked to it were disposed of during the year.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee fell to 73.115 compared with its previous closing of 73.07.
The yield on 10-year benchmark federal paper rose to 5.901% as compared to its previous close of 5.894%.
MCX Gold futures for 5 February 2021 settlement added 0.13% to Rs 50,218.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.01% to 89.93.
In the commodities market, Brent crude for March 2020 settlement gained 28 cents to $51.91 a barrel. The contract gained 0.33% or 17 cents to settle at $51.80 in the previous trading session.
Global Markets:
Shares in Europe and Asia were shut today on account of New Year. US stocks advanced on Thursday as investors closed the book on a turbulent year of pandemic, recession and recovery. All three major indexes gained ground, with the Dow and S&P 500 picking up steam in the session's final minutes to exit 2020 at record highs.
All eyes are on two U.S. Senate races in Georgia next week that will determine control of the chamber and influence Democratic President-elect Joe Biden's ability to enact his agenda.
Buzzing Indian Segment:
The Nifty PSU Bank index rose 3.25% to 1,809.60. The index fell 0.72% in the past two sessions.
Jammu & Kashmir Bank (up 6.91%), Punjab National Bank (up 5.45%), Bank of Baroda (up 4.88%), Bank of Maharashtra (up 4.6%), UCO Bank (up 3.94%), Canara Bank (up 3.76%), Indian Bank (up 2.98%), Bank of India (up 2.67%), Central Bank of India (up 2.17%), Union Bank of India (up 1.9%), State Bank of India (up 1.49%) and Indian Overseas Bank (up 1.4%) surged.
December Auto Sales:
Maruti Suzuki India rose 0.55%. The car major said its total sales rose 20.2% to 160,226 units in December 2020 from 133,296 units in December 2019. Sequentially, the total vehicle sales rose nearly 5% in December 2020 over November 2020.
Mahindra & Mahindra (M&M) gained 1.71%. The company's total auto sales skid 10.30% to 35,187 units in December 2020 as against 39,230 units in December 2019. Sequentially, the auto sales jumped 7.52% in December 2020 compared with 32,726 units in November 2020.
M&M's total tractor sales soared 25% to 22,417 units in December 2020 over 17,991 units in December 2019. While the domestic sales rose 23% YoY to 21,173 units, tractor exports jumped 60% YoY to 1,244 units during the month.
Separately, M&M and Ford Motor Company have mutually, amicably determined they will not complete a previously announced automotive joint venture between their companies.
Escorts rose 2.23% after company said its tractor sales jumped 88% to 7,733 units in December 2020 over December 2019. On a sequential basis, however, the tractor sales declined 23.9% in December 2020 from 10,165 units sold in November 2020.
Eicher Motors added 0.48%. VE Commercial Vehicles, an unlisted subsidiary of Eicher Motors, announced that its total commercial vehicles (CV) sales fell 3% to 4,892 units in December 2020 from 5,042 units in December 2019. Sequentially, however, total CV sales jumped 31.8% in December 2020 from 3,710 units sold in November 2020.
Ashok Leyland advanced 3.82% after the commercial vehicles maker's total sales jumped 14% to 12,762 units in December 2020 from 11,168 units sold in December 2019. Sequentially, the company's total auto sales advanced 19.73% last month from 10,659 units sold in November 2020.
SML Isuzu slipped 1.16% after the company posted a 7% decline in December 2020 sales to 509 units from 549 units posted in December 2019. The company's sale for the Q3 December 2020 rose 1% YoY to 1607 units.
Atul Auto fell 0.24% after its December 2020 sales declined 57.85% year on year to 1,728 units from 4,100 units sold in December 2019.
Stocks in Spotlight:
MOIL rose 1.89% after the company hiked prices of manganese ore and other products with effect from 1 January 2021. MOIL said prices of all Ferro grades of manganese ore having Manganese Mn-37% and above have been increased by 10% and all the other Ferro grades of Manganese Ore having Manganese below Mn-37% have been increased by 15%.
MOIL further added that prices of all SMGR grades (Mn-30% & Mn-25%) and all grades of Fines have been increased by 15%. The company hiked prices of all grades of chemical grades of manganese ore by 10%. The state-run miner said that price of Electrolytic Manganese Di-oxide (EMD) were kept unchanged.
Bharat Dynamics gained 2.61% after the company said that it is geared up to take up export orders for Akash Missile. With the announcement from the Union Cabinet regarding clearance of Akash Weapon System for export, Bharat Dynamics (BDL), the manufacturer of Akash Missile, is geared up to take up export order.
Given the export potential and demand of Akash in the international market, BDL has been promoting the product at various forums including national and international exhibitions The missile being offered for exports will be of a different version. BDL is already supplying Torpedoes to a foreign country, it added.
Rain Industries jumped 13.99%. Rain CII Carbon, the wholly-owned step down subsidiary of Rain Industries, has completed the sale of its wholly owned subsidiaries namely RUTGERS Polymers, Canada and Handy Chemicals (U.S.A.) for an aggregate cash consideration of Rs 637.40 crore. Both the companies were acquired by CPS Performance Materials Topco. The consideration received from the sale of above two subsidiaries will be utilized for repayment of debt and other general corporate needs of the company.
Jindal Steel & Power (JSPL) added 1.60%. The company said its subsidiary, Jindal Power, was declared the successful bidder for Gare Palma IV/1 coal mine by the Ministry of Coal. The company won the auction for the coal mine at 25% bid premium of the representative price.
New Listing:
Shares of Antony Waste Handling Cell closed at Rs 407.25 on the BSE, a premium of 29.29% over the initial public offer price of Rs 315.
The stock was listed at Rs 430, a premium of 36.51% to the initial public offer (IPO) price. The stock hit a high of Rs 492.75 and low of Rs 394.60. On the BSE, 26.68 lakh shares were traded on the counter so far.
The IPO of Antony Waste Handling Cell was subscribed 15.04 times. The issue opened for subscription on 21 December 2020 and closed on 23 December 2020. The price band for the IPO was set at Rs 313-315 per share.
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