Equity barometers further extended gains and hit fresh record highs in afternoon trade. Pharma and realty stocks were in demand. At 13:20 IST, the barometer index, the S&P BSE Sensex, jumped 201.03 points or 0.43% at 46,867.49. The Nifty 50 index advanced 55.85 points or 0.41% at 13,738.55.
The S&P BSE Sensex hit a record high of 46,949.94 while the Nifty hit a record high of 13,763.80 in afternoon trade. Investors reacted positively to comments from the U.S. Federal Reserve that it will continue to support the economy. Federal Reserve Chairman Jerome Powell also said on Wednesday that stock prices are not necessarily highly priced given how low interest rates are. Meanwhile, negotiators in Washington are shaping a new $900 billion coronavirus stimulus bill that is said to include a second stimulus check.
Broader markets outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.53%. The S&P BSE Small-Cap index gained 0.56%.
Buyers outnumbered sellers. On the BSE, 1,676 shares rose and 1,170 shares fell. A total of 177 shares were unchanged. In Nifty 50 index, 29 stocks advanced while 21 stocks declined.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,981.77 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,718.45 crore in the Indian equity market on 16 December 2020, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 7,42,26,214 with 16,49,032 deaths. India reported 3,22,366 active cases of COVID-19 infection and 1,44,451 deaths while 94,89,740 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
The media reported that India will have to spend $1.4 billion to $1.8 billion in the first phase of a coronavirus vaccination programme, even after getting support under the Covax global vaccine-sharing scheme. India, which currently has the world's second highest caseload of coronavirus behind the United States, plans to inoculate 300 million people over the next six to eight months, likely with vaccines from AstraZeneca, Russia's Sputnik, Zydus Cadila and India's Bharat BioTech.
Gainers & Losers:
Divis' Laboratories (up 3.03%), Bajaj Finance (up 2.30%), IndusInd Bank (up 2.22%), HDFC (up 1.96%) and Power Grid Corporation of India (up 1.39%) were major gainers in Nifty 50 index.
Coal India (down 1.37%), Hindalco Industries (down 1.23%), Adani Ports & Special Economic Zones (down 1.06%), Hindustan Unilever (down 0.95%) and Bajaj Auto (down 0.80%) were major losers in Nifty 50 index.
Stocks in Spotlight:
Torrent Pharmaceuticals fell 1.30%. The drug maker has issued commercial papers (CPs) for an amount of Rs 100 crore on 15 December 2020. The unsecured CPs will mature on 11 June 2021 (i.e. 178 days) and hold an interest rate of 4% p.a.
Olectra Greentech hit an upper circuit of 10% at Rs 115.15 after the company said it emerged as the lowest bidder to provide 353 electric buses to state transport authorities and state government undertaking. Olectra Greentech have been declared as L-1 (least quoted) bidders for 353 electric buses from 5 state transport authorities and 1 state government undertaking including under FAME-II scheme of Government of India.
HFCL advanced 3.77% after the company said it started commercial production of Fiber-to-the-home (FTTH) cables from new facility in Hyderabad. HFCL said its new FTTH cable manufacturing facility at Hyderabad has commenced commercial production of optical fiber cables for fiber to home applications from 16 December 2020. With this, the company, along with its subsidiary company, HTL, has become the largest manufacturer of FTTH cables in India with a capacity of 6 lakh kms per annum.
Global Markets:
Shares in Europe and Asia advanced on Thursday as investors reacted to the latest announcements from the U.S. Federal Reserve.
In US, Wall Street rose on Wednesday, with the Nasdaq closing at a record high as investors awaited a potential fiscal economic stimulus package and after the Federal Reserve repeated a pledge to keep its benchmark interest rate near zero.
The U.S. central bank kept benchmark interest rates near zero, as expected, following the conclusion of its two-day meeting. The Fed said it will buy at least $120 billion of bonds each month until substantial further progress has been made toward the Committee's maximum employment and price stability goals, according to its post-meeting statement.
Congressional leaders closed in on a $900 billion rescue deal that would include a new round of direct payments to consumers. However, that package excludes a liability shield for businesses and state and local aid, reports indicated.
US retail sales fell sharply in November, according to government data released Wednesday, a further sign of economic trouble as COVID-19 cases climbed and lawmakers remained deadlocked on approving economic stimulus. Sales fell 1.1% compared to October, when sales also dipped, the Commerce Department reported, much sharper than expected.
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