Benchmark indices continued trading firm in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, rose 244.48 points or 0.53% at 46,507.65. The Nifty 50 index advanced 61.50 points or 0.45% at 13,629.35.
A possible approval of Moderna Inc's COVID-19 vaccine this week and progress in US stimulus talks lifted sentiment. The US Federal Reserve will issue an updated policy statement along with new economic projections on Wednesday. Traders will be watching closely for any changes to Fed view on when its benchmark policy rate might rise off zero.
HDFC (up 1.65%), HDFC Bank (up 1.01%) and TCS (up 1.21%) boosted indices.
In the broader market, the S&P BSE Mid-Cap index rose 0.73% while the S&P BSE Small-Cap index gained 0.96%.
The market breadth was strong. On the BSE, 1,867 shares rose and 951 shares fell. A total of 167 shares were unchanged.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 0.59% to 19.23. The Nifty December 2020 futures were trading at 13,670, at a premium of 17.90 points compared with the spot at 13,652.10.
The Nifty option chain for 31 December 2020 expiry showed maximum call OI of 23.24 lakh contracts at the 13,000 strike price. Maximum put OI of 41.88 lakh contracts was seen at 13,000 strike price.
Farmers' Protest:
Farmers' protest against new farm laws continues at various borders of Delhi. Security has been enhanced at the border areas including at Singhu border and Jaisinghpur-Khera at Rajasthan-Haryana border with multi-layered barricades. Rapid Action Force & additional forces have also been deployed at Singhu between Delhi-Haryana.
Prime Minister Narendra Modi reiterated that the central government is committed to the welfare of farmers and it will keep assuring the farmers and addressing their concerns.
Meanwhile, Agriculture Minister Narendra Singh Tomar said that the government is willing to continue dialogue with genuine farmers unions and find a solution with an open mind. He asserted that MSP is an administrative decision and will continue as it is.
Primary Market:
The initial public offer (IPO) of Mrs. Bectors Food Specialities received bids for 7.81 crore shares as against 1.32 crore shares on offer on Wednesday (16 December 2020), according to the stock exchange data at 12:00 IST. The issue was subscribed 5.91 times.
The issue opened for subscription on Wednesday (15 December 2020) and it will close on Thursday (17 December 2020). The price band for the IPO is set at Rs 286-288 per share.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 7,34,75,980 with 16,35,427 deaths. India reported 3,32,002 active cases of COVID-19 infection and 1,44,096 deaths while 94,56,449 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Buzzing Index:
The Nifty Auto index rose 0.96% to 9,237.55. The index added 1.58% in two sessions.
Ashok Leyland (up 3.79%), Mahindra & Mahindra (up 2.31%), MRF (up 1.98%), Tata Motors (up 1.93%) and TVS Motor Company (up 1.48%) advanced.
Mahindra & Mahindra (M&M) rose 2.31% after the auto maker announced that effective 1 January 2021, the company will increase the price of its range of passenger and commercial vehicles, across models. This has been necessitated due to the increase in commodity prices and various other input costs.
Stock in Spotlight:
Jindal Steel & Power (JSPL) gained 1.54% after Hemant Kumar was appointed as the chief financial officer (CFO) and key managerial personnel (KMP) of JSPL with effect from Tuesday, 15 December 2020.
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