Market Wrap, Jan 18: Here's all that happened in the markets today

With largely all the positives priced-in the markets, equity indices continued to consolidate at current levels on Monday with bouts of volatility keeping investors on the edge. Volatility index, India VIX, jumped over 4 per cent in the intra-day trade today before cooling-off to settle 1.2 per cent higher at 24 levels.

That apart, expectations that the Reserve Bank of India may set out proposals in a discussion paper this week, recommending that bigger shadow banks hold a share of deposits in cash, gold or government securities, weighed on financial counters. Shares of HDFC fell 2.4 per cent, while Bajaj Finance and Bajaj Finserv dropped over 3 per cent, dragging down the Nifty50 index.

However, amid up to 2 per cent gains in Reliance Industries and HDFC Bank, the benchmark S&P BSE Sensex and Nifty50 managed to end off day's low. The S&P BSE Sensex index ended at 48,564 levels, down 470 points or 0.96 per cent, on the BSE with RIL, Titan, HDFC Bank, and ITC ending the day as the only gainers.

In the intra-day deals, shares of HDFC Bank rose over 2 per cent and hit a fresh recor dhigh of Rs 1,503 on the BSE on the back of stable December quarter results. Nearly all brokerages have revised their target price on the stock with a maximum upside of 27 per cent. The stock settled 1 per cent higher at Rs 1,483 on the BSE.

Moreover, shares of ITC extended its gain into sixth straight day on Monday, advancing 1.4 per cent in the intra-day deals today, and hit an over 11-month high of Rs 221. The stock settled 0.7 per cent higher on the BSE at Rs 219.

On the downside, ONGC (down 5 per cent), Sun Pharmaceuticals, Bajaj Finance, and PowerGrid remained as top drags. The index hit an intra-day low of 48,404 today.

Nifty50, meanwhile, gave up the 14,300-mark and ended at 14,281 levels, erasing 152 points or 1 per cent. 44 of the 50 constituents ended the day in the red.

In the broader market, the S&P BSE MidCap index underperformed the frontline indices and ended at a 2-week low of 18,525 levels, down 2 per cent. The S&P BSE SmallCap index closed with a 1.89 per cent cut.

Market breadth remained in the favour of bears as 2,089 stocks declined on the BSE today, as against 938 stocks that rose.

On the sectoral front, all the indices ended the day in the red with the Nifty Metal index sliding over 4 per cent. Individually, SAIL, Jindal Steel, Tata Steel, and Hindalco skid up to 6 per cent on the NSE.

That apart, Nifty Realty, Pharma, and Auto index each slipped 2 per cent on the NSE.

On the earnings front, IT firm Mindtree today reported a net profit of Rs 326.5 crore for the December quarter of FY21. The revenue came in at Rs 2,023 crore for the quarter with EBIT margins at 19.6 per cent.

Lastly, in the primary market, the 3-day initial public offer of IRFC was subscribed around 57 per cent on the first day of the issue till 4:!5 pm.

Global cues

Global stock markets sank on Monday as soaring Covid-19 cases offset investor hopes of a quick economic recovery.

European stocks as measured by the STOXX 600 index opened 0.3 per cent weaker, Germany's DAX fell 0.2 per cent, France's CAC 40 fell 0.3 per cent, and Italy's FTSE MIB index slipped 0.3 per cent. Britain's FTSE 100 index also fell 0.1 per cent.

In Asia, Chinese blue chips gained 0.8 per cent after the economy was reported to have grown 6.5 per cent in the fourth quarter, on a year earlier, topping forecasts of 6.1 per cent.

Elsewhere in Asian markets, Japan's Nikkei slipped 0.8 per cent. MSCI’S All Country World Index, which tracks stocks across 49 countries, fell 0.1 per cent, down for a second session after hitting record highs only last week.