Bulls made strong comeback on
Dalal Street on Tuesday with frontline gauges settling with a gain of over one
and a half percent. The investors' mood remained up-beat throughout the day and
there appeared not even an iota of profit booking, as investors continued hunt
for fundamentally strong stocks. Markets made a gap up opening as traders got
boost with ICRA's report stating that economic activity recorded a broad-based
improvement in December as against November, showing a return of demand. ICRA
said most of the indicators have displayed a year-on-year (y-o-y) expansion in
December 2020, which signals a tentative return to pre-COVID normalcy.
Sentiments also got some support with report that India recorded 9,975 fresh
cases of the coronavirus disease (Covid-19), the lowest daily rise since June
8, 2020, resulting in the total active cases in the country falling below
205,500. The death toll has increased to 152,593. India's caseload tally stands
at 10,582,647. Markets extended gains with traders taking support with report
that the Finance Ministry has released the 12th instalment of Rs 6,000 crore to
states to meet the GST compensation shortfall, taking the total amount released
so far under this window to Rs 72,000 crore. The Centre had set up a special
borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10
lakh crore in revenue arising on account of implementation of Goods and
Services Tax (GST). Traders were also energized as Reserve Bank of India (RBI)
is likely to spend at least $20 billion more to support the rupee and increase
the forex kitty through the reminder of the financial year, taking its overall
forex intervention to $93 billion. Traders also took note of report that India
offers tremendous business opportunities to the US in various sectors such as
manufacturing and the COVID-19 pandemic has presented a unique opportunity to
the country to work with America to build resilient and reliable supply chains
that will have the ability to weather future shocks, eminent speakers told a
virtual forum ahead of the India Subcontracting Expo. Finally, the BSE Sensex
soared 834.02 points or 1.72% to 49,398.29, while the CNX Nifty was up by
239.85 points or 1.68% to 14,521.15.
The US markets ended higher on
Tuesday as traders returned to their desks following the long holiday
weekend. The strength on markets came
following the losses seen last week, when the Dow slid by 0.9 percent and the
Nasdaq and the S&P 500 both slumped by 1.5 percent. The markets also
benefited from continued optimism about additional stimulus as well as a faster
rollout of coronavirus vaccines under incoming President Joe Biden. Traders
kept an eye on remarks from Treasury Secretary nominee Janet Yellen during her
confirmation hearing before the Senate Finance Committee. In prepared remarks,
Yellen called for additional stimulus to address the impact of the ongoing
coronavirus pandemic, arguing the government needs to act big. Yellen
acknowledged the mounting national debt facing the incoming administration but
claimed the benefits of another relief package will far outweigh the costs. However,
a steep drop by shares of Goldman Sachs limited the upside for the Dow, with
the financial giant slumping by 2.3 percent despite reporting better than
expected fourth quarter results. Bank of America also moved to the downside
after reporting better than expected fourth quarter earnings but on revenues
that missed estimates. sectoral front, semiconductor stocks moved sharply
higher over the course of the session, driving the Philadelphia Semiconductor
Index up by 3.4 percent to a new record closing high. Biotechnology stocks also
saw significant strength on the day, resulting in a 1.8 percent advance by the
NYSE Arca Biotechnology Index. The index reached its best closing level in six
months.
Crude oil futures ended higher on
Tuesday on dollar's weakness and expectations of more economic stimulus in the
US. US Treasury Secretary elect Janet Yellen's comments about the need for a
larger stimulus took some shine off the dollar and contributed to oil's uptick,
as additional economic relief from the government could push up energy demand.
Meanwhile, traders were also betting on hopes energy demand from China will
pick up as recent data indicates the recovery in the world's second largest
economy is showing signs of gaining momentum. Besides, a report from the Energy
Information Administration (IEA) forecasts world oil demand to recover by 5.5
million barrels per day to 96.6 million this year. That reflects a downward
revision of 0.3 million barrels from last month's assessment. Crude oil futures
for February gained $0.62 or 1.2 percent to settle at $52.98 a barrel on the
New York Mercantile Exchange. March Brent crude rose $1.11 or 2.03 percent to
settle at $55.86 a barrel on London's Intercontinental Exchange.
Erasing prevision session
drubbing, Indian rupee ended higher against dollar on Tuesday owing to dollar
sale by exporters and banks. Besides, healthy growth in the domestic equity
market and dollar weakness against other currencies overseas added to the rupee
gains. Sentiments were upbeat as Reserve Bank of India (RBI) is likely to spend
at least $20 billion more to support the rupee and increase the forex kitty
through the reminder of the financial year, taking its overall forex
intervention to $93 billion. Adding optimism, ICRA's latest report stated that
the economic activity recorded a broad-based improvement in December as against
November, showing a return of demand. On the global front, dollar dropped on
Tuesday as investors prepared for U.S. Treasury Secretary nominee Janet Yellen
to talk up the need for major fiscal stimulus and commit to a market-determined
exchange rate when she testifies later in the day. Finally, the rupee ended at
73.17, 11 paise stronger from its previous close of 73.28 on Friday.
The FIIs as per Tuesday's data
were net buyer in equity segment and net seller in debt segment. In equity
segment, the gross buying was of Rs 9092.09 crore against gross selling of Rs
7140.58 crore, while in the debt segment, the gross purchase was of Rs 286.80
crore with gross sales of Rs 1581.71 crore. Besides, in the hybrid segment, the
gross buying was of Rs 55.16 crore against gross selling of Rs 41.50 crore.
The US markets ended higher on
Tuesday on the back of US Treasury Secretary nominee Janet Yellen's push for a
sizable fiscal relief package in response to the Covid-19 pandemic. Asian
markets are trading mixed on Wednesday as investors assessed comments
suggesting a tough line from Joe Biden's incoming administration toward China. Indian
markets ended higher on Tuesday, with key benchmark indexes climbing around 2
percent, as optimism about China's economy and hopes for further global
stimulus helped spur buying across the board. Today, the markets are likely to
make cautious start tracking mixed Asian cues. There will be some cautiousness
as India recorded 13,700 fresh cases of the coronavirus disease (Covid-19). The
total number of active cases in the country has fallen below 200,000, while the
caseload tally stands at 10,596,442. Globally, 96.6 million people have been
infected by the virus. The country continues to be second-most-affected
globally, and ranks 13th among worst-hit nations by active cases, according to
data from Worldometer. however, some support may come later in the day with a
private report that the ongoing key reforms such as sops for manufacturing,
easier labour laws, wooing FDI inflows and privatisation will help improve
productivity and support long-term growth at 7.5-8 per cent levels, which if
played out well, can help India contribute 15 per cent of global GDP growth by
FY2026. Also, Investment through participatory notes (P-notes) in the domestic
capital market rose to a 31-month high of Rs 87,132 crore at December-end,
reflecting the bullish stance of FPIs. Traders may take note of Niti Aayog CEO
Amitabh Kan's statement that India must remain an integral part of the global
economy if it has to grow at 9-10 per cent over the next three decades.
Meanwhile, In the primary market, the three-day initial public offering of
Indigo Paints will open for public subscription today. The price band has been
fixed at Rs 1,488-1,490 per share for the initial share sale. Angel Broking has
recommended 'subscribe' to the issue owing to the company's track record of
consistent growth, differentiated products, and leveraged brand equity and
distribution network.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
14,521.15
|
14,399.31
|
14,594.51
|
BSE
Sensex
|
49,398.29
|
48,969.26
|
49,663.58
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
1,368.61
|
258.65
|
252.74
|
263.14
|
State
Bank of India
|
358.04
|
298.60
|
295.84
|
301.94
|
ITC
|
317.85
|
218.85
|
217.00
|
221.20
|
Tata
Steel
|
312.45
|
681.10
|
657.41
|
694.36
|
Oil
& Natural Gas Corporation
|
260.85
|
98.10
|
97.40
|
98.90
|
Tata Motors has entered into partnerships with leading private banks, including HDFC Bank, ICICI Bank and Yes Bank, to fund its commercial vehicles.
Infosys has been accredited with the Google Cloud Partner Specialization in the data and analytics space.
Maruti Suzuki India is increasing the price for select models owing to increase in various input costs.
HDFC Bank is preparing a two-pronged strategy to address the issue of digital outage reported in the recent past.