Extending their bull run for
second straight day, Indian equity benchmarks ended the Wednesday's trade above
their crucial 49,700 (Sensex) and 14,600 (Nifty). Markets started the session
on optimistic note as traders took support from report that 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 took note of NITI Aayog member, Dr VK Paul said that concerns related
to health issues post-vaccination were 'insignificant, unfounded, and
negligible. He said, as per the data seen so far, the vaccines are safe and
this is a reassuring situation. Traders also took some support with Union
Minister Piyush Goyal's statement that Logistics team in the Ministry of
Commerce and Industry is trying to integrate various means of transport,
documentation & stakeholders through technology platforms, into a
much-simplified way of working, which will enhance the Ease of Doing Business.
Besides, Goyal said that this will truly give confidence to business community
& stakeholders in logistics that Center & States are working as team.
Markets extended gains in second half of the trade to end near intraday highs,
as markets regulator SEBI extended relaxations for companies with regards to
compliance with procedural norms pertaining to rights issues opening till March
31 amid the ongoing coronavirus pandemic. Earlier, this relaxation was given for
rights issues opening till July 31, 2020, which was further extended till
December 31, 2020. Sentiments also remained upbeat with report stating 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. Finally, the BSE
Sensex soared 393.83 points or 0.80% to 49,792.12, while the CNX Nifty was up
by 123.55 points or 0.85% to 14,644.70.
The US markets ended higher on
Wednesday as former Vice President Joe Biden was in as the 46th President of
the United States. Biden has called for additional stimulus and an accelerated
coronavirus vaccine rollout, which has helped offset concerns about higher
taxes and increased regulation under a Democratic administration. The president
is expected to sign several executive orders shortly after taking office,
including orders to rejoin the Paris climate agreement and end former President
Donald Trump's Muslim travel ban as well as the construction of the US-Mexico
border well. The spike by the tech-heavy Nasdaq was partly due to a sharp
increase by shares of Netflix, with the video streaming giant soaring by 16.9
percent. Netflix reached a record closing high after reporting strong fourth
quarter subscriber growth, with total subscribers exceeding 200 million. The
company reported fourth quarter earnings that missed estimates, although its
revenues came in better than expected and Netflix said it will explore
returning cash to shareholders through ongoing stock buybacks. Big-name
companies like Procter & Gamble and Morgan Stanley also reported better than
expected quarterly results, extending the positive start to earnings season.
Crude oil futures ended higher on
Wednesday amid hopes the Joe Biden administration will step up stimulus to
boost growth, which in turn will result in increased demand for energy. A weak
dollar also contributed to oil's uptick. However, the increase was limited due
to surging coronavirus cases in several countries and on reports saying
authorities at many places across the world are looking to tighten lockdown
measures to curb infections. Crude oil futures for February gained $0.26 or 0.5
percent to settle at $53.24 barrel on the New York Mercantile Exchange. March
Brent crude rose 0.7 percent to settle at $ 56.27 a barrel on London's
Intercontinental Exchange.
Indian rupee continued its upward
momentum for the second day and ended fairly higher against US dollar on
Wednesday, on the back of selling of the American currency by exporters.
Besides, healthy gains in domestic equity markets also provided support to the
rupee. Sentiments were upbeat with report stating 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. Traders were also energized as
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. On the global front, pound rose against both the dollar
and euro on Wednesday, helped by a weaker dollar, while inflation data showed
UK prices picked up in December. Finally, the rupee ended at 73.05, 12 paise
stronger from its previous close of 73.17 on Monday.
The FIIs as per Wednesday's data
were net buyer in equity segment, while net seller in debt segment. In equity
segment, the gross buying was of Rs 7333.98 crore against gross selling of Rs
6486.75 crore, while in the debt segment, the gross purchase was of Rs 243.02
crore with gross sales of Rs 428.19 crore. Besides, in the hybrid segment, the
gross buying was of Rs 23.53 crore against gross selling of Rs 21.90 crore.
The US markets closed at record
highs on Wednesday as investors grew optimistic that recent federal spending
will revive growth and bolster corporate earnings. Asian markets are trading
higher on Thursday after stocks on Wall Street sailed to record highs as US
President Joe Biden was sworn into office. Indian markets edged higher to end
at record close on Wednesday, snapping two sessions of losses, led by gains in
IT and Auto stocks. Today, the markets are likely to get positive start
tracking firm global cues. Traders will be taking note of report that India
recorded 15,277 fresh cases of the coronavirus disease (Covid-19). The total
number of active cases in the country has fallen to 193,650, while the caseload
tally stands at 10,611,719. However, market participants may be concerned with
ratings agency Crisil's report that the Covid pandemic-induced lockdown and
consequent slump in economic activity will hit tax collections of states and
result in a near four-fold expansion in their revenue deficits this fiscal,
year-on-year. There may be some cautiousness with Fitch Ratings' statement that
India's medium-term growth potential is at around 6.5% but weak implementation
of reforms, combined with continued financial sector problems, could lower its
potential. It said the revival of the reform agenda is among the Indian government's
policy responses to the Covid pandemic shock. Real estate industry stocks will
be in focus with a private report stating that housing sales rose 25 per cent
year-on-year during the October-December period at 1,10,811 units across seven
cities on pent up and festive demand. There will be some reaction in power
stocks with Power Secretary S N Sahai's statement that all-India power demand
on Wednesday morning touched a record high of 185.82 gigawatts (GW). On
December 30, 2020, all-India power demand had touched 182.89 GW. There will be
some buzz in insurance industry stocks with Moody's report that Indian
insurance companies are likely to withstand the economic downturn exacerbated
by the coronavirus pandemic, with general insurance premium growth in positive
territory. MSMEs stocks will be in limelight with the finance ministry's
statement that banks have sanctioned an additional Rs 15,571 crore under the
Emergency Credit Line Guarantee Scheme (ECLGS) to MSMEs that were impacted by
the coronavirus pandemic. Meanwhile, Home First Finance IPO will open for
subscription today. The firm on Wednesday raised a little over Rs 346 crore
from anchor investors. The company has fixed a price band of Rs 517-518 a share
for its initial share-sale. There will be lots of important earnings
announcements too, to keep the markets in action.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
14,644.70
|
14,552.69
|
14,701.59
|
BSE
Sensex
|
49,792.12
|
49,485.72
|
49,986.46
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
2,051.45
|
274.90
|
263.34
|
281.99
|
ITC
|
446.72
|
217.65
|
215.90
|
219.20
|
State
Bank of India
|
337.59
|
302.55
|
298.04
|
305.89
|
NTPC
|
255.99
|
98.30
|
97.64
|
99.34
|
Wipro
|
244.19
|
444.95
|
436.01
|
450.86
|
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