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EQUITY
Post Session: Quick Review
Jan-19-2021

Indian equity benchmarks ended on a fabulous note on Tuesday, as bulls held tight grip over the Dalal Street. After a strong start, key indices maintained gaining rally during whole trading session, taking support 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. Traders were also positive 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.          

In the second half of the trading session, markets extended their gains to end the day with strong gains, as 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). Besides, in its continuous efforts towards transforming the country into an innovation-driven economy, NITI Aayog is going to release the second edition of the India Innovation Index 2020.

On the global front, European markets were trading higher buoyed by hopes that an economic recovery following the coronavirus pandemic is not far off. Asian markets ended mostly higher on Tuesday, even after Japan's industrial production declined for the first time in six months in November. The final data from the Ministry of Economy, Trade and Industry showed that industrial output dropped 0.5 percent month-on-month, in contrast to October's 4 percent increase and the flash estimate of nil growth. This was the first fall in six months. Shipments fell 1.2 percent, in contrast to previous month's 4.9 percent increase. The rate was revised from -0.9 percent estimated previously.

The BSE Sensex ended at 49398.29, up by 834.02 points or 1.72% after trading in a range of 48805.54 and 49499.86. There were 27 stocks advancing against 3 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 2.31%, while Small cap index was up by 1.66%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 4.04%, Metal up by 3.01%, Power up by 2.77%, Capital Goods up by 2.70% and Industrials up by 2.68%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finserv up by 6.77%, Bajaj Finance up by 5.25%, HDFC up by 3.25%, Larsen & Toubro up by 2.64% and ICICI Bank up by 2.64%. On the flip side, Tech Mahindra down by 0.54%, ITC down by 0.30% and Mahindra & Mahindra down by 0.01% were the top losers. (Provisional)

Meanwhile, in its continuous efforts towards transforming the country into an innovation-driven economy, NITI Aayog is going to release the second edition of the India Innovation Index 2020. The India Innovation Index 2020 seeks to rank the states and union territories based on their relative performance of supporting innovation, and to empower them to improve their innovation polices by highlighting their strengths and weaknesses.

The ranking methodology is designed in a way that states can draw lessons from the national leaders in innovation. This will lead to a healthy competition among the states and union territories, thereby fostering competitive federalism. India Innovation Index 2020 builds on the previous year’s methodology by introducing more metrics and providing a holistic outlook of the Indian innovation ecosystem. The framework has been updated to include globally considered parameters for measuring innovation (such as the percentage of gross domestic product spent on research and development), while also retaining the parameters specific to the Indian economy.

Besides, the index captures the trends and provides detailed analyses of the various factors that drive innovation at the country, state, and district levels. It is believed that these analyses would enable policymakers in identifying catalysts and inhibitors of innovation at the national and sub-national levels.

The CNX Nifty ended at 14521.15, up by 239.85 points or 1.68% after trading in a range of 14350.85 and 14546.05. There were 45 stocks advancing against 5 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bajaj Finserv up by 6.82%, Tata Motors up by 5.16%, Bajaj Finance up by 5.07%, HDFC up by 3.52% and Hindalco up by 3.45%. On the flip side, Tech Mahindra down by 0.58%, ITC down by 0.41%, Wipro down by 0.30%, Britannia down by 0.18% and Mahindra & Mahindra down by 0.12% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 45.08 points or 0.67% to 6,765.73, France’s CAC increased 18.36 points or 0.33% to 5,635.63 and Germany’s DAX was up by 61.66 points or 0.45% to 13,910.01.

Asian markets ended mostly higher on Tuesday as investors looked ahead to comments from US Treasury Secretary nominee Janet Yellen on US stimulus at the Senate confirmation hearing later today. Janet Yellen is expected to urge lawmakers to act big on relief spending during confirmation hearing, underscoring the urgency and scope of the incoming Biden administration's $1.9 trillion stimulus package. Japanese shares ended higher on bargain hunting following two days of profit-taking. However, concerns over surging corona virus infections capped gains.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,566.38
-29.84
-0.83

Hang Seng

29,642.28
779.51
2.70

Jakarta Composite

6,321.86
-67.97
-1.06

KLSE Composite

1,601.88

-7.64

-0.47

Nikkei 225

28,633.46
391.25
1.39

Straits Times

2,995.92
5.52
0.18

KOSPI Composite

3,092.66
78.73
2.61

Taiwan Weighted

15,877.37
265.37
1.70


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