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Markets extend bull run for second straight day
Jan-20-2021

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.

Positive opening in European counters too aided sentiments with all the European key indices edged higher ahead of Joe Biden’s inauguration in Washington, which comes after a tumultuous few months of political upheaval in the U.S. Asian markets ended mostly higher on Wednesday, after China's benchmark lending rates were left unchanged as widely expected. The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent. The one-year and five-year loan prime rates were last lowered in April 2020. The one-year loan prime rate was cut by 20 basis points and five-year rate by 10 basis points in April.

Back home, oil stocks remained in limelight with private report penning that India's crude oil imports in December soared to the highest levels in nearly three years to more than 5 million barrels per day (bpd) as its refiners cranked up output to meet a rebound in fuel demand. Realty stocks also remained in focus on report 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.

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 BSE Sensex touched high and low of 49,874.42 and 49,373.68, respectively and there were 20 stocks advancing against 10 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index gained 1.08%, while Small cap index was up by 0.58%.

The top gaining sectoral indices on the BSE were Auto up by 2.18%, IT up by 1.75%, Energy up by 1.55%, TECK up by 1.48% and Industrials was up by 1.46%, while Utilities down by 0.29%, FMCG down by 0.20% and Telecom down by 0.02% were the few losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.75%, Tech Mahindra up by 2.67%, Mahindra & Mahindra up by 1.98%, Asian Paints up by 1.98% and Reliance Industries was up by 1.91%. On the flip side, Power Grid down by 1.75%, NTPC down by 1.35%, HDFC Bank down by 0.83%, ITC down by 0.59% and Nestle down by 0.44% were the top losers.

Meanwhile, Niti Aayog CEO Amitabh Kant has said 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. He said India needs to become a major global exporting nation, without that it will not be possible to become richer and create wealth for its people over the next three decades. He added that if India has to grow at 9-10 per cent over a three-decade period, it must be open, it must be an integral part of the global economy. He also said it must be an integral part of the global supply chain.

Kant further pointed out that the government's Aatmanirbhar Bharat initiative is not about protectionism, it is about making India part of the global supply chain. According to him, post-COVID-19 pandemic, only those countries will grow who will use digital ecosystem. He said ‘post- pandemic global supply chain will be restructured, and you can be only competitive if you can use the power of technology’. Noting that India's digital divide is narrowing down, Kant said if you look at the huge growth in Unified Payments Interface (UPI), it has grown manifold.

On the production-linked incentive (PLI) plan, the Niti Aayog CEO said the scheme in electronics and mobile manufacturing has received very good response. He said like mobile and electronic manufacturing, the PLI scheme for battery manufacturing will give a much-needed fillip to country's manufacturing, and added that India needs to get into sunrise areas of growth. The Pradhan Mantri Jan Dhan Yojana (PMJDY) has democratised access to financial services. Kant also pointed out that India is the vaccine capital of the world, as the country makes 70 per cent of the world's vaccine.

The CNX Nifty traded in a range of 14,517.55 and 14,666.45 and there were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 6.09%, Adani Ports up by 4.40%, Wipro up by 3.40%, Tech Mahindra up by 2.72% and Maruti Suzuki up by 2.55%. On the flip side, Power Grid down by 2.10%, Shree Cement down by 1.82%, NTPC down by 1.56%, GAIL India down by 1.04% and HDFC Bank down by 0.92% were the top losers.

European markets were trading higher; UK’s FTSE 100 gained 11.07 points or 0.16% to 6,724.02, Germany’s DAX rose 80.19 points or 0.58% to 13,895.25 and France’s CAC was up by 31.08 points or 0.56% to 5,629.69.

Asian markets ended mostly higher on Wednesday ahead of Joe Biden's inauguration as US President. Also, market sentiments improved following optimism that faster rollout of corona virus vaccines and large-scale fiscal stimulus would eventually lift global economic growth. US Treasury Secretary nominee Janet Yellen called for big action on the Covid-19 pandemic and economic crisis at her Senate confirmation hearing Tuesday. Chinese shares finished higher as the country's central bank left its benchmark lending rates unchanged, as widely expected. The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent. However, Japanese shares retreated as the US dollar slipped against the yen, while growing concerns about surging corona virus cases too added pressure on Japanese markets.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,583.09
16.71
0.47

Hang Seng

29,962.47
320.19
1.08

Jakarta Composite

6,429.76
107.90
1.71

KLSE Composite

1,601.54

-0.34

-0.02

Nikkei 225

28,523.26
-110.20
-0.38

Straits Times

2,998.77
2.85
0.10

KOSPI Composite

3,114.55
21.89
0.71

Taiwan Weighted

15,806.18
-71.19
-0.45
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