BAROMETERS TRADE FIRM; EUROPE OPENS HIGHER

Benchmark indices firmed up once again in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, jumped 246.74 points or 0.52% at 47,600.49. The Nifty 50 index gained 57.60 points or 0.42% at 13,930.80.

HDFC (up 1.85%), HDFC Bank (up 1.20%), Kotak Mahindra Bank (up 1.20%), Axis Bank (up 1.68%) and ICICI Bank (up 0.76%) were major market movers.

The Sensex hit a fresh record high of 47,714.55 while the Nifty scaled an all-time high of 13,967.60 in morning trade. Investor sentiment was upbeat after President Trump signed a $2.3 trillion pandemic aid while the U.K. and the E.U. struck a Brexit trade deal last week.

The broader market lagged the benchmark indices. The S&P BSE Mid-Cap index added 0.03%. The S&P BSE Small-Cap index rose 0.17%.

The market breadth was almost even. On the BSE, 1,400 shares rose and 1,469 shares fell. A total of 159 shares were unchanged. In Nifty 50 index, 26 stocks advanced while 23 stocks declined. 1 stock remained unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,588.93 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,386.55 crore in the Indian equity market on 28 December 2020, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 8,12,78,435 with 17,74,395 deaths. India reported 2,68,581 active cases of COVID-19 infection and 1,48,153 deaths while 98,07,569 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Meanwhile, India recorded 6 cases of a mutant strain of COVID-19, which is 70% more transmissible. It was first reported in the United Kingdom a few days ago.

All six patients recently returned from Britain. As per a government statement, three samples in NIMHANS of Bengaluru, two in CCMB, Hyderabad and one in NIV, Pune have been detected out of all the samples tested.

Economy:

The Ministry of Finance has released the 9th weekly installment of Rs 6,000 crore to the states to meet the GST compensation shortfall. Out of this, an amount of over Rs 5,516 crore has been released to 23 states and an amount of over Rs 483 crore has been released to the three Union Territories with Legislative Assembly, Delhi, Jammu and Kashmir and Puducherry who are members of the GST Council. The remaining five states, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation. The amount released this week was the 9th instalment of such funds provided to the states. The amount has been borrowed this week at an interest rate of 5.15%.

Gainers & Losers:

IndusInd Bank (up 3.81%), HCL Technologies (up 1.82%), Axis Bank (up 1.64%), HDFC (up 1.56%) and Tech Mahindra (up 1.56%) were major gainers in Nifty 50 index.

Hindalco Industries (down 1.67%), Coal India (down 1.60%), Nestle India (down 1.58%), NTPC (down 1.39%) and Tata Motors (down 0.97%) were major losers in Nifty 50 index.

Stocks in Spotlight:

Rupa & Company soared 16.84% after Abakkus Emerging Opportunities Fund-1 bought 1.50% stake in the company via bulk deal on Monday, 28 December 2020. As per the bulk deal data on the NSE, Abakkus Emerging Opportunities Fund-1 purchased 12 lakh shares, or 1.50% equity, of Rupa & Company on Monday, 28 December 2020.

Simultaneously, Suvichar Advisors sold 12.99 lakh equity shares (1.63% equity) of Rupa & Company at Rs 250.55 per share via bulk deal on the NSE. As of 30 September 2020, Suvichar Advisors LLP held 2.30% stake in Rupa & Company.

Ahluwalia Contracts (India) rallied 4.39% after the company said it has secured new order aggregating to Rs 309.44 crore. The order calls for construction of high-rise multi storied residential complex, located at Z-1, Project, Phase-III, Nandankanan Road, in Bhubaneswar (Orissa). The total order inflow during the FY21 stands at Rs 2,086.44 crore.

Global Markets:

European markets edged higher as traders reacted to Brexit developments and President Donald Trump signing a $900 billion COVID-19 relief bill into law.

The Brexit trade deal between the U.K. and the EU was announced. The agreement, sealed after markets closed on 24 December 2020, still needs to be approved this week by U.K. lawmakers before the 31 December 2020 deadline. The 27 ambassadors from EU member nations on Monday formally approved the deal.

Most Asian shares mostly advanced on Tuesday as investor risk appetite improved on hopes that the long-awaited U.S. pandemic relief package would be expanded. In Japan, the Nikkei 225 hit levels not seen since August 1990.

In US, stocks rallied on Monday, with each of Wall Street`s main indexes closing at record levels as President Donald Trump`s signing of a long-awaited $2.3 trillion pandemic aid bill increased optimism for an economic recovery.

Trump averted a government shutdown late Sunday, and extended unemployment benefits to millions of Americans. The signing came days after Trump suggested he would veto the legislation, demanding $2,000 direct payments to Americans, instead of $600.

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