SENSEX TANKS 627 PTS, NIFTY BELOW 13,800 MARK; BREADTH TURNS NEGATIVE

Benchmark indices hit fresh intraday low in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, tumbled 627.34 points or 1.32% at 46,782.59. The Nifty 50 index lost 174.35 points or 1.25% at 13,793.15.

The January 2021 F&O contracts will expire today, 28 January 2021. Global cues were weak as a rise in the volatility index (VIX) worried investors. Rising coronavirus cases and uneven distribution of vaccine rollouts also triggered selling pressure.

Fed Chairman Jerome Powell said that the U.S. economy was a long way from full recovery and still short of policy makers` inflation and job goals. The central banker made it clear that the U.S. central bank was nowhere near exiting massive support for the economy during the ongoing coronavirus pandemic, as officials left their benchmark interest rate unchanged near zero.

The broader market incurred modest losses. The S&P BSE Mid-Cap index fell 0.68%. The S&P BSE Small-Cap index slipped 0.62%.

Sellers outnumbered buyers. On the BSE, 1,269 shares rose and 1,445 shares fell. A total of 167 shares were unchanged. In Nifty 50 index, 12 stocks advanced while 38 stocks declined.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,688.22 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 3.38 crore in the Indian equity market on 27 January 2021, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 10,08,69,345 with 21,74,143 deaths. India reported 1,73,740 active cases of COVID-19 infection and 1,53,847 deaths while 1,03,73,606 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

A total of 23,28,779 beneficiaries have so far been vaccinated for COVID-19 through 41,599 sessions held till the evening of 27 January 2021, the twelfth day of the immunisation drive, according to a provisional report of the Union Health Ministry.

Gainers & Losers:

Axis Bank (up 3.76%), Hero MotoCorp (up 1.68%), Indian Oil Corporation (up 1.04%), BPCL (up 0.87%) and Tata Motors (up 0.52%) were major gainers in Nifty 50 index.

HDFC Bank (down 4.22%), Wipro (down 4.01%), Hindustan Unilever (down 3.09%), Kotak Mahindra Bank (down 2.97%) and PowerGrid Corporation of India (down 2.83%) were major losers in Nifty 50 index.

Nifty Results Today:

Maruti Suzuki India (down 0.17%) will announce its quarterly result today.

Stocks in Spotlight:

Aditya Birla Fashion and Retail dropped 6.57%. Aditya Birla Fashion and Retail (ABFRL) signed a definitive agreement for acquiring 51% stake in India`s largest designer brand, Sabyasachi, for about Rs 398 crore. Sabyasachi is India`s largest and most influential luxury designer brand with strong Indian roots and global appeal. The brand straddles categories such as apparel, accessories and jewelry and has a strong franchise in India, US, UK and the Middle East. The ABFRL platform will complement brand Sabyasachi on its journey to becoming a global luxury house out of India.

Cadila Healthcare fell 0.24%. The company was granted orphan drug designation by the US drug regulator for Saroglitazar in the treatment of patients with Primary Biliary Cholangitis (PBC). Orphan drug designation provides eligibility for certain development incentives, including tax credits for qualified clinical testing, prescription drug user fee exemptions and seven-year marketing exclusivity upon FDA approval. This follows the grant of `Fast Track Designation` by the USFDA to Saroglitazar Mg for PBC in December 2020.

Hero MotoCorp gained 1.67% after the two-wheeler major said that it will soon commence its operations in Mexico as part of its global expansion strategy. Hero MotoCorp has entered into a distribution agreement with Grupo Salinas, a group of fast-growing and technologically equipped companies focused on creating economic, social and environmental value founded by Mexican entrepreneur Ricardo Salinas. Following the agreement, the two companies have come together to form one of the largest distribution networks globally to sell competitive, high-quality products in the large Mexican market.

NTPC slipped 0.22%. The state-run power major announced that 140 megwatts (MW) Bilhaur Solar PV project at Bilhaur, Uttar Pradesh, has been declared on commercial operation from 18 January 2021. With this, the commissioned capacity of Bilhaur Solar PV project, NTPC and NTPC Group has become 140 MW, 51,310 MW and 63,925 MW respectively and the commercial capacity has become 140 MW, 51,310 MW and 63,265 MW respectively.

Global Markets:

Shares in Europe and Asia tumbled on Thursday following a plunge on Wall Street in the previous session amid concerns about heightened speculative trading.

Japan`s retail sales declined 0.3% year-on-year in December, according to data released by the country`s Ministry of Economy, Trade and Industry.

US stocks suffered their biggest one-day percentage drop in three months on Wednesday, adding to losses after the latest Fed statement as major indexes were also pressured by a slump in Boeing and a selling of long positions by hedge funds.

The U.S. Federal Reserve left its benchmark interest rate anchored near zero following the conclusion of its two-day meeting Wednesday. The Fed also said it will keep buying at least $120 billion of bonds a month.

In his post-meeting news conference, Fed Chairman Jerome Powell said that the economy is a long way from our monetary policy and inflation goals, and it`s likely to take some time for substantial further progress to be achieved.

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