Benchmarks extend gains; Europe opens higher

Key barometers firmed up further in afternoon trade, tracking positive global cues. At 13:20 IST, the barometer index, the S&P BSE Sensex, jumped 287.45 points or 0.62% at 46,550.62. The Nifty 50 index advanced 86.85 points or 0.64% at 13,654.70.

A possible approval of Moderna Inc's COVID-19 vaccine this week and progress in US stimulus talks lifted sentiment. The US Federal Reserve will issue an updated policy statement along with new economic projections on Wednesday. Traders will be watching closely for any changes to Fed view on when its benchmark policy rate might rise off zero.

Broader market indices outperformed the benchmarks. The S&P BSE Mid-Cap index rose 0.76%. The S&P BSE Small-Cap index gained 0.91%.

Buyers outpaced sellers. On the BSE, 1,868 shares rose and 1,030 shares fell. A total of 167 shares were unchanged. In Nifty 50 index, 33 stocks advanced while 17 stocks declined.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,484.09 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,666.79 crore in the Indian equity market on 15 December 2020, provisional data showed.

Kerala local body election update:

Counting of votes polled in Kerala local body elections is under way at 244 centres in the state. A total of 21,893 wards in 1,200 local self-governing bodies including 6 corporations, 941 village panchayats, 14 district panchayats and 87 municipalities, went to polls in three phases on 8, 10 and 14 December 2020.

Initial trends from the counting of votes to the local body elections in Kerala show a clear advantage for the ruling CPM-led Left Democratic Front (LDF) in most of the rural and urban local bodies. As per the latest updates, LDF leads in 512 grama panchayats, United Democratic Front (UDF) 370, and National Democratic Alliance (NDA) 23.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 7,34,76,721 with 16,35,464 deaths. India reported 3,32,002 active cases of COVID-19 infection and 1,44,096 deaths while 94,56,449 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Gainers & Losers:

HDFC (up 2.95%), Divis' Laboratories (up 2.22%), Mahindra & Mahindra (up 2.17%), ONGC (up 2.04%) and Tata Motors (up 1.73%) were major gainers in Nifty 50 index.

Ultratech Cement (down 0.71%), ICICI Bank (down 0.69%), Eicher Motors (down 0.68%), Tech Mahindra (down 0.57%) and GAIL (India) (down 0.56%) were major losers in Nifty 50 index.

Stocks in Spotlight:

Ratnamani Metals & Tubes fell 0.23%. The company said its carbon steel division received a domestic order of Rs 105 crore. The order is from oil and gas sector for coated carbon steel pipes to be executed between May and September 2021.

ABB India rose 2.50% after the company completed a large-scale remote commissioning of winder drives, upgrading and commissioning PM5 installations at ITC's paperboards and specialty papers division mill in south-central India.

Global Markets:

Shares in Europe and Asia advanced on Wednesday following an overnight bounce on Wall Street as optimism grew over the prospect of more stimulus.

In Europe, the surge in coronavirus cases is the main focus for investors with several major economies, including Germany, Italy and the Netherlands, changing Christmas plans to relax restrictions in order to curb a sharp rise in cases.

In Asia, the Bank of Japan has decided to tap $6 billion in cash from a government account in a rare arrangement to ensure it has enough ammunition to combat any market disruptions caused by a recent resurgence in coronavirus infections. Under the arrangement announced on Wednesday, the central bank will buy dollar cash from the Ministry of Finance any time through to the end of March next year at the prevailing market exchange rate at the time.

Japan's exports declined 4.2% in November as compared with a year ago, according to Ministry of Finance data released Wednesday.

Moderna Inc's COVID-19 vaccine appears set for regulatory authorisation in the United States this week, while rollouts of the country's newly approved vaccine were expanded. Across the Atlantic, Europeans are set to start getting coronavirus vaccines before the new year after the regional drug regulator accelerated its approval process.

US stocks rose sharply on Tuesday as traders grew more optimistic about Congress passing another economic relief package. The Nasdaq closed at a record high.

Optimism over a $1.4 trillion U.S. spending package increased after House of Representatives Speaker Nancy Pelosi reportedly invited other top congressional leaders to meet late on Tuesday to hammer out a deal to be enacted this week.

Markets will now look to the U.S. Federal Reserve for new projections on whether the economy will suffer a double-dip recession or is on the cusp of a vaccine-inspired boom. The central bank is to release a statement on Wednesday.

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