Benchmarks hover near day's high

Key equity indices were trading near the record high levels in morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 631.25 points or 1.24% to 51,362.88. The Nifty 50 index has added 197.65 points or 1.32% to 15,121.90. Barring the Nifty PSU Bank index, all the sectoral indices on the NSE were trading in the green. Private sector banks and auto shares were in demand.

The Sensex hit a record high of 51,472.68 and the Nifty hit a record high of 15,133 in morning trade.

Domestic shares mirrored the gains in other their Asian peers. The rise in global risk-assets was induced by improving COVID-19 trends and statement from treasury secretary Janet Yellen, pushing for a stimulus bill. The comments from the treasury secretary came after weaker-than-expected U.S. jobs data on Friday had highlighted the case for further stimulus.

In the broader market, the S&P BSE Mid-Cap index gained 1.29% while the S&P BSE Small-Cap index rose 1.57%.

The market breadth was strong. On the BSE, 1725 shares rose and 986 shares fell. A total of 194 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 106,136,103 with 2,316,702 deaths. India reported 148,609 active cases of COVID-19 infection and 155,080 deaths while 104,96,308 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Glacier Burst in Uttarakhand :

A glacier broke off at Joshimath in Uttarakhand's Chamoli district on Sunday, leading to a massive flood in the Dhauli Ganga river and causing large-scale devastation in the upper reaches of the ecologically fragile Himalayas. Homes along the way were swept away as the waters rushed down the mountainsides in a raging torrent. There were fears of damage in human settlements downstream. Many villages were evacuated and people taken to safer areas.

In a BSE filing made during market hours today, NTPC said that the avalanche in Uttarakhand has damaged a part of its under-construction hydropower project Tapovan Vishnugad (520 MW) in the region. While rescue operations are on, situation is being monitored continuously with the help of district administration and likely loss or damage caused is being assessed. Appropriate insurance cover is available for the loss/damage caused. Shares of NTPC were up 0.15% at Rs 99.80 on the BSE.

Stocks in Spotlight:

Hindustan Aeronautics (HAL) added 3.92% to Rs 1052.75. The company agreed to expand its partnership with Rolls Royce in India for collaboration in two significant areas. The two companies have agreed to expand their partnership in India for collaboration in two key areas: expanding the supply chain for both Civil and Defence Aerospace and establishing an authorized maintenance centre for Adour Mk871 engines to support Rolls-Royce's global customers.

Separately, HAL informed that the company and Safran Aircraft Engines, France signed an MoU to explore opportunities for strategic business cooperation that leverage the complementary talents and capabilities of the both parties and support development of a robust ecosystem for aero-engines in India, consistent with the goals of the Government of India's Make in India initiative.

BEML rose 0.76% to Rs 949.55. The state-owned firm on Friday, 5 February 2021, announced signing MoUs with eleven entities to explore and enhance the business in defence & aerospace sector.

Adani Enterprises jumped 5.31% to Rs 627.20. The company said its arm has completed acquisition of 23.5% equity stake in Mumbai International Airport (MIAL) from ACSA Global and Bid Services Division (Mauritius) for Rs 1,685.25 crore.

Global Markets:

Most Asian stocks advanced on Monday. Investors will be watching Hong Kong listed shares of Chinese tech giants Alibaba, Tencent and JD.com on Monday. That comes after China's State Administration for Market Regulation released a new set of rules that are set to put pressure on leading internet services in the country such as Alibaba's Taobao or Tencent's WeChat Pay.

In US, the Nasdaq and S&P 500 hit all-time highs on Friday on stronger-than-expected corporate results in the fourth quarter.

The Senate and House each passed a budget resolution on Friday, starting the reconciliation process that would allow President Joe Biden's $1.9 trillion rescue package to get through the Democratic-held Senate with a simple majority. The package includes $1,400 stimulus checks, supplemental jobless benefits and Covid-19 vaccine and testing funds.

Meanwhile, U.S. President Joe Biden said his administration was prepared for extreme competition with China, though his approach would be different than his predecessor. Biden also said during the interview that he had not spoken to Chinese President Xi Jinping yet since he was sworn in last month.

On the coronavirus front, more contagious variants continue to spread throughout the U.S. On Friday Virginia health officials reported the state's first case of the strain first identified in South Africa. On Sunday South Africa halted distribution of AstraZeneca's vaccine given its minimal efficacy against the strain first identified in the country.

Treasury Secretary Yellen said on Sunday talk shows that the U.S. can return to full employment in 2022 if it enacts a robust enough relief package. Investors are taking comfort from the continued rollout of vaccines and data suggesting a declining trend in infections in countries like the U.S. and Germany.

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