Indices bounce back; breadth strong

Benchmark indices bounced back in early afternoon trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, jumped 143.35 points or 0.29% at 50,399.10. The Nifty 50 index advanced 58.05 points or 0.39% at 14,848.

In the broader market, the S&P BSE Mid-Cap index rose 1.46% while the S&P BSE Small-Cap index gained 1.48%.

The market breadth was strong. On the BSE, 1,823 shares rose and 967 shares fell. A total of 145 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 4.03% to 22.7875. The Nifty 25 February 2021 futures were trading at 14,845.50, at a discount of 2.50 points as compared with the spot at 14,848.

The Nifty option chain for 25 February 2021 expiry showed maximum Call OI of 15.1 lakh contracts at the 15,000 strike price. Maximum Put OI of 35.4 lakh contracts was seen at 14,000 strike price.

Economy:

The seasonally adjusted India Services Business Activity Index (IHS Markit India Services PMI) rose from 52.3 in December to 52.8 in January, pointing to a quicker expansion in output. Still, the headline figure remained below its long-run average of 53.3 and was consistent with a moderate pace of growth.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 10,43,89,634 with 22,68,681 deaths. India reported 1,55,025 active cases of COVID-19 infection and 1,54,703 deaths while 1,04,80,455 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty Metal index advanced 2.14% to 3,416.10. The index added 11% in four sessions.

Hindustan Copper (up 10%), Coal India (up 4.88%), SAIL (up 3.19%), Ratnamani (up 3.13%) and NMDC (up 2.85%) advanced.

Stocks in Spotlight:

PSP Projects jumped 6.16% after the company said that it received Letter of Intent for a project worth Rs 588.62 crore from a private developer in Ahmedabad, Gujarat. Further, the company has been ranked the L1 bidder (lowest bidder) by a regulatory authority for projects totaling to Rs 1,249.41 crore for construction of medical colleges at multiple locations at Uttar Pradesh.

Thermax rallied 14.53%. Its consolidated net profit fell 2% to Rs 83.26 crore while net sales remained almost flat at Rs 1,410.59 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) rose 7.4% to Rs 113.21 crore in Q3 December 2020 as against Rs 105.44 crore in Q3 December 2019. Current tax expense for the quarter jumped 15% to Rs 22.06 crore as against Rs 19.18 crore in Q3 December 2019.

Reliance Industries fell 0.27%. Reliance Marcellus, LLC (RMLLC), a wholly-owned subsidiary of Reliance Industries (RIL), signed agreements to divest all of its interest in certain upstream assets in the Marcellus shale play of south-western Pennsylvania. These assets, which are currently operated by various affiliates of EQT Corporation (EQT), have been agreed to be sold to Northern Oil and Gas, Inc (NOG), a Delaware corporation, for a consideration of $250 million cash and warrants that give entitlement to purchase 3.25 million common shares of NOG at an exercise price of $14 per common share in next seven years.

A Purchase and Sale Agreement (PSA) has been signed between RMLLC and NOG on 3 February 2021 for this sale and the transaction is subject to customary terms and conditions of closing.

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