Nifty trades above 15,300; Deepak Nitrite jumps 9%

Domestic indices were trading near record high levels with strong gains in mid-morning trade. The Nifty scaled the 15,300 mark and traded higher. Barring the Nifty Media index, all the sectoral indices on the NSE traded in the green. Positive domestic economic data and firm global cues boosted sentiment.

At 11:27 IST, the barometer index, the S&P BSE Sensex, advanced 557 points or 1.08% at 52,101.79. The Nifty 50 index rallied 146.7 points or 0.97% at 15,310.40.

The Sensex scaled record high of 52,141.67 while the Nifty hit a fresh all time high of 15,321.30 in morning trade today. Domestic shares have rallied sharply since January 2021 following a range of positive developments, including a high-spending union budget, strong corporate earnings, robust foreign fund flows and progress on COVID-19 vaccinations.

In broader market, the S&P BSE Mid-Cap index was up 1.33% while the S&P BSE Small-Cap index gained 0.74%.

Buyers outpaced sellers. On the BSE, 1504 shares rose and 1261 shares fell. A total of 135 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 108,791,798 with 23,99,393 deaths. India reported 139,637 active cases of COVID-19 infection and 155,732 deaths while 106,21,220 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

India's retail inflation, which is measured by the Consumer Price Index (CPI), eased to 4.06% in the month of January 2021. The retail inflation during the month of December 2020 was at 4.59%.

Separately, the country's factory output, measured in terms of the Index of Industrial Production (IIP), witnessed a growth of 1% in December 2020, two separate data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed on Friday. The IIP had grown 0.4% in December 2019, the data showed.

Buzzing Index:

The Nifty Realty index surged 1.87% to 357.15, rising for second trading session. The index hit a 52-week high of 358.45 in intraday today.

Oberoi Realty (up 4.38%), Godrej Properties (up 2.17%), DLF (up 2.15%), Phoenix Mills (up 2.12%), Indiabulls Real Estate (up 1.34%) and Mahindra Lifespace Developers (up 1.31%) were top gainers in realty segment.

Earnings Impact:

Deepak Nitrite (DNL) jumped 9.44% after the speciality chemical maker reported a 38.2% jump in consolidated net profit to Rs 216.56 crore on 10.3% rise in revenue from operations to Rs 1234.69 crore in Q3 FY21 over Q3 FY20. Improvement in revenues was led by robust Y-o-Y improvement in the phenolics business aided by incremental contribution from Isopropyl Alcohol (IPA) products. EBITDA stood at Rs 340 crore in Q3 FY21, up 25% over Q3 FY20. EBITDA margin grew by 330 basis points to 27.4% in Q3 FY21 over Q3 FY20. Margin accretion has been driven by the increased volumes and higher efficiency in plant operations of the phenolics business supported by better sourcing, logistics and marketing for the wider product basket including IPA, which commenced in Q1 of the current fiscal.

Amara Raja Batteries (ARBL)'s fell 5.85%. Its consolidated net profit jumped 17.98% to Rs 193.69 crore on 12.18% rise in revenue from operations at Rs 1,960.43 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) surged 19.93% to Rs 260.40 crore in Q3 December 2020 over Q3 December 2019. In the automotive segment, revenue growth is aided by consistent growth in OEM and aftermarket segments and also the export segment registered robust growth. The telecom and commercial UPS market segments have also recorded a strong growth in the third quarter. Manufacturing capacities are fully ramped up to the optimum utilisation across all segments.

Global Markets:

Asian stocks were trading higher on Monday, with multiple markets in North Asia closed for Lunar New Year holidays. Markets in China, Hong Kong, Taiwan as well as the U.S. are closed on Monday for holidays.

Government data released Monday showed Japan's economy growing 12.7% on an annualized basis between October and December last year.

In US, all three major stock indexes closed at record highs Friday, as investors eyed the prospect of more financial aid from Washington to boost the economic recovery, while coronavirus cases are falling and vaccine distribution ramps up.

Stocks inched higher helped by optimism about another large fiscal stimulus package from Congress, as the coronavirus vaccination rollout picks up steam, and as quarterly corporate earnings reports impressed analysts.

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