Sensex, Nifty trade sideways; Nifty holds 14,200

Barometers were almost flat in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, fell 18.43 points or 0.04% at 48,419.35. The Nifty 50 index gained 9.40 points or 0.07% at 14,208.90. Gains were capped as FMCG and pharma shares corrected.

In the broader market, the S&P BSE Mid-Cap index rose 0.84% while the S&P BSE Small-Cap index added 0.65%.

The market breadth was strong. On the BSE, 1,792 shares rose and 1,099 shares fell. A total of 153 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 0.89% to 20.6425. The Nifty January 2021 futures were trading at 14,218.80, at a premium of 31.10 point compared with the spot at 14,187.70.

The Nifty option chain for 28 January 2021 expiry showed maximum Call OI of 20.26 lakh contracts at the 14,000 strike price. Maximum Put OI of 25.54 lakh contracts was seen at 12,500 strike price.

Economy:

The Union Budget for 2021-2022 will be presented on 1 February 2021 and President Ram Nath Kovind will address a joint sitting of both the Houses of Parliament on 29 January 2021.

India's economy is estimated to contract by 9.6% in the fiscal year 2020-21, reflecting a sharp drop in household spending and private investment, and the growth is expected to recover to 5.4% in 2021, the World Bank said on Tuesday.

In its Global Economic Prospects report, the World Bank said that the informal sector, which accounts for four-fifths of employment, has been subject to severe income losses during the COVID-19 pandemic.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 8,64,05,927 with 18,68,768 deaths. India reported 2,27,546 active cases of COVID-19 infection and 1,50,114 deaths while 99,97,272 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Balram Bhargava, chief of Indian Council of Medical Research (ICMR), on Tuesday, said that Bharat Biotech's COVID-19 vaccine has been cleared in the clinical trial mode, which means consent of participants has to be taken. He was responding to the questions being raised on the clearance given to Covaxin.

Meanwhile, the Drugs Controller General of India (DCGI) on Sunday approved AstraZeneca's vaccine Covishield, manufactured by the Serum Institute, and Covaxin for restricted emergency use in the country, paving the way for a massive inoculation drive.

Buzzing Index:

The Nifty Pharma index fell 0.09% to 13,154.45. The index rose 2.67% in the past four trading sessions till yesterday.

Lupin (down 2.50%), Biocon (down 1.04%), Cadila Healthcare (down 0.44%), Aurobindo Pharma (down 0.37%) and Dr Reddy's Laboratories (down 0.37%) declined.

Stocks in Spotlight:

BEML rose 1.65% after the company received orders from Ministry of Defence for supply of High Mobility vehicles, at an approximate value of Rs 758 crore. BEML said the High Mobility vehicles would play a key role in the logistics management of the Indian Army leveraging on its exceptional cross-country capabilities. These vehicles would enable armoured fighting vehicles, troops, ammunitions and stores to be moved to far-flung, difficult terrains in operational areas.

Godrej Consumer Products fell 1.26%. The FMCG major said that during the third quarter, demand trends in the categories across the key countries that the company operates in, remained stable. In India, the company expects to deliver a second consecutive quarter of close to low double-digit sales growth, driven by higher than mid-single digit volume growth. This is led by Soaps, which is expected to deliver strong mid-teen growth. Following a sharp recovery, Hair Colours is also expected to deliver mid-teen growth. Household Insecticides is expected to deliver close to high single-digit growth. The company continued the robust scale up of its personal and home hygiene category.

Bharat Dynamics rallied 3.29% after the company said it has bagged orders worth Rs 632.88 crore. The company has received Konkurs-M ATGM order along with launchers and test equipment.

Powered by Capital Market - Live News