Sensex rallies 580 pts on broader buying support; India VIX up 2.37%

Benchmark indices hit fresh record high in early afternoon trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, surged 580.81 points or 1.17% at 50,378.53. The Nifty 50 index jumped 180.90 points or 1.23% at 14,828.75.

The Sensex scaled record high of 50,408.47 while the Nifty recorded an all-time high of 14,845.45.

In the broader market, the S&P BSE Mid-Cap index rose 1.54% while the S&P BSE Small-Cap index gained 1.63%.

The market breadth was strong. On the BSE, 1,742 shares rose and 991 shares fell. A total of 174 shares were unchanged.

The Union Budget 2021 unveiled on 1 February 2021 supported all the essential aspects of growth by an increase in government spending without an increase in indirect taxes. The Budget offered huge stimulus to infrastructure, capex, healthcare and boosted the credit flow by taking out the toxic assets of the banking system. Increased FDI limit in insurance improved the overall outlook of the sector.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.37% to 23.90. The Nifty 25 February 2021 futures were trading at 14,839.80, at a premium of 11.05 points as compared with the spot at 14,828.75.

The Nifty option chain for 25 February 2021 expiry showed maximum Call OI of 15.4 lakh contracts at the 15,000 strike price. Maximum Put OI of 34.5 lakh contracts was seen at 14,000 strike price.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 10,38,66,068 with 22,52,923 deaths. India reported 1,60,057 active cases of COVID-19 infection and 1,54,596 deaths while 1,04,62,631 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty Pharma index jumped 4.12% to 12,870.95. The index added 6.34% in two sessions.

Cipla (up 5.51%), Sun Pharmaceutical Industries (up 5.38%), Torrent Pharmaceuticals (up 5%), Dr Reddy's Laboratories (up 4.86%) and Cadila Healthcare (up 3.79%) were the top gainers in Pharma segment.

Presenting the Union Budget 2021 on 1 February 2021, Finance Minister Nirmala Sitharaman announced that the PM Atmabirbhar Swasth Bharat Yojana which will spend Rs 64,180 crore on primary, secondary and tertiary healthcare over a period of six years.

"This will be in addition to the National Health Mission. 17,000 rural and 11,000 urban health and wellness centres to be set up Integrated public health labs to be set up in each district, 3,382 block public health units in 11 states," she added.

Stocks in Spotlight:

Glenmark Pharmaceuticals jumped 4.01% after the company said it received final approval from the US drug regulator for topiramate extended-release capsules. Glenmark has received final approval by the United States Food & Drug Administration (USFDA) for topiramate extended-release capsules, 25 mg, 50 mg, 100 mg, 150 mg, and 200 mg. The drug is the generic version of Qudexy XR capsules of Upsher-Smith Laboratories, LLC. The drug is used to prevent migraine headaches in adults and adolescents. It is also used to treat certain types of seizures in adults and children 2 years and older.

PI Industries surged 9.02% after the company's consolidated net profit surged 61.4% to Rs 195.40 crore on 36.7% rise in net sales to Rs 1,162.10 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) soared 55.2% to Rs 263.60 crore in Q3 December 2020 as against Rs 169.80 crore in Q3 December 2019. Current tax expense for the quarter jumped 45.8% to Rs 66.20 crore as against Rs 45.20 crore in Q3 December 2019. Consolidated EBITDA spurted 48% to Rs 187 crore in Q3 December 2020 over Q3 December 2019. EBITDA margin stood at 24% in Q3 FY21 as against 22% in Q3 FY20.

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