The equity benchmarks extended losses and hit fresh intraday low in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, dropped 125.38 points or 0.26% at 48,312.40. The Nifty 50 index slipped 15.60 points or 0.11% at 14,183.90.
Profit selling emerged after the Sensex hit a record high of 48,616.66 and the Nifty hit a record high of 14,244.15 in early trade today. The Sensex jumped 6.33% in the past ten trading sessions.
The broader market were trading higher. The S&P BSE Mid-Cap index added 0.72%. The S&P BSE Small-Cap index gained 0.41%.
Buyers outpaced sellers. On the BSE, 1,769 shares rose and 1,208 shares fell. A total of 139 shares were unchanged. In Nifty 50 index, 29 stocks advanced while 21 stocks declined.
Foreign portfolio investors (FPIs) bought shares worth Rs 986.30 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 490.03 crore in the Indian equity market on 5 January 2021, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 8,64,12,620 with 18,69,153 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.
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.
Gainers & Losers:
PowerGrid Corporation of India (up 3.62%), GAIL (India) (up 3.60%), Bharti Airtel (up 3.15%), ONGC (up 3.14%) and Hindalco Industries (up 3.11%) were major gainers in Nifty 50 index.
Reliance Industries (down 2.15%), ITC (down 2.10%), Bajaj Finserv (down 1.06%), HCL Technologies (down 0.80%) and Hindustan Unilever (down 0.66%) were major losers in Nifty 50 index.
Stocks in Spotlight:
Bajaj Finance slipped 1.77% after the Reserve Bank of India (RBI) imposed a penalty of Rs 2.50 crore on the NBFC for use of coercive means of recovery. RBI on Tuesday (5 January 2021) imposed a monetary penalty of Rs 2.50 crore on Bajaj Finance for using coercive methods of recovery from its borrowers, and violation of general guidelines and one specific direction issued by the regulator.
Hero MotoCorp rose 0.87%. Life Insurance Corporation (LIC) of India hiked stake in the company to 9.166% from 7.145% earlier. LIC purchased 40.36 lakh shares of the company (equivalent to 2.021% stake) between 19 May 2020 and 4 January 2021. Consequently, LIC's stake in the Hero MotoCorp has risen to 9.166% from 7.145% stake earlier.
ACC gained 1.17% after the cement manufacturer announced the successful commissioning of its new Grinding Unit (GU) at Sindri in the State of Jharkhand effective January 2, 2021. The new facility will add an additional capacity of 1.4 MTPA cement to the existing 3 MTPA unit, taking the total capacity at Sindri to 4.4 MTPA.
The foundation stone of Sindri GU - phase II was laid in December 2019 with an aim to contribute significantly to servicing the growing market, strengthen presence in the Eastern region and add value to business. This facility will manufacture low CO2, environment friendly, cement products.
Global Markets:
European stocks were trading higher on Wednesday. The coronavirus pandemic and U.S. political developments remain a key focus for investors. European investors are looking ahead of the latest COVID-19 developments, with England entering a third national lockdown on Tuesday and Germany on Tuesday extending its own lockdown until 31 January 2021.
Asian stocks were mixed on Wednesday as investors anxiously awaited results of U.S. runoff elections that would determine the legislative balance of power in the world's largest economy.
A private survey showed services sector activity in China expanding at a slower pace in December, with the Caixin/Markit services Purchasing Managers' Index coming in at 56.3. That compared against November's reading of 57.8.
US stocks ended higher on Tuesday in choppy trading, ahead of the outcome of the Senate runoff elections in the battleground state of Georgia, which will determine the balance of power in Washington.
Investors also looked ahead to two key elections in Georgia, which will determine whether Republicans can hold on to control in the Senate. Many fear that increased tax rates and more progressive policies could weigh on the market if Democrats gain control of the Senate. However, such an outcome could create an opportunity for a bigger and faster spending package.
In U.S. economic data, the Institute for Supply Management said its manufacturing index rose to 60.7 in December its highest level since August 2018 from 57.5 in November.
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