The benchmark indices were trading with small gains in early afternoon trade. Metal and IT shares declined. At 12:20 IST, the barometer index, the S&P BSE Sensex, rose 54.48 points or 0.11% at 49,546.80. The Nifty 50 index gained 8.75 points or 0.06% at 14,573.60.

In the broader market, the S&P BSE Mid-Cap index added 0.29% while the S&P BSE Small-Cap index rose 0.17%.

The market breadth was positive. On the BSE, 1,429 shares rose and 1,365 shares fell. A total of 156 shares were unchanged.

US President-elect Joe Biden is expected to unveil a major COVID-19 relief package on Thursday.

Economy:

India's wholesale prices rose by 1.22% year-on-year in December 2020, slowing from a 1.55% gain in November 2020 and 2.76% in December 2019.

Meanwhile, Fitch Ratings projected India's medium term growth to slow down to 6.5% from FY23 onward, after the initial rebound to 11% in FY22, as the economy suffers lasting damage from the pandemic. The agency downgraded its projection of supply-side potential growth to 5.1% annually over the five-year period from 2020-25 compared to its pre-pandemic expectation of 7%.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 9,23,48,199 with 19,78,614 deaths. India reported 2,13,603 active cases of COVID-19 infection and 1,51,727 deaths while 1,01,46,763 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 0.46% to 23.1850. The Nifty 28 January 2021 futures were trading at 14,605, at a premium of 31.40 point compared with the spot at 14,573.60.

The Nifty option chain for 28 January 2021 expiry showed maximum Call OI of 24.1 lakh contracts at the 15,000 strike price. Maximum Put OI of 30.5 lakh contracts was seen at 14,000 strike price.

Buzzing Index:

The Nifty Metal index lost 1% to 3,488.10. The index added 0.84% in the past two days.

SAIL (down 7.90%), Welspun Corp (down 2.18%), Jindal Steel & Power (down 1.97%), JSW Steel (down 1.84%) and Hindustan Zinc (down 1.56%) were the top losers in Metal segment.

Stocks in Spotlight:

Infosys fell 1.70%. On a consolidated basis, the IT major's net profit jumped 16.6% to Rs 5,197 crore on a 12.3% rise in revenues to Rs 25,927 crore in Q3 December 2020 (Q3 FY21) over Q3 December 2019 (Q3 FY20).

Sequentially, Infosys net profit rose 7.3% and revenue increased 5.5% in Q3 FY21 over Q2 September 2020 (Q2 FY21). Profit before tax (PBT) stood at Rs 7,151 crore in Q3 FY21, gaining 5.9% over Rs 6,750 crore in Q2 FY21. Income tax expense rose 2.3% to Rs 1,936 crore in Q3 FY21 over Q2 FY21.

Operating profit rose 5.8% to 6,589 crore in Q3 FY21 over Q2 FY21. Operating margin stood at 25.4% in Q3 FY21, higher than 25.3% in Q2 FY21 and 21.9% in Q3 FY20. The company has revised FY21 growth guidance upward to 4.5% to 5% in constant currency term. Operating margin for FY21 is revised upward in the range of 24% to 24.5%.

Wipro slipped 1.78%. The IT major, after market hours yesterday, 13 January 2021, posted a 20.37% rise in consolidated net profit to Rs 2,968 crore on a 3.68% increase in revenue to Rs 15,670 crore in Q3 December 2020 (Q3 FY21) over Q2 September 2020 (Q2 FY21).

The company's consolidated net profit grew by 20.85% and revenue has risen by 1.29% in Q3 FY21 over Q3 FY20. Profit before tax (PBT) in Q3 FY21 stood at Rs 3850.4 crore, up by 20% from Rs 3,207.30 crore in Q2 FY21. Total tax expense during the third quarter increased 18% to Rs 852.6 crore in Q3 December 2020.

Wipro's IT services segment revenue came at $2,071 million in Q3 FY21, a sequential growth of 3.9%. The company's non-GAAP constant currency IT services segment revenue increased by 3.4% quarter on quarter. The company said its IT services operating margin grew by 243 basis points quarter on quarter to 21.7% in Q3 FY21.

NHPC gained 0.60%. The company has signed definitive agreement on 13 January 2021 for implementation of the approved resolution plan submitted by NHPC for takeover of Jalpower Corporation (JPCL).

JPCL is implementing 120 megawatts Rangit Stage-IV HE project in Sikkim. NHPC has further intimated that the National Company Law Tribunal (NCLT), Hyderabad bench has approved its resolution plan for taking over JPCL as going concern vide its order as on 24 December 2020.

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