Equity indices were hovering near the day's high in mid-morning trade. Global stocks were trading higher as investors hoped for more economic stimulus from U.S. President Joe Biden. At 11:30 IST, the barometer index, the S&P BSE Sensex, surged 345.14 points or 0.69% at 50,137.25. The Nifty 50 index was up 95.75 points or 0.65% at 14,740.65.
The Sensex hit a record high of 50,149.49 and the Nifty hit an all time high of 14,745.20 in mid-morning trade.
In broader market, the S&P BSE Mid-Cap index was up 0.78% while the S&P BSE Small-Cap index gained 0.58%.
The market breadth was strong. On the BSE, 1527 shares rose and 1195 shares fell. A total of 142 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 96,829,359 with 2,073,938 deaths. India reported 1,92,308 active cases of COVID-19 infection and 1,52,869 deaths while 1,02,65,706 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Primary Market:
The initial public offer (IPO) of Indigo Paints received bids for 1.65 crore shares as against 55.18 lakh shares on offer on Thursday (21 January 2021), according to the stock exchange data at 11:45 IST. The issue was subscribed 3.01 times. The issue opened for subscription on Wednesday (20 January 2021) and it will close tomorrow (22 January 2021). The price band for the IPO is set at Rs 1488-1490 per share. An investor can bid for minimum of 10 equity shares and in multiples thereof. The IPO consists of fresh issue of equity shares aggregating to Rs 300 crore and an offer of sale of up to 58.40 lakh equity shares by the selling shareholders. Shares of Indigo Paints will list on 2 February 2021 on stock exchanges.
Buzzing Index:
The Nifty Metal index lost 1.18% to 3396.35. The index surged 3.8% in two trading sessions.
Hindustan Zinc (down 2.65%), Tata Steel (down 1.72%), JSW Steel (down 1.25%), Steel Authority of India (down 1.2%), NMDC (down 1.03%), Vedanta (down 0.98%), Hindalco Industries (down 0.93%) and Coal India (down 0.67%) were top losers in metal space.
Earnings Impact:
Bajaj Finserv rose 3.37% after consolidated net profit jumped 14.6% to Rs 1,289.96 crore on 9.6% increase in total income to Rs 15,960.72 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) advanced 5.8% to Rs 2,779.16 crore in Q3 December 2020 as against Rs 2,627.16 crore in Q3 December 2019.
Bajaj Finserv participates in the financing business through its 52.74% holding in Bajaj Finance and in the protection business through its 74% holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company. Bajaj Housing Finance, which does mortgage business, is a wholly-owned subsidiary of Bajaj Finance.
Bajaj Allianz General Insurance Company's profit after tax increased 73% to Rs 330 crore on a 11% improvement in gross written premium to Rs 3,392 crore in Q3 FY21 over Q3 FY20. Underwriting result improved significantly with a profit of Rs 27 crore for Q3 FY21 as against a loss of Rs 87 crore in Q3 FY20. The higher underwriting profit was due to the lower claim and expense ratios.
Bajaj Alliance Life Insurance Company reported 17.5% fall in shareholders' profit after tax to Rs 118 crore in Q3 FY21 from Rs 143 crore in Q3 FY20. Gross written premium increased by 23% to Rs 3,147 crore in Q3 FY21 as compared to Rs 2,552 crore in Q3 FY20. Solvency ratio stood at a healthy 708% as on 31 December 2020 as against the minimum regulatory requirement of 150%. Bajaj Alliance Life Insurance Company's new business premium for Q3 FY21 was at Rs 1,706 crore as compared to Rs 1,411 crore in Q3 FY20, recording an increase of 21% Y-o-Y.
Havells India surged 11.32%. On a standalone basis, the company's net profit jumped 75% to Rs 349.13 crore on a 39.5% increase in net sales to Rs 3,165.85 crore in Q3 FY21 over Q3 FY20. EBIDTA jumped 89% to Rs 508 crore in Q3 December 2020 from Rs 269 crore in Q3 December 2019. EBIDTA margin was at 16% as 31 December 2020 as against 11.8% as 31 December 2019. The company said it saw an encouraging business performance with secular growth across divisions and regions led by improvement in consumer sentiment, festive season and reduction in Covid-19 cases; and increased penetration in smaller towns and a higher rural reach. Supply chain disruption faced by suppliers with high import dependence have further supported market share gains.
Global Markets:
Asian markets were trading higher on Thursday after stocks on Wall Street sailed to record highs as U.S. President Joe Biden was sworn into office.
In US, the stock market rallied to a record close as President Joe Biden was sworn into office, sparking hopes for another stimulus package and smoother vaccine rollout ahead.
The Dow Jones Industrial Average jumped 257.86 points, or 0.8%, to a new closing high of 31,188.38. The S&P 500 advanced 1.4% to a record close of 3,851.85, led by the communication services sector. The tech-heavy Nasdaq Composite jumped nearly 2% to 13,457.25, notching a fresh record. All three averages also touched their intraday highs during the session.
Netflix soared after the company reported strong subscriber growth and said it's considering share buybacks. The company also said it expects to break even on a cash flow basis this year.
Biden was inaugurated to succeed President Donald Trump as the 46th president of the United States. Janet Yellen, Biden's designated nominee for Treasury Secretary, on Tuesday endorsed higher aid spending and urged lawmakers to act big.
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