Post Session: Quick Review

Gaining rally continued over the Dalal Street on 1st day of 2021, with both Sensex and Nifty ending higher with notable gains. After a positive start, key indices remained higher for the whole trading session, taking support with NITI Aayog Vice-Chairman Rajiv Kumar stating that India’s economy will grow at 10 per cent in real terms and by the end of next year it will reach pre-COVID-19 level. Talking about the farmers' protest against the three agriculture laws, the NITI Aayog Vice Chairman said the government is trying its best to get their understanding and that they are not misguided and their doubts are cleared.

Domestic sentiments remained positive during trading session, as the RBI announced it will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs 10,000 crore each on January 7, 2021. The decision was taken after a review of current liquidity and financial conditions. Some relief also came with reports that retail inflation for industrial workers eased to 5.27 per cent in November compared to 5.91 per cent in October, mainly due to lower prices of certain food items.

Firm trade continued over the Dalal Street, with the Department for Promotion of Industry and Internal Trade (DPIIT) in its latest data indicating that foreign direct investment (FDI) equity inflows into India increased by 21 percent to $35.33 billion during April-October period of FY21. In the year-ago period, FDI equity inflows stood at $29.31 billion. Traders overlooked report stating that contracting for the ninth consecutive month, the growth of eight core infrastructure industries dropped by 2.6 per cent in November 2020 as compared to same period of last year, mainly due to decline in production of natural gas, refinery products, steel and cement.

On the global front, most of the Asian markets and the European markets are closed on Friday on account of the New Year holiday. Back home, the coal sector was in focus, after the government said the current domestic production is unable to meet the country's demand, even though the country is the world's second-largest producer of fossil fuel and the fifth-largest nation in terms of coal deposits.

The BSE Sensex ended at 47868.98, up by 117.65 points or 0.25% after trading in a range of 47771.15 and 47980.36. There were 20 stocks advancing against 9 stocks declining, while 1 stock remains unchanged on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.24%, while Small cap index was up by 0.90%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 1.40%, Industrials up by 1.26%, Capital Goods up by 1.07%, PSU up by 1.07% and TECK up by 0.95%, while Bankex down by 0.25% and Consumer Durables down by 0.11% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were ITC up by 2.32%, TCS up by 2.02%, Mahindra & Mahindra up by 1.71%, SBI up by 1.67% and Bharti Airtel up by 1.14%. On the flip side, ICICI Bank down by 1.36%, HDFC Bank down by 0.83%, Titan Co down by 0.65%, Bajaj Finserv down by 0.34% and Bajaj Finance down by 0.30% were the top losers. (Provisional)

Meanwhile, after a review of current liquidity and financial conditions, the Reserve Bank of India (RBI) has decided to conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for an aggregate amount of Rs 10,000 crore each on January 07, 2021.

The Reserve Bank reserves the right to decide on the quantum of purchase/sale of individual securities, accept bids/offers for less than the aggregate amount, purchase/sell marginally higher/lower than the aggregate amount due to rounding-off and accept or reject any or all the bid/offers either wholly or partially without assigning any reasons.

The RBI further noted that eligible participants should submit their bids/offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10:00 am and 11:00 am on January 07, 2021. Only in the event of system failure, physical bids/offers would be accepted.

The CNX Nifty ended at 14018.50, up by 36.75 points or 0.26% after trading in a range of 13991.35 and 14049.85. There were 34 stocks advancing against 16 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Ports & SEZ up by 4.16%, ITC up by 2.32%, TCS up by 2.29%, Mahindra & Mahindra up by 1.64% and SBI up by 1.62%. On the flip side, ICICI Bank down by 1.41%, SBI Life Insurance down by 0.98%, Hindalco down by 0.91%, HDFC Bank down by 0.78% and Titan Co down by 0.55% were the top losers. (Provisional)