Sensex jumps 450 points in early trade

Key benchmark indices are trading firm in early trade on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 449.90 points or 0.96% at 47,324.26. The Nifty 50 index was up 96.85 points or 0.7% at 13,914.40.

The S&P BSE Mid-Cap index was up 1.26%. The S&P BSE Small-Cap index was up 1.17%.

The market breadth, indicating the overall health of the market, is strong. On the BSE, 1412 shares rose and 336 shares fell. A total of 62 shares were unchanged.

Economic Survey:

Finance minister Nirmala Sitharaman will today table the annual Economic Survey in Parliament for the growth projections for 2021-22. The Survey’s gross domestic product (GDP) growth projections for 2021-22 and estimates for the current year (2020-21) will be watched.

Market is awaiting key reforms that could push growth and kickstart the capex cycle in the economy. The Union Budget 2021-22 would be presented on February 1. The Parliament session starts from today, 29 January 2021, and would be held in two phases. Subject to exigencies of government business, the session is likely to conclude on 8 April 2021.

Stocks in news:

Lupin dropped 3.76%. The company reported consolidated net profit of Rs 438.30 crore in Q3 December 2020 as compared to net loss of Rs 835 crore in Q3 December 2019. Total income rose 6.6% to Rs 4017.40 crore in Q3 December 2020 over Q3 December 2019.

Interglobe Aviation (Indigo) fell 0.24%. On a consolidated basis, Indigo reported net loss of Rs 620.14 crore in Q3 December 2020 compared with net profit of Rs 495.97 crore in Q3 December 2019. Revenue from operations tumbled 50.56% to Rs 4,909.98 in Q3 December 2020 compared to Rs 9,931.68 crore in Q3 December 2019. Pre-tax loss for the quarter stood at Rs 623.13 crore as against pre-tax profit of Rs 556.53 crore in Q3 December 2019.

Indian Railway Catering & Tourism Corporation (IRCTC) rose 0.62%. IRCTC reported 62.06% drop in net profit to Rs 78.09 crore on a 66.63% fall in total income to Rs 245.23 crore in Q3 December 2020 over Q3 December 2019.

Pidilite Industries lost 2.37%. The company reported 9.93% rise in consolidated net profit to Rs 356.42 crore on a 2.1% rise in total income to Rs 1,902.63 crore in Q3 December 2020 over Q3 December 2019.

Tata Chemicals shed 0.36%. The company reported 10.04% rise in consolidated net profit to Rs 160.85 crore on a 1.01% fall in total income to Rs 2,654.97 crore in Q3 December 2020 over Q3 December 2019.

AU Small Finance Bank rose 0.31%. The company reported 151.85% rise in net profit to Rs 479.02 crore on a 51.2% surge in total income to Rs 1,924.53 crore in Q3 December 2020 over Q3 December 2019.

Global Markets:

Overseas, Asian stocks are trading higher on Friday as US stocks saw an overnight bounce from heavy losses suffered on Wednesday.

Japan’s industrial output extended declines in December as factories struggled with a hit to demand from expanded COVID-19 lockdown measures globally. Official data released on Friday showed factory output declined 1.6% in December.

U.S. stocks closed higher on Thursday, bouncing from sharp losses in the prior session, thanks to a broad rally as earnings season got off to a strong start.

On the data front, gross domestic product in the U.S. grew at a 4% annualized pace in the fourth quarter. The annualized pace closed out a 2020 that saw GDP overall decline 3.5% for the full year and by 2.5% from the fourth quarter of 2019.

The number of Americans applying for unemployment benefits fell but remained at a historically high 847,000 last week, a sign that layoffs keep coming as the coronavirus pandemic continues to rage. Last week’s claims fell by 67,000, from 914,000 the week before, the Labor Department said Thursday.

On the coronavirus front, biotech firm Novavax said that its vaccine was more than 89% effective in protecting against Covid-19. A study found that the vaccine appeared to be 85.6% effective against the U.K. variant. A separate phase two study in South Africa, however, showed the vaccine isn’t nearly as effective against a new strain ravaging that country.

Back home, the domestic equity benchmarks ended with steep losses on Thursday, extending losses for the fifth straight session. Trading was volatile as the January 2021 F&O contracts expired on 28 January 2021. Global cues were weak as rising coronavirus cases and uneven distribution of vaccine rollouts triggered selling pressure. The barometer index, the S&P BSE Sensex, tumbled 535.57 points or 1.13% to 46,874.36. The Nifty 50 index lost 149.95 points or 1.07% to 13,817.55.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,712.51 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,736.92 crore in the Indian equity market on 28 January, provisional data showed.

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