The main equity indices closed mildly lower on Thursday. Buying was seen in metal, realty and financial stocks while FMCG, IT and pharma shares corrected. As per the provisional closing data, the S&P BSE Sensex, fell 80.74 points or 0.17% at 48,093.43. The Nifty 50 index fell 8.9 points or 0.06% at 14,137.80.

The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index added 1.05% while the S&P BSE Small-Cap index rose 0.85%.

Buyers outpaced sellers. On the BSE, 1974 shares rose and 1101 shares fell. A total of 152 shares were unchanged. In Nifty 50 index, 27 stocks advanced while 23 stocks declined.

Foreign portfolio investors (FPIs) sold shares worth Rs 483.64 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 380.41 crore in the Indian equity market on 6 January 2021, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 8,71,97,387 with 18,83,914 deaths. India reported 2,28,083 active cases of COVID-19 infection and 1,50,336 deaths while 1,00,16,859 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Total coronavirus (COVID-19) recoveries in India crossed the 1-crore mark with over 1.50 lakh deaths on Thursday.

Economy:

The Reserve Bank of India (RBI) reported that currency in circulation contracted by 0.3% on the week to stand at Rs 27.70 lakh crore as on 1 January 2021. The central bank stated further that the overall reserve money rose by 0.2% on the week to Rs 33.22 lakh crore. Currency in circulation rose around 22.1% on a year ago basis compared to 11.8% growth at the same time last year. In the current fiscal, the currency in circulation has expanded by 13.2% so far while the reserve money has increased by 9.7%.

Sebi Regulation:

The markets regulator, Securities Exchange Board of India (Sebi) on 6 January 2021 proposed to ease ownership norms for entities that plan to start new stock exchanges in India, a move that may allow entry of foreign exchanges and lower the trading costs for investors.

The Sebi has floated a discussion paper on review of ownership and governance norms to facilitate new entrants to set up stock exchanges and depositories, otherwise called as market infrastructure institutions (MIIs). As per the key proposals, a resident promoter setting up an MII may hold up to 100% shareholding, which will be brought down to not more than (either 51% or 26%) in 10 years.

A foreign promoter from Financial Action Task Force FATF member jurisdictions setting up an MII may hold up to 49% shareholding, which shall be brought down to not more than (either 26% or 15%) in 10 years.

Currently, NSE, BSE and Metropolitan Stock Exchange are the three nationwide bourses in India, with NSE being the largest in terms of trade volumes both in cash and derivatives segments.

Stocks in Spotlight:

L&T added 2.06% after the company's subsidiary L&T Hydrocarbon Engineering won a 'large' offshore contract from ONGC for their new living quarter and revamp at NQ Complex. The contract involves engineering, procurement, construction, installation and commissioning of a new living quarter platform of 120 men capacity, bridge (with intermediate support) to existing 'NQO Complex' and major revamping / replacement of existing process systems / facilities at `NQ Complex' in ONGC's Mumbai High Asset on the West Coast of India.

Dixon Technologies (India) jumped 8.75% after the company entered into an agreement with Imagine Marketing (boAt) for manufacturing of twin wireless speakers. Dixon will be manufacturing the products from its facility in Noida, Uttar Pradesh.

Lupin rose 2.17%. The drug major announced that it has received approval for its Sulfamethoxazole and Trimethoprim Oral Suspension USP from the USFDA. The drug is a generic equivalent of Bactrim Oral Suspension of Sun Pharmaceutical Industries, Inc. It is indicated for the treatment and prevention of a wide variety of bacterial infections (such as middle ear, urine, respiratory, and intestinal infections), and certain type of pneumonia (pneumocystis-type). The product (RLD: Bactrim) had estimated annual sales of approximately $19 million in the U.S. (IQVIA MAT September 2020).

Sobha jumped nearly 8% after the realty firm reported its best ever quarterly sales volume in Q3 December 2020 without any major launch during the quarter. During Q3 FY21, Sobha achieved total sales volume of 11,33,574 square feet of super built-up area valued at Rs 888 crore, with a total average realization of Rs 7,830 per square feet. Sales volume, total sales value are up by 27% and 29% respectively as compared to Q2 FY21. The company said it posted better sales numbers during Q3 FY21 compared with the pre- COVID 19 level Q3 FY20 due to good demand witnessed across all product categories where Sobha is operating.

NMDC advanced 4.02% after the state-owned miner hiked prices of iron ore with effect from Wednesday, 6 January 2021. The PSU Enterprise increased lump ore prices by 9.61% to Rs 5,700 per tonne on 6 January 2021 from Rs 5,200 per tonne set on 15 December 2020. Prices of fines were hiked by 4.33% to Rs 4,810 per tonne on 6 January 2021 from Rs 4,610 per tonne set on 15 December 2020.

NCL Industries soared 4.64% after the company said its cement production increased 50% to 6,32,746 metric tonnes (MT) in Q3 FY21 from 4,23,199 in Q3 FY20. Sequentially, the cement production rose 2.89% in Q3 FY21 from 6,14,975 MT in Q2 FY21.

Bandhan Bank gained 2.13% after the bank's total deposits jumped 30% to Rs 71,188 crore in Q3 FY21 as against Rs 54,908 crore in Q3 FY20. Sequentially, the bank's deposits have risen by 8% in Q3 FY21 from Rs 66,128 crore in Q2 FY21. The bank's loans & advances at the end of the December 2020 quarter stood at Rs 80,255 crore, up by 23% from Rs 65,456 crore in the same period last year. The loan book of the private lender has increased by 5% sequentially compared with Rs 76,615 at the end of the September 2020 quarter.

Ramco Systems rose 1.9% after the company announced that it will implement its Aviation M&E MRO Suite v5.8 for U.S.-based Construction Helicopters Inc.

Global Markets:

The Dow Jones Futures 30 were up 102 points, indicating a decent start in US markets today.

Most European markets were trading higher on Thursday following a projected win for Democrats in the U.S. Senate following dramatic scenes when pro-Trump rioters stormed the U.S. Capitol building. In Europe, the COVID-19 pandemic remains a key concern. The U.K. reported more than 60,000 new daily cases on Wednesday and a further 1,000 deaths of people with the virus.

Asian markets closed higher after the Dow Jones Industrial Average surged to an all-time high overnight despite unrest in Washington. In US, the Dow and the S&P 500 ended higher, soaring to all-time highs on Wednesday, as investors piled into financial and industrial stocks on bets a Democratic sweep in Georgia would lead to more fiscal stimulus and infrastructure spending.

Stocks closed off their highs as pro-Trump rioters stormed the U.S. Capitol and caused Congress to suspend proceedings to confirm the election of Joe Biden as president. The Capitol was finally secured late Wednesday afternoon, and Congress resumed the process of counting electoral votes and confirming President-elect Joe Biden's victory.

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