Benchmarks end with gains on first trading day of 2021

Indian equity benchmarks ended the first trading session of 2021 with gains amid buying in telecom, industrials, capital goods and TECK stocks. The benchmarks staged a gap up opening, as traders took some 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. Some optimism also came with report that foreign direct investment (FDI) equity inflows into India grew 21 per cent to $35.33 billion during April-October period of the current financial year. In the year-ago period, FDI equity inflows stood at $29.31 billion.

Markets extended their gains in late afternoon session, as traders were getting encouragement, with report 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. However, key gauges pared some gains in final minutes of trade, as some concern came with a report by India Ratings stating that the economy, though projected to grow 9.6 per cent in the next financial year in year-on-year growth term, may grow just 1 per cent in real terms to Rs 147.17 lakh crore as against Rs 145.66 lakh crore in 2019-20, at the 2011-12 price. Besides, 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.

Finally, the BSE Sensex rose 117.65 points or 0.25% to 47,868.98, while the CNX Nifty was up by 36.75 points or 0.26% to 14,018.50.

The BSE Sensex touched high and low of 47,980.36 and 47,771.15, respectively and there were 19 stocks advancing against 10 stocks declining, while 1 stock remain unchanged on the index.

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

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%, TECK up by 0.95% and Realty up by 0.93%, while Bankex down by 0.25% and Consumer Durables down by 0.11% were the few losing indices on BSE.

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 Company down by 0.57%, Bajaj Finserv down by 0.34% and Bajaj Finance down by 0.30% were the top losers.

Meanwhile, NITI Aayog Vice-Chairman Rajiv Kumar has said 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. Growth will be in positive figures in the fourth quarter of 2020-21.

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.  The government is committed and has always been towards increasing farmers' income and for the betterment of their lives.

Regarding the fight against COVID-19 and when will the country overcome the challenges, Kumar said, ‘I wish everyone a happy new year. This wish will be in a true sense because as you have seen our vaccine is on the verge of the rollout. It is approved in England. It is manufactured in Pune's Serum Institute and I have read recently that they have prepared 5 crore doses and I feel that we will overcome challenges posed by coronavirus.'

The CNX Nifty traded in a range of 14,049.85 and 13,991.35 and there were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Adani Ports & SEZ up by 4.39%, TCS up by 2.42%, ITC up by 2.34%, Mahindra & Mahindra up by 1.55% and SBI up by 1.49%. On the flip side, ICICI Bank down by 1.36%, SBI Life Insurance down by 0.99%, Hindalco down by 0.96%, HDFC Bank down by 0.89% and Titan Company down by 0.58% were the top losers.

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