Benchmark indices ended with modest losses on Wednesday, snapping its ten-day rising streak. The Nifty closed below the 14,200 mark. Buying was seen in metal, realty and financial stocks while FMCG, IT and auto shares dragged indices lower. Selling in index pivotal RIL also dragged benchmarks lower.

As per provisional closing data, the barometer index, the S&P BSE Sensex, dropped 263.72 points or 0.54% at 48,174.40. The Nifty 50 index slipped 53.25 points or 0.38% at 14,146.25.

Profit selling emerged after the Sensex hit a record high of 48,616.66 while the Nifty hit a fresh all time high of 14,244.15 in early trade today. The Sensex jumped 6.33% in the past ten trading sessions.

The broader market closed on a mixed note. The S&P BSE Mid-Cap index rose 0.39% while the S&P BSE Small-Cap index fell 0.14%.

The market breadth was almost even. On the BSE, 1,535 shares rose and 1,567 shares fell. A total of 131 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 986.30 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 490.03 crore in the Indian equity market on 5 January 2021, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 8,64,12,620 with 18,69,153 deaths. India reported 2,27,546 active cases of COVID-19 infection and 1,50,114 deaths while 99,97,272 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Balram Bhargava, chief of Indian Council of Medical Research (ICMR), on Tuesday, said that Bharat Biotech's COVID-19 vaccine has been cleared in the clinical trial mode, which means consent of participants has to be taken. He was responding to the questions being raised on the clearance given to Covaxin.

Meanwhile, the Drugs Controller General of India (DCGI) on Sunday approved AstraZeneca's vaccine Covishield, manufactured by the Serum Institute, and Covaxin for restricted emergency use in the country, paving the way for a massive inoculation drive.

Economy:

The seasonally adjusted India Services Business Activity Index came at 52.3 in December 2020. The index highlighted output growth for the third month in a row, however falling from 53.7 in November, the latest figure pointed to the slowest pace of expansion over the aforementioned sequence.

Meanwhile, the Word Bank on Tuesday said that India's economy is estimated to contract by 9.6% in the fiscal year 2020-21, reflecting a sharp drop in household spending and private investment, and the growth is expected to recover to 5.4% in 2021.

Stocks in Spotlight:

Bajaj Finance slipped 1.84% after the Reserve Bank of India (RBI) imposed a penalty of Rs 2.50 crore on the NBFC for use of coercive means of recovery. RBI on Tuesday (5 January 2021) imposed a monetary penalty of Rs 2.50 crore on Bajaj Finance for using coercive methods of recovery from its borrowers, and violation of general guidelines and one specific direction issued by the regulator.

BEML rose 1.65% after the company received orders from Ministry of Defence for supply of High Mobility vehicles, at an approximate value of Rs 758 crore. BEML said the High Mobility vehicles would play a key role in the logistics management of the Indian Army leveraging on its exceptional cross-country capabilities. These vehicles would enable armoured fighting vehicles, troops, ammunitions and stores to be moved to far-flung, difficult terrains in operational areas.

Container Corporation of India (CONCOR) jumped 4.65% after the company said it is exploring the possibility of merging its subsidiaries with itself. In a regulatory filing issued after market hours yesterday, the company said that it is exploring the possibility of merging CONCOR AIR (CAL), SIDCUL CONCOR Infra Company (SCICL) and Punjab Logistics Infrastructure (PUL) with itself.

Godrej Consumer Products fell 1.91%. The FMCG major said that during the third quarter, demand trends in the categories across the key countries that the company operates in, remained stable. In India, the company expects to deliver a second consecutive quarter of close to low double-digit sales growth, driven by higher than mid-single digit volume growth. This is led by Soaps, which is expected to deliver strong mid-teen growth. Following a sharp recovery, Hair Colours is also expected to deliver mid-teen growth. Household Insecticides is expected to deliver close to high single-digit growth. The company continued the robust scale up of its personal and home hygiene category.

Hero MotoCorp rose 0.56%. Life Insurance Corporation (LIC) of India hiked stake in the company to 9.166% from 7.145% earlier. LIC purchased 40.36 lakh shares of the company (equivalent to 2.021% stake) between 19 May 2020 and 4 January 2021. Consequently, LIC's stake in the Hero MotoCorp has risen to 9.166% from 7.145% stake earlier.

ACC gained 1.84% after the cement manufacturer announced the successful commissioning of its new Grinding Unit (GU) at Sindri in the State of Jharkhand effective January 2, 2021. The new facility will add an additional capacity of 1.4 MTPA cement to the existing 3 MTPA unit, taking the total capacity at Sindri to 4.4 MTPA. The foundation stone of Sindri GU - phase II was laid in December 2019 with an aim to contribute significantly to servicing the growing market, strengthen presence in the Eastern region and add value to business. This facility will manufacture low CO2, environment friendly, cement products.

Bharat Dynamics rallied 2.98% after the company said it has bagged orders worth Rs 632.88 crore. The company has received Konkurs-M ATGM order along with launchers and test equipment.

Global Markets:

European stocks advanced on Wednesday. The coronavirus pandemic and U.S. political developments remain a key focus for investors. European investors are looking ahead of the latest COVID-19 developments, with England entering a third national lockdown on Tuesday and Germany on Tuesday extending its own lockdown until 31 January 2021.

Most Asian markets ended lower as investors anxiously awaited results of U.S. runoff elections that would determine the legislative balance of power in the world's largest economy.

A private survey showed services sector activity in China expanding at a slower pace in December, with the Caixin/Markit services Purchasing Managers' Index coming in at 56.3. That compared against November's reading of 57.8.

US stocks ended higher on Tuesday in choppy trading, ahead of the outcome of the Senate runoff elections in the battleground state of Georgia, which will determine the balance of power in Washington.

Investors also looked ahead to two key elections in Georgia, which will determine whether Republicans can hold on to control in the Senate. Many fear that increased tax rates and more progressive policies could weigh on the market if Democrats gain control of the Senate. However, such an outcome could create an opportunity for a bigger and faster spending package.

In U.S. economic data, the Institute for Supply Management said its manufacturing index rose to 60.7 in December — its highest level since August 2018 — from 57.5 in November.

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