The benchmark indices extended gains in afternoon trade, buoyed by positive global cues. At 13:20 IST, the barometer index, the S&P BSE Sensex, surged 736.72 points or 1.52% at 49,300.99. The Nifty 50 index soared 200.80 points or 1.41% at 14,482.10.

The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index rose 1.78%. The S&P BSE Small-Cap index gained 1.47%.

Buyers outnumbered sellers. On the BSE, 2,064 shares rose and 744 shares fell. A total of 142 shares were unchanged. In Nifty 50 index, 45 stocks advanced while 5 stocks declined.

Foreign portfolio investors (FPIs) bought shares worth Rs 650.60 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 42.51 crore in the Indian equity market on 18 January 2021, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 9,55,55,763 with 20,40,669 deaths. India reported 2,00,528 active cases of COVID-19 infection and 1,52,556 deaths while 1,02,28,753 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

India's 2020-21 sugar production till 15 January 2021 is up by 33.76 lakh tonnes or 31% compared to the same period of the previous sugar season (October to September), according to a latest update from the Indian Sugar Mills Association (ISMA). A total of 487 sugar mills are in 33.76 lakh tonnes operation in the country as on 15 January 2021 and have produced 142.70 lakh tonnes of sugar, as compared to 108.94 lakh tonnes produced by 440 sugar mills as on 15 January 2020.

Gainers & Losers:

Bajaj Finserv (up 6.76%), Bajaj Finance (up 5.08%), Tata Motors (up 3.68%), Grasim Industries (up 3.64%) and Asian Paints (up 3.33%) were major gainers in Nifty 50 index.

ITC (down 0.23%), Britannia Industries (down 0.20%), Dr Reddy's Laboratories (down 0.04%) and Wipro (down 0.03%) were major losers in Nifty 50 index.

Earning Impact:

CSB Bank rose 1.82% after the bank reported 88.5% jump in net profit to Rs 53.05 crore on a 36.4% rise in total income to Rs 599.24 crore in Q3 FY21 over Q3 FY20. Net interest income improved 61.8% to Rs 251.20 crore in Q3 December 2020 from Rs 155.20 crore in Q3 December 2019. Operating profit in the third quarter stood at Rs 182.4 crore, up by 160.5% from Rs 70 crore in the same period last year.

Provisions and contingencies surged 303.7% to Rs 111.47 crore in Q3 December 2020 from Rs 27.61 crore in Q3 December 2019. Of this, the provisions for non-performing assets increased by 59.3% to Rs 56.21 crore in Q3 FY21 over Q3 FY20.

Mindtree gained 1.23% after the IT company's consolidated net profit rose 28.7% to Rs 326.5 crore on 5% increase in revenue to Rs 2,023.7 crore in Q3 December 2020 (Q3 FY21) over Q2 September 2020 (Q2 FY21). EBITDA grew 23.7% to Rs 467.9 crore in Q3 FY21 over Q2 FY21. Profit before tax (PBT) in Q3 FY21 stood at Rs 445.1 crore, up by 29.1% from Rs 344.7 crore in Q2 FY21.

In dollar terms, the revenue stood at $274.1 million, registering a growth of 5% quarter-on-quarter (Q-o-Q) and a decline of 0.4% year-on-year (Y-o-Y) in Q3 FY21. The net profit stood at $44.2 million, recording a growth of 28.6% Q-o-Q and 59.3% Y-o-Y in Q3 FY21. The company reported strong deal wins of $312 million, crossing $1 billion YTD. There are currently 276 active clients as of 31 December 2020. Mindtree said that it added eight new clients during the quarter.

IndiaMART InterMESH added 0.35%. The company reported 29.35% rise in consolidated net profit to Rs 80.20 crore on 9.2% rise in total income to Rs 198.20 crore in Q3 December 2020 over Q3 December 2019. Consolidated EBITDA jumped 100% to Rs 88 crore in Q3 December 2020 from Rs 44 crore in Q3 December 2019. The firm's EBITDA margin surged to 51% in Q3 December 2020 from 26% in Q3 December 2019.

On the operational front, IndiaMART registered a traffic growth of 35% year on year with 253 million in Q3 December 2020 as compared to 188 million in Q3 December 2019. Total business enquiries delivered increased to 154 million in Q3 December 2020 from 112 million in Q3 December 2019, registering a growth of 37%. Supplier storefronts grew to 6.4 million in Q3 December 2020, an increase of 9% year on year.

Stocks in Spotlight:

L&T Financial Services soared 7.94% after the company said its board has approved raising of up to Rs 3,000 crore through a rights issue. The rights issue will open on 1 February 2021 and close on 15 February 2021. The NBFC has fixed a price of Rs 65 per equity share for the offer. The rights entitlement ratio is set at 17:74 (17 equity shares for every 74 shares held by the eligible equity shareholders of the company), as on the record date i.e. 22 January 2021. If the shareholding of any of the eligible equity shareholder is 5 or more, such shareholders will be entitled to at least 1 equity share.

Goa Carbon advanced 1.91% after the company informed that its Paradeep unit in Odisha have resumed operations. The Kiln has been lit up from today. After preliminary heat up and commencement of feeding of raw material, normal production is likely to resume shortly, the company announced.

Global Markets:

European stocks opened higher on Tuesday, buoyed by hopes that an economic recovery following the coronavirus pandemic is not far off.

Asian market mostly advanced on Tuesday as investors await remarks from U.S. President-elect Joe Biden's nominee for Treasury secretary, Janet Yellen.

On the coronavirus front, the head of the World Health Organization warned Monday of a catastrophic moral failure due to unfair vaccine rollouts.

The U.S. stock market was closed on Monday in honor of Martin Luther King Jr. Day.

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