Benchmark domestic stocks surge around 0.8 per cent amid positive global cues

Benchmark domestic stocks on Wednesday, January 20, 2021, surged around 0.8 per cent amid positive global cues. The BSE Sensex added 393.83 points or 0.80 per cent to close at 49,792.12. The Nifty 50 index gained 123.55 points or 0.85 per cent to settle at 14.644.70. The Nifty Bank index rose 118.85 points or 0.37 per cent to end at 32,543.70.

The broader market at BSE also gained. The BSE Mid-Cap index jumped 1.08 per cent and the BSE Small-Cap index rose 0.58 per cent.

Buyers outpaced sellers. On the BSE, 1,582 shares rose and 1,429 shares fell. A total of 164 shares were unchanged. On the Nifty 50 index, 32 shares advanced and 18 shares declined. The top five gainers on Nifty 50 block were Tata Motors (up 6.09 per cent), Adani Ports (up 4.40 per cent), Wipro (up 3.40 per cent), Tech Mahindra (up 2.72 per cent) and Maruti (up 2.55 per cent). The top five losers were Power Grid (down 2.10 per cent), Shree Cement (down 1.82 per cent), NTPC (down 1.56 per cent), GAIL (down 1.04 per cent) and HDFC Bank (0.92 per cent).

COVID-19 update

Total COVID-19 confirmed cases worldwide stood at 9,61,58,807 with 20,50,050 deaths. India reported 1,97,201 active cases of COVID-19 infection and 1,52,718 deaths, while 1,02,45,741 patients have been discharged.

Separately, the World Health Organisation (WHO) said that the United Kingdom COVID-19 strain has been detected at least 60 countries.

Indian Economy

The Reserve Bank of India (RBI) on Tuesday identified State Bank of India, ICICI Bank and HDFC Bank as domestic systematically important banks (D-SIBs) under the same bucketing structure as in the 2018 list of D-SIBs. The additional Common Equity Tier 1 (CET1) requirement for D-SIBs was phased-in from April 1, 2016, and became fully effective from April 1, 2019. The additional CET1 requirement will be in addition to the capital conservation buffer.

The Reserve Bank had issued the Framework for dealing with Domestic Systemically Important Banks (D-SIBs) on July 22, 2014. The D-SIB framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs starting from 2015 and place these banks in appropriate buckets depending upon their Systemic Importance Scores (SISs). Based on the bucket in which a D-SIB is placed, an additional common equity requirement has to be applied to it. In case a foreign bank having branch presence in India is a Global Systemically Important Bank (G-SIB), it has to maintain additional CET1 capital surcharge in India as applicable to it as a G-SIB, proportionate to its Risk-Weighted Assets (RWAs) in India, i.e., additional CET1 buffer prescribed by the home regulator (amount) multiplied by India RWA as per consolidated global Group books divided by total consolidated global Group RWA.

IRFC IPO update

The Rs 4,633 crore Initial Public Offer (IPO) of Indian Railway Finance Corporation (IRFC) was subscribed 3.49 times on the third and the last day of subscription by 5:30 pm. IRFC, the dedicated market borrowing arm of the Indian Railways, is offering up to 178.2 crore shares of the face value of Rs 10 each. The issue price for the offer has been kept at Rs 25-26 apiece. The lot size is 575 and bids can be made for a minimum of 575 equity shares and in multiples of 575 equity shares thereafter. The application money per lot is Rs 14,950 at Rs 26 per share.

It comprises fresh issue of up to 118.8 crore shares and an offer for sale of up to 59.4 crore equity shares by the government of India. Post-IPO, the shareholding of government will come down to 86.4 per cent, from 100 per cent earlier.

Indigo Paints IPO Update

The Rs 1,170 crore initial public offering of Indigo Paints that opened today for subscription was subscribed 1.90 times by 5:30 pm.

The IPO comprises fresh issue of Rs 300 crore and an offer for sale of 58,40,000 equity shares by the promoter (Hemant Jalan) and investors (Investors Sequoia Capital India Investments IV and SCI Investments V).

The offer will close on January 22, 2021. Indigo Paints has fixed the price band of the share sale at Rs 1,488-1,490 a share. Investors can bid for a minimum one lot of 10 shares and in multiples, extending up to 13 lots.

The company has raised Rs 347.9 crore by allotting 23.35 lakh shares to anchor investors ahead of its IPO.