On Friday, investors lost Rs 2.33 lakh crore on across-the-board profit-booking after Sensex and Nifty suffered their worst fall in four weeks. While Sensex slumped 549 points or 1.11% to 49,034, Nifty tumbled 161 points or 1.11% to 14,433.
Over 190 companies are set to release their December quarter earnings. Reliance Industries, Bajaj Finserv, Bajaj Finance, Bajaj Auto, Asian Paints, Yes Bank, Indiabulls Real Estate, HDFC AMC, SBI Life Insurance Company, Symphony, Tata Elxsi, are among the companies set to announce their results this week.
German Chancellor Angela Merkel called for tougher restrictions to contain the country's worsening coronavirus outbreak and pushed for crisis talks with regional leaders. Party members quoted her as saying the virus could only be stopped with "significant additional measures”. It came as Germany's total coronavirus cases topped two million on Friday. Parts of the US and China are also seeing some form of localised lockdowns sparking concerns over the pandemic’s impact on near-term economic activity are rising. Globally more than 9.38 crore people are infected by virus so far, with over 20 lakh deaths as per the Johns Hopkins University.
In India, as many as 1.91 lakh people were inoculated across the country on day 1 of the world’s largest immunisation exercise against the coronavirus. India will administer shots to three crore frontline workers in phase one. There are 3,006 session sites across the country, where 100 beneficiaries each will be given either of India’s two indigenous vaccines, Covaxin or Covishield. Every beneficiary will need to receive two doses of the same vaccine, 28 days apart. On the second day of the anti-coronavirus vaccination drive, the Union Health Ministry Sunday said a total of 2,24,301 beneficiaries have been inoculated with the Covid-19 vaccine so far. 447 people reported adverse effects and only three had to be admitted to hospitals, the Union health ministry said on the second day of the nationwide vaccination drive on Sunday.
US stimulus package
Joe Biden will be officially sworn in as the President of United States on Wednesday. He has has unveiled a $1.9 trillion coronavirus relief proposal, aimed at urgently combating the pandemic and the economic crisis it has triggered. As the US faces its deadliest stage of the pandemic, Biden described the moment as “a crisis of deep human suffering”. The ambitious, wide-ranging plan includes $160bn to bolster vaccination and testing efforts, and other health programs and $350bn for state and local governments, as well as $1 trillion in relief to families, via direct payments and unemployment insurance.
However, the battle is yet to be won. A growing number of congressional Republicans are expressing opposition to President-elect Joe Biden’s $1.9 trillion economic relief proposal, complicating the incoming administration’s push to quickly inject additional aid into the ailing U.S. economy. Democrats will have a narrow Senate majority and could attempt to pass a relief package without any Republican votes. But doing so would require a parliamentary Senate procedure that could take time and require Biden to abandon key parts of his proposal, such as the increase in the minimum wage.
Initial Public Offer
The initial public offerings (IPOs) of two companies, Indian Rail Finance Corporation (IRFC) and Indigo Paints, will open for subscription in this week with an aim to raise Rs 5,800 crore. The larger Rs 4,600-crore IRFC issue and will hit the market today. This will be the first public offer of shares by a government-owned non-banking financial company. The first public issue of the calendar year 2021 will close for subscription on January 20. The issue size of IRFC sale is 178.20 crore shares, which comprises a fresh issue of 118.80 crore. The price band will be Rs 25-26 per share of the face value of Rs 10 each. Not more than 50% of the issue will be reserved for Qualified Institutional Buyers (QIBs) while 35% is reserved for retail investors and 15% of the issue will be reserved for non-institutional category.
Indigo Paints is looking to raise Rs 1,186 crore from its issue which opens on January 20 and will close on January 22. Backed by Sequoia Capital, Indigo Paints filed IPO papers with market regulator SEBI in November 2020. The offer is open for subscription in a price band of Rs 1,448 - Rs 1,490 per share. It consists a fresh issue of Rs 300 crore and an offer for sale (OFS) of 58,40,000 equity shares by promoter Hemant Jalan and investors such as Sequoia.
Wall Street’s main indexes ended lower on Friday amid concerns of higher corporate taxation to finance Joe Biden’s $1.9 trillion stimulus package. The benchmark S&P 500 Index settled at 3,768.25, down 27.29 points or -0.81%. The blue-chip Dow Jones Industrial Average finished at 30,814.26, down 177.26 points or -0.65% and the tech-based Nasdaq Composite closed at 12,998.50, down 114.14 points or -1.02%.
Biden’s coronavirus relief stimulus package may prove a double-edged sword for investors, sustaining optimism for further economic revival while raising worries over how the United States will pay for it all. Adding to the pressure on indices was official data which showed a further decline in U.S. retail sales in December in the latest sign the economy lost considerable speed at the end of 2020.