MARKETS: Sensex, Nifty recovers its losses; PowerGrid soars 4%, IT stocks rebound

Midday markets

Live Market Updates: The major benchmarks recovered some of its intraday losses, due to renewed buying interest in IT stocks.

ESB Sensex, which hit a low of 57,804, lost 83 points to 58,200. NSE Nifty lost 32 points to 17,248.

IT stocks rebounded into the positive zone, while PowerGrid, Nestlé and Dr. Reddy’s were the other main gainers. Financial stocks continue to fall under selling pressure.

Stock Analysis: Shriram Transport Finance

Shriram Transport Finance shares plunged 7% in one day, to Rs 1,371 on BSE on Tuesday, as most analysts saw limited potential for the company after its proposed merger with Shriram Capital and Shriram City Union Finance.

This is because of the limited opportunities for synergies given the varied nature of the operating lines of business and the underlying customer base, analysts said. READ HERE

Primary market update

The Data Patterns (India) IPO was subscribed 1.37 times on day 1 of issue due to strong demand from retail investors. The retail quota received offers up to 2.39 times.

MedPlus Health’s IPO was also almost fully subscribed (94%), with the commercial portion being subscribed 1.74 times. Metro Brands’ IPO was 64 percent underwritten, with a retail quota of 94 percent and QIBs of 43 percent.

Inflation problems continue

India’s annual wholesale price inflation accelerated to 14.23% in November, its highest level in at least 12 years, spurred by larger increases in fuel and gas prices. food, government data showed Tuesday.

November’s figure was up from 12.54% the month before, as fuel and electricity prices rose 39.81% on the year from 37.18% in October, while prices of manufactured goods increased by 11.92%, against 12.04% the previous month.

“The spike in WPI inflation to a new all-time high of 14.2% in November 2021 was a shock, especially with most non-core categories posting much higher inflation than expected. We now expect WPI inflation averages 11.5-12.0% in FY2022, headline and core inflation are expected to continue to double-digit over the next three months and one month, respectively, ”said Aditi Nayar, chief economist at ICRA. READ MORE HERE


Markets at 11:00 a.m.

Live Market Updates: Key benchmarks were teetering in negative territory amid renewed fear of the possible severity of the Omicron variant, after the WHO warned it as a “very high” global risk, with evidence it escapes vaccine protection.

ESB Sensex had lost XX points to 57,881 and NSE Nifty was down 120 points to 17,248.

“There will be some caution in the market as foreign direct investment (FDI) fell sharply by 42% during the July-September quarter. Covid-19 variant pissed off investors around the world ahead of central bank meetings later this week. Our research suggests that 17,200-17,000 could act as resistance levels for Nifty in the short term. Expect the index to trade in a range of 17,000 to 17,400, “said Likhita Chepa, senior research analyst at Capitalvia Global Research.

PowerGrid Corporation was the top winner among Sensex 30 shares, up 2% to Rs 209 a day before its board meeting to consider a dividend.

Bajaj Finserv and Bajaj Finance were the biggest losers, down around 2.5% each. Kotak Bank, ITC, M&M and HDFC were the other big losers.

The larger markets also held losses. The BSE Midcap index had fallen more than one percent, while the Smallcap index was down 0.4 percent.


Markets at 10 a.m.

LIVE Market Updates: After starting to narrow the spread, frontline indices quickly rebounded amid gains in Metals, Pharma and some FMCG stocks.

The BSE Sensex lost 194 points at 58,088 levels, while the Nifty50 was at 17,307.

In larger markets, the BSE SmallCap index returned to the green and rose 0.34%.

Among sectors, the BSE Power, Metal, Capital Goods and Tech indices were trading in the green.

New list: Anand Rathi Wealth shares debuted on BSE at Rs 602 per share, up 9.4% from the issue price of Rs 550.

Economy update

Meanwhile, India’s retail sales inflation rate hit a three-month high of 4.91% in November, down from 4.48% the month before, data showed Monday, despite tax cuts. on gasoline and diesel by the Center and the States.

This was mainly due to an increase in food inflation to 1.87 percent from 0.85 percent during this period, even as the prices of vegetables, with the exception of some items such as tomatoes, continued to decline. READ HERE

“We expect inflation to reach 5.5-6% during December 21 and April 22. Even though vegetable prices are likely to come down and the partial reduction in taxes on fuel prices will help reduce the impact of the second round, higher mobile tariffs and That said, our analysis indicates that CPI inflation will start to decline to 4.5-5% yoy from June 22, ”said Tanvee Gupta Jain, economist at UBS Securities.


Opening bell

BSE Sensex fell 383 points, or 0.66%, to 57,900 levels in early trades, dragged down by Bajaj Finance, HDFC, IndusInd Bank, Infosys and Kotak Bank.

NSE Nifty, meanwhile, gave up 17,300 points and lost 97 points.

“Even though it is only in its early stages, the rapid spread of the Omicron virus, particularly in the UK, has added to the risk in global markets. The immediate market trend will be determined by how Omicron is taking place and its impact on economic activity. If this turns into a third wave in India, the markets will correct sharply. On the other hand, if it goes like the Delta variant, the markets will rebound intelligently, “said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

In larger markets, the BSE MidCap and SmallCap indices fell 0.5%.

Among the individual actions, the actions of Shriram transport financing fell more than 3 percent after the Group announced its restructuring plan. As part of the plan, the Shriram Group, Shriram Capital and Shriram City Union Finance will merge with Shriram Transport Finance Company.

those from Greenlam, on the contrary, rose 6 percent as the company plans to invest Rs 950 crore in 2-3 years as part of its investment plan.

At sector level, the Nifty Pharma index increased by 1%, followed by the Nifty Metal index (+ 0.34%). The Nifty Bank and Financial Services indices fell by 1% each.


Pre-open session

LIVE Market Updates:

The indices started to weaken on Tuesday, although the amount of sales remains contained during the pre-market session.

The S&P BSE Sensex lost over 200 points to 58,056 while the Nifty50 lost 83 points to 17,285.


LIVE market updates: Major benchmarks could also prolong their weakness on Tuesday, given negative global signals. At 8:15 am, the SGX Nifty was 17,300 from Monday’s spot close at 17,368 on the Nifty.

Globally, stocks saw selling pressure after the World Health Organization (WHO) warned that Omicron, which has now been reported in more than 60 countries, poses a “very high global risk “, with evidence that it escapes vaccine protection.

The Dow Jones and S&P 500 indices lost 0.9% each, while the Nasdaq fell 1.4% in overnight trading in the United States.

In Asia, Hang Seng lost 0.9%. Nikkei and Shanghai Composite lost 0.4% each, while Taiwan lost 0.5%. Kospi was lightly in red, while Straits Times was flat.

The IPO of Data Patterns (India) will be open for subscription today. The public issue compromises a new issue of Rs 240 crore and an offer to sell 59.52 lakh shares in the price range of Rs 555 to 585 per share.

The initial public offering of MedPlus Health Services was 70% underwritten on the first day of the offering. Metro Brands IPO was 52 percent underwritten by the end of day 2 of the show.

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First published: Tue 14 December 2021. 08:22 IST

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