Indices turn range bound; Nifty hovers above 17,400 level

The benchmark indices continued to trade near its intraday high during early afternoon trade. The Nifty hovered above 17,400 mark. Investors cheered the RBI Monetary Policy Committee (MPC)'s decision to keep the key interest rates unchanged.

At 12:30 IST, the barometer index, the S&P BSE Sensex, jumped 843.81 points or 1.46% at 58,477.46. The Nifty 50 index surged 245.50 points or 1.43% at 17,422.20.

In the broader market, the S&P BSE Mid-Cap index rose 1.16% while the S&P BSE Small-Cap index gained 1.48%.

The market breadth was strong. On the BSE, 2,370 shares rose and 792 shares fell. A total of 137 shares were unchanged.

Economy:

The Reserve Bank of India (RBI) kept the policy repo rate unchanged while maintaining its accommodative stance after the conclusion of the Monetary Policy Committee (MPC) meeting today, 8 December 2021.

RBI kept repo rate unchanged at 4% and maintained an accommodative stance. Reverse repo rate stands at 3.35%. The Marginal Standing Facility (MSF) rate is at 4.25%. The MPC said the policy stance will remain "accommodative" until there is sustainable recovery in the economy. The RBI maintained the FY22 GDP growth forecast at 9.5%. It retained CPI inflation projection at 5.3% in 2021-22.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, tumbled 5.14% to 17.51. The Nifty 30 December 2021 futures were trading at 17,453, at a premium of 30.80 points as compared with the spot at 17,422.20.

The Nifty option chain for 30 December 2021 expiry showed maximum Call OI of 33.1 lakh contracts at the 18,000 strike price. Maximum Put OI of 48.3 lakh contracts was seen at 17,000 strike price.

Buzzing Index:

The Nifty Metal index rose 1.35% to 5,568.80. The index gained 4.52% in two trading sessions.

Welspun Corp (up 4.59%), Jindal Steel & Power (JSPL) (up 3.56%), Ratnamani Metals & Tubes (up 3.24%), Adani Enterprises (up 2.15%) and Steel Authority of India (SAIL) (up 1.72%) were the top gainers in the Metal segment.

IPO Updates:

The initial public offer (IPO) of Rategain Travel Technologies received bids for over 92.74 lakh shares as against 1.73 crore shares on offer, according to stock exchange data at 12:18 IST on Wednesday (8 December 2021). The issue was subscribed 0.53 times.

The issue opened for bidding on Tuesday, 7 December 2021 and it will close on 9 December 2021. The price band of the IPO is fixed at Rs 405-425. An investor can bid for a minimum of 35 equity shares and in multiples thereof.

The offer comprises of a fresh issue up to Rs 375 crore and an offer for sale of up to 2,26,05,530 equity shares.

The IPO of Shriram Properties received bids for over 1.56 crore shares as against 2.93 crore shares on offer, according to stock exchange data at 12:21 IST on Wednesday (8 December 2021). The issue was subscribed 0.53 times.

The issue opened for bidding today, 8 December 2021 and it will close on 10 December 2021. The price band of the IPO is fixed at Rs 113-118. An investor can bid for a minimum of 125 equity shares and in multiples thereof.

The IPO comprises of upto 2,93,51,639 equity shares (including anchor portion of 2,27,66,949 equity shares).

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