Market spurts in early trade

The domestic equities advanced in early trade buoyed by buying demand in index pivotals. The Nifty index hovered above 17,300 level. Asian stocks are trading mixed.

At 9:30 IST, the barometer index, the S&P BSE Sensex, rose 343.33 points or 0.59% at 58,131.36. The Nifty 50 index gained 91.80 points or 0.53% at 17,313.20.

In the broader market, the S&P BSE Mid-Cap index added 0.22% while the S&P BSE Small-Cap index rose 0.36%.

The market breadth was strong. On the BSE, 1,860 shares rose and 757 shares fell. A total of 100 shares were unchanged.

Meanwhile, the Reserve Bank of India (RBI) on 15 December 2021, said that the global economy remained hostage to heightened uncertainty, with the Omicron strain of the coronavirus, sparking fresh containment measures. The Indian economy bounced back strongly in the second quarter of 2021-22, with the gross domestic product (GDP) surpassing its pre-pandemic levels and inflation broadly aligning with the target.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,407.04 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,553.01 crore in the Indian equity market on 15 December 2021, provisional data showed.

Economy:

As per media reports, the new year will herald the return of normalcy and witness the growth momentum gaining steam, an American brokerage said on Wednesday, pegging real GDP growth at 8.2% for financial year 2022-23.

The firm further stated that the country had entered 2021 on an optimistic note with economic growth recovering and inflation well-contained but the second wave of the pandemic led to the return of supply shortages and exerted pressure on prices.

"We see 2022 as the year of much-awaited normalcy and normalisation for India. We expect growth recovery to gain steam, driven by consumption, the brokerage said in its outlook for the new year.

Stocks in Spotlight:

ICICI Bank fell 0.05%. The Reserve Bank of India imposed a monetary penalty of Rs 30 lakh on the bank for non-compliance with certain directions issued by RBI on 'Levy of Penal charges on non-maintenance of minimum balance in savings bank accounts'.

Sun Pharmaceutical Industries slipped 1.04%. The pharma major announced that one of its wholly-owned subsidiaries has received final approval from USFDA for its Abbreviated New Drug Application (ANDA) for generic Amphotericin B Liposome for Injection, 50 mg/vial Single-Dose Vial.

Cipla shed 0.13%. The company announced that it has acquired up to 33% of partnership interest in Clean Max Auriga Power LLP (Limited Liability Partnership). Clean Max Auriga Power LLP is a special purpose vehicle engaged in the business of production, supply and distribution of solar and wind or other renewable energy generation plant.

Adani Ports and Special Economic Zone (APSEZ) rose 0.80%. The firm has signed Share Purchase Agreement (SPA) with Adani Transmission (ATL) on 15 December 2021 for divestment of 100% equity stake of MPSEZ Utilities (MUL).

Global Markets:

Asian stocks traded mixed Thursday, 16 December 2021 as investors digested the U.S. Federal Reserve's indications that its run of ultra-easy monetary policy since the start of the pandemic is ending.

Japan's exports growth sped up in November, government data showed on Thursday. Exports rose 20.5% in November from a year earlier, the ninth straight month of increase. It followed a 9.4% gain in the previous month.

Wall Street ended sharply higher on Wednesday after the US Federal Reserve said it would end its pandemic-era bond purchases in March as it exits from policies enacted at the start of the health crisis.

The Fed announced on Wednesday that it would wind down its asset purchases, a process known as tapering, at a faster pace amid a continued rise in inflation. The Fed will be buying $60 billion per month of bonds starting in January, down from December's rate of $90 million, and said that it will likely continue that trajectory in the months ahead. This sets the stage for a dramatic policy shift that will clear the way for a first interest rate hike next year. The central bank signaled on Wednesday that its members see three hikes in 2022.

Fed Chairman Jerome Powell said at a conference on Wednesday said that the labor market is not fully recovered, pointed to a sluggish rebound in labor force participation, but said it was still appropriate to roll back some of the Fed's pandemic-era policies.

Powered by Capital Market - Live News