Partial recovery! Sensex ends 166pts down; ITC slips 3%, PowerGrid gains 4%

Reliance, Bharti Airtel and financial shares were the other major losers; Data Patterns IPO gets 2.5 times subscripton as of 03:15 PM on day 1 of the offer

Closing Bell

The key benchmark indices start trade on a negative note, and thereafer made multiple attempts to recover on the back of fresh buying interest in IT and select banking stocks.

The BSE Sensex after touching a low of 57,804, rebounded into the positive for brief while and registered the day's high at 58,322. The Sensex finally ended 166 points lower at 58,117. It's counterpart NSE Nifty declined 43 points to 17,325.

The broader indices finished on a mixed note. The BSE Midcap index declined 0.4 per cent, While the smallcap index ended almost flat. The overall breadth was marginally positive, with 1,782 advancing shares versus 1,519 declining stocks on the BSE.

Market Dashboard: Snapshot of key movers and shakers in trade today

FMCG giant ITC shed nearly 3 per cent and was the top per centage loser among Sensex 30 stocks. Bajaj Finance, Kotak Bank, Bharti Airtel, Reliance Industries and Bajaj Finserv were the other prominent losers, down 1-2 per cent each.

PowerGrid Corporation soared nearly 4 per cent a day ahead of its board meeting to consider dividend. Axis Bank, Nestle India, Dr.Reddy's and IndusInd Bank were the other notable gainers.



Debutant Anand Rathi Wealth listed at a 9 per cent premium at Rs 602.05 on the BSE as against the issue price of Rs 550 per share. The stock touched a high and low of Rs 615 and Rs 566, respectively, before settling with a 6 per cent gain versus the issue price on its debut day on the bourses. READ MORE

In the broader markets, Lupin ended with a gain of nearly 7 per cent after the drug-maker announced that it has received the Establishment Inspection Report (EIR) from United States Food and Drug Administration (US FDA) for its Goa manufacturing facility. The US drug regulator had inspected the facility in September 2021. READ MORE

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Primary Market Update

As of 03:15 PM, Data Patterns (India) IPO was subscribed 2.49 times on the Day 1 of the issue led by strong demand by retail and wealthy investors. The retail quota received bids up to 4.47 times and NIIs (wealthly investors) 1.05 times.

MedPlus Health Services IPO was fully subscribed 1.2 times on Day 2 of the issue. The retail portion was subscribed 2.19 times. Meanwhile, Metro Brands IPO was subscribed 2.88 times on the final day of the public offer. The QIBs portion was subscribed 7.38 times, while the retail and wealthy investors quota was subscribed 1.06 times and 1.17 times, respectively.
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Markets at 02:25 PM

Live market updates: The recovery in the key benchmark indices was short-lived as key index heavyweights Reliance, ITC and Bharti Airtel along with select financial shares pull down the benchmarks.

The BSE Sensex was down 150 points at 58,133, and the NSE Nifty was down 43 points at 17,325.

ITC and Bajaj Finance were down 2 per cent each. Bharti Airtel had slipped 1.8 per cent. Kotak Bank, HDFC, Mahindra & Mahidnra, Reliance Industries, Bajaj Finserv and Bajaj Auto had declined 1 - 1.5 per cent each. PowerGrid Corporation and Nestle, however, continued to hold gains.

Among sectors, the Auto and Telecom indices had dropped over a per cent each. The FMCG, Energy, Realty and Consumer Durable indices were the other notable losers. The BSE Power index had jumped over a per cent, and the IT index was the other notable gainer.
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Markets at Lunch (01:30 PM)

Live market updates: The key benchmark indices had recouped most of the losses, but slipped a wee bit again in mid-noon deals. The BSE Sensex was down 150 points at 58,133, and the NSE Nifty was down 43 points at 17,325.

Along with IT, select banking shares also bounced back into the positive zone. ICICI Bank and Axis Bank were the notable movers. Among IT, Tech Mahindra, TCS and Infosys were up marginally.

On the flip side, Kotak Bank has slipped over 2 per cent. Bajaj Finance and Bajaj Finserv were down 1.5 per cent each. ITC, Mahindra & Mahindra and Bharti Airtel were the other prominent losers.

The BSE Smallcap index bounced back into the positive zone, and was up 0.1 per cent. The Midcap index, however, was down 0.6 per cent. The overall breadth was positive, with 1,730 advancing shares versus 1,496 declining stocks on the BSE.
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Markets at Noon

Live market updates: The key benchmark indices have recouped some of its intra-day losses, led by fresh buying interest in IT shares.

The BSE Sensex which touched a low of 57,804, was down 83 points to 58,200. The NSE Nifty was down 32 points at 17,248.

IT shares bounced back into the positive zone, while PowerGrid, Nestle and Dr.Reddy's were the other prominent gainers. Financial shares continue to reel under selling pressure.

Stock analysis: Shriram Transport Finance

Shares of Shriram Transport Finance plunged 7 per cent intra-day, to Rs 1,371 on the BSE on Tuesday, as most analysts saw limited upside for the company post its proposed merger with Shriram Capital and Shriram City Union Finance.

This was on the back of limited scope for synergies given the varied nature of operating business segments and underlying customer base, analysts said. READ ABOUT IT HERE

Primary Market Update

Data Patterns (India) IPO was subscribed 1.37 times on the Day 1 of the issue led by strong demand by retail investors. Retail quota received bids up to 2.39 times.

MedPlus Health IPO was also nearly fully subscribed (94 per cent), with retail portion subscribed 1.74 times. Metro Brands IPO was subscribed 64 per cent, with retail quota subscibed 94 per cent and QIBs 43 per cent.

Inflation woes continue

India's annual wholesale price-based inflation accelerated to 14.23% in November, its highest in at least 12 years, boosted by bigger hikes in prices of fuel and food, government data showed on Tuesday.

November's figure was up from 12.54% the previous month, as fuel and power prices rose 39.81% on the year versus 37.18% in October, while manufactured product prices rose 11.92%, against 12.04% in the prior month.

"The spike in the WPI inflation to a fresh all time high of 14.2% in November 2021 has come as a shock, especially with most non-core categories displaying an inflation rate that was much steeper than expected. We now forecast the WPI inflation to average 11.5-12.0% in FY2022, with the headline and core inflation expected to continue to print in double-digits over the next three months and one month, respectively," said Aditi Nayar, chief economist at ICRA. READ MORE HERE

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Markets at 11:00 AM

Live market updates: The key benchmark indices were wobbling in the negative territory amid fresh scare over the possible severity of Omicron variant, after WHO warned it as a "very high" global risk, with some evidence that it evades vaccine protection.

The BSE Sensex had declined XX points to 57,881, and the NSE Nifty was down 120 points at 17,248.

"There will be some caution in the market as foreign direct investment (FDI) fell sharply by 42% in the July-September quarter. We may see selling pressure in Indian markets, dragged down by IT and banking stocks as the spread of the Omicron variant of Covid-19 unnerved investors globally ahead of central bank meetings later this week. Our research suggests that 17,200-17,000 may act as resistance levels for the Nifty in the short-term. Expect the index to trade in the range of 17,000-17,400," said Likhita Chepa, senior research analyst at Capitalvia Global Research.

PowerGrid Corporation was the top gainer among the Sensex 30 stocks, up 2 per cent at Rs 209 a day ahead of its board meeting to consider dividend.

Bajaj Finserv and Bajaj Finance were the major losers, down around 2.5 per cent each. Kotak Bank, ITC, M&M and HDFC were the other major losers.

The broader markets were also holding losses. The BSE Midcap index had dropped over a per cent, while the Smallcap index was down 0.4 per cent.
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Markets at 10 AM

LIVE market updates: After starting gap-down, the frontline indices were quick to bounce back amid gains in metals, pharma, and select FMCG stocks.

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

In the broader markets, the BSE SmallCap index was back in the green, and was up 0.34 per cent.

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

New listing: Shares of Anand Rathi Wealth debuted on the BSE at Rs 602 per share, up 9.4 per cent against the issue price of Rs 550. 

Economy update

Meanwhile, India’s retail inflation rate rose to a three-month high of 4.91 per cent in November from 4.48 per cent in the previous month, data showed Monday, despite the Centre and states reducing taxes on petrol and diesel.

This was primarily because of a rise in food inflation to 1.87 per cent from 0.85 per cent over this period, even as prices of vegetables, except for some items such as tomatoes, continued to fall. READ ABOUT IT HERE

"We expect inflation to rise towards 5.5-6 per cent during Dec-21 and Apr-22. Even as vegetable prices will likely soften & partial roll back of taxes on fuel prices will help reduce the second round impact, the higher mobile tariffs and rising input costs pressures should more than offset it. That said, our analysis indicates that CPI inflation will begin to ease towards 4.5-5 per cent YoY from Jun-22 quarter onwards," said Tanvee Gupta Jain, economist, UBS Securities.

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Opening Bell

LIVE market updates: The World Health Organisation's grim statement on the 'Omicron' coronavirus variant, coupled with a downward revision of growth forecast by the Asian Development Bank (ADB), soured sentiment on the bourses on Tuesday.

The BSE Sensex declined 383 points, or 0.66 per cent, to 57,900 levels in early deals, dragged by Bajaj Finance, HDFC, IndusInd Bank, Infosys, and Kotak Bank. 

The NSE Nifty, on the other hand, gave up 17,300-mark and was down 97 points. 

"Even though it is early days, the fast spread of the Omicron virus, particularly in the UK, has added to the risk-off in global markets. The immediate trend in the market will be determined by how Omicron pans out and its impact on economic activity. If it turns into a third wave in India, the markets would correct sharply. On the other hand, if this passes off like the Delta variant, the markets will rebound smartly," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

In the broader markets, the BSE MidCap and SmallCap indices dipped up to 0.5 per cent.

Among individual stocks, shares of Shriram Transport Finance dropped over 3 per cent after the Group announced 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 of Greenlam, on the contrary, were up 6 per cent as the company plans to invest Rs 950 crore in 2-3 years as part of its capex plan.

Sectorally, the Nifty Pharma index was up 1 per cent, followed by the Nifty Metal index (up 0.34 per cent). The Nifty Bank and Financial Services indices were down 1 per cent each.

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Pre-open session

LIVE market updates: Indices started weaker on Tuesday, though the quantum of selling remain contained in the pre-market session.

The S&P BSE Sensex was down over 200 points at 58,056 while the Nifty50 was down 83 points at 17,285.

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LIVE market updates: The key benchmark indices may extend weakness on Tuesday as well, given negative global cues.  At 08:15 AM, SGX Nifty was at 17,300 compared with Monday's spot close of 17,368 on the Nifty.

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

The Dow Jones and the S&P 500 indices shed 0.9 per cent each, while Nasdaq tumbled 1.4 per cent in overnight trade in the US.

In Asia, Hang Seng was down 0.9 per cent. Nikkei and Shanghai Composite were down 0.4 per cent each, while Taiwan dropped 0.5 per cent. Kospi was marginally in red, while Straits Times was flat.

Primary Market Update

 

Data Patterns (India) IPO will open for subscription today. The public issue compromises a fresh issue of Rs 240 crore and an offer for sale of 59.52 lakh shares in the price band of Rs 555 – 585 per share.

MedPlus Health Services IPO, meanwhile, was subscribed up to 70 per cent on Day 1 of the offer. Metro Brands IPO was subscribed 52 per cent at the end of Day 2 of the issue.