The benchmark indices extended losses for the fourth trading session on Wednesday. The Nifty managed to close above the 17,200 mark after slipping below that level in intraday trade. Barring the Nifty Auto index, all the sectoral indices ended in the red.
The barometer index, the S&P BSE Sensex, dropped 329.06 points or 0.57% at 57,788.03. The Nifty 50 index lost 103.50 points or 0.60% at 17,221.40. Both the indices have fallen about 1.7% in four sessions.
Bajaj Finance (down 3.10%), Bajaj Finserve (down 2.55%), TCS (down 1.47%) and Infosys (down 1.06%) tumbled.
In the broader market, the S&P BSE Mid-Cap index shed 0.59% while the S&P BSE Small-Cap index fell 0.35% on Wednesday.
The market breadth was positive. On the BSE, 1,708 shares rose and 1,627 shares fell. A total of 119 shares were unchanged.
The NSE's VIX index, a gauge of market's expectation of volatility over the near term, rose 1.56% at 17.21.
The market struggled to maintain momentum as traders were cautious ahead of US Federal Reserve's policy decision later on Wednesday.
The central bank is widely expected to speed up the end of its bond-buying program and signal that it expects to start hiking interest rates in 2022.
Such concerns have strengthened after US consumer inflation in November surged to a 6.8% annual growth rate, a 39-year high dating back to 1982.
PLI For Semiconductors:
The Union Cabinet on Wednesday, 15 December 2021, cleared the production-linked incentive scheme (PLI) for semiconductors.
The Government of India has announced incentives worth Rs 76000 crore for development of semiconductors and display manufacturing ecosystem in India.
In total, the government has committed support of Rs 2,30,000 crore to position India as global hub for electronics manufacturing with semiconductors as the foundational building block.
Economy:
India's merchandise exports jumped 27.16% to $30.04 billion in November 2021 on the back of good performance by sectors like petroleum products, engineering goods and electronic items, official data showed on Tuesday. The exports stood at $23.62 billion in November 2020. Imports in November 2021 were at $52.94 billion, recording an increase of 56.58% over inbound shipments of $33.81 billion in November 2020.
Numbers to Track:
The yield on 10-year benchmark federal paper fell to 6.364% as compared with 6.356% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 76.28, compared with its close of 75.88 during the previous trading session.
MCX Gold futures for 4 February 2022 settlement rose 0.05% to Rs 48,098.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.09% to 96.445.
In the commodities market, Brent crude for February 2022 settlement fell 77 cents or 1.04% to $72.93 a barrel.
Global Markets:
The U.S. Congress on Tuesday approved raising the federal government's debt limit by $2.5 trillion, to about $31.4 trillion. The House voted 221-209 to send the measure to President Joe Biden to sign and avert default before the end of the year.
Most shares in Europe and Asia advanced on Wednesday as investor focused on the Federal Reserve's latest monetary policy decision. The Fed will conclude its two-day policy meeting later on Wednesday, and central bank Chair Jerome Powell is set to speak at a press conference.
The U.K. Consumer Price Index rose by 5.1% in the 12 months to November, up from 4.2% in October, the steepest incline for a decade.
China's industrial output for November was up 3.8% year-on-year, more than the 3.5% increase in October. China's retail sales in November rose 3.9% year-on-year, less than October's 4.9% increase.
Meanwhile, Pfizer announced that its drug aimed at treating patients with the virus proved effective in a final analysis, including against the new omicron variant. However, the World Health Organization (WHO) warned on Tuesday that the new variant appeared to be spreading faster than previous versions of the virus.
Buzzing Segment:
The Nifty Auto index rose 0.49% to 11,026. The index fell 0.97% in the past two sessions.
Maruti Suzuki India (up 0.91%), Mahindra & Mahindra (up 0.85%), Hero MotoCorp (up 0.85%), Bajaj Auto (up 0.34%), Tube Investments of India (up 0.25%), Ashok Leyland (up 0.24%), Eicher Motors (up 0.1%) and Tata Motors (up 0.08%) advanced.
TVS Motor Company rose 1.4%. The company and BMW Motorrad today announced that they are extending and expanding their long-term partnership with the joint development of new platforms and future technologies, including electric vehicles.
Based on this decision, TVS Motor Company's scope will include the design and development of future BMW Motorrad products and delivering world-class quality, supply chain management, and industrialisation. Under this enhanced cooperation, both companies have identified a range of products and technologies to deliver significant business benefits.
Stocks in Spotlight:
ITC fell 1.88%. The cigarette major discussed taxation on cigarette business, demerger plans and the strategy for the FMCG business in its first ever investor meet on 14 December 2021. In the investor meet, ITC's top management stressed that the health ministry makes regular recommendations annually, as it tried to allay concerns about higher taxation on its mainstay cigarettes business. The multi-business conglomerate has not given any concrete plan for demerger and listing of businesses to unlock value at its analyst meet, but did not rule out that those are options for the company.
Larsen & Toubro (L&T) rose 0.63%. The water & effluent treatment business of L&T Construction has secured a repeat order from the State Water & Sanitation Mission (SWSM), Uttar Pradesh to implement rural water supply projects providing Functional House Tap Connections (FHTC). The contract is part of the Jal Jeevan Mission. According Larsen & Toubro (L&T)'s classification, the value of 'large' contracts lies between Rs 2,500 crore to Rs 5,000 crore.
Genus Power Infrastructures rose 2.66% after the company announced that it has received domestic and export orders worth about Rs 325 crore.
Anupam Rasayan India gained 1.11% after the company received a supply order from Japanese multinational customer. The scope of the order is to supply an existing life science related speciality chemical. The company earlier signed letter of intent for the product with same customer and now it has entered into a long-term contract for next four years. The contract is worth Rs 135 crore.
Ashoka Buildcon added 0.42%. The company said it received letter of award for a construction project in Goa. Ashoka Buildcon said it has received letter of award from the Ministry of Road Transport & Highways (MoRTH) in respect of the project, which entails construction of six lane link road (NH-166S) with paved shoulder configuration to Mopa Airport in Goa on EPC mode.
Advanced Enzyme Technologies advanced 1.53% after the company said that it had entered into a mutually exclusive distribution agreement with Azelis Singapore. The agreement is for the distribution of food enzymes and probiotics for the food & dietary supplement industry in Indonesia, Malaysia, Philippines, Singapore, Thailand & Vietnam.
Primary Market:
The initial public offer (IPO) of MedPlus Health Services received bids for over 66.11 crore shares as against 1.25 crore shares on offer, according to stock exchange data at 16:36 IST on Wednesday (15 December 2021). The issue was subscribed 52.58 times.
The issue opened for bidding on 13 December 2021 and it will close on 15 December 2021. The price band of the IPO is fixed at Rs 780-796. An investor can bid for a minimum of 18 equity shares and in multiples thereof. The IPO of equity shares comprises of a fresh issue upto Rs 600 crore and an offer for sale of up to Rs 798.29 crore (including anchor portion of 52,51,111 equity shares).
The IPO of Data Patterns (India) received bids for over 5.32 crore shares as against 70.97 lakh shares on offer, according to stock exchange data at 16:36 IST on Wednesday (15 December 2021). The issue was subscribed 7.50 times.
The issue opened for bidding on 14 December 2021 and it will close on 16 December 2021. The price band of the IPO is fixed at Rs 555-585. An investor can bid for a minimum of 25 equity shares and in multiples thereof. The IPO comprises of fresh issue component of up to Rs 240 crore and an offer for sale up to 59,52,550 equity shares (including anchor portion of 30,16,533 equity shares).
The IPO of HP Adhesives received bids for over 84.98 lakh shares as against 25.28 lakh shares on offer, according to stock exchange data at 16:36 IST on Wednesday (15 December 2021). The issue was subscribed 3.36 times.
The issue opened for bidding on 15 December 2021 and it will close on 17 December 2021. The price band of the IPO is fixed at Rs 262-274. An investor can bid for a minimum of 50 equity shares and in multiples thereof. The IPO comprises up to 45,97,200 equity shares (including anchor portion of 20,68,700 equity shares).
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