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Barometers hit day's low; media stocks tumble

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Capital Market
Last Updated : Dec 17 2021 | 12:05 PM IST

The benchmark indices further extended losses and hit intraday low in mid-morning trade. Index pivotal like Reliance Industries (down 2.74%), HDFC Bank (down 1.50%) and Housing Development Finance Corporation (HDFC) (down 1.84%) were major drags.

At 11:30 IST, the barometer index, the S&P BSE Sensex, tumbled 645.01 points or 1.11% at 57,256.13. The Nifty 50 index lost 199.90 points or 1.16% at 17,048.50.

In the broader market, the S&P BSE Mid-Cap index fell 1.73% while the S&P BSE Small-Cap index shed 1.40%.

The market breadth was weak. On the BSE, 2,243 shares rose and 915 shares fell. A total of 102 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,468.71 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,533.15 crore in the Indian equity market on 16 December 2021, provisional data showed.

Primary Market:

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The initial public offer (IPO) of Supriya Lifescience received bids for over 4.38 crore shares as against 1.45 crore shares on offer, according to stock exchange data at 11:09 IST on Friday, (17 December 2021). The issue was subscribed 3.02 times.

The issue opened for bidding on 16 December 2021 and it will close on 20 December 2021. The price band of the IPO is fixed at Rs 265-274. An investor can bid for a minimum of 54 equity shares and in multiples thereof. The IPO comprises a fresh issue of upto Rs 200 crore and an Offer for Sale (OFS) of upto Rs 500 crore (including an anchor portions of 1,14,96,351 equity shares).

The IPO of HP Adhesives received bids for over 2.69 crore shares as against 25.28 lakh shares on offer, according to stock exchange data at 11:09 IST on Friday (17 December 2021). The issue was subscribed 10.65 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 Initial Public Offer (IPO) comprises up to 45,97,200 equity shares (including anchor portion of 20,68,700 equity shares).

Buzzing Index:

The Nifty Media index dropped 4.17% to 2,290.10. The index tumbled 7.14% in three trading sessions.

Zee Entertainment Enterprises (ZEEL) (down 5.96%), TV18 Broadcast (down 5.27%), Network18 Media & Investments (down 4.69%), PVR (down 3.97%) and Hathway Cable & Datacom (down 3.66%) were the top losers in the Media segment.

Stocks in Spotlight:

Persistent Systems jumped 5.03% after ATOSS, a Germany-based software provider for workforce management, selected the IT company to transform its customer relationship management with the help of Salesforce integrations. ATOSS will use the company's Salesforce platform to automate sales, integrate with existing back-end systems and introduce customer service and event management. Persistent will first implement Sales Cloud to replace and redefine the current sales and service processes at ATOSS.

Greenlam Industries gained 0.69%. The company said that it had received permission from the appropriate authority yesterday (16 December 2021) to resume manufacturing activity at its plant located in Behror, Rajasthan. The company further said that as per the applicable section of the Commission for Air Quality Management in National Capital Region and Adjoining Areas Act, 2021, it has been allowed to run its manufacturing activity for 5 days per week (without any restrictions on number of hours per day).

Global Markets:

Asian shares were mixed on Friday, 17 December 2021, mirroring the overnight losses on Wall Street. The U.S. stocks slid on Thursday as weakness among large tech stocks dragged down major market averages.

The Bank of Japan maintained its short-term interest rate target at (-) 0.1%.

The Bank of England hiked its interest rates on Thursday for the first time since the pandemic started. It raised its main interest rate from a historic low of 0.1% to 0.25% amid mounting inflation pressure. The Bank of England is the first major central bank to tighten monetary policy post the onset of the coronavirus pandemic.

The European Central Bank further cut its bond purchases overnight but vowed to continue its unprecedented monetary policy support for the euro zone economy into 2022. It left the benchmark refinancing rate unchanged at 0%, while the rate on its marginal lending facility remained at 0.25%.

Meanwhile, U.S. President Joe Biden signed a debt ceiling increase into law on Thursday, ensuring the U.S. will not default on its debt for the first time ever. The measure lifts the government's borrowing limit by $2.5 trillion, which is expected to allow the U.S. to cover its obligations into 2023.

Meanwhile, the number of Americans applying for unemployment benefits rose last week despite signs that the U.S. labor market is rebounding from last year's coronavirus recession. Jobless claims rose by 18,000 to a 2,06,000, still low by historical standards. The four-week average, which smooths out week-to-week volatility, fell by 16,000 to less than 2,04,000, the lowest level since mid-November 1969, according Department of Labor figures released Thursday.

Altogether, 1.8 million Americans were receiving traditional jobless benefits the week that ended 4 December 2021, down by 1,54,000 from the previous week.

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First Published: Dec 17 2021 | 11:26 AM IST

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