Don’t miss the latest developments in business and finance.

Indices end with small cuts; Nifty ends below 17,350

Image
Capital Market
Last Updated : Feb 16 2022 | 4:16 PM IST

The benchmark indices ended with minor losses on Wednesday. Pharma, FMCG and oil & gas stocks supported the indices while banks and metal stocks dragged. Trading was volatile as the Nifty bounced from its intraday low of 17,257.70 hit in mid-morning trade to hit the day's high of 17,490.60 in mid-afternoon trade. The index sharply pared gains in the last hour of trading session, tracking weakness in European shares.

As per provisional closing data, the barometer index, the S&P BSE Sensex, fell 145.37 points or 0.25% at 57,996.68. The Nifty 50 index slipped 30.25 points or 0.17% at 17,322.20.

In the broader market, the S&P BSE Mid-Cap index shed 0.03% while the S&P BSE Small-Cap index rose 0.42%.

The market breadth was strong. On the BSE, 2,016 shares rose and 1,332 shares fell. A total of 105 shares were unchanged.

Economy:

India's overall exports in January this year are estimated to be 61.41 billion dollars, exhibiting a positive growth of 36.76% over the same period last year and a positive growth of 38.90% over January 2020. Overall imports in January this year are estimated to be 67.76 billion dollars, exhibiting a slower rate of growth of 30.54% over the same period last year and a positive growth of 30.19% over January 2020.

More From This Section

India's overall exports in April to January 2021-22 are estimated to be 545.71 billion dollars. This is a positive growth of 37.68% over the same period last year and a positive growth of 23.29% over April-January 2019-20. Overall imports in April-January 2021-22 are estimated to be 616.91 billion, exhibiting a positive growth of 54.35% over the same period last year and a positive growth of 20.15% over April-January 2019-20.

New Listing:

Shares of Vedant Fashions (Manyavar) were currently trading at Rs 940.55 on BSE, at a premium of 8.61% as against the issue price of Rs 866. The scrip was listed at Rs 936, representing a premium of 8.08% to the initial public offer (IPO) price. So far, the scrip has hit a high of Rs 993 and a low of Rs 921. Over 6.68 lakh shares of the company have changed hands in the counter till now.

The initial public offer (IPO) of Vedant Fashions (Manyavar) received bids for 6,53,72,718 shares as against 2,54,55,388 shares on offer. The issue was subscribed 2.57 times. The qualified institutional buyers (QIBs) category was subscribed 7.49 times. The non-institutional investors category was subscribed 1.07 times. The retail individual investors (RIIs) category received poor response. It was subscribed just 0.39%.

The issue opened for bidding on 4 February 2022 and closed on 8 February 2022. The price band of the IPO is fixed at Rs 824-866 per share.

Buzzing Index:

The Nifty Consumer Durables index rose 0.61% to 27,738.05. The index added 3.55% in the past two trading sessions.

Blue Star (up 6.02%), Crompton Greaves Consumer Electricals (up 4.14%), Orient Electric (up 1.93%), Bata India (up 1.32%) and Havells India (up 1.31%) were the top gainers in the Consumer Durables segment.

Stocks in Spotlight:

Tech Mahindra lost 0.08%. The IT major said that its wholly owned subsidiary Tech Mahindra (Singapore) has approved the proposal to acquire 80% equity shares in Geomatic.AI. Tech Mahindra is creating a next-generation artificial intelligence firm Geomatic.AI to focus on digital platforms led non-linear growth, in partnership with AusNet Services, an Australian energy & utilities distributor. Geomatic.AI will build digital twins for linear assets leveraging cloud, drone and mobility technologies in the geospatial domain. As part of this deal, Tech Mahindra will have 80% equity shareholding in Geomatic.AI, for a cash consideration of 6 million Australian dollars (AUD).

Info Edge (India) declined 2.16%. The company said that it has entered into an agreement to acquire securities in Juno Learning (Juno) for an amount of about Rs 11.25 crore. Juno is engaged in the business, which is an interactive, online school that teaches sales techniques, processes, and tools to students and entry-level professionals in an experiential manner, to enhance employability. Juno is newly incorporated and is under first year of its operations. As part of the Info Edge's strategy, the investment would help the company create and consolidate its presence into a niche vertical of "Sales upskilling". It perfectly fits into the company's playbook to invest in adjacencies to recruitment and education verticals and create synergies with its existing businesses.

Punjab & Sind Bank advanced 3.13%. The public sector lender declared IL&FS Tamil Nadu Power as fraud account and has considered it as bad asset with dues of over Rs 148 crore. The bank has reported it to the Reserve Bank of India. Punjab & Sind Bank said that it had already made provisions amounting to Rs 59.54 crore, as per prescribed prudential norms. Meanwhile, the bank's board will meet on 17 February 2022 to consider allotting equity shares worth upto Rs 4,600 crore to the Government of India by way of preferential issue of equity shares.

Tilaknagar Industries rose 1.04%. The company said that its Shrirampur bottling facility in Maharashtra has commenced production of brands of French multinational Pernod Ricard India from 15 February 2022.

Torrent Power slipped 1.41%. The firm, along with Blue Daimond Properties and Balrampur Chini Mills (the sellers) completed the acquisition of 100% stake of Visual Percept Solar Projects. Last Thursday, the company had announced that it has entered into a share purchase agreement with Blue Daimond Properties and Balrampur Chini Mills for the acquisition of 100% equity share Capital of Visual Percept Solar Project. Visual Percept Solar Project operates 25 MW solar power in Gujarat. Torrent Power further said that the Long-term Power Purchase Agreement (PPA) for the project is with Gujarat Urja Vikas Nigam for a period of 25 years. The enterprise value estimated for the acquisition was Rs 163 crore.

Global Markets:

European shares fell across the board while Asian stocks advanced on Wednesday as investors assessed the geopolitical outlook following Russia's partial withdrawal from the Ukrainian border, while corporate earnings season rumbles on.

Markets around the world rallied on Tuesday after Russia announced that it had begun returning some troops to deployment bases after training exercises near the Ukrainian border, assuaging fears of an imminent invasion and raising hopes of a de-escalation of recent tensions with the West. However, Western officials and Ukrainian President Volodymyr Zelenskyy urged caution in taking Russia's claims at face value, as per media houses.

In Asia, China's consumer price index for January rose 0.9% as compared with a year ago. Chinese producer inflation for January rose 9.1% as compared with a year earlier.

In Europe, U.K. inflation came in at an annual 5.5% in January, remaining at a 30-year high. On a monthly basis, consumer prices contracted by 0.1%.

Powered by Capital Market - Live News

Also Read

First Published: Feb 16 2022 | 3:43 PM IST

Next Story