The benchmark indices broke four day losing trend on Thursday amid positive global cues. IT, oil & gas and consumer durables scrips were in demand. The Nifty closed a tad below 17,250 mark.
As per provisional closing data, the barometer index, the S&P BSE Sensex, rose 113.11 points or 0.20% at 57,901.14. The Nifty 50 index gained 27 points or 0.16% at 17,248.40.
The broader market corrected. The S&P BSE Mid-Cap index shed 0.70% while the S&P BSE Small-Cap index fell 0.65%.
The market breadth was negative. On the BSE, 1,515 shares rose and 1,834 shares fell. A total of 104 shares were unchanged.
Global cues were positive after the US central bank on Wednesday announced that it would put an end to its pandemic-era bond purchases in March and would raise the interest rates thrice in the upcoming year to battle growing inflation.
Attention now turns to policy announcements later Thursday from the European Central Bank and the Bank of England, which are also aiming to control the heated inflation.
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Economy:
India has attracted highest ever annual Foreign Direct Investment, FDI inflow of 81.97 billion US dollars in the current fiscal year despite the challenges posed by COVID-19 pandemic. This was stated by Minister of State for Commerce and Industry Som Parkash in a written reply in the Lok Sabha on 15 December 2021.
The Minister said, India has received FDI inflow worth 440.27 billion US dollars in the last seven years. He said, this is nearly 58% of the FDI reported in the last 21 years. He said, India is becoming a preferred investment destination amongst global investors.
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.
Primary Market:
The initial public offer (IPO) of Supriya Lifescience received bids for over 2.81 crore shares as against 1.45 crore shares on offer, according to stock exchange data at 15:12 IST on Thursday (16 December 2021). The issue was subscribed 1.94 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 Data Patterns (India) received bids for over 75.33 crore shares as against 70.97 lakh shares on offer, according to stock exchange data at 15:12 IST on Thursday (16 December 2021). The issue was subscribed 106.15 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 initial public offer 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 1.70 crore shares as against 25.28 lakh shares on offer, according to stock exchange data at 15:12 IST on Thursday (16 December 2021). The issue was subscribed 6.74 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 Consumer Durables index rose 0.33% to 28,328.70. The index lost 1.76% in the past five trading sessions.
Amber Enterprises (up 3.86%), Titan Company (up 1.59%), Kajaria Ceramics (up 1.35%), Orient Electric (up 0.91%) and Havells India (up 0.76%) were the top gainers in the Consumer Durables segment.
Stocks in Spotlight:
Shares of ICICI Bank (down 1.37%) and Punjab National Bank (down 1.01%) declined after the Reserve Bank of India imposed a monetary penalty on the two lenders for non-compliance with certain regulations.
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.80 crore on Punjab National Bank for contravention of certain section of the Banking Regulation Act, 1949 (the Act). PNB had held shares in borrower companies, as pledgee, of an amount exceeding thirty per cent of paid-up share capital of those companies.
In the case of ICICI Bank, the RBI has imposed a monetary penalty of Rs 30 lakh, after conducting a statutory inspection for supervisory evaluation of the bank. The central bank found that the private lender had not been complying with the directions related to levy of charges for non-maintenance of minimum balance in saving accounts.
Ashoka Buildcon fell 1.35%. The firm received the order for the execution of the work of construction of rock fill embankment and subgrade work for Navi Mumbai International Airport project. The company had submitted offer to Howe Engineering Projects (India) in respect of the project viz. work of construction of rock fill embankment and subgrade work for Navi Mumbai International Airport.
Syngene International rose 0.11%. The company announced the extension of its long-standing multi-discipline research collaboration with Amgen Inc, a US-based biotechnology firm till 2026. The contract is currently extended until the end of 2026 and its scope includes integrated drug discovery and development solutions in discovery chemistry and biology, peptide chemistry, antibody and protein reagents, pharmacokinetics and drug metabolism and pharmaceutical development.
SeQuent Scientific dropped 4.49%. The company has signed definitive agreement to acquire 100% stake in Nourrie Sae e Nutrio Animal (Nourrie) in Brazil. SeQuent Scientific (SeQuent) operates in animal health sector through its principal operating company, Alivira Animal Health. The acquisition marks Alivira's foray into Brazil's pet market, fastest growing segment in Brazil, and 4th largest pet market in the world. The acquisition will be made through Evance Saude Animal Health (Evance), subsidiary of Alivira Brazil, for a cash consideration of Brazilian Real (BRL) 27 million and is expected to close in Q4 FY22.
Tata Power Company declined 2.37%. The company said that its wholly owned subsidiary TP Saurya (TSPL) received the letter of award (LoA) from Maharashtra State Electricity Distribution Company (MSEDCL) for setting up of 300 MW hybrid power capacity. This project has been awarded through tariff-based competitive bidding followed by e-reverse auction. The company has received this letter of award (LoA) in a bid announced by MSEDCL. The project will be commissioned within 18 months from the date of PPA execution.
Bharat Electronics slipped 0.02%. The state-run defence firm received an order worth Rs 2,400 crore from Hindustan Aeronautics (HAL) for the manufacture and supply of 20 types of airborne electronic systems to be fitted on the fighter aircraft. The order spans for five years from 2023 to 2028 involving the supply of critical avionic Line Replaceable Units (LRUs) related to Digital Flight Control Computers, Air Data Computers, Weapon Computers, LRUs related to Radar Warning Receiver (RWR) and Head Up Display.
Global Markets:
Shares in Europe and Asia advanced on Thursday, 16 December 2021, as investors were digesting the U.S. central bank's signal on Wednesday that it would be aggressive on tapering bond purchases and sees several rate hikes in 2022.
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, with two in the following year and another two in 2024. The decision to aggressively ease bond purchases follows recent inflation data showing a 6.8% surge in November.
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.
In Asia, 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.
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