The domestic equity barometers were trading near the flat line in mid-morning trade. The Nifty was trading below the 17,250 mark. Most Asian indices declined.
At 11:24 IST, the barometer index, the S&P BSE Sensex, was up 8.64 points or 0.01% to 57,906.12. The Nifty 50 index was down 2.15 points or 0.01% to 17,231.10.
In the broader market, the S&P BSE Mid-Cap index rose 0.16% while the S&P BSE Small-Cap index gained 0.38%.
The market breadth was strong. On the BSE, 2034 shares rose and 1167 shares fell. A total of 125 shares were unchanged.
Economy:
The Securities and Exchange Board of India (SEBI) on December 28 cleared the rules for tightening initial public offerings (IPOs) near the end of a year in which companies raised a record Rs.1.2 lakh crore in first-time share sales.
These rules will address gaps like conditions for the objective of IPOs, utilisation of proceeds from the share sales, price bands, anchor investors' lock-in period and the size of the stake a majority shareholder may sell on listing day.
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Currently, shareholders can sell their entire shareholding through an offer for sale, but the market regulator has now mandated that shareholders who hold 20% or more cannot exit more than 50% of their stake on listing day.
Buzzing Segment:
Shares of domestic pharmaceutical companies gained on Wednesday as the Drug Controller General of India approved the anti-COVID-19 pill Molnupiravir for emergency use in the country on Tuesday.
Strides Pharma (down 0.11%) will launch the capsule immediately while other homegrown pharma companies such as Aurobindo Pharma (up 0.54%), Natco Pharma (up 0.94%), Dr Reddy's (up 1.72%) and Cipla (up 0.92%) have announced rolling out their generic versions of the drug shortly.
According to the Union Health Minister Mansukh Mandaviya, 13 companies in India will reportedly manufacture the drug approved for restricted use under emergency situation for treatment of adult patients with COVID-19 and who have high risk of progression of the disease.
Stocks in Spotlight:
Amara Raja Batteries rose 0.79% to Rs 622.65. The company on Wednesday announced plans to invest in InoBat Auto, a European technology developer and manufacturer of premium innovative batteries for E-mobility.
Shree Ganesh Biotech (India) surged 15.11% to Rs 184.75 after the company fixed 11 February 2022 as the record date for the proposed 10-for-1 stock split.
Global Markets:
Most Asian stocks were trading lower on Wednesday as investors assessed the impact of the omicron Covid variant.
A study from South Africa found the immune response of people infected with the omicron Covid variant appears to increase protection against delta more than fourfold and could displace it.
US stocks were mixed Tuesday as investors continued to look to pandemic news for direction with the threat of the omicron variant looming large. The S&P 500 closed slightly lower after hitting a record intraday high on Tuesday.
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