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Sensex slides 635 pts, Nifty settles below 18,200, VIX soars 13%

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Last Updated : Dec 21 2022 | 4:31 PM IST

The domestic equity barometers ended with deep cuts on Wednesday. Healthcare, pharma and IT stocks were in demand. On the other hand, media, PSU bank and metal shares witnessed selling pressure.

After opening at 18,435.15, the Nifty 50 index slipped into the negative terrain and extended losses as the session progressed to settle a tad below the 18,200 level.

As per provisional closing data, the barometer index, the S&P BSE Sensex, was down 635.05 points or 1.03% to 61,067.24. The Nifty 50 index declined 186.20 points or 1.01% to 18,199.10.

In the broader market, the S&P BSE Mid-Cap index shed 1.40% while the S&P BSE Small-Cap index slipped 2.18%.

Seller outnumbered buyers. On the BSE, 786 shares rose and 2,765 shares fell. A total of 114 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 12.93% to 15.56.

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SEBI tweaks buyback rules:

On Tuesday, market regulator SEBI said it will allow listed companies to utilise 75% of their surplus funds for share buybacks instead of 50% earlier. SEBI has said that these buybacks will be slowly phased out from the secondary market exchange platforms and conducted on a separate window. This is to ensure transparency in the tender process. SEBI said it will also cut the time for share buyback to 66 days from the present 90-day period.

IPO Updates:

The initial public offer (IPO) of KFin Technologies received bids for 6,11,27,920 shares as against 2,37,75,215 shares on offer, according to stock exchange data at 15:27 IST on Wednesday (21 December 2022). The issue was subscribed 2.57 times.

The issue opened for bidding on Monday (19 December 2022) and it will close on Wednesday (21 December 2022). The price band of the IPO is fixed at Rs 347-366 per share. An investor can bid for a minimum of 40 equity shares and in multiples thereof.

The IPO of Elin Electronics received bids for 1,03,85,280 shares as against 1,42,09,386 shares on offer, according to stock exchange data at 15:27 IST on Wednesday (21 December 2022). The issue was subscribed 73%.

The issue opened for bidding on Tuesday (20 December 2022) and it will close on Thursday (22 December 2022). The price band of the IPO is fixed at Rs 234-247 per share. An investor can bid for a minimum of 60 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Pharma index rose 2.39% to 12,920.40. The index shed 0.22% in the past trading session.

Glenmark Pharmaceuticals (up 7.51%), Divis Laboratories (up 5.03%), Granules India (up 4.04%), Lupin (up 3.52%), Aurobindo Pharma (up 3.48%), Biocon (up 3.43%), Cipla (up 3.38%), Abbott India (up 3%), Ipca Laboratories (up 2.58%) and Zydus Lifesciences (up 2.48%) jumped.

Glenmark Pharmaceuticals jumped 7.51% after the pharmaceutical company announced the launch of first triple fixed-dose combination Teneligliptin with Pioglitazone and Metformin in India. Teneligliptin is a widely used DPP4 inhibitor (dipeptidyl peptidase 4 inhibitor). This FDC has been launched under the brand name Zita-PioMet, and contains Teneligliptin (20 mg) + Pioglitazone (15 mg) + Metformin (500mg/1000mg) in a sustained release (SR) formulation.

Lupin rallied 3.52% after the drug maker said that it has received an approval from the United States Food and Drug Administration (U.S. FDA) for its Abbreviated New Drug Application (ANDA) for Brivaracetam tablets. Brivaracetam is used to control partial onset seizures (seizures that involve only one part of the brain) in adults, children, and infants 1 month of age and older.

Stocks in Spotlight:

Jubilant FoodWorks shed 0.16%. The QSR chain operator announced on Tuesday that the 20-minute delivery has been introduced in 20 zones across 14 cities in India.

City Union Bank tumbled 6.25% after the bank said that the Reserve Bank of India has discovered divergence in additional gross NPA for the financial year ended March 2022, amounting to Rs 259 crore. The RBI conducted the on-site Inspection for Supervisory Evaluation (ISE) for the ended March 2022 from 7 October 2022 to 18 November 2022 and the final meeting concluded on 19 December 2022.

The private lender bank stated that divergence to the tune of Rs 259 crore consists of 13 borrower accounts with an outstanding balance of more than Rs 1 crore for an amount of Rs 230 crore and 218 borrowers with an outstanding balance of less than Rs 1 crore for an amount of Rs 29 crore. Out of these 231 borrowers, five accounts have already been classified as NPAs by the bank during first half of FY23 and 57 accounts stand close.

Bharti Airtel declined 1.52%. The telecom major on Tuesday announced that it has acquired about 8% stake in technology startup, Immensitas (Lemnisk) under its Start Up Accelerator Program. Lemnisk is a Bengaluru based start up that offers real-time marketing automation and secure customer data platform (CDP) capable of orchestrating 1-to-1 personalization and cross-channel customer journeys at scale that increases conversions, retention, and growth for enterprises.

Gail (India) slipped 3.07%. GAIL and Japan's Mitsui O.S.K. Lines (MOL) signed a time charter contract for a newbuilding LNG carrier and a joint ownership of an existing LNG carrier. The existing vessel still has been chartered to GAIL through a wholly owned MOL subsidiary from 2021 and even now, MOL's shipping service is highly regarded by GAIL. At this time, MOL and GAIL reached an agreement to share the vessel by transferring a portion of a wholly owned MOL subsidiary's shares to GAIL.

Meanwhile, the company announced that it has issued 15,750 senior, unsecured, listed, rated, taxable, non-cumulative, redeemable, NCDs of Rs 10 lakh each aggregating to Rs 1,575 crore, having a coupon rate of 7.34%.

Spandana Sphoorty Financial locked in a lower circuit of 5%. The company's board approved issue of non-convertible debentures having face value of Rs 10 lakh each aggregating up to Rs 300 crore in three rounds. Under each round, the company will issue 1,000 senior, secured, rated, listed, redeemable, non-convertible debentures having face value of Rs 10 lakh each aggregating up to Rs 100 crore. The rate of interest is fixed at 11.355 per annum.

Global Markets:

The Dow Jones futures were up 242 points, indicating a positive opening in the US stock market today.

Markets in Europe advanced across the board while Asian stocks ended mixed on Wednesday after Wall Street ended its four-day losing streak as global bonds rose after the Bank of Japan adjusted its yield curve control tolerance.

Meanwhile, Hong Kong's Chief Executive John Lee is reportedly scheduled to travel to Beijing as part of his annual visit until Saturday to brief state leaders on the city's economic, social and political situation.

US stocks closed slightly higher on Tuesday after four sessions of declines, but investors fretted about weak holiday shopping and rising bond yields added pressure after the Bank of Japan's (BoJ) surprise tweak of monetary policy.

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First Published: Dec 21 2022 | 3:50 PM IST

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