Key equity benchmarks ended with deep losses on Monday. The Nifty opened with strong gains and hit the day's high of 17,639.50 in morning trade. However, profit selling dragged the index lower in early afternoon trade and it finally settled below the 17,400 mark. Barring the Nifty IT index, all the sectoral indices on the NSE ended in the red. Realty, oil & gas and PSU banks witnessed major selling.
The barometer index, the S&P BSE Sensex, tumbled 503.25 points or 0.86% at 58,283.42. The Nifty 50 index dropped 143.25 points or 0.82% to 17,368.25.
Reliance Industries (down 2%), HDFC (down 1.39%), Bajaj Finance (down 3.10%), Bajaj Finserv (down 2.14%) and HDFC Bank (down 0.77%) were major drags.
In the broader market, the S&P BSE Mid-Cap index fell 0.53% while the S&P BSE Small-Cap index rose 0.24%.
The market breadth was positive. On the BSE, 1,912 shares rose and 1,554 shares fell. A total of 171 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 3.17% at 16.57.
Economy:
India's index of industrial production (IIP) grew by 3.2% in October 2021, according to the data released by the Ministry of Statistics & Programme (MoSPI) on Friday. Industrial output, as measured by IIP, leapt 4.5% in October 2020 and surged 3.1% in September. Meanwhile, the mining output during October (2021) rose by 11.4%, whereas, manufacturing sector output jumped 2%. Electricity generation in October grew 3.1%.
As per the BRICS Economic Bulletin 2021 released by the Reserve Bank of India (RBI) on 10 December 2021, India's recovery from the slowdown inflicted by the COVID-19 pandemic is projected to be higher than other member nations.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.371% as compared with 6.370% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 75.77, compared with its close of 75.78 during the previous trading session.
MCX Gold futures for 4 February 2022 settlement rose 0.13% to Rs 48,226.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.31% to 96.375.
In the commodities market, Brent crude for February 2022 settlement rose 16 cents or 0.21% to $75.31 a barrel.
Global Markets:
Shares in Europe and Asia displayed mixed trend on Monday. Investors are awaiting the US Federal Reserve's policy decision, due on Wednesday. The Fed is among the 20 central banks due to meet throughout the week, with the group also including the European Central Bank, the Bank of England and the Bank of Japan.
Geopolitical tensions are on the rise after the Group of Seven reportedly warned Russia on Sunday to de-escalate its activities around Ukraine or face "massive consequences."
In the U.K., the government raised the coronavirus threat level on Sunday and warned the rapid spread of the omicron strain pushed the country into risky territory. Prime Minister Boris Johnson reportedly said the U.K. faces a "tidal wave" of COVID-19 cases caused by the new variant.
On Friday, data showed US consumer prices continued to surge in November, climbing 6.8% compared to the same month in 2020, the biggest jump since June 1982.
Buzzing Segment:
The Nifty PSU Bank index fell 1.34% to 2,758.90. The index rose 7.79% in the past four sessions.
Union Bank of India (down 2.16%), Canara Bank (down 2.14%), Indian Overseas Bank (down 1.97%), Jammu & Kashmir Bank (down 1.54%), Central Bank of India (down 1.29%), State Bank of India (down 1.25%), Punjab National Bank (down 1.23%), Bank of Baroda (down 1.22%), Indian Bank (down 0.81%), UCO Bank (down 0.73%) and Punjab & Sind Bank (down 0.29%) declined.
Stocks in Spotlight:
Satin Creditcare Network advanced 2.10% after the company said that it has entered into an agreement to acquire approximately 9% stake in Jay Kay Financial Technologies (Rupyo). Jay Kay Financial Technologies is engaged in the business of earned wage access related solutions. Satin Creditcare will acquire compulsory convertible preference shares of Rupyo for cash consideration, at a mutually agreed pre-money enterprise valuation.
Shriram Transport Finance fell 1.10%. On Monday, the company announced that it will merge Shriram Capital (SCL) and Shriram City Union Finance (SCUF) with itself as part of restructuring in the group. Pursuant to the merger, Shriram Transport will issue 1.55 shares for every one share of SCUF and 0.09783305 share for every 1 share of SCL, STFC said in a regulatory filing. The new entity will be named Shriram Finance. The boards of three companies have approved the merger of SCL & SCUF with STFC. The merger is subject to the approval of shareholders of three companies and regulatory bodies like Reserve Bank of India and National Housing Bank etc.
Greenlam Industries gained 0.07%. The company's board approved a proposal of splitting each equity share of face value of Rs 5 into five equity shares of face value of Re 1 each. Further, the company informed that the board of its wholly owned subsidiary Greenlam South (GSL) has approved setting up a greenfield project for manufacturing of particle board and allied products at Naidupeta, Nellore in Andhra Pradesh. The investment required for this project is Rs 600 crore and the plant would be operational by the fourth quarter of financial year 2023-24.
Nazara Technologies hit an upper circuit of 5% at Rs 2,446.30 after its material subsidiary, NODWIN Gaming acquired 10% stake in the digital content IP media network, Rusk Media. Rusk Media is an India-based Gen-Z digital content IP network. The content is tailor made for audiences in the 15-25 age group with a focus on equal viewership across genders. As per the company's press release, NODWIN Gaming's investment in Rusk Media will enable the massification of entertainment-first gaming and esports content in the country and enable media platforms to have access to content that the above-mentioned cohort is looking for.
Antony Waste Handling Cell rose 9.40% after the company said its subsidiary, AG Enviro Infra Projects ("AG Enviro"), has received a letter of intent for door-to-door collection and transportation (C&T) of municipal solid waste to disposal site and operation & maintenance of equipment/machineries. The contract is from City - Sadar Paharganj Zone of North Delhi Municipal Corporation (NDMC).
This contract is for a period of ten years for collection and transportation of about 1,000 tons per day. Approximate project revenue in 10 years is expected at Rs 1,000 crore.
Venky's (India) rose 3.76% after the company said it is setting up a new project for manufacturing veterinary medicine products under its animal health product segment.
Gravita India rose 5.10% after the company said it commenced operations of its new battery recycling unit at Mundra Port, Gujarat.
New Listing:
Shares of Tega Industries settled at Rs 725.50 on the BSE, at a premium of 60.15% as compared to the issue price of Rs 453. The scrip was listed at Rs 753, at a premium of 66.22% to the issue price. The scrip has hit a high of 767.10 and a low of 711.50. Over 10.84 lakh shares of the company changed hands in the counter on the BSE.
The initial public offer (IPO) of Tega Industries received bids for 2,09,58,69,600 shares as against 95,68,636 shares on offer. The issue was subscribed 219.04 times. The non-institutional investors category was subscribed 666.19 times. The qualified institutional buyers category was subscribed 215.45 times. The retail investors category was subscribed 29.44 times. The issue opened for bidding on 1 December 2021 and it closed on 3 December 2021. The price band of the IPO was fixed at Rs 443-453.
Primary Market:
The initial public offer (IPO) of MedPlus Health Services received bids for over 84.66 lakh shares as against 1.25 crore shares on offer, according to stock exchange data at 16:33 IST on Monday (13 December 2021). The issue was subscribed 67%.
The issue opened for bidding on 13 December 2021 and it will close on 15 December 2021. The price band of the IPO is fixed at Rs 780-796. An investor can bid for a minimum of 18 equity shares and in multiples thereof. The IPO of equity shares comprises of a fresh issue upto Rs 600 crore and an offer for sale of up to Rs 798.29 crore (including anchor portion of 52,51,111 equity shares).
The IPO of Metro Brands received bids for over 98.96 lakh shares as against 1.91 crore shares on offer, according to stock exchange data at 16:33 IST on Monday (13 December 2021). The issue was subscribed 52%.
The issue opened for bidding on Friday, 10 December 2021 and it will close on 14 December 2021. The price band of the IPO is fixed at Rs 485-500. An investor can bid for a minimum of 30 equity shares and in multiples thereof. The Initial Public Offer of (IPO) equity shares comprising of fresh issue of Rs 295 crore and an offer for sale of upto 2,14,50,100 equity shares (including anchor portion of 82,05,030 equity shares).
The IPO of C.E. Info Systems (MapMyIndia) received bids for over 108.95 crore shares as against 70.44 lakh shares on offer, according to stock exchange data at 16:33 IST on Monday (13 December 2021). The issue was subscribed 154.67 times.
The issue opened for bidding on Thursday, 9 December 2021 and it will close on 13 December 2021. The price band of the IPO is fixed at Rs 1,000-1,033. An investor can bid for a minimum of 14 equity shares and in multiples thereof. The initial public offer stands up to 1,00,63,945 equity shares (including anchor portion of 30,19,183 equity shares).
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