Domestic equity benchmarks ended with minor losses on Tuesday, tracking negative global cues. Global investors were rattled by a surprise monetary policy shift by the Bank of Japan. BoJ stunned markets by deciding to review its yield curve control policy and widen the trading band for the 10-year government bond yield. Investors were concerned that aggressive monetary policy moves by global central banks could push the world economy into recession.
After opening at 18,340.30, the Nifty 50 index hit a low of 18,202.65 in mid morning trade. The index recovered as the session progressed and settled above 18,380 mark. Realty, auto and telecom shares tumbled while IT, metal and oil & gas shares bucked the weak market trend.
The barometer index S&P BSE Sensex declined 103.90 points or 0.17% to 61,702.29. The Nifty 50 index lost 35.15 points or 0.19% to 18,385.30.
SBI Life Insurance Company (down 2.85%), Hindustan Unilever (HUL) (down 1.60%) and HDFC Bank (down 0.79%) were major drags.
Adani Enterprises (up 2.03%), TCS (up 1.29%) and Reliance Industries (up 0.81%) supported the indices.
In the broader market, the S&P BSE Mid-Cap index declined 0.27% while the S&P BSE Small-Cap index shed 0.02%.
The market breadth was negative. On the BSE, 1,597 shares rose and 1,940 shares fell. A total of 120 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 1.67% to 13.78.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose to 7.299 as compared with 7.297 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 82.7550, compared with its close of 82.6250 during the previous trading session.
MCX Gold futures for 3 February 2023 settlement gained 0.85% to Rs 54,719.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.68% to 104.01.
The United States 10-year bond yield jumped 2.36% to 3.668.
In the commodities market, Brent crude for February 2023 settlement added 29 cents or 0.36% to $80.09 a barrel.
Global Markets:
Shares in Europe and Asia slumped on Tuesday after Bank of Japan's surprise policy tweak.
Yen soared to 4-month high after the Japanese central bank decided to allow the 10-year bond yield to move 50 basis points either side of its 0% target, wider than the previous 25 basis point band. BoJ, however, kept its yield target unchanged and said it will sharply increase bond buying, a sign the move was a fine-tuning of existing ultra-loose monetary policy rather than a withdrawal of stimulus.
Meanwhile, the People's Bank of China maintained its one-year loan prime rate at 3.65% and its five-year loan prime rate at 4.30%, in line with expectations.
US stocks closed lower on Monday for a fourth straight session as investors shied away from riskier bets, worried the Federal Reserve's tightening campaign could push the US economy into a recession.
Stocks in Spotlight:
Life Insurance Corporation of India (LIC) rose 0.74% and Indian Railway Catering and Tourism (IRCTC) fell 0.38%. The life insurer disclosed that it increased its stake in IRCTC to 7.278% from 5.005% earlier. LIC bought 1,81,80,323 shares, or 2% equity, at an average cost of Rs 692.28 via open market purchase during the period from 17 October 2022 to 16 December 2022.
Balrampur Chini Mills rallied 3.62%. The company said that on Monday (19 December 2022), the company has commenced commercial production of rectified spirit / industrial alcohol for the additional capacity of 170 kilo litre per day (KLPD) at Balrmapur Unit.
Hinduja Global Solutions (HGS) slipped 3%. The board of HGS on 19 December 2022 approved a share buyback of upto Rs 1,020 crore through a tender offer route. The maximum buyback price is set at Rs 1,700 per share. The buyback will be on a proportionate basis through a tender offer process. The record date to determine the eligibility of the shareholders will be sometime in early February 2023 (i.e. post completion of postal ballot).
Meanwhile, the nomination & remuneration committee (NRC) and the board of directors (BoD) appointed Ashok P. Hinduja to the board. The NRC and the BoD also appointed Munesh Khanna to the board as an independent director.
Just Dial declined 2.32% after Reliance Retail Ventures (RRVL), company's promoter intended to sell equity shares of the company through open market for the purpose of complying with the requirements of minimum public shareholding. As on 30 September 2022, the promoter and promoter group held 76.98% stake in Just Dial, of which RRVL held 66.40%. As per regulatory norms, the total promoter holding in a company must not exceed 75%.
Ramco Systems jumped 6.91% after the company said its board will consider fund raising on Thursday, 22 December 2022.
Mahanagar Gas added 0.35%. The company's board has approved the appointment of Ashu Shinghal, as additional executive director designated as MD in place of Sanjib Datta, the incumbent MD of the company with effect from close of business hours of 23 December 2022.
NBCC (India) rose 0.60%. The civil construction company has been awarded with the work of 'Construction of new multistoried quarter complex consisting of 100 nos. of quarters by demolishing the existing 224 nos. quarters at Bhoinager, Bhubaneswar' by Odisha Power Transmission Corporation Limited (OPTCL) for a total value of Rs 69.3 crore.
IPO Updates:
The initial public offer (IPO) of KFin Technologies received bids for 1,66,01,920 shares as against 2,37,75,215 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (20 December 2022). The issue was subscribed 70%.
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 52,35,360 shares as against 1,42,09,386 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (20 December 2022). The issue was subscribed 37%.
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.
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