Market wrap: Benchmarks end lower for a second day; Sensex slips 166 pts

Top headlines

• Benchmarks end lower for a second day; Sensex slips 166 pts, Nifty holds 17,300

• NBFCs to come under the ambit of PCA framework from Oct 2022

• Shriram Transport Finance slumps 7% as analysts see limited near-term synergy after merger

• Anand Rathi Wealth debuts at 9% premium

• WPI-based inflation hits 12-year high of 14.2% in Nov

• Data Patterns IPO sails through on first day

Investors chose to stay on the sidelines for a second straight day on Tuesday as major central banks meet this week to assess risks from the new Omicron variant of coronavirus.

The global balancing act will begin later today when the US Federal Reserve convenes its latest two-day meeting, and includes new monetary policy statements by the US central bank on Wednesday. Meanwhile, the European Central Bank and the Bank of England will meet on Thursday, and the Bank of Japan on Friday.

That apart, studies that the Omicron variant has the potential to drive a further wave of infections, including among those already vaccinated, soured sentiment on the Street.

Back home, India's annual wholesale price index-based inflation in November accelerated to 14.23 per cent, its highest level since April 2005, boosted by increase in manufacturing and food prices, fuelling concerns of rising inflationary pressure.

All these triggers drove bulls away from the Street, taking benchmarks down by 0.3 per cent today. The BSE Sensex slipped 166 points to end at 58,117, while the Nifty50 closed 43 points lower at 17,325.

In the intra-day deals, the BSE benchmark oscillated over 500 points and the Nifty swung 150 points.

ITC, down nearly 3 per cent, was the top drag on the Sensex today after the company held its first ever analysts' meet. Among the notable announcements, ITC informed investors that it was redefining its portfolio, accelerating FMCG exports, considering digital as an area of investment, and was fuelling growth in hotel business.

Bajaj Finance, Kotak Bank, Bharti Airtel, RIL, and Bajaj Finserv were some of the other top laggards.

On the upside, Power Grid, Nestle India, Axis Bank, and Dr Reddy's Labs were the outperforming counters on the Sensex.

In the broader markets, the BSE MidCap slipped 0.4 per cent, while the BSE Smallcap ended with minor gains.

Among individual stocks, Anand Rathi Wealth listed at Rs 602.05, a 9 per cent premium over its issue price of Rs 550 per share, on the BSE. After listing, the stock moved higher to Rs 615 but pared gains to end at Rs 583.5, up 6 per cent over the issue price.

The shares of Shriram Transport Finance plunged 7 per cent intra-day, to Rs 1,371 on the BSE, as most analysts saw limited near-term upside for the company after its proposed merger with Shriram Capital and Shriram City Union Finance. This was on the back of limited scope for synergies, given the varied nature of operating business segments and underlying customer base, analysts said.

The shares of Lupin, meanwhile, surged 10 per cent to Rs 972.50 in intra-day trade after the drug-maker announced that it had received the Establishment Inspection Report from United States Food and Drug Administration (US FDA) for its Goa manufacturing facility. The shares ended 6.6 per cent higher on the BSE.

Among sectors, the Nifty Pharma index rallied 1 per cent, while the Nifty Realty and Financial Services indices slipped 0.7 per cent each.

The Financials services sector, however, will be in focus tomorrow as the RBI has decided to bring NBFCs under its Prompt Corrective Action Framework from Oct 1, 2022.

Now, let's recap primary market activity. The initial public offering of Data Patterns sailed through on the very first day and stood with 2.5 times subscription as at 3:30 PM.

Further, the IPO of MedPlus Health has been subscribed 1.3 times so far on strong demand from retail investors and employees of the company.

Lastly, the public issue of Rakesh Jhunjhunwala-backed Metro Brands has been subscribed 3 times so far on the final day of the offer.