INDICES END NEAR FLAT LINE, NIFTY SETTLES BELOW 18,500; NSE VIX SLIPS TO 13.32

Published on Dec 12, 2022 17:04

Domestic equity benchmark indices ended almost flat on Monday. The Nifty settled a tad below the 18,500 mark after hitting the day`s high of 18,521.55 in mid-morning trade. Negative global cues and foreign capital outflows dampened investor sentiment. Investors were cautious ahead of the U.S. Federal Reserve meeting later this week. IT, pharma and consumer durables stocks declined. On the other hand, PSU banks and oil & gas stocks advanced.

The barometer index, the S&P BSE Sensex, declined 51.10 points or 0.08% to 62,130.57. The Nifty 50 index rose 0.55 points or 0.01% to 18,497.15.

Asian Paints (down 1.94%), Infosys (down 1.39%), Titan Company (down 1.24%) and Kotak Mahindra Bank (down 1.05%) were major drags.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 0.30% while the S&P BSE Small-Cap index added 0.36%.

The market breadth was positive. On the BSE, 1,815 shares rose and 1,773 shares fell. A total of 198 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, fell 1.18% to 13.32.

On the domestic macro front, the industrial production and manufacturing production data for October will be released today, 12 December 2022. Inflation rate for November will also be declared today.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper declined to 7.296 as compared with 7.299 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 82.53, compared with its close of 82.28 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement lost 0.20% to Rs 54,189.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.14% to 104.95.

The United States 10-year bond yield fell 0.92% to 3.534.

In the commodities market, Brent crude for February 2023 settlement rose 41 cents or 0.54% to $75.69 a barrel.

Global Markets:

Most shares in Europe and Asia declined on Monday as investors looked ahead to a Fed meeting and U.S. inflation data this week.

The U.K. economy grew by 0.5% month-on-month in October, staging a rebound from September`s 0.6% contraction. The previous month`s figures were affected by a one-off public holiday to mark the funeral of Queen Elizabeth II. The Bank of England projects that the economy is already in a recession that could endure throughout 2023.

US stocks fell Friday after wholesale inflation rose more than expected last month, raising concerns that the Federal Reserve will keep rates higher for longer.

Wholesale prices in the United States rose 7.4% in November from a year earlier. The latest year-over-year figure was down from 8% in October and from a recent peak of 11.7% in March.

The US consumer inflation report will be unveiled on Tuesday (13 December).

The Federal Reserve Is set to begin its two-day meeting on Tuesday. The U.S. central bank to widely expected raise rates by half a percentage point Wednesday. The latest reading for the U.S. consumer price index is also slated for Tuesday.

Thursday (15 December) will also see monetary policy decisions from the Bank of England, European Central Bank and the Swiss National Bank.

New Listing:

Shares of Uniparts India closed at Rs 539.55 on the BSE, at a discount of 6.49% to the issue price of Rs 577 per share.

The scrip was listed at Rs 575, at a discount of 0.35% to the issue price. The stock has hit a high of 577 and a low of 536.15. On the BSE, over 5.06 lakh shares of the company changed hands at the counter.

IPO Update:

The initial public offer (IPO) of Sula Vineyards received bids for 50.37 lakh shares as against 1.88 crore shares on offer, according to stock exchange data at 15:30 IST on Monday (12 December 2022). The issue was subscribed 27%.

The issue opened for bidding on Monday (12 December 2022) and it will close on Wednesday (14 December 2022). The price band of the IPO is fixed at Rs 340-357 per share. An investor can bid for a minimum of 42 equity shares and in multiples thereof.

The initial public offer (IPO) of Abans Holdings received bids for 13.87 lakh shares as against 1.28 crore shares on offer, according to stock exchange data at 15:30 IST on Monday (12 December 2022). The issue was subscribed 11%.

The issue opened for bidding on Monday (12 December 2022) and it will close on Thursday (15 December 2022). The price band of the IPO is fixed at Rs 256-270 per share. An investor can bid for a minimum of 55 equity shares and in multiples thereof.

Stocks in Spotlight:

Bharti Airtel lost 0.86%. The special committee of directors for fund raising has approved the allotment of 1,188,917 fully paid-up equity shares of face value Rs 5 each at a conversion price of Rs 521 per equity share to holders of FCCBs upon conversion.

One 97 Communications (Paytm) declined 3.10%. The company said its lending business witnesses a 150% year on year (YoY) growth during the two months ended November 2022. The number of loans disbursed through the company`s platform zoomed 150% YoY to 6.8 million cumulative loans in two months ended November 2022, while the value of loans disbursed grew 374% YoY to Rs 6,292 crore ($774 million).

Adani Total Gas added 0.43%. The company announced the receipt of letter of award (LoA) from Convergence Energy Services for setting up and operating electric vehicle charging stations across various cities. The contract involves supply, installation, testing, commissioning, operation and maintenance of electric vehicle charging stations in eight cities (Ahmedabad, Bengaluru, Chennai, Delhi, Kolkata, Mumbai, Pune and Surat) on build, own and operate (BOO) model for a period of eight years.

Hindustan Oil Exploration Company (HOEC) rallied 3.13% after the company said that it has resumed oil production from D-1 well in its B-80 field, located in western offshore, after arresting a leak in the SCSSV control line.

Escorts Kubota fell 0.10%. The company announced that it appointed Harish Lalchandan as the chief commercial officer to head the domestic tractor business for agri machinery with effect from 12 December 2022.

KPI Green Energy added 0.63% after the company said that it is developing solar power projects aggregating 24.90 megawatt peak (MWp) capacity from various captive customers under the `Captive Power Producer (CPP)` segment. The execution of the said project is being executed through two wholly owned subsidiaries of the company viz., KPIG Energia and Sundrops Energia.

NTPC shed 0.30%. The state-run power major said that it declared commercial operation of first part capacity of 162.27 megawatt (MW) out of 230 MW Ettayapuram Solar PV project at Tamil Nadu. In an exchange filing, NTPC said that the project was declared on commercial operation with effect from 12:00 hrs of 10 December 2022.

MTAR Technologies rose 1.95% after the company said that it has signed a MoU with Indian National Space Promotion and Authorization Centre (IN-SPACe) India for design and development of a two-stage to low earth orbit all liquid small satellite launch vehicle.