Sensex jumps 385 pts, Nifty settles above 17,000; NSE VIX drops below 16 mark

The domestic equity benchmarks ended with modest gains on Thursday. The Nifty closed above the 17,050 mark after hitting the day`s high of 17,118.65 in afternoon trade. Realty, PSU banks and FMCG shares were in demand. Trading was volatile due to expiry of weekly index options on the NSE today.

The barometer index, the S&P BSE Sensex, rose 384.72 points or 0.68% to 57,315.28. The Nifty 50 index gained 117.15 points or 0.69% to 17,072.60.

Sentiment was boosted by positive global cues. Investors reacted to a study out of South Africa suggesting a reduced risk of hospitalization and severe disease with omicron compared to delta. Meanwhile, the U.S. Centers for Disease Control and Prevention authorized an antiviral COVID-19 pill from Pfizer for people aged 12 and above at risk of severe illness.

In the broader market, the BSE Mid-Cap index rose 1.01% and the BSE Small-Cap index gained 0.73%.

The market breadth was strong. On the BSE, 2194 shares rose and 1122 shares fell. A total of 133 shares were unchanged.

The NSE`s VIX index, a gauge of market`s expectation of volatility over the near term, dropped 4.55% to 15.83.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.460% as compared with 6.464% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 75.2450, compared with its close of 75.54 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement fell 0.04% to Rs 48,181.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was flat at 96.08.

In the commodities market, Brent crude for February 2022 settlement fell 7 cents at $75.22 a barrel. The contract rose $1.31, or 1.77% to settle at $75.29 a barrel in the previous trading session.

Foreign Markets:

Shares in Europe and Asia rose across the board on Thursday, as traders looked to signs that the omicron coronavirus variant is not as severe as previously feared.

The US Dow Jones index futures were up 100 points, indicating a positive opening in the US market today.

The US economic growth slowed in the third quarter amid a flare-up in COVID-19 infections, the government confirmed on Wednesday. Gross domestic product increased at a 2.3% annualised rate, the Commerce Department said in its third reading of GDP growth for the July-September quarter.

Buzzing Segment:

The Nifty Realty rose 2.31% to 484.45. The index has risen 7.03% in three days.

Macrotech Developers (up 5.74%), Phoenix Mills (up 5.45%), Prestige Estates Projects (up 3.25%), Oberoi Realty (up 1.92%), DLF (up 1.6%), Sunteck Realty (up 1.38%), Godrej Properties (up 1.26%) and Brigade Enterprises (up 0.83%) advanced.

Stocks in Spotlight:

Ceinsys Tech hit an upper circuit limit of 20% at Rs 211.05 after the company`s board approved the acquisition of Allygrow Technologies for Rs 68.06 crore. Allygrow Technologies is a technology driven company having presence in US, Europe and India. It specializes in product design and robotics automation (manufacturing engineering) services.

Modi Naturals surged 8.24% after the company said it has decided to establish an Ethanol plant in Chhattisgarh. The investment over the next two years is expected to be approximately Rs 250 crore, with the first phase of 110 KLD being completed within a year with an investment of Rs 160 crore.

Kotak Mahindra Bank rose 0.74%. Kotak Mahindra Prime (Kotak Prime), a subsidiary of Kotak Mahindra Bank, announced that it has acquired the passenger vehicle finance portfolio of Ford Credit India Private Limited (FCIPL), the Indian captive financing arm of Ford Motor Company. FCIPL has been operating in India since 2015.

Indiabulls Real Estate shed 0.68%. The company said that its board has approved raising of funds up to Rs 1,500 crore to augment the long-term resources and to maintain sufficient liquidity for meeting funding requirements for business activities, existing & new projects & future business growth.

Great Eastern Shipping Company jumped 7.47%. The company said that a meeting of the board of directors is scheduled on 27 December 2021 to consider a share buyback.

PSP Projects added 2.95%. The company informed that Gujarat Pollution Control Board on 21 December 2021 granted a Consent to Establish (NOC) for setting up of industrial plant for manufacturing of precast. The company has started manufacturing activities. The NOC is valid upto 3 November 2028.

HFCL advanced 2.22%. The company received a purchase order of Rs 119.14 crore from one of the network and engineering service provider, for supplying optical fibre cables (OFC). The domestic order is expected to be completed within a period of nine months.

Transformers and Rectifiers (India) surged 5.34%. The company has been awarded orders of transformers for total contract value of Rs 72 crore from Gujarat Energy Transmission Corporation (GETCO). With this order, the company`s order book as on date stands around Rs 816 crore.

Nucleus Software Exports jumped 5.96% after the company`s consortium FPT Information System (FIS) was awarded a contract by Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank - VCB), one of the biggest commercial banks in Vietnam. The contract has been awarded for the consortium`s retail loan origination system.

New Listing:

Shares of Medplus Health Services closed at Rs 1120.85 on the BSE, a premium of 40.81% as against the issue price of Rs 796.

The scrip was listed at Rs 1015, representing a premium of 27.51% to the initial public offer (IPO) price. The scrip has hit a high of Rs 1143.10 and a low of Rs 1015. Over 11.99 lakh shares of the company have changed hands in the counter till now.

The IPO of Medplus Health Services was subscribed 52.59 times. The issue opened for bidding on 13 December 2021 and it closed on 15 December 2021. The price band of the IPO was fixed at Rs 780-796.

Primary Markets:

The initial public offer (IPO) of CMS Info Systems received bids for over 7.29 crore shares as against 3.75 crore shares on offer, according to stock exchange data at 16:33 IST on Thursday, (23 December 2021). The issue was subscribed 1.94 times.

The issue opened for bidding on 21 December 2021 and it will close today, 23 December 2021. The price band of the IPO is fixed at Rs 205-216. An investor can bid for a minimum of 69 equity shares and in multiples thereof. The Offer for Sale (OFS) of equity shares aggregates up to Rs 1,100 crore (including anchor portion of 1,52,77,777 equity shares).

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