Stock Market Highlights Today: Nifty forms a bullish candle on daily chart. What does it signal for tomorrow's trade?

view original post

The benchmark indices continued their winning momentum for the second consecutive day on Wednesday as bottom hunters accumulated shares after about a 10 per cent drop from highs. After a gap-up opening, the benchmark continued to trade in a range, but the bias remained on the positive side. Buying in select heavyweights from banking and energy space helped the index to close around the day’s high as well. The 30-share pack Sensex rose 611.55 points or 1.09 per cent to close at 56,930.56. Its broader peer NSE Nifty climbed 184.60 points or 1.10 per cent to 16,955.45.

!1 New UpdateClick here for latest updates

Wall Street opens lower as Omicron worries persist

The Dow Jones Industrial Average fell 0.99 points, or 0.00 per cent, at the open to 35,491.71. The S&P 500 opened higher by 1.13 points, or 0.02 per cent, at 4,650.36, while the Nasdaq Composite dropped 21.93 points, or 0.14 per cent, to 15,319.16 at the opening bell.

Sebi’s total income down 15% to Rs 813 crore in 2019-20

Capital markets regulator Sebi’s total income declined by 15 per cent to Rs 813 crore in 2019-20 mainly due to a drop in earnings from fees and subscription. According to the annual accounts of Sebi made public on Wednesday, the total expenditure of the regulator rose to Rs 588.14 crore for the year ended on March 31, 2020, from Rs 492.34 crore in the previous fiscal.

Asianet Satellite Communications files papers for Rs 765 cr IPO

Leading internet service provider Asianet Satellite Communications Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 765 crore through an initial share sale. The initial public offering (IPO) consists of a fresh issue of equity shares aggregating to Rs 300 crore, and an offer for sale of up to Rs 465 crore by Hathway Investments, according to the draft red herring prospectus (DRHP). Proceeds from the fresh issue to the tune of Rs 160 crore will be used for part debt payment, Rs 75.04 crore for funding working capital requirements, and general corporate proposes.

RBI Policy Minutes: Governor bats for continued policy support

RBI Governor Shaktikanta Das pitched for continued policy support to nurture revival in sectors especially those which are exposed to the evolving headwinds in the wake of spread of Omicron variant of Covid, showed MPC minutes released by the central bank on Wednesday. The Monetary Policy Committee (MPC) on December 8 had unanimously voted for status quo on policy rates for the ninth consecutive time. (Source: PTI)

Low market volumes in the last few sessions have contributed to exaggerated market volatility. Despite a sharp correction in the last week, Retail net long open interest in stock futures has come off by only 2%, pointing to continued confidence in staying invested. Consumer-facing sectors like Banking & FMCG have broken critical moving averages pointing to a break in the medium-term uptrend. A consolidatory phase going into results season is expected as volumes would remain muted for the rest of December, since there are expected to be few triggers in terms of newsflow. IT sector continues to attract greater interest while bottom-fishing is seen in Auto sector. PSU banks appear relatively stronger than private banks, and Metals names are expected to resume their uptrend after finding support at the 2-year trendline.

– S Hariharan, Head- Sales Trading, Emkay Global Financial Services

Investors richer by over Rs 6.56 lakh cr in two days of market rally

Investors’ wealth jumped by Rs 6,56,828.59 crore as stock markets continued the rally for a second day on Wednesday. The 30-share BSE benchmark index zoomed 611.55 points or 1.09 per cent to 56,930.56. During the day, the benchmark jumped 670 points to 56,989.01. The market capitalisation of BSE-listed companies also gained Rs 6,56,828.59 crore to Rs 2,59,14,409.64 crore in two days.

Relief rally might continue for some time: Siddhartha Khemka, MOSL

The relief rally might continue for some time as market enters into a holiday mood. However volatility cannot be ruled out on account of potential risk from Omicron variant and fragile global cues. We suggest long term investors to take benefit of such volatility in the market and add on to their portfolios gradually at lower levels. Overall Selling pressure is intact at higher levels and any recovery or bounce is being used by traders to sell in the market. Thus, for the near to short term, we maintain a cautious view and suggest traders to continue with ‘Sell on Rise’ strategy.

Rupee gains for 3rd straight day, rises 5 paise vs US dollar

The rupee extended its recent winning streak against the US dollar, gaining for the third straight day, as banks persistently sold US dollars on account of corporate inflows and as the greenback retreated from near 17-month highs seen last week, dealers said.

What can influence market over coming days?

We’re seeing respite after the recent fall and participants should approach this with caution. Nifty may extend this rebound and the zone closer to 17,150 would now act as a hurdle. Importantly, the participation of the banking index is critical for any sustained move while other sectors are doing their bit. Amid all, the news related to the new COVID variant will remain on the market radar.

— Ajit Mishra, VP – Research, Religare Broking

Motilal Oswal Real Estate, the real estate private equity arm of Motilal Oswal Group has post the outbreak of COVID-19 cumulatively committed Rs 1,200 cr through its platform. Also, plans to invest over Rs 1000 cr in projects by March end

Domestic market is gaining ground amid a positive rebound in the global market. The rebound was broad-based while mid & small caps outperformed as the bargain opportunity led investors to accumulate the beaten-down stocks. The Omicron concerns and FII’s selling may keep investors in a cautious mode, it is a time for selective stock picking with a focus on defensive and growth-oriented sectors rather than rushing to the market.

– Vinod Nair, Head of Research at Geojit Financial Services

All sectors close higher; Realty best performer

Top 5 gainers & losers from today’s trade

Price as on 22 Dec, 2021 03:37 PM, Click on company names for their live prices.

Top Sensex contributors

CLOSING BELL: RIL, ICICI Bank lift Sensex 612 points; Nifty tops 16,950; Bajaj Finance, Airtel rise 3% each

Foxconn’s India unit Bharat FIH files for $663 million domestic IPO

Hong Kong-listed FIH Mobile Ltd’s (2038.HK) India unit Bharat FIH Ltd on Wednesday filed for a domestic initial public offering of up to 50.04 billion rupees ($662.97 million), according to its draft prospectus.

European shares inch up, food delivery stocks jump

European shares edged higher on Wednesday led by gains in food delivery stocks even as worries persisted about the outlook for global recovery amid an increase in COVID-19 cases due to the Omicron variant. The pan-European STOXX 600 climbed 0.1 per cent as of 0821 GMT after jumping 1.4 per cent to its best day in two weeks in the previous session.

Drug firm Zydus Cadila on Wednesday said it has received approval from the US health regulator to market Pimavanserin tablets, used in the treatment of certain mental disorders, in the American market.

Price as on 22 Dec, 2021 02:55 PM, Click on company names for their live prices.

Deepak Nitrite board approves raising funds of up to Rs 2,000 cr via a Qualified Institutional Placement (QIP)

Price as on 22 Dec, 2021 02:49 PM, Click on company names for their live prices.

ABB India board okays creating arm to divest turbocharger biz for Rs 310 cr

ABB India on Wednesday said its board has decided to incorporate a wholly-owned subsidiary to which it will sell its turbocharger business for Rs 310 crore. In June 2021, ABB India had informed bourses regarding its proposal to divest/sell its turbocharger business in the Process Automation business segment.

A regulatory filing stated, “In the meeting of the Board of Directors held yesterday, i.e., December 21, 2021, the Board considered and approved the incorporation of a wholly-owned subsidiary and sale of the company’s turbocharger business as a going concern, on a slump sale basis to its wholly-owned subsidiary for a consideration of Rs 310 crores”.

Gold, silver spot prices

European stocks set to extend rebound

European shares are set to extend yesterday’s rebound, as investors look past possible short-term damage from the highly infectious Omicron virus variant, keeping confidence in the economy’s growth potential. The region’s stock index futures are up 0.3-0.5%, adding to gains in the previous session that saw the commodity-linked and travel stocks help the STOXX score its best day in two weeks.

US Futures off highs; S&P500, Nasdaq Futures in the red

Finally, the much-awaited mega-merger is inked. In the broadcasting space, they would be numero uno and will give them tremendous pricing power especially on the ad revenue front. The investments in content creation would increase as there is increased concentration on both platforms (Sony Liv and ZEE5). With the infusion of additional capital over $1 billion, they could compete aggressively with Amazon & Netflix. There would also be a lot of competition for marquee sports properties. Overall, we see a very positive impact for the combined entity.

– Vivek Menon, co-founder & managing partner, N V Capital on ZEE-Sony merger

FMCG players expect better growth, lesser inflationary pressure in 2022

With a revival in demand and consumption, FMCG companies are looking forward to 2022 with positivity and hopes of sustaining a healthy growth trend across both rural and urban markets while gearing up to cater to the ever-increasing digitally active consumers and tackle the challenge of higher commodity prices. (Source: PTI)

Nikkei edges higher on tech rally but Nintendo, sauce makers cap gains

Japan’s Nikkei share average edged higher on Wednesday, buoyed by a rally in chipmakers and other tech stocks, although gains were capped by weakness in Nintendo and sauce makers. The Nikkei 225 ended the day 0.16% higher after swinging between small gains and losses throughout the session in holiday-thinned trading. The broader Topix added 0.09%.

Sebi chairman Ajay Tyagi on IPO valuation debate

PNC Infratech gets letter of award by NHAI for a project worth Rs 369 crore

JUST IN: ABB India to sell its Turbocharger biz to arm for Rs 310 cr on slump sale basis

Top 10 gainers on NSE

Price as on 22 Dec, 2021 12:39 PM, Click on company names for their live prices.

The construction arm of Larsen & Toubro (L&T) has secured a ‘significant’ order for its Buildings Et Factories business from a reputed developer. Significant orders are within Rs 1,000-2,000 crore.

Price as on 22 Dec, 2021 12:18 PM, Click on company names for their live prices.

Top 10 losers on NSE

Price as on 22 Dec, 2021 12:14 PM, Click on company names for their live prices.

IPO pricing is a critical issue: Sebi chairman

> Regulator will not get into IPO valuation but better explanation on pricing needed

Goldman Sachs India Equity Portfolio acquired 3,76,708 shares at Rs 1392.99 per share on Tuesday

Price as on 22 Dec, 2021 11:53 AM, Click on company names for their live prices.

MSME lending fintech platform, U GRO Capital on Wednesday announced that it has signed a co-lending agreement with Central Bank of India.

Price as on 22 Dec, 2021 11:42 AM, Click on company names for their live prices.

India VIX eases 3% to near 17 level

CMS Info Systems subscribed 48% so far on Day 2

Rupen Jhaveri appointed as Group President at Piramal Enterprises

Price as on 22 Dec, 2021 11:08 AM, Click on company names for their live prices.

JUST IN: PM to hold a meeting to review the Covid-19 related situation tomorrow

Nifty Realty best sectoral performer; all constituents in the green

Indian Oil says fire at Haldia refinery unit kills 3, injures 44

Price as on 22 Dec, 2021 10:48 AM, Click on company names for their live prices.

India Cements soars 9% as Damani increases his stake to 22.7%

Price as on 22 Dec, 2021 10:36 AM, Click on company names for their live prices.

Rupee Update

IN FOCUS: ZEE-SONY DEAL

The positive global backdrop provided by the recovery in the US and European markets might aid the bulls but this is not sufficient to take the markets much higher. Nifty is unlikely to reach near the October high of 18604 anytime soon. Even though FII selling has come down they are likely to press sale if the market goes up meaningfully. Rising inflation and concerns regarding rate hikes in 2022 will continue to be major challenges for emerging markets in the short-term. This scenario can change only if inflation drops sharply signalling the Fed might go slow on tightening.

– Dr. VK Vijayakumar, Cheif Investment Strategist at Geojit Financial Services

LISTING ALERT: Pre-open trade indicates listing at discount for Metro Brands

Smallcap czar Poriju Veliyath says India remains stock pickers’ paradise

Aditya Birla Money to offer preference shares worth up to Rs 80 crore to Aditya Birla Capital

Price as on 22 Dec, 2021 09:41 AM, Click on company names for their live prices.

Battered Paytm gets its first bullish rating from a major broker

Morgan Stanley has started coverage on the digital payments startup with an overweight rating and a price target of 1,875 rupees, which implies 43% upside from Tuesday’s close. It sees attractive risk to reward after the stock dropped to a record low earlier this week, and values the firm at $17 billion.

ZEEL shares wipe of gains, slip nearly 3 per cent on merger with Sony

Price as on 22 Dec, 2021 09:27 AM, Click on company names for their live prices.

Sector Watch: All indices trade higher

Top movers on NSE in opening trade

Price as on 22 Dec, 2021 09:19 AM, Click on company names for their live prices.

OPENING BELL: Sensex gains 340 points, Nifty at 16,870; India Cements jumps 6%, ZEEL 2%

ZEE-Sony merger done; Sony to hold majority stake

After three months of due diligence, Sony Pictures Networks India, a subsidiary of Sony Corp’s Sony Pictures Entertainment, has signed definitive agreements to merge with Zee Entertainment Enterprises even as the latter is embroiled in a legal battle with largest shareholder Invesco over control of the media company.

Pre-open session: Sensex drops 85 points, Nifty50 tests 16,750

SGX Nifty signals a positive start

Nifty futures on the Singapore Exchange traded 71 points, or 0.42 per cent, higher at 16,899, signaling that Dalal Street was headed for a positive start on Wednesday.

Tech View: Nifty50 likely to consolidate going ahead

Nifty50 on Tuesday formed a Doji candle on the daily chart, suggesting indecisiveness among traders. During the day the headline index entered a bearish gap zone of 16,840-966 levels, before seeing some selling pressure in the end. Nifty50 had reached the support zone of 40-week EMA and the weekly lower Bollinger Band after the sharp decline on December 20. Analysts believe the index may trade in a consolidation phase in the coming days.

Dollar out of favour as Omicron leaves currency markets volatile

The dollar edged down again in early Asia on Wednesday, starting a third successive session under pressure as investors favoured riskier currencies and asset classes. The dollar index, which measures the currency against major peers, was last at 96.441 down from as high as 96.994 last week when it was testing a 16 month high.

Hong Kong shares build on rally at open

Hong Kong stocks started Wednesday with gains of more than one percent to extend the previous day’s rally, helped by a bounce in technology firms. The Hang Seng Index climbed 1.09 percent, or 249.80 points, to 23,221.13. The Shanghai Composite Index added 0.21 percent, or 7.55 points, to 3,632.68, while the Shenzhen Composite Index on China’s second exchange edged up 0.26 percent, or 6.63 points, to 2,510.96.

Japan stocks open higher extending US gains

Tokyo stocks opened higher on Wednesday, tracking rallies on Wall Street as global markets recovered from an Omicron-fuelled sell-off. The benchmark Nikkei 225 index was up 0.54 percent or 153.27 points at 28,670.86 in early trade, while the broader Topix index advanced 0.49 percent or 9.65 points to 1,979.44.