Benchmarks ended with minor losses on Wednesday. Pharmaceuticals, FMCG and oil & gas stocks supported the indices while banks and metal stocks lagged. Trading was volatile as the Nifty rebounded from its mid-morning intraday low of 17,257.70 to hit a mid-afternoon high of 17,490.60 for the day. The index pared its gains sharply in the final hour of trading, tracking weakness in European equities.
According to provisional closing data, the barometric index, the S&P BSE Sensex, fell 145.37 points or 0.25% to 57,996.68. The Nifty 50 index slipped 30.25 points or 0.17% to 17,322.20.
In the broader market, the S&P BSE Mid-Cap Index lost 0.03% while the S&P BSE Small-Cap Index rose 0.42%.
The scale of the market was strong. On the BSE, 2,016 stocks rose and 1,332 stocks fell. A total of 105 stocks remained unchanged.
India’s overall exports in January this year are estimated at $61.41 billion, showing a positive growth of 36.76% compared to the same period last year and a positive growth of 38.90% compared to January 2020. Overall imports in January this year are estimated at 67.76. billion, showing a slower growth rate of 30.54% compared to the same period last year and a positive growth of 30.19% compared to January 2020.
India’s overall exports from April to January 2021-22 are estimated at $545.71 billion. This is a positive growth of 37.68% compared to the same period last year and a positive growth of 23.29% compared to April-January 2019-20. Overall imports in April-January 2021-22 are estimated at 616.91 billion, showing a positive growth of 54.35% compared to the same period last year and a positive growth of 20.15% compared to April -January 2019-20.
Shares of Vedant Fashions (Manyavar) were currently trading at Rs 940.55 on the BSE, with a premium of 8.61% to the issue price of Rs 866. The scrip was listed at Rs 936, a premium of 8.08% over the initial public offering. (IPO) price. So far, the certificate has reached a high of Rs 993 and a low of Rs 921. Over 6.68 lakh shares of the company have changed hands in the counter so far.
The initial public offering (IPO) of Vedant Fashions (Manyavar) received bids for 6,53,72,718 shares against 2,54,55,388 shares offered. The issue was subscribed 2.57 times. The Qualified Institutional Buyers (QIB) category was subscribed 7.49 times. The non-institutional investor category was subscribed 1.07 times. The category of individual retail investors (RII) received a weak reception. It was underwritten at just 0.39%.
The issuance opened for auction on February 4, 2022 and closed on February 8, 2022. The IPO price range is set at Rs 824-866 per share.
The Nifty Consumer Durables Index rose 0.61% to 27,738.05. The index has gained 3.55% over the past two trading sessions.
Blue Star (up 6.02%), Crompton Greaves Consumer Electricals (up 4.14%), Orient Electric (up 1.93%), Bata India (up 1.32%) and Havells India (up 1.31%) were the main gainers in the durable consumer goods segment. .
Actions in the spotlight:
Tech Mahindra lost 0.08%. The IT major said its wholly-owned subsidiary Tech Mahindra (Singapore) had approved the proposal to acquire 80% of the shares of Geomatic.AI. Tech Mahindra is creating a next-generation artificial intelligence company Geomatic.AI to focus on non-linear growth of digital platforms, in partnership with AusNet Services, an Australian energy and utility distributor. Geomatic.AI will build digital twins for linear assets leveraging cloud, drone and mobility technologies in the geospatial domain. As part of the deal, Tech Mahindra will own an 80% stake in Geomatic.AI, for a cash consideration of 6 million Australian dollars (AUD).
Info Edge (India) fell 2.16%. The company said it has reached an agreement to acquire shares in Juno Learning (Juno) for an amount of approximately Rs 11.25 crore. Juno is committed to enterprise, which is an interactive online school that teaches sales techniques, processes and tools to students and entry-level professionals in an experiential way to improve employability. Juno has just been incorporated and is in its first year of operation. As part of Info Edge’s strategy, the investment would help the company create and solidify its presence in a “Sales upskilling” vertical niche. It fits perfectly into the company’s playbook to invest in adjacencies with the recruiting and education verticals and create synergies with its existing businesses.
Punjab & Sind Bank advanced 3.13%. The public sector lender declared IL&FS Tamil Nadu Power as a fraudulent account and deemed it a bad asset with dues of over Rs 148 crore. The bank reported it to the Reserve Bank of India. Punjab & Sind Bank said it has already made provisions amounting to Rs 59.54 crore, in line with prescribed prudential standards. Meanwhile, the bank’s board will meet on February 17, 2022 to consider allocating shares worth up to Rs 4,600 crore to the Indian government through a preferential issue of actions.
Tilaknagar Industries increased by 1.04%. The company said its Shrirampur bottling plant in Maharashtra had started production of French multinational Pernod Ricard India brands from February 15, 2022.
Torrent Power slipped 1.41%. The company, together with Blue Daimond Properties and Balrampur Chini Mills (the sellers) have completed the acquisition of 100% of the capital of Visual Percept Solar Projects. Last Thursday, the company announced that it had entered into a share purchase agreement with Blue Daimond Properties and Balrampur Chini Mills to acquire 100% of the share capital of Visual Percept Solar Project. The Visual Percept Solar Project harnesses 25 MW solar power in Gujarat. Torrent Power further stated that the long-term power purchase agreement (PPA) for the project is with Gujarat Urja Vikas Nigam for a period of 25 years. The estimated enterprise value for the acquisition was Rs 163 crore.
European stocks fell across the board while Asian stocks rose on Wednesday as investors weighed the geopolitical outlook following Russia’s partial withdrawal from the Ukrainian border as corporate earnings season rumbled.
Markets around the world rallied on Tuesday after Russia announced it had started returning some troops to deployment bases after training exercises near the Ukrainian border, allaying fears of an imminent invasion and raising hopes of a de-escalation of recent tensions with the West. However, Western officials and Ukrainian President Volodymyr Zelenskyy have urged caution in taking Russia’s claims at face value, according to media reports.
In Asia, China’s consumer price index for January rose 0.9% from a year ago. Chinese producer inflation for January rose 9.1% from a year earlier.
In Europe, inflation in the UK was 5.5% per year in January, remaining at its highest level in 30 years. On a monthly basis, consumer prices contracted by 0.1%.
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