Sensex tanks 879 points; Nifty dips below 18,450; VIX jumps over 6% | Jobs Vox


Key equity indices ended with heavy losses amid negative global signals on Thursday. Investor sentiment was battered after the US Fed raised rates by 50 basis points to the highest level in 15 years. The Nifty closed below the 18,450 mark. Trading was choppy due to expiry of weekly index options on NSE. All sectoral indices on the NSE ended in the red.

According to provisional closing data, the barometer index, S&P BSE Sensek, lost 878.88 points or 1.40% to 62,799.03. The Nifty 50 index lost 245.40 points or 1.32% to 18,414.90.

In the broader market, the S&P BSE Mid-Cap Index fell 1.05%, while the S&P BSE Small-Cap Index fell 0.61%.

Market breadth was negative. On the Belgrade Stock Exchange, 1,404 shares rose, and 2,152 shares fell. A total of 124 shares were unchanged.

NSE India’s VIX, a gauge of market expectations of near-term volatility, jumped 6.57% to 13.7325.

IPO Update:

The initial public offering (IPO) of Abans Holdings received bids for 1,39,07,245 shares against 1,28,00,000 shares in the offer, according to stock exchange data on Thursday (December 15, 2022) at 15:30 IST. The number was subscribed 1.09 times.

The show opened for bidding on Monday (December 12, 2022) and will close on Thursday (December 15, 2022). The price band of the IPO has been fixed at Rs 256-270 per share. An investor can bid for at least 55 shares and multiples.

The initial public offering (IPO) of Landmark Cars received bids for 2,44,24,235 shares against 80,41,805 shares in the offer, according to stock exchange data at 15:30 IST on Thursday (December 15, 2022). The number was subscribed 3.04 times.

The show opened for bidding on Tuesday (December 13, 2022) and will close on Thursday (December 15, 2022). The price band of the IPO has been fixed at Rs 481-506 per share. An investor can bid for at least 29 shares and multiples.

Actions in the spotlight:

Indian Railway Hospitality and Tourism Corporation (IRCTC) fell 6.43% after the offer for sale (OFS) was opened to non-retail investors today on December 15, 2022. Through the OFS, the Government of India proposes to sell up to 2 million shares (representing a 2.5% stake), with an option to sell an additional 2.5% stake or 2 million shares in the event of oversubscription. The lowest sell price was set at Rs 680, a discount of 7.45% to the stock’s closing price of Rs 734.70 on Wednesday.

State Bank of India fell 1.69 percent.

The bank’s central board has given approval to raise capital by issuing a Basel III compliant debt instrument in INR and/or any other convertible currency, by FY24 by raising fresh additional Tier 1 capital (AT-1) up to Rs. 10,000 crowns.

Bharti Airtel fell 0.53% and Tech Mahindra fell 3.77%. The telecom major on Thursday announced a strategic partnership with Tech Mahindra to deploy a 5G private network at Mahindra’s Chakan manufacturing facility. Mahindra’s Chakan plant has become India’s first car manufacturing unit with 5G technology, the company said.

NTPC rose 0.09%. The state-owned power company said it has declared commercial operation of the second 67.73 megawatt (MW) phase of the 230 MW Ettayapuram solar PV project in Tamil Nadu.

Poonavalla Fincorp was down 4.53%. The company said its board has approved the sale of its housing subsidiary Poonavalla Housing Finance to TPG (Perseus SG, an entity associated with TPG Global, LLC) for Rs 3,900 crore, subject to regulatory approvals.

Larsen & Toubro (L&T) lost 0.67%. The company said its hydrocarbon business L&T Energi Hidrocarbon (LTEH) has secured two “significant” orders for its asset management and AdVENT business vertical. According to the classification of the L&T company, the value of the mentioned contract is between 1,000 and 2,500 kroner.

JB Chemicals & Pharmaceuticals added 3.14% and Glenmark Pharmaceuticals fell 0.91%. JB Pharma said it has entered into an agreement with Glenmark Pharmaceuticals to acquire the franchise for cardiology brand, Razel (Rousvastatin) for the India-Nepal region for a cash consideration of Rs 313.7 crore. The pharmaceutical company said the acquisition will be financed through long-term debt and internal accruals (primarily debt). The transaction is expected to close by the end of this calendar year, subject to customary closing formalities.

Global Markets:

Dow Jones futures fell 278 points, indicating a negative opening for US stocks today.

Markets in Europe and Asia held firm on Thursday after the US Federal Reserve raised its benchmark interest rate by 50 basis points to its highest level in 15 years.

China’s annual Central Economic Work Conference will reportedly be held behind closed doors for two days until Friday.

China’s industrial production rose 2.2% in November, after rising 5% in October, according to official data. Retail sales fell 5.9% on a year-over-year basis, down from a 0.5% drop in the previous month.

US stocks snapped a two-day winning streak following the decision after Fed Chairman Jerome Powell signaled that more data was needed before the central bank significantly changes its view on inflation.

Considerably more evidence will be needed to gain confidence that inflation is on a sustained downward path, Powell said during his post-meeting news conference. However, Powell said inflation remains a problem. Price pressures remain evident across a wide range of goods and services, Powell added.

The Federal Reserve stepped up its fight against inflation on Wednesday by raising its key interest rate for the seventh time this year and hinting at more hikes to come. The Fed raised its benchmark rate by half a point to a range of 4.25% to 4.5%, the highest level in 15 years. Policymakers also forecast their key short-term rate to reach a range of 5% to 5.25% by the end of 2023.

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(This story was not edited by Business Standard staff and is automatically generated from a syndicated feed.)


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