Indian markets end two-day streak of rising profitable sales

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Indian stock markets closed lower for the first time in three days, reversing an initial rise as profitable sales took hold amid low volumes – a phenomenon seen towards the end of the calendar year.

“Offsetting weak sentiment across most sectors, the Pharmaceuticals sector helped the domestic market close on a flat note with a positive bias. Foreign institutional investors were net buyers for the first time this month, which helped the market, ”said Vinod Nair, research manager at Geojit Financial Services.

The Bombay Stock Exchange’s Sensitive 30 stock index closed at 57,806.4 points, down 0.16% from its previous close. The most traded National Stock Exchange (NSE) Nifty50 index finished 0.11% lower at 17,213.6 points.

“The domestic market opened on a flat note and saw range-related movement amid mixed global indices. Global markets have recovered some of the gains and halted their Christmas rally as investors become cautious of rising Omicron coronavirus cases, ”said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

Sector indices

Nine of the 11 sector indices finished in negative territory with the Nifty Metals Index falling as much as 1.05% and the Nifty Media Company Index falling 0.9%.

The ratio of falling stocks – the number of rising stocks divided by the number of falling stocks – on the NSE was 1,076 to 957 today. India VIX, the index that measures market volatility, today fell 1.4% to 16.2.

“The markets moved within a narrow range due to the lack of investor participation before the end of the year. After posting gains over the past two sessions, the market has witnessed selective profit-taking on metals and PSU stocks, which pushed benchmarks down, ”said Shrikant Chouhan, head of research on PSU. stocks at Kotak Securities.

Omicron Effects

The emergency use authorization of the anti-covid vaccines Corbevax and Covovax as well as the authorization of the antiviral drug Molnupiravir for restricted use have helped the actions of the drugmakers to grab the attention of investors.

Sun Pharmaceutical was among the big winners in the sector with an increase of more than 2%, followed by Divi’s Laboratories which also increased by more than 2%.

Shares of multiplex companies weakened following the closure of movie theaters due to tighter restrictions against covid in the federal capital New Delhi. Shares of the owner of the PVR multiplex cinema complex fell 1.9% to INR 1,260.95.

Media reports say the Omicron variant has so far spread to 120 countries, with the UK reporting a record high of nearly 130,000 Covid cases on Tuesday. In India, New Delhi has recorded 238 cases and Maharashtra 167 cases for a total of Omicron infections close to 800.

Other key developments

On December 28, the Securities and Exchange Board of India announced certain rules regarding the use of funds raised through Initial Public Offerings (IPOs). The rule change related to the terms of the IPO target, the use of the IPO proceeds, the price range of an offer, the blocking period for lead investors and the size of the stake. that a majority shareholder is authorized to sell on the day of listing.

Currently, shareholders can sell all of their shareholding through an offer to sell. Under the new rules, shareholders who own 20% or more of the IPO cannot sell more than 50% of their stake on the day of listing.

Bajaj Auto shares ended in the positive zone after the company announced it would invest INR 3 billion ($ 40 million) to build the capacity of 500,000 electric vehicles per year. He also announced a new electric vehicle manufacturing unit at Akurdi in Pune, Maharashtra. Shares of India’s largest two-wheeler manufacturer ended up 2.7% at INR 3,262.5 on the NSE.

According to a report on www.moneycontrol.com, as many as 41 stocks have generated returns above 1,000% as benchmarks have hit lifetime highs this year.

Digjam and Raghuvir Synthetics were the main winners this year with an increase of over 4,300% while Adinath Textiles, TTI Enterprises and Gita Renewable Energy grew over 3,000%. No less than 23 stocks gained between 1000 and 1999%.

“Markets are expected to stay on the side until the end of the year due to low volume, lack of trigger and increasing Omicron cases. Q3 earnings season and preparation for next session budget would be key events the market would look for in January 2022, ”said Khemka of Motilal Oswal.

Read more: India rolls out red carpet for Intel semiconductor factory

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