Market snaps 3-day losing run; Nifty ends above 18,200

November 22,2022

The key equity indices ended near the day's high with modest gains on Tuesday, snapping a three day losing streak. The Nifty settled above the 18,200 mark. Barring the Nifty Realty index, all the other sectoral indices on the NSE ended in the green.

As per provisional closing data, the barometer index, the S&P BSE Sensex, rose 274.12 points or 0.45% to 61,418.96. The Nifty 50 index added 84.25 points or 0.46% to 18,244.20. Both the indices fell about 1.35% in past three trading sessions.

In the broader market, the S&P BSE Mid-Cap index advanced 0.48% while the S&P BSE Small-Cap index shed 0.10%.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slumped 6.45% to 13.84.

The market breadth was negative. On the BSE, 1,647 shares rose, and 1,806 shares fell. A total of 155 shares were unchanged.

New Listing :

Shares of Kaynes Technology India settled at Rs 690.10 on the BSE, representing a premium of 17.56% as compared with the issue price of Rs 587.

The scrip was listed at Rs 775, exhibiting a premium of 32.03 % to the issue price.

So far, the stock has hit a high of 787 and a low of 675. On the BSE, over 9.55 lakh shares of the company were traded in the counter so far.

Stocks in Spotlight:

JK Paper declined 0.94%. The company said that it has entered into share purchase and shareholders' agreements (SPSHAs) for the acquisition of 85% shares of Horizon Packs (HPPL) and Securipax Packaging (SPPL). Horizon Packs is the largest Corrugated Packaging company in India. The company has six plants across India. Key customer segments for the company constitute food & beverage, FMCG, pharma, white goods, etc.

Axis Bank rose 0.07%. The bank said that S&P Global Ratings raised the bank's long-term and short-term issuer credit rating to 'BBB-/A-3' from 'BB+/B' and the outlook on the long-term rating is stable. The agency has also raised the long-term issue rating on the bank's senior unsecured notes to 'BBB-' from 'BB+'.

Easy Trip Planners zoomed 19.42%. The company said that it has signed an agreement through a memorandum of understanding (MoU) with Assam Tourism Development Corporation (ATDC). The objective of this MoU is to share resources and collectively collaborate to boost the growth of tourism in Assam. Binded by the MoU, EaseMyTrip will provide white label solutions to endorse ATDC properties on its website and mobile application.

Larsen & Toubro rose 0.96% after the EPC major on Tuesday announced that it has purchased the entire stake held by Chiyoda Corporation in L&T-Chiyoda (LTC) for Rs 75 crore. L&T-Chiyoda (LTC) is a joint venture between Larsen & Toubro (L&T) and Chiyoda Corporation. The aggregate cost of acquisition is Rs 75 crore for acquiring 45,00,000 equity shares or 50% stake in LTC.

Route Mobile slipped 0.62%. The company has already expanded its footprint into the Kingdom of Saudi Arabia (KSA) as a Limited Liability Company. Route Mobile has also obtained the CITC License from Saudi Arabia's Communications and Information Technology Commission (CITC), which is responsible for regulating the information and communication technology sector in KSA.

Jubilant FoodWorks rose 1.39% after the food services company has received approval of its board to set up a subsidiary to run Domino's Pizza business in Nepal. The subsidiary in Nepal will be set up under Jubilant FoodWorks International Luxembourg at an initial capital contribution of about Rs 3,70,02,000.

Lupin skid 0.08%. The pharma company said that its corporate social responsibility (CSR) arm, Lupin Human Welfare and Research Foundation (LHWRF) has signed a Memorandum of Understanding (MoU) with the Government of Rajasthan to strengthen healthcare system, reduce prevalence of Cardiovascular Disease (CVD) and Chronic Obstructive Pulmonary Disease (COPD) in the Alwar district of Rajasthan.

Glenmark Pharmaceuticals advanced 2.53% after the drug maker and its US arm, Glenmark Pharmaceuticals Inc. have reached a settlement agreement with Pfizer Inc., PF Prism C.V., and PF Prism IMB B.V. (Pfizer) for Axitinib Tablets. The said drug is the generic version of Pfizer's Inlyta tablets. Axitinib is an anti-cancer medication. It works by blocking the action of the abnormal protein that signals cancer cells to multiply.

Sadbhav Engineering surged 19.95%. The company announced that its CEO Vasistha C Patel has resigned with immediate effect, along with its executive director and CFO Nitin R Patil. Vasistha C Patel has resigned as chief executive officer (CEO) of the company with immediate effect. Nitin R Patil also resigned as executive director and chief financial officer (CFO) of the company. The company said that both the resignations were due to personal reasons.

Further, on recommendation of nomination and remuneration committee, Rohit Modi has been appointed as CEO of the company in the category of key managerial personnel with effect from 21 November 2022.

Global Markets:

Markets in Europe advanced across the board while Asian stocks traded mixed on Tuesday as concerns over China's COVID flare ups and hawkish US Fed commentary.

China is struggling with a new outbreak of COVID cases in a number of cities, which resulted in its first COVID-related death in almost six months over the weekend.

This has sparked concern that the country could see a return of widespread mobility restrictions, weighing on economic activity in the region's main growth driver and a major export market for Europe's companies.

At the same time, inflation in the Eurozone soared past 10% at the end of last month, up from 9.9% in September, which will see the European Central Bank continuing to hike interest rates, weighing on economic expansion in the region.

The ECB has ratcheted up rates by 200 basis points since July, and another increase is widely expected in December.

The Organisation for Economic Cooperation and Development will publish its latest economic outlook later Tuesday. The Paris-based policy forum was especially pessimistic about the outlook in Europe in September, and it's difficult to see how the situation could have improved in the intervening period.

The U.K. reported smaller than expected public sector net borrowing for October, a welcome surprise after Chancellor Jeremy Hunt last week announced tax hikes and spending cuts to fix the country's balance sheet.

US stocks fell Monday in a volatile session to start a short trading week due to the Thanksgiving holiday. Fears that China may again ramp up Covid restrictions after reporting deaths from the virus weighed on markets. Traders also looked for further signals from the Federal Reserve about future interest rate hikes.

San Francisco Federal Reserve President Mary Daly said on Monday that there was more work to be done in order to tighten monetary policy and cool inflation, and that the real-world impact of recent rate hikes will probably be greater than what the short-term target rate implies.

Cleveland Fed President Loretta Mester said she supports a smaller rate hike in December, which is in line with market expectations for a 50 basis point bps hike.

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