Market closing: India's benchmark indices fell over 1% each on Friday, with Nifty giving up the crucial 17,000 level. Equities worldwide fell as worries over Omicron’s spread reining in global growth while stimulus pullback weighed on sentiment
Listen to this article
Central banks globally are prioritising the fight against elevated price pressures by tightening monetary settings, while also keeping a wary eye on the impact of omicron. That backdrop has investors questioning whether global stocks are due for a rougher patch after almost doubling from pandemic lows.
17 Dec 2021, 03:46:26 PM IST
Sensex ends 800 points lower, Nifty below 17K as banks, realty hit; IT soars
Indian equities extended losses on Friday, after a day's gap, following a market-wide sell-off, which saw benchmark indices fall over a percent each.
The Sensex fell 889.40 points or 1.54% to end the session at 57,011.74, and the Nifty was down 263.20 points or 1.53% at 16985.20.
On the Nifty, IndusInd Bank, Tata Motors, ONGC, Kotak Mahindra Bank and HUL were among the worst hit, while Wipro, Infosys, HCL Technologies, Power Grid Corp and Sun Pharma rose the most.
Except IT, all other sectoral indices ended in the red.
The BSE Midcap and Smallcap indices fell 2.4 % and 2.1%, respectively. The market breadth was negative, with more than two stocks declining for every one stock that rose on the BSE.
17 Dec 2021, 03:26:19 PM IST
Top gainers/losers on Nifty
17 Dec 2021, 03:21:16 PM IST
Hindalco acquires Hydro’s aluminium extrusions business in Andhra Pradesh: BSE filing
European equities fell as worries over omicron’s spread reining in global growth along with fears over the pullback of stimulus weighed on the sentiment.
The Stoxx 600 Index was down 0.3% by 8:04. Travel and leisure and automakers were among the biggest decliners, while technology was also under pressure following yesterday’s drop in the Nasdaq 100.
European equities had gained on Thursday as central banks reassured investors that the withdrawal of monetary stimulus will be gradual. The relief was short-lived, however, as a more hawkish approach from the Federal Reserve hit stocks that are more richly-valued, such as tech.
17 Dec 2021, 02:28:41 PM IST
Sensex so far today
17 Dec 2021, 02:24:49 PM IST
Indiabulls Housing Finance down as promoter sells stake
Founder firms sold about half their stake in the shadow lender to investors led by Blackstone Group Inc. and Abu Dhabi Investment Authority. Sameer Gehlaut, who founded Indiabulls Housing 21 years ago, and his firms sold 11.9% in the company, bringing down their ownership to 9.8%. Gehlaut will resign from the board of the lender by the end of the fiscal year ending 31 March.
RateGain Travel among top losers on NSE at this hour
17 Dec 2021, 02:01:49 PM IST
India said to mull changes in law to cut state’s stake in banks: Bloomberg
India’s government is considering changes that would make it easier to lower its stake in state-run banks, a key step in Prime Minister Narendra Modi’s plan to unclog credit flow to the economy.
The proposals -- if approved -- would allow the government to gradually lower its holding in state-run lenders to 26% from 51% without diluting its grip on management appointments, the people said, asking not to be identified as the deliberations are private. They would also simplify privatization of certain identified lenders and permit foreign investors to purchase bigger stakes in others without seeking parliament approval.
With the proposed amendments, Modi is seeking to reduce state-run banks’ reliance on frequent injections of government capital while still maintaining their quasi-sovereign status that depositors favor. The move would dilute some of the policies India enacted in 1969 when the state swept in to nationalize its lenders, creating a swathe of banks that even today control two-thirds of the sector’s assets and the bulk of its bad debts.
Early talks are still on and the details could change, the people said. The proposals would need to be studied and cleared by the cabinet before being placed before parliament, they added.
A spokesperson for the finance ministry couldn’t be reached for comment.
17 Dec 2021, 01:37:43 PM IST
Govt working on mandate for automakers to introduce flex fuel engines: Minister Nitin Gadkari
17 Dec 2021, 01:23:03 PM IST
Meta bans 7 surveillance-for-hire groups from Facebook and Instagram for spying on users
Meta Platforms, formerly Facebook Inc, said it has banned seven surveillance-for-hire groups that were using its social media networks for social engineering, spying on people and sending malicious links. The surveillance groups were based in China, Israel, India, and North Macedonia and have targeted over 50,000 people in over 100 countries over several years, Meta said in a report.
Meta said it has alerted the users who it believes were under the surveillance of these groups and has also shared its findings with security researchers, policymakers and other social media companies.
Researchers at Meta believe that these groups would try to revive their operations on their social networks again using new obfuscation techniques. "The entities behind these surveillance operations are persistent, and we expect them to evolve their tactics," they warned.
17 Dec 2021, 12:58:46 PM IST
Bharti Airtel pre pays ₹15,519 crore to clear all deferred liabilities for spectrum acquired in 2014: BSE filing
Bharti Airtel today said it has paid ₹15,519 crore to the Department of Telecom towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auction of year 2014. The company had acquired 128.4 MHz spectrum (including Telenor spectrum) for a consideration of INR 19,051 crores in the 2014 auction.
These liabilities were due in annual instalments from FY 2026-2027 to 2031-2032 and carried an interest rate of 10% (the highest rate amongst the deferred liabilities and borrowings) and an average residual life of 7+ years.
The company estimates that the prepayment will likely result in interest cost savings of at least ₹3,400 crore over the residual life for fully substituted capital.
Global markets: Jeffrey Halley, senior market analyst, Asia Pacific, OANDA
The dust is settling on central bank week, with the Bank of Japan leaving policy rates and its 10-year JGB yield target of 0.0% unchanged. It has announced it will scale back its pandemic bond and commercial buying programmes in 2022 while extending the SME relief programme. USD/JPY is sharply unchanged, unsurprising given that the US/Japan yield differential is its key driver.
The BOJ’s announcement follows in a similar vein to the ECB’s “the lady is not for tapering" tapering not tapering announcement yesterday. Policy rates remained unchanged, but a tapering of the PEPP was announced, although it replaced that by that with, you guessed it, more QE under the old APP scheme, as well as continuing with the TLTRO’s. A very European compromise overall with the ECB acknowledging inflationary pressures, but well and truly hedging its bets. Overall, the QE forever family of the BOJ and ECB made plenty of noise but did very little tinkering under the bonnet. Both the Yen and the Euro are likely to have a tough Q1 versus the US Dollar.
Elsewhere, it was a mixed result. Norway and Britain have hiked modestly, while Australia and Southeast Asia remain cemented to unchanged, inflation be damned. Latin America, Eastern Europe and Russia have seen a series of hikes continuing and this will spare them the worst of the ravages of a stronger US Dollar in H1 2022. Turkey, meanwhile, cut rates under Erdoganomics. President Erdogan also fired a couple of people, and the Turkish Lira looks to have lost another 12% while I have been away this week. I might have to pencil in USD/TRY at 20.000 by early January at this rate. It would be comical if it wasn’t so sad for the people of Turkey.
The FOMC has swung to hawkish, as per the hints from Jerome Powell pre-FOMC. A faster taper and three rate hikes “dot-plotted" into 2022 are the new reality now. I wasn’t the least surprised at the equity and bond market reaction. The “buy everything" story rules the roost and annoying things like reality won’t get in the way of it. The FOMC flip was interpreted by the perpetual mega-bulls as proactively anchoring future inflation expectations, something long-dated bond markets have been pricing in forever, so buy big-tech, I mean growth. How bonds and equities will weather the Fed not buying billions of bonds each month remains to be seen. The story looks to be running out of steam already looking at equity markets overnight. The US yield curve will maintain a healthy attraction if you are a fund manager in QE-forever Europe or Japan, so I am not expecting long-dated yields to explode higher. It does, however, reinforce my thoughts that the US Dollar will be the winner in H1 2022.
I will reiterate once again, however, that V for Volatility, and not directional trends, will continue to be the winner in December. I am also quietly hoping that the US Dollar falls, and equities rise in January as well. The new budget year usually brings a group-think kitchen-sink rush in a particular thematic trade. Unfortunately, bitter experience tells me that the first big move of the year in January is usually the wrong one. So, keep going on the “buy-everything" trade, it’s all part of my cunning plan, and I love it when a plan comes together.
In Asia today, Singapore posted robust non-oil exports. Overall, omicron has not caused the global economy to blink yet it seems, but that appears to be because the world is fed up with lockdowns and restrictions, rather than the virus itself. The news from China continues to concern, however. The bottom-pickers buy recommendations are flowing thick and fast on China property companies. As I said last week, there’s never just one cockroach.
Having vaccinated its population with Sinovac, which doesn’t appear to work against omicron, we can safely assume China won’t be opening borders in 2022. That, along with the still-developing property sector woes will crimp growth. Additionally, the US has added another 34 Chinese entities to its blacklist, so US/China relations are going nowhere in a hurry. Hopefully, the rest of the world can pick up some of the slack in 2022.
I note that the YouTuber’s tool of choice, drone maker DJI, is one of those entities. Are YouTubers about to suffer a Christmas Black Swan? Hit the like and subscribe buttons to see.
A mixed day for Asian equities.
The post-FOMC “inflation expectations are now anchored" rally has petered out. Technology, or growth, took a bath overnight as the Nasdaq plummeted by 2.47%, while the S&P 500 fell 0.87%, with the “value-heavy" Dow Jones easing just 0.09%. In Asia, futures on all three indexes continue to ease, shedding around 0.30%. With multiple expires on equity instruments occurring this evening in the US, some distortion because of that could be in play, as could end of yearbook squaring etc. I expect the choppy price action to continue to spoof fast-money players into the year-end, both in the US and elsewhere.
The Wall Street tech retreat overnight has had a similar effect on Asian markets with similar weightings, with the US addition of another swath of Chinese companies to their entity lists also weighing on sentiment. The Nikkei 225 is 1.55% lower, with markets completely ignoring the Bank of Japan. South Korea’s Kospi has eased by 0.25%. Mainland China is also lower, the Shanghai Composite falling by 0.95%, and the CSI 300 has retreated by 0.70%. Meanwhile, the Hang Seng is 1.25% in the red.
Regionally, Singapore has eased 0.30% lower while Kuala Lumpur has climbed 0.30%. Jakarta has retreated 0.40%, with Taipei easing just 0.15%. Bangkok and Manila have fallen by 0.40%. Australia is bucking the trend with local markets rising. The All Ordinaries has risen 0.25%, while the ASX has rallied by 0.35%.
17 Dec 2021, 12:18:28 PM IST
Gold set for first weekly rise in five after Fed decision
Gold climbed on Friday, poised for its best week since mid-November, as the dollar weakened after the U.S. Federal Reserve decided to withdraw its pandemic-era stimulus in response to broadening inflationary risks.
Spot gold rose 0.3% to $1,805.06 per ounce by 0613 GMT, while U.S. gold futures delivery rose rose 0.4% to $1,806. The metal has risen nearly 1.3% this week.
The dollar index remained under pressure after hitting a one-week low on Thursday, making bullion cheaper for holders of other currencies.
"For the most part, gold seems to be responding to the Fed's decision of remaining behind the curve and keeping policy fairly loose, and the inflation dynamic has continued to push investors into gold as a key store of value," said IG Markets analyst Kyle Rodda.
The Fed said it would pave the way for a three quarter-percentage-point interest rate increases by the end of 2022 as a response to full employment and surging inflation.
Britain became the first G7 economy to hike interest rates since the onset of the pandemic on Thursday, with the European Central Bank only slightly reining in stimulus.
The Bank of Japan decided to taper its corporate debt purchases to pre-pandemic levels as well.
17 Dec 2021, 11:55:09 AM IST
Nifty near 17,000
17 Dec 2021, 11:45:35 AM IST
Lok Sabha proceedings adjourned till 2 pm following Opposition protests over issue of Lakhimpur Kheri violence: PTI
17 Dec 2021, 11:40:00 AM IST
Nifty view: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
Due to last couple of days’ price development, 17200 has now become a key support and the moment we see market sustaining below it, the recent downtrend will certainly get resumed to see sub-17000 territory again. On the flipside, 17350 – 17400 would be seen as immediate hurdles. Let’s see how things pan out going ahead and banking becomes the key component here, which is likely to dictate the immediate trend.
17 Dec 2021, 11:38:01 AM IST
Goldman Sachs says $100 oil possible as record demand outpaces supply: Bloomberg
Oil at $100 a barrel cannot be ruled out in 2023 as supply additions are expected to be too slow to keep up with record demand, according to Goldman Sachs Group Inc.
While the bank’s base forecast is for Brent to stay around $85 next year and 2023, it could breach triple digits through either higher cost inflation for drillers, or if an unexpected supply shortfall forces prices to spike high enough to destroy demand, said Damien Courvalin, head of energy research.
The upside risks underscore why Goldman remains bullish on oil even after prices have rallied more than 40% this year. The bank sees the recent sell-off as overdone on unnecessary concerns about omicron-related restrictions and expects investors to buy the dip once asset managers reallocate money next year.
17 Dec 2021, 11:19:40 AM IST
Burger King to acquire controlling stake in BK Indonesia
The board of directors of Burger King India has approved the acquisition of a controlling stake in PT Sari Burger Indonesia (BK Indonesia). It acquired 83.24% stake from existing shareholders of BK Indonesia at an equity value arrived at by adjusting the enterprise value equivalent to $183 million, the company said in a filing to the stock exchanges.
Post the completion of acquisition of shares as above, the company shall make fresh capital infusion in BK Indonesia for an amount aggregating $40 million by way of subscription to fresh shares issued by BK Indonesia, towards supporting any of its future business requirements, expansion plans, among others.
17 Dec 2021, 11:13:30 AM IST
Top losers on BSE at this hour
17 Dec 2021, 10:50:23 AM IST
Bank strike continues for second day; services across country hit: PTI
Lakhs of employees of public sector banks continued their strike on the second day on Friday as well to protest against proposed privatisation of banks by the government impacting normal operation across the country.
Shutters of branches across many parts of the country on Friday were down following the strike call given by the United Forum of Bank Union (UFBU), an umbrella body of nine bank unions including All India Bank Officers' Confederation (AIBOC), All India Bank Employees Association (AIBEA) and National Organisation of Bank Workers (NOBW).
As a result, services such as deposits and withdrawal at branches, cheque clearance and loan approvals remains paralaysed due to the two-day strike ending later in the day.
Public sector lenders, including State Bank of India, had informed customers that services in their branches might be affected due to the strike.
17 Dec 2021, 10:47:22 AM IST
Persistent Systems rises, company secures order from German software provider ATOSS
Rupee slips 14 paise to 76.23 against US dollar in early trade
17 Dec 2021, 10:29:09 AM IST
Nifty broader markets also deep in the red
17 Dec 2021, 10:09:30 AM IST
RateGain Travel Technologies lists at 15% discount
Shares of RateGain Travel Technologies made a weak debut on stock markets on Friday. Shares listed at a 15% discount over issue price of ₹425. The ₹1,335.74 crore was subscribed 17.41 times in the price band of ₹405- ₹425 a piece.
"At the issue price, RateGrain will trade at 18.1 times FY21 price-to-sales, indicating a valuation broadly in-line with global SaaS companies with similar growth prospects. RateGain generates stable and recurring revenues with relatively low capital requirements, leading to healthy free cash flow generation. Going ahead, relationships with large enterprises and a wide array of product offerings would contribute to higher mining of existing accounts and robust growth," said Aditya Birla Capital.
RateGain Travel Technologies is one of the few global distribution technology companies and the largest Software as a Service (SaaS) company in the hospitality and travel industry in India. It offers travel and hospitality solutions across a wide spectrum of verticals, including hotels, airlines, online travel agents, meta-search companies, cruises and ferries etc.
17 Dec 2021, 09:51:24 AM IST
All sectoral indices, barring Nifty IT, in the red
17 Dec 2021, 09:34:08 AM IST
Nifty falls below 17,200
17 Dec 2021, 09:31:26 AM IST
IT stocks surge, Titan worst hit on Sensex in opening deals
17 Dec 2021, 09:19:00 AM IST
Sensex opens flat with negative bias
17 Dec 2021, 09:11:15 AM IST
Sensex stocks in pre-open
17 Dec 2021, 09:06:28 AM IST
Rategain Travel Technologies to list today
17 Dec 2021, 09:05:33 AM IST
Nifty in the red in pre-open
17 Dec 2021, 08:56:36 AM IST
BOJ scales back emergency funding as pandemic strains ease
The Bank of Japan kept monetary policy ultra-loose on Friday but dialed back emergency pandemic-funding, less than 48 hours after the U.S. Federal Reserve signaled an imminent end to stimulus as policymakers respond to soaring global inflation.
The BOJ's decision, underpinned by cautious optimism that the economic damage wrought by coronavirus crisis is gradually healing, puts it in line with major central banks' moves to phase out crisis-mode policies.
In a widely expected move, the BOJ on Friday maintained its short-term rate target at -0.1% and that for 10-year bond yields around 0%.
But it decided to scale back a portion of pandemic-relief funding when it expires in March 2022, such as by slowing purchases of corporate bonds and commercial paper to pre-pandemic levels.
"Financial conditions in Japan have improved on the whole, despite the continued significant impact of the COVID-19 pandemic on domestic and overseas economies," the BOJ said in a statement announcing the decision.
Britain became the first G7 economy to hike interest rates since the onset of the pandemic on Thursday. The European Central Bank also took another small step in rolling back crisis-era stimulus, though it pledged to keep borrowing costs low next year.
17 Dec 2021, 08:46:04 AM IST
Coal India plans to raise coal stock at thermal power plants to 45 mn tonnes by fiscal-end
State-owned Coal India on Thursday said it has drawn up plans to boost coal stock at thermal power plants to over 45 million tonnes (MT) from its own sources by the end of the ongoing fiscal. Coal India Ltd (CIL) is aiming for the highest-ever closing stock at power plants, the PSU said in a statement.
Oil prices dipped on Friday, putting the market on track to end the week roughly unchanged, as surging cases of the Omicron coronavirus variant raised fears new curbs may hit fuel demand, while a weaker dollar supported commodity markets broadly.
U.S. West Texas Intermediate (WTI) crude futures fell 17 cents, or 0.2%, to $72.21 a barrel. Brent crude futures fell 11 cents, or 0.2%, to $74.91 a barrel.
17 Dec 2021, 08:34:17 AM IST
Vodafone Idea in talks to repay bondholders
Vodafone Idea Ltd is in talks with banks to either refinance a portion of its loans or raise fresh debt to repay bondholders, said two officials aware of the matter.
The company needs to repay ₹6,400 crore to bondholders starting December through March. This is in addition to the ₹14,000 crore of equity that the promoters are likely to infuse into the company, one of the two officials said, requesting anonymity.
According to Care Ratings, Vodafone Idea has bank facilities worth ₹37,562 crore and long-term debentures worth ₹7,500 crore.
On Monday, the company paid principal worth ₹1,500 crore and ₹110 crore in interest on its 7.57% unsecured redeemable non-convertible debentures due to banks. (Read here)
Byju’s in talks for SPAC deal, US listing: Reuters
Tiger Global-backed Byju’s is in talks for a US listing through a deal with veteran dealmaker Michael Klein’s blank-check firm that could value the Indian edtech firm at $48 billion.
Byju’s, which offers online education and caters to all age groups, has benefited by a boom in online education as schools and in-person classes were forced shut by the COVID-19 pandemic.
Discussions with Churchill Capital’s special-purpose acquisition company (SPAC) about the deal, that could happen in mid-2022, are in advanced stages with plans to raise around $4 billion, a person aware of the development said.
17 Dec 2021, 08:14:21 AM IST
Pvt sector invests ₹15k crore in roads
Private sector investment in road construction till November this financial year stood at ₹15,164.25 crore, Parliament was informed on Thursday.
In a written reply to the Lok Sabha, road transport and highways minister Nitin Gadkari said private sector investment in road construction in 2020-21 and 2019-20 was ₹12,475.53 crore and ₹21,925.98 crore, respectively.
Gadkari said the review of Model Concession Agreement (MCA) documents of various modes of road construction under PPP (public-private partnership) is a continuous exercise, and changes are made to address the concerns of the stakeholders, as and when required.
The minister also informed that a total length of 6,722.31 km has been completed out of 7,245.07 km of National Highway projects under build-operate-transfer (BOT-annuity) & build-operate-transfer (BOT-Toll) mode.
SGX Nifty futures traded 0.17% lower at 17,298.50 in early deals
17 Dec 2021, 07:44:40 AM IST
Asia shares dip; investors weigh central bank policies
Most Asian stocks fell Friday following a decline in U.S. shares led by the technology sector as tightening monetary policy to fight inflation buffets investor sentiment.
Chinese technology stocks were again under pressure and Japan slid. U.S. equity futures steadied after the tech-heavy Nasdaq 100 sank the most since September. The gauge skidded on reduced appetite for more richly valued investments amid the Federal Reserve’s pivot toward reducing stimulus.
Central banks globally are prioritizing the fight against elevated price pressures by tightening monetary settings, while also keeping a wary eye on the impact of omicron. That backdrop has investors questioning whether global stocks are due for a rougher patch after almost doubling from pandemic lows.
The Bank of England unexpectedly raised interest rates on Thursday, sending the pound higher.
Japan’s Topix index fell 0.8%, South Korea’s Kospi increased 0.2%, Australia’s S&P/ASX 200 index rose 0.5%, Hong Kong’s Hang Seng index shed 0.5%, and the China’s Shanghai Composite fell 0.1%.
Overnight, weakness in tech shares led a retreat in US equities with major indices closing lower and undercutting the prior day's rally sparked by the Federal Reserve's renewed inflation-fighting efforts.
Investors also had to digest a flurry of other central bank announcements including the Bank of England's rate increase and the European Central Bank's decision to follow the Fed down the taper path and end its stimulus asset-purchase programme.
The moves highlighted the growing concern among policymakers about price increases in major economies, but did not assuage markets' fears that central banks may have moved too late.
The tech-rich Nasdaq Composite Index dropped 2.5% to finish the day at 15,180.43. The benchmark Dow Jones Industrial Average dipped 0.1% to end at 35,897.64, while the broad-based S&P 500 fell 0.95 to 4,668.67.
Never miss a story! Stay connected and informed with Mint.
our App Now!!