Domestic equity benchmarks rebounded after two days of relentless selling and closed near the day's high. The rally was backed by strength in banks, metals and IT stocks, which corrected in recent sessions. All the sectoral indices on the NSE ended in the green. Shares rallied across the globe amid hopes that the Omicron variant of the coronivirus would be mild.
The barometer index, the S&P BSE Sensex, surged 886.51 points or 1.56% to 57,633.65. The Nifty 50 index rallied 264.45 points or 1.56% to 17,176.70.
The Sensex fell 2.93% and the Nifty fell 2.81% in the past two sessions.
In the broader market, the BSE Mid-Cap index rose 1.29% and the BSE Small-Cap index gained 1.14% on Tuesday.
The market breadth was strong. On the BSE, 2331 shares rose and 946 shares fell. A total of 117 shares were unchanged.
While uncertainty continues to persist over the Omicron's health and economic impacts, investors have embraced news from South Africa which suggested that the exponential rise in Omicron infections has not been followed by a big wave in hospitalizations.
Ntsakisi Maluleke, a public health specialist in South Africa's Gauteng province, reportedly said that over the weekend, patients with omicron had only shown mild symptoms.
Economy:
The Reserve Bank of India (RBI)'s Monetary Policy Committee (MPC) kicked off its two-day policy meet on 6 December 2021. MPC's interest rate decision will be disclosed on Wednesday, 8 December 2021. In the previous meeting, MPC kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4%.
Global Market:
US Dow Jones futures were up 360 points, pointing to another strong day on Wall Street in early premarket trade, continuing Monday's rebound.
Shares in Europe and Asia surged on Tuesday, with concerns about the potential severity of the omicron variant easing.
White House Chief Medical Advisor Dr. Anthony Fauci said on Sunday that the initial data regarding the variant was “encouraging,” though he cautioned that more information was needed to fully understand it.
Moreover, China's central bank said Monday that it would lower the amount of funds banks have to set aside, replenishing liquidity into the financial system in a bid to support the economy and cut financing costs for businesses.
The cut, effective Dec. 15, would release a combined 1.2 trillion yuan ($188.19 billion) worth of liquidity into the financial system, the PBOC said.
Buzzing Segment:
The Nifty Bank index rose 2.47% to 36,618.40. The index fell 2.12% in the past two sessions.
Axis Bank (up 3.59%), ICICI Bank (up 3.47%), IDFC FIRST Bank (up 2.79%), Bandhan Bank (up 2.69%), State Bank of India (up 2.48%), Federal Bank (up 2.22%), RBL Bank (up 1.66%), HDFC Bank (up 1.39%), IndusInd Bank (up 1.23%), Punjab National Bank (up 1.18%) and AU Small Finance Bank (up 0.76%) advanced.
Kotak Mahindra Bank added 2.62%. The bank said that its board will meet on 10 December 2021 to consider a proposal to raise funds via issue of debt securities.
Karnataka Bank advanced 3.55%. The bank has signed a memorandum of understanding (MoU) with Toyota Kirloskar Motor in a joint effort to introduce attractive financing options for its customers to purchase Toyota vehicles.
Stocks in Spotlight:
Nestle India gained 1.45% after the Government of India approved company's application for Production Linked Incentive (PLI) Scheme.
Tata Motors added 3.12%. The company has announced an impending price hike of its commercial vehicle range. An increase in price in the range of 2.5%, will be implemented from 1st January 2022 and will be put into effect across segments – M&HCV, I&LCV, SCV and Bus, basis individual model and variant of the vehicle.
Tanla Platforms was locked in an upper circuit of 5% at Rs 1,675.90 after the company announced a partnership with Vodafone Idea for providing solutions for entire international messaging traffic on the Vi network.
Rain Industries jumped 3.46%. Pabrai Investment Funds bought 2.05% stake in the company via open market transaction on 2 December 2021. Post-transaction, Pabrai Investment Funds has increased its shareholding in Rain Industries to 8% from 5.95% earlier. Mohnish Pabrai is the founder and managing partner of the Pabrai Investments Funds.
Intellect Design Arena rose 1.61%. The company announced that State Bank of India has chosen Intellect Wealth Qube, a Digital Wealth Management suite for bank's digital wealth management transformation agenda.
Aurionpro Solutions hit an upper circuit of 5% at Rs 277.35. The company announced that it has been selected by the SBI as the solution provider for Kanpur Metro Project (KMP) under Uttar Pradesh Metro Rail Corporation (UP MRCL). The project is valued (inclusive of taxes) close to Rs 140 crore.
Dilip Buildcon jumped 7.39%. The company has emerged L-1 bidder in the tender floated by South Eastern Coalfields (SECL), Sitrgrauli, for removal of over burden in the State of Madhya Pradesh. The contract value is Rs 2,683.02 crore.
Primary Market:
The initial public offer (IPO) of Rategain Travel Technologies received bids for over 70.75 lakh shares as against 1.73 crore shares on offer, according to stock exchange data at 16:36 IST on Wednesday (7 December 2021). The issue was subscribed 41%.
The issue opened for bidding today, 7 December 2021 and it will close on 9 December 2021. The price band of the IPO is fixed at Rs 405-425. An investor can bid for a minimum of 35 equity shares and in multiples thereof. The offer comprises of a fresh issue up to Rs 375 crore and an offer for sale of up to 2,26,05,530 equity shares.
RateGain Travel Technologies is engaged in offering travel and hospitality solutions for hotels, airlines, online travel agents (OTAs), meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises, and ferries. The company is one of the largest aggregators of data points in the world for the hospitality and travel industry.
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