Sensex, Nifty Gain The Most In Eight Weeks Aided By Banking, Metal Stocks
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India's stock benchmarks rose the most in eight weeks, aided by banking, metal and media stocks. This is the second consecutive week in which the S&P BSE Sensex and NSE Nifty 50 advanced.
The rise comes amid comments from Pfizer and BioNTech that a third dose of their vaccine would neutralise the impact of omicron strain. Investors will assess the November CPI reading in the U.S., due to be released later today for cues on the rising cost-pressures in the world's largest economy and timeline of tapering. Concerns over faster tapering of monetary stimulus by the U.S. Federal Reserve as well the official default of China Evergrande Group on their dollar debt remained other crucial factors.
On Friday's session, Sensex was little changed at 58,786.67. The Nifty 50 also closed little changed at 17,511.30. Both the benchmarks snapped a winning streak of three sessions. Housing Development Finance Corp. contributed the most to the index decline, decreasing 1.2%. Divi's Laboratories Ltd. had the largest drop, falling 1.5%. Today, 26 of 50 shares fell, while 24 rose.
The broader indices outperformed their larger peers with the S&P BSE MidCap adding 0.4% and S&P BSE SmallCap rising 0.85%. Fourteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Realty rising nearly 3% on Friday.
The market breadth was skewed in the favour of bulls. About 2,099 stocks advanced, 1,167 declined and 127 remained unchanged.
"The market witnessed profit booking in the first half of the session but firmed up in the afternoon amid positive global cues. Easing worries over the omicron variant of coronavirus also supported buying", Mitul Shah, head of research at Reliance Securities wrote in a note. He added that India was at the beginning of capex revival phase and therefore corporate earnings recovery looked sustainable and premium valuations might sustain, barring near term hiccups.
Domestic equities gave positive returns this week amid easing concerns pertaining to the potential severity of the Omicron covid variant", according to Head of Equity Research (Retail), Kotak Securities Ltd., Shrikant Chouhan, who noted that the majority of the sectoral indices saw positive returns. "With weekly gains ranging between 4.5-4.8%, BSE Real Estate Sector and BSE Metal index saw renewed interest amongst market participants. RBI’s monetary policy committee unanimously kept the repo rate unchanged at 4% along with an accommodative stance. Markets in the immediate term will keenly watch out for the actions on asset tapering and key policy rates in the upcoming US Federal Reserve meet."
Broader Indices Outperform Their Larger Peers
S&P BSE Realty Up Nearly 3%
Warburg Cuts Stake In IPO-Bound Medplus Before Start Of Offer
Warburg Pincus sold 6.9 million shares, or a 6.2% stake, in MedPlus Health Services Ltd. ahead of the Indian pharmacy firm’s IPO, according to information updated on an issue manager’s website.
Lavender Rose Investment Ltd, a unit of Warburg Pincus, sold shares to investors, including asset management and life insurance businesses of State Bank of India and Motilal Oswal Financial Services, an addendum to the company’s IPO prospectus showed.
The shares were sold at Rs 796 apiece, the top of IPO’s price band
Lavender Rose held a 24.6% stake in the company before the sale and hadn’t offered to sell any shares in the IPO that is scheduled to open for subscription on Dec. 13.
MedPlus Health is seeking to raise about $186 million via IPO, which has been downsized from $219 million earlier.
Gujarat Gas Jumps After CRISIL Issued AA+/Positive Long-Term Rating For Its Total Bank Loan Facilities
Shares of Gujarat Gas Ltd. rose 2% in intraday trade to Rs 675 apiece, after CRISIL issued AA+/Positive long-term rating for its total bank loan facilities of Rs 2,350 crore.
Of the 31 analysts tracking the company, 20 maintained 'buy', six maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 5%.