Markets ended with huge gains; Sensex rise 620 points & Nifty settles above 17,167

Equity indices ended with strong gains on Wednesday, December 1, 2021, tracking positive global cues. The S&P BSE Sensex gained 619.92 points, or 1.09 per cent, to 57,684.79. The Nifty 50 index added 183.70 points, or 1.08 per cent, to 17,166.90. The Nifty Bank closed with a gain of 669.60 points, or 1.88 per cent, at 36,364.90.

In the broader markets at the BSE, the S&P BSE MidCap and S&P BSE SmallCap closed 1 per cent and 0.27 per cent higher, respectively. Except for the telecom, healthcare, and consumer durables sector, all other sectoral indices ended in the green today. Huge buying was seen in the shares of metal, energy, auto, banking, finance, and industrial sectors.

The market breadth was positive. On the BSE, 1914 shares rose and 1337 shares fell. On the Nifty 50 index at the NSE, 35 shares advanced and 14 shares declined while one remains unchanged. The top five gainers on Nifty were IndusInd Bank (up 5.83 per cent), JSW Steel (up 4.99 per cent), Tata Motors (up 4.23 per cent), Axis Bank (up 3.71 per cent) and Adani Ports (up 3.68 per cent). The top five losers were Cipla (down 4.42 per cent), Divi's Laboratories (down 2.31 per cent), UltraTech Cement (down 1.53 per cent), Dr Reddy's Laboratories (down 1.51 per cent) and Bharti Airtel (down 0.86 per cent).

IPO Updates

Star Health IPO

The Rs 7,249.18 crore initial public offering of Rakesh Jhunjhunwala-backed Star Health & Allied Insurance Company Limited was subscribed 0.10 times by the day end on the second day of subscription. The Qualified Institutional Buyers (QIBs) portion was subscribed 0.06 times while the Non Institutional Investors and Retail Individual Investors (RIIs) were portions were subscribed 0.01 times and 0.36 times, respectively. The employee portion was subscribed 0.04 times. The issue will close on Friday, December 2, 2021.

The price band for the initial public offering has been fixed at Rs 870-900 per share. Retail investors can place a bid for a lot of 16 Equity Shares and in multiples thereof. Retail investors can invest a minimum of Rs 14,400 for a single lot, and their maximum investment would be Rs 1,87,200 for 13 lots (208 equity shares). The company is offering a discount of Rs 80 per Equity Share for Eligible Employees Category and the maximum subscription amount for the eligible employee has been fixed up to Rs 5 lakh.

Tega Industries IPO

The Rs 619.23 crore leading polymer-based mill liners producer Tega Industries Limited initial public offering (IPO) was subscribed 1.58 times by the day end on the first day of subscription. The Qualified Institutional Buyers (QIBs) portion was subscribed 0.06 times while the Non Institutional Investors and Retail Individual Investors (RIIs) were portions were subscribed 1 time and 2.71 times, respectively. The issue will close on Friday, December 3, 2021. The price band for the initial public offering worth Rs 619.23 crore has been fixed at Rs 443-453 per equity share. Retail investors can place a bid for a lot of 33 equity shares and in multiples thereof for a maximum of 13 lots. Retail investors can invest a minimum of Rs 14,949 for a single lot, and their maximum investment would be Rs 1,94,337 for 13 lots.

Economy

India's GDP for the second quarter of the current fiscal logged the fastest growth among major economies in the world. According to the government data released yesterday, the GDP of the country grew 8.4 per cent from a year ago. As per the National Statistics Office (NSO) data, manufacturing output increased 5.5 per cent during the period while the construction segment grew 7.5 per cent in the second quarter. The NSO data suggests that household consumption rose in the second quarter, July-September, of FY22 despite the second wave of the Covid-19 pandemic, boosting hopes of a quicker recovery in consumer demand in the months ahead. The economy of the country has gained momentum during the quarter as demand in the economy gradually returned to normalcy after Coronavirus related disruptions. The economy had contracted 7.5 per cent in the same period last year. The combined Index of Eight Core Industries was at 136.2 in October 2021, up 7.5 per cent (provisional).

In an appearance before a Senate committee, the Fed chief said he thinks reducing the pace of monthly bond buys can move quicker than the $15 billion-a-month schedule announced earlier this month. A private survey released on Wednesday showed Chinese factory activity shrinking in November, with the Caixin/Markit manufacturing Purchasing Managers' Index coming in at 49.9 for that month. That was a decline from October's reading of 50.6.