The benchmark indices ended with sharp cuts on Friday, tracking dismal global cues amid renewed COVID-19 fears over a new variant found in South Africa. The Nifty ended near 17,000 mark. Barring the pharma and healthcare indices, all the sectoral indices on the NSE ended in the red. Auto, metal and realty shares slumped.
The barometer index, the S&P BSE Sensex, tumbled 1687.94 points or 2.87% at 57,107.15. The Nifty 50 index crashed 509.80 points or 2.91% at 17,026.45.
HDFC (down 4.49%), ICICI Bank (down 3.86%), Reliance Industries (down 3.3%), HDFC Bank (down 2.24%) and Infosys (down 1.86%) were major drags.
In the broader market, the S&P BSE Mid-Cap index dropped 3.23% while the S&P BSE Small-Cap index declined 2.61%.
The market breadth was weak. On the BSE, 1067 shares rose and 2244 shares fell. A total of 104 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, soared 24.84% at 20.8025.
The ongoing correction is triggered by heavy foreign outflows. So far in November, foreign institutional investors have sold Rs 25,338.63 crore in the domestic equity market.
Numbers to Track:
The yield on 10-year benchmark federal paper fell to 6.331% compared with 6.367% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.89, compared with its close of 74.52 during the previous trading session.
MCX Gold futures for 3 December 2021 settlement rose 1.42% to Rs 48,096.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.35% to 96.43.
In the commodities market, Brent crude for January 2022 settlement fell $4.22 at $78.03 a barrel.
Global Markets:
Shares in Europe and Asia plummeted on Friday, 26 November 2021, amid fears over a new variant of COVID-19 that reportedly has multiple mutations.
The US Dow Jones futures skid 742 points, indicating a weak opening in the US market today.
WHO officials on Thursday warned of a new COVID-19 variant that's been detected in South Africa. The new variant called the B.1.1529 is reported to have a significantly high number of mutations, thus leading to alarming public health implications. The United Kingdom temporarily suspended flights from six African countries due to the variant.
Buzzing Indian Segment:
The Nifty Healthcare index rose 1.75% to 8,855.80.
Cipla (up 7.23%), Alkem Laboratories (up 6.84%), Dr Lal Path Labs (up 6.75%), Pfizer (up 4.97%), Dr. Reddy's Laboratories (up 3.45%), Metropolis Labs (up 3.22%), Divi's Laboratories (up 2.92%), Cadila Healthcare (up 2.68%), Lupin (up 1.86%), Alembic Pharmaceuticals (up 1%), Aurobindo Pharma (up 0.93%), Torrent Pharmaceuticals (up 0.75%), Glenmark Pharmaceuticals (up 0.14%), Biocon (up 0.12%) and Apollo Hospitals (up 0.08%) advanced.
Stocks in Spotlight:
Greenlam Industries soared 10.03% after the company scheduled a board meeting on 13 December 2021 to consider sub-division of equity shares.
Sanofi India gained 1.51% after the company announced divestment of Soframycin and Sofradex businesses. Sanofi India said it will transfer the Soframycin and Sofradex brands, trademarks and associated technical know-how/manufacturing dossiers (registered IP) to Encube Ethicals for about Rs 125 crore. Following the transaction, Encube would have the right to exclusively sell and distribute these products in the territories of India and Sri Lanka. The agreement for sale is proposed to be signed on or after 1 December 2021. The sale is expected to be completed in approximately 3 months from signing the asset purchase agreement.
Kirloskar Ferrous Industries (KFIL) dropped 4.33%. The company said that it will acquire a majority stake in Indian Seamless Metal Tubes (ISMT) by subscribing to its equity shares through a preferential allotment and gain sole control over ISMT. KFIL will subscribe to shares for an aggregate consideration of Rs 476.63 crore at a per share price of Rs 30.95 by the way of preferential allotment. These shares will represent 51.25% of the resultant share capital of ISMT. Further, in accordance with the provisions of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the company has also commenced an open offer for acquiring up to 25.05% of the resultant voting capital of ISMT.
Indian Metals & Ferro Alloys slipped 1.42%. The firm stated that its board has approved issue of bonus equity shares in the ratio of one new equity bonus share for every one existing equity share of the company held by the shareholders as on the record date.
Nazara Technologies shed 2.55%. The company has acquired 7,670 equity shares of Rs 10 each of OpenPlay Technologies and has paid the consideration by way of issue and allotment of 6,48,125 equity shares of Rs 4 each of the company to Unnati Management Consultants LLP. With this, the acquisition of equity shares of OpenPlay as per the acquisition agreement is completed and the company now holds 100% of the issued and paid up share capital of OpenPlay.
Engineers India rallied 3.14% after the company and Chempolis OY, Finland signed a strategic alliance for conversion of biomass to green fuels.
New Listing:
Shares of Tarsons Products hit an upper circuit of 20% to end at Rs 840 on BSE, a premium of 26.89% over the IPO price of Rs 662.
The scrip was listed at Rs 700, at a premium of 5.74% to the issue price. The scrip has hit a high of 840 and a low of 634 during the day. Over 26.30 lakh shares of the company changed hands in the counter on the BSE.
The initial public offer (IPO) of Tarsons Products received bids for 84,02,81,684 shares as against 1,08,44,104 shares on offer. The issue was subscribed 77.49 times. The issue opened for bidding on 15 November 2021 and it closed on 17 November 2021. The price band of the IPO was fixed at Rs 635-662.
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