Market LIVE updates: Sensex, Nifty flat; banks, pharma, metals, auto weigh

Market view: Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers

Indian markets opened on a positive note following Asian market cues as globally investors assess US Fed’s decision on taper and rates. The US Fed communicated to aggressively unwind bond buying and sees three rate hikes in 2022 and two each in following next two years. During the afternoon session, the markets continued to hold their head above water. However, upside remain capped on relentless FII selling in capital markets which impacted traders’ sentiment. During the closing session, the markets succumbed to selling pressure.

Axis Securities: Bank Nifty

Bank Nifty – Weekly View

Axis Securities Limited presents Bank Nifty weekly option report. This report has undergone a detailed analysis to provide you with the Bank Nifty strategy for the current week expiry.

Insights

Bank Nifty has seen an increase in Open Interest of 1.99% with a decrease in the price of -0.75% indicating a Short Build Up.

Nifty has seen an increase in Open Interest of 5.61% with a decrease in the price of -1.71% indicating a Short Build Up.

Option data indicates a probable trading range of Bank Nifty for the day between 36,000 to 37,300 & that for Nifty at 17,000 to 17,450.

BANK NIFTY Strategy: CALL Spread

View: Moderately Bullish.

Rationale: – Traders could initiate this spread strategy to make modest returns with limited risk and reward. The spread suggested consists of buying one lot of 37,000 strike CALL Option and simultaneously selling one lot of 37,500 strike CALL Option.

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European shares rise ahead of ECB outcome

European stocks jumped on Thursday after upbeat economic outlook from the U.S. Federal Reserve boosted risk appetite, with investors turning to the European Central Bank for its policy update.

The pan-European STOXX 600 index rose 1.4%, eyeing its best day in over a week, with tech and energy sectors leading the gains.

The Fed on Wednesday flagged a long-awaited end to its pandemic-era bond purchases in March and signalled as many as three rate hikes in 2022, but delivered an otherwise upbeat economic outlook.

The ECB and the Bank of England are set to hold policy meetings later in the day. ECB officials are likely to draw down the bank’s Pandemic Emergency Purchase Programme, but investors are waiting to gauge how the six-year-old Asset Purchase Programme may pick up the slack with rate rises still a while away.

France to ban non-essential travel from the UK amid Omicron fears: agencies 

Rajya Sabha adjourned for the day amid Opposition uproar: PTI

Most sectoral indices in the red 

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Broader markets under pressure 

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Edtech startup Byju’s in talks to go public via SPAC route: Bloomberg

Online education provider Byju’s, India’s most valuable startup, is in advanced discussions to go public through a merger with one of Churchill Capital’s special-purpose acquisition companies, according to people familiar with the matter.

The startup has held talks with several potential SPAC partners and is farthest along in working out an agreement with Michael Klein’s Churchill Capital, said the people, asking not to be named discussing private matters. Churchill Capital VII raised more than $1.3 billion in an offering in February and trades on the New York Stock Exchange.

Under the preliminary terms discussed, Byju’s would raise a total of about $4 billion and seek a valuation of about $48 billion, the people said. The startup was valued at $21 billion, according to market research firm CB Insights.

IRB InvIT recommences toll collection at  Pathankot Amritsar toll road: BSE filing 

Toll collection was stopped on the stretch since October 2020 due to farmers’ protest in Punjab.

Tata Steel executes long-term deal with Angul Sukinda Railway: BSE filing

TataSteel has executed a 20-year long-term agreement with Angul Sukinda Railway to set up an alternate railway line to meet logistical requirements for Kalinganagar plant.

The steel major will be funding the entire expenditure of ₹400 crore (in a phased manner) for construction of the additional rail line by subscribing to 40,00,00,000 non-convertible, non-cumulative, redeemable preference shares of face value ₹10 each.

Incorporation of companies keeps steady pace in November

Over 14,300 companies were formed in November, near the levels seen prior to the second wave of the pandemic gripped the nation, as per official data. Maharashtra, Delhi and Uttar Pradesh were the frontrunners in attracting new entrepreneurs.

Incorporation of companies, which had dropped to 10,915 in May during the second wave of the pandemic, subsequently gained momentum. Over 16,000 companies were registered each in September and October. 

Separately, official data also showed that in the April-September period, there has not been any spike in admission of bankruptcy cases in tribunals after the one-year moratorium on defaults during the pandemic got lifted in March.

Higher input cost to continue weighing on margins of cement firms: Icra 

Despite some easing in cost side pressures, input costs are likely to remain elevated in the near term and are expected to exert pressure on operating margins, which are likely to decline by 200 to 230 bps in FY2022. While capacity additions are expected to increase in FY22 compared to previous year, reliance on debt is likely to be lower due to healthy cash generation and strong liquidity of cement companies. The debt coverage metrics are seen strong in FY22, said Anupama Reddy, assistant vice president & sector head, Corporate Ratings, ICRA.

On the bright side, a sharp pick-up in infrastructure activity from mid-December and continuing strong rural demand would result in cement production rising by 12% in FY22.

ShareChat raises $266 mn funding led by Alkeon Capital; valued at $3.7 bn

Mohalla Tech, the parent company of Moj and ShareChat, has raised $266 million (around ₹1,995 crore) as part of its Series G funding round led by Alkeon Capital at a valuation of $3.7 billion, the company said in a statement.

The round also saw participation from Temasek Holdings, Moore Strategic Ventures (MSV), Harbourvest and India Quotient.

The company said the funds raised will help build capabilities in areas such as social and live commerce, growing its artificial intelligence and machine learning (AI/ML) team which now consist of over 100 people spread across the US, Europe and India.

ICICI Bank down; RBI imposes penalty on violation of norms 

The Reserve Bank of India has imposed a penalty of ₹30 lakh on ICICI Bank for deficiencies in regulatory compliance.

The central bank said the statutory inspection for supervisory evaluation of the bank was conducted by it with reference to its financial position as of 31 March 2019. Later, the RBI found non-compliance with directions related to levy of charges for non-maintenance of minimum balance in saving accounts.

India Ratings upgrades long-term issuer rating of Tata Steel from ‘AA’ to ‘AA+’, outlook stable: BSE filing 

HDFC Life launches HDFC Life Systematic Retirement Plan

TCS bags contract from Plaza Premium Group to transform airport experience

Nifty Auto down nearly 1%; Icra says chip shortage to weigh on automakers 

Ratings agency Icra Ltd has revised lower growth forecast for the domestic passenger vehicles industry to 8-11% for the current fiscal from the earlier projected 14-17% due to chip shortages. For the two-wheeler segment, it said volumes are expected to contract 1-4% in FY22 against an earlier prediction of 6-8% growth.

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Investments of $12.6 bn to fuel India’s EV push over next 5 years: Colliers

NPCI, Western Union tie up for real-time cross-border money transfers

National Payments Corp. of India (NPCI) on Thursday said its international payments arm NPCI International…