Stock markets end with deep cuts; Sensex slips 889 points, & Nifty drops below 17,000

Domestic benchmarks ended with steep losses on Friday, December 17, 2021, with the Nifty slipping below the crucial 17,000-mark. Barring the Nifty IT index, all the sectoral indices at the NSE ended in the negative zone.

The S&P BSE Sensex tumbled 889.40 points, or 1.54 per cent, at 57,011.74. The Nifty 50 index lost 263.20 points, or 1.53 per cent, at 16,985.20. The Nifty Bank lost 263.20 points, or 1.53 per cent, to end at 16,985.20.

The broader market underperformed the Sensex at the BSE with S&P BSE MidCap declining 2.42 per cent and S&P BSE SmallCap closing 2.07 per cent low.

The market breadth was weak. On the BSE, 1,051 shares rose and 2,290 shares fell. On the Nifty 50 index at the NSE, five shares advanced and 45 shares declined. The top five gainers on Nifty were Wipro (up 4.73 per cent), Infosys (up 2.90 per cent), HCL Technologies (up 0.88 per cent), Power Grid (up 0.77 per cent), Sun Pharma (up 0.73 per cent). The top five losers were IndusInd Bank (down 4.61 per cent), Tata Motors (down 4.42 per cent), ONGC (down 3.89 per cent), Kotak Bank (down 3.47 per cent) and Hindustan Unilever (down 3.44 per cent).

RateGain Travel Listing: Shares of RateGain Travel Technologies made a poor debut on the bourses, NSE & BSE, as it listed at Rs 360 per share at NSE, a discount of 15 per cent over its issue price of Rs 425 per share. At the BSE, the share opened at Rs 364.80 per share, a discount of 14.16 per cent over the issue price. Besides, RateGain Travel Technologies closed the day at Rs 337.55 on the NSE, at a discount of 20.58 per cent against the issue price of Rs 425. At the BSE, the stock ended at Rs 340.50 per share at a discount of 19.88 per cent against the issue price.

The Rs 1,336 crore IPO closed with 17.41 times subscription. The Qualified Institutional Buyers (QIBs) portion was subscribed 8.42 times, while the Non-Institutional Investors (NII) and Retail Individual Investors (RIIs) portions were subscribed 42.04 times and 8.08 times respectively. The portion reserved for employees was subscribed 1.37 times. The IPO comprised of a fresh issue of equity shares aggregating up to Rs 375 crore and an offer-for-sale (OFS) of up to 2.26 crore equity shares worth Rs 961 crore by promoters and existing shareholders. The retail investors can place a bid for a lot of 35 Equity Shares and in multiples thereof.

IPO Update: Supriya Lifescience IPO + HP Adhesives IPO

Supriya Lifescience IPO: The initial public offering (IPO) of Supriya Lifescience Limited, a manufacturer and supplier of Active Pharmaceutical Ingredients (API), was subscribed 5.69 times on Friday, the second day of bidding. The Qualified Institutional Buyers (QIBs) portion was subscribed 0.53 times while the Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) portions were subscribed 2.90 times and 25.38 times, respectively. The three-day issue will close on Monday, December 20, 2021. The offer price has been fixed at Rs 265-274 per equity share. The company has plans to raise up to Rs 700 crore through this public offer. The issue comprises a fresh issue of up to Rs 200 crore and an offer for sale (OFS) of up to Rs 500 crore. Investors can bid for a minimum of 54 equity shares and in multiples of 54 shares thereof. Retail investors can invest a minimum of Rs 14,796 for one lot, and their maximum investment is Rs 1,92,348 for 13 lots.

HP Adhesives IPO: The initial public offering (IPO) of HP Adhesives Limited, an adhesive and sealants company, closed with 20.96 times subscription today, i.e., on Friday, December 17, 2021. The Qualified Institutional Buyers (QIBs) portion was subscribed 1.82 times, while the Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) portions were subscribed 19.04 times and 81.24 times, respectively. The company had fixed a price of Rs 262-274 per equity share to raise up to Rs 125.9 crore from the primary market. The issue comprised of a fresh issue of 41,40,000 equity shares worth Rs 113.44 crore and an offer for sale (OFS) of 4,57,200 equity shares worth Rs 12.5 crore. A retail investor can place a bid for a minimum of 50 equity shares and in multiples thereof.

Economy

The Bank of England hiked its interest rates on Thursday for the first time since the pandemic started. It raised its main interest rate from a historic low of 0.1 per cent to 0.25 per cent amid mounting inflation pressure. The European Central Bank further cut its bond purchases overnight but vowed to continue its unprecedented monetary policy support for the eurozone economy into 2022. It left the benchmark refinancing rate unchanged at 0 per cent, while the rate on its marginal lending facility remained at 0.25 per cent.

US President Joe Biden signed a debt ceiling increase into law on Thursday, ensuring the US will not default on its debt for the first time ever. The measure lifts the government's borrowing limit by $2.5 trillion, which is expected to allow the US to cover its obligations into 2023. The number of Americans applying for unemployment benefits rose last week despite signs that the US labour market is rebounding from last year's Coronavirus recession. Jobless claims rose by 18,000 to 2,06,000, still low by historical standards. The four-week average, which smooths out week-to-week volatility, fell by 16,000 to less than 2,04,000, according to Department of Labour figures released on Thursday.