Equity benchmarks closed in red; Sensex declines 396 points & Nifty falls 110 points

Domestic equity benchmarks ended near the day's low after a volatile session on Tuesday, November 16, 2021. The Sensex closed below the 60,500 mark and the Nifty ended below the 18,000 level.

The S&P BSE Sensex tumbled 396.34 points or 0.65 per cent to 60,322.37. The Nifty 50 index lost 110.25 points or 0.61 per cent to end at 17,999.20. In the sectoral index, Nifty Bank declined 395.25 points or 1.02 per cent to 39,307.10.

In the broader markets at the BSE, the S&P BSE MidCap ended 0,22 per cent down while BSE SmallCap closed with a gain of 0.18 per cent.

The market breadth was negative. On the BSE, 1585 shares rose and 1744 shares fell. On the Nifty 50 index at the NSE, 13 shares advanced and 37 shares declined. The top five gainers on Nifty were Maruti (up 7.28 per cent), M&M (up 2.87 per cent), Tata Motors (up 2.47 per cent), Hero MotoCorp (up 1.92 per cent) and Tech Mahindra (up 1.32 per cent. The top five losers were Shree Cement (down 3.19 per cent), Reliance (down 3.12 per cent), Hindalco (down 2.54 per cent), SBI (down 2.43 per cent) and Tata Consumer Products (down 2.31 per cent).

Tarsons Products Ltd IPO: The initial public offering (IPO) of the labware and life science products company Tarsons Products Limited was subscribed 3.58 times by day end on the second day of bidding. The Qualified Institutional Buyers (QIBs) portion was subscribed 1.30 per cent while Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) portions were subscribed 3.98 times and 4.74 times, respectively. The employee portion was subscribed 1.08 times. The initial share sale will close on Wednesday, November 17, 2021. The company has fixed the price band for the offer at Rs 635-662 per equity share for its Rs 1,024-crore initial share sale. The initial public offering comprises of fresh issue of upto Rs 150 crore and an offer for sale of up to 1.32 crore equity shares worth Rs 874 crore by the promoters and an investor.

Economy

India's merchandise exports in October 2021 were $35.65 billion, compared to $24.92 billion in October 2020, exhibiting a positive growth of 43.05 per cent. Exports rose 5.5 per cent on a month-on-month basis. Imports in October 2021 were $55.37 billion, which is an increase of 62.51 per cent in dollar terms over the preceding year. Imports have fallen 1.8 per cent sequentially. India trade deficit fell marginally in October as exports rose and imports eased. The trade deficit was at $19.73 billion, compared to $22.59 billion in September. In September, the monthly deficit was at an all-time high.

Reserve Bank of India has directed Non-Banking Finance Companies (NBFCs) to appoint an Internal Ombudsman within 6 months.

Deposit-taking NBFCs with more than 10 branches and non-deposit-taking NBFCs with an asset size of a minimum of 5 thousand Crore rupees have been asked to appoint an internal ombudsman within 6 months. It will be an apex of their internal grievance redress mechanism. All complaints that are partly or wholly rejected by the NBFC will be reviewed by the Internal Ombudsman before the final decision of the NBFC is conveyed to the complainant. The Internal Ombudsman will not entertain any complaints directly from members of the public. NBFCs not having a public customer interface have been excluded from the requirement for the appointment of an Internal Ombudsman.

US President Joe Biden and Chinese President Xi Jinping kicked off a virtual meeting on Tuesday with a positive tone and cordial remarks. The video call is the closest communication between the countries' two leaders since Mr Biden took office in January.

Tightening monetary policy now to rein in inflation could choke off the eurozone's recovery, European Central Bank President Christine Lagarde said on Monday, pushing back on calls and market bets for tighter policy. With inflation already twice its 2 per cent target and likely rising further later this year, ECB is coming under increased pressure to abandon its ultra-easy monetary policy.