Sensex jumps 700 points as metal, computer stocks rally; Tata Steel & HCL Tech Surge


The Nikkei rose more than 2% while the Hang Seng gained 0.6%. The Shanghai Composite is up 0.4%.

In U.S. stock markets, Wall Street indices fell more than 1% on Monday, with investors fearing the Omicron Covid-19 variant could potentially undermine the economic rebound.

A critical setback to President Joe Biden’s social spending bill has added to the pressure.

The Dow Jones fell 1.2% while the Nasdaq Composite fell 1.3% to 14,981.

Back home, Indian stock markets opened on a good note, following the trend on SGX Nifty.

After two days of rout, the benchmarks healed the wounds today and opened higher tracking positive global indices.

Stocks of the software as a service (SaaS) company – MapmyIndia listed on the stock exchange today. the ??The IPO of 10.4 billion was open for subscription between 9 and 13 December in a price range of around ??1,000 to 1,033 per share.

The ESB Sensex trades 677 points. Meanwhile, the NSE Nifty is trading up 203 points.

Tata Steel and HCL Tech are among the top winners today.

Axis Bank, on the other hand, is among the big losers today.

The BSE Mid Cap Index and the BSE Small Cap Index are trading up 1.2% and 1.5% respectively.

All sector indices are trading in the green, with metals and IT stocks witnessing most of the buying.

Shares of Minda Industries and Apar Industries hit their 52 week highs today.

The rupee is trading at 75.72 against the US dollar.

Gold prices are trading down 0.1% at ??48 176 for 10 grams.

Meanwhile, silver prices are trading at ??61,307 per kg.

Crude oil prices edged up today, although investors remained concerned about the rapid spread of the Omicron coronavirus variant around the world, prompting countries to consider more restrictions that could reduce demand for fuel.

In banking industry news, Axis Bank is among the hottest stocks today.

Axis Bank became the leader in the takeover of Citi’s consumer business in India, edging out rival rivals Kotak Mahindra Bank and IndusInd Bank.

According to a major financial daily, Axis Bank and Citi have signed an exclusivity agreement to conduct bilateral negotiations, the Wall Street bank having already informed the others of their decision.

Citi expected around $ 2 billion from the sale as the US bank led by CEO Jane Fraser sought to pull out of mainstream banking in 13 countries, including India.

The final assessment will be linked to the number of variables including the amount of deposits, customers, partners, amount of assets and liabilities transferred from one franchise to another once all regulatory clearances have been obtained and could range from 500 million dollars to $ 2 billion.

The business includes credit cards, retail banking, home loans and wealth management. The bank has 35 branches across the country and employs 4,000 people in consumer banking.

Overall, the Indian unit of Citibank had an advance and deposit market share of 0.6% and 1.1%, respectively.

Apparently, even though Kotak Mahindra Bank was more aggressive at the start, their tough negotiations over transition service fees, among other things, turned out to be a deciding factor.

According to market experts, Axis Bank is looking to strengthen its premium credit card and mortgage business with the acquisition.

The private lender has also looked into inorganic opportunities such as microfinance. It was in talks with Kedaara Capital to acquire Spandana Spoorthy but the deal fell through.

It remains to be seen how the above developments will play out.

Axis Bank shares are currently trading down 0.3%.

Speaking of the current stock market scenario, in the midst of the current volatility, take a look at the two charts below, in the order they have been placed:

Short-term volatility in Sensex offset by long-term gains

View full picture

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The year-to-year change in the Sensex was barely predictable, but someone who stayed invested multiplied each lakh nearly 14 times.

The timing of the markets could be suicidal, as valuations and volatility put the markets in a tip-over mode.

As an individual investor, you need to stay focused on high conviction stocks and invest consistently to see the magic of compounding.

Because 2022 could be extremely profitable, over time, provided you reset your portfolio with the right kind of safe assets and safe stocks.

Continuing, in the latest developments in the IPO space, the ??7 billion initial public offerings (IPO) from pharmaceutical ingredient supplier Supriya Lifescience were subscribed 71.47 times on Monday, the last day of the tender.

The issue received offers for 1,038.3 million shares against 14.5 million capital shares offered.

The category of non-institutional investors was subscribed 161.22 times, while the part reserved for qualified institutional investors was subscribed 31.83 times. Retail investors have offered the shares reserved for them 56 times.

Supriya Lifescience’s public show consisted of a new show of ??2 billion and a sales offer (OFS) of ??5 billion. The issue money will be used for working capital needs and debt repayment.

Last week, the company had lifted ??3.2 billion benchmark investors by allocating 11.5 million shares to ??274 per share.

Major investors included Nippon Life, Kuber India Fund, Malabar India Fund, Abakkus, Reliance General Insurance and BNP Paribas, among others.

Supriya Lifescience is a manufacturer and supplier of active pharmaceutical ingredients (APIs) used in medicines, with a strong emphasis on research and development (R&D).

Currently, Supriya Lifescience orders a gray market premium of ??100 on unlisted markets.

It remains to be seen how this IPO will unfold on the day of listing.

This article is syndicated from Equitymaster.com

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