Market LIVE: Sensex below 58.2k, Nifty under 17.4k; strong debut for Latent View

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Stock market LIVE updates: Shares dropped on Tuesday after falling nearly 2% a day earlier, as technology, financial, and energy stocks slipped, and surging covid-19 cases in Europe raised concerns of a hit to global economic growth.

Shares of Latent View Analytics Ltd made a blockbuster debut on the stock exchanges on Tuesday, listing at a premium of 169% to the issue price of ₹197 apiece. Sensex plunged over 700 points in early trade on Tuesday, tracking losses in index majors Infosys, ICICI Bank and Reliance Industries amid persistent foreign fund outflows.

Raymond, Trident hit 52-week highs

Shares of Raymond and Trident hit their 52-week highs today.

Rupee opens at ₹74.50 per dollar

Rupee slips 11 paise to 74.50 against US dollar in early trade.

Infosys worst hit

Infosys, the top loser in the Sensex pack, shed around 2 per cent, followed by ICICI Bank, HUL, Bajaj Auto, Reliance Industries and TCS.

On the other hand, Tata Steel, PowerGrid, Bajaj Finance and ITC were among the gainers.

Shares decline as tech, financials weigh

Indian shares dropped on Tuesday after falling nearly 2% a day earlier, as technology, financial, and energy stocks slipped, and surging COVID-19 cases in Europe raised concerns of a hit to global economic growth.

The blue-chip NSE Nifty 50 index fell 0.96% to 17,255.40 by 0356 GMT, while the benchmark S&P BSE Sensex declined 1.08% to 57,814.18.

The Nifty IT Index fell 1.5%, dragged by Infosys Ltd and Coforge Ltd — down about 2.2% each.

The Nifty Energy Index slid 0.72%, with state-run Oil and Natural Gas Corporation and Adani Transmission being among the top losers.

Latent View Analytics soars 160% in India market debut

Shares of Indian data analytics firm Latent View Analytics opened at a 160% premium to their offer price on Tuesday, joining a slew of domestic companies that have seen stellar market debuts in 2021.

Latent View, whose initial public offering was oversubscribed more than 300 times, debuted at ₹512.20 in pre-open trade, compared to the offer price of ₹197 rupees, giving it a market valuation of ₹101.32 billion ($1.36 billion).

Paytm IPO has scarred Mobikwik’s unlisted share

Paytm’s lacklustre listing and its continued underperformance have dented investor sentiment for its smaller unlisted rival MobiKwik, said two traders who specialize in trading shares of unlisted companies.

MobiKwik’s stock was trading at a peak of ₹1,350 a share ahead of the opening of Paytm’s initial public offering (IPO) earlier this month, said one of the two traders, who did not wish to be named. The poor response to Paytm’s IPO and an even more disastrous listing moved Mobikwik shares, too, on the downward path. The shares are trading at `900, a nearly 33% plunge from their peak.

Spinoff of key businesses not to impact credit quality of Vedanta Resources: Moody’s

Mumbai-listed Vedanta Ltd’s proposal to spin off key businesses into separate listed companies is unlikely to affect the credit quality of the firm’s parent Vedanta Resources Ltd, Moody’s Investors Service said Monday.

Vedanta Resources Ltd’s (VRL) 65.2 per cent owned subsidiary Vedanta Ltd last week announced that its board of directors have formed a subcommittee to evaluate a potential spinoff of its aluminum, iron and steel, and oil and gas businesses into separate listed companies.

Dollar passes 115 yen for first time since 2017

The US dollar rose above 115 yen for the first time in more than four years on Tuesday as Jerome Powell was nominated to serve a second term as Federal Reserve boss, fuelling expectations he will look to tighten monetary policy faster.

In early trade, the dollar hit 115.10 yen, its highest level since March 2017.

The decision by Joe Biden to stick with Powell led to bets the bank will taper its massive bond-buying programme faster than previously flagged, while some analysts tipped it to hike interest rates as much as three times before the end of next year.

However, the prospect of tighter monetary policy hit US markets, with all three main indexes falling from their intra-day highs. The Dow ended slightly higher but the S&P 500 and Nasdaq lost more than one percent.

Exports rise 18.8% to $20 bn so far in November

India’s exports rose 18.8% to $20.01 billion during the three week period of this month (1 – 21 November), due to healthy growth in sectors such as petroleum products, engineering goods, chemicals and gems and jewellery, according to the preliminary data of the commerce ministry.

Imports during the period increased 45.34% to $35.11 billion as against $24.15 billion during the corresponding period last year, the data showed.

The exports are growing at a healthy rate and are expected to cross $400 billion by the end of the current fiscal.

Bears in complete control: Angel One

The SGX Nifty was indicating a pleasant start for the week in line with cheerful global bourses. However, we did not open with the same positivity and in fact gave up all gains in the initial trades itself. As the day progressed, the selling augmented across the broader market to break all intermediate supports one after another. During the final hour, market managed to minimize the damage; but still ended the session with nearly a couple of percent loss.

With Monday’s correction, Nifty marked the weakest session in last eight odd months. Throughout last week, our market was feeling the pressure and kept sliding gradually towards the key support of 17700. Technically this level was important because it coincided with the crucial neckline support of bearish ‘Head and Shoulder’ pattern which formed over the past couple of months. With reference to our recent commentary, we had anticipated formation of this pattern and today finally it got confirmed as we convincingly closed below the neckline of the same. Monday’s massive fall finally validates our recent cautious stance on the market. Monday’s low precisely coincides with the daily ’89-EMA’ and generally we consider this as a sheet anchor for prices. But this time, we do not expect it to play similar kind of role for the market. We may see small rebounds since market is a bit oversold, but the possibility of extending this correction is pretty high. 

After 17250, the Nifty is likely to continue this weakness towards the psychological level of 17000; where one need to reassess the situation. On the flipside, 17500 – 17650 are now to be considered as immediate hurdles. Traders are advised to use in between recoveries to lighten up longs and don’t be in a hurry to ma

Market view: Nagaraj Shetti, technical research analyst, HDFC Securities

“The market seems to have entered into a sharp downward correction. The overall chart pattern as per smaller and larger timeframe is weak and more weakness could be in store in the near term. Having declined sharply from the highs, the minor pullback rally from the lows can’t be ruled out in the short term, before showing another round of weakness in the market. Further lower levels to be watched at NSE Nifty are 17,000 to 16,800 in the next few weeks.”

IPOs of six companies get Sebi approval

Burgeoning activity in India’s initial public offering market expected to continue in the coming months with half a dozen firms receiving approvals to their draft papers from the market regulators.

These companies are Medplus Health Services, RateGain Travel Technologies, Purnik Builders, Fusion Micro Finance, Tracxn Technologies and Prudent Corporate Advisory Services.

Stocks to Watch

Shares of Future Group, Reliance, IEX, SBI, Vodafone Idea, among others, will be in focus today.

Latent View share listing today. Experts predict ‘stellar’ debut

Latent View shares are going to hit Indian bourses today. According to stock market experts, one can expect a stellar debut of the public issue despite negative sentiments at the primary market. They went on to add that Latent View share price may open around ₹450 to ₹500 per share levels, delivering up to 150 per cent listing gain to the lucky bidders, who got Latent View shares through the allotment process.

SGX Nifty indicates muted start for Indian indices

SGX Nifty futures traded at 17,370.50 in early deals, down 75.5 points or 0.43%, indicating a muted start for Indian benchmarks in Tuesday’s trade.

Oil slips as investors assess OPEC+ response to reserve release

Oil slipped ahead of an expected announcement by the U.S. on a coordinated release of reserves, with OPEC+ warning that it may not restore as much crude to the global market if consumers go ahead with the move.

Futures in New York fell toward $76 a barrel after rising 0.9% on Monday. The U.S. is preparing to announce the release in coordination with other nations as soon as Tuesday, according to people familiar. The move, likely in conjunction with India, Japan and South Korea, would be an unprecedented effort by consumers to tame prices. China said it’s also working to tap reserves.

OPEC+ delegates said the release of millions of barrels is unjustified under current market conditions and the group may have to reconsider plans to add more oil when they meet next week. A Covid-19 resurgence in the U.S. and Europe, meanwhile, is raising concerns about the outlook for demand.

The rift between producers and consumers threatens to set up a fight for control of the global oil market.

Asian stocks mixed after jump in yields, dollar

Asian stocks were mixed Tuesday after Treasury yields and the dollar jumped as Jerome Powell’s renomination to head the Federal Reserve fueled bets on quicker policy tightening.

Shares rose in Australia but fell in South Korea, while Japan is closed for a holiday. U.S. equity futures fluctuated after the S&P 500 ended in the red and the Nasdaq 100 underperformed after a final-hour selloff in technology shares in the Wall Street session.

Treasuries slid, with markets pricing in a full quarter-point rate hike into the June Fed meeting and seeing a good chance of a second by September and a third by December to fight inflation. Powell and the other Fed chief candidate, Governor Lael Brainard, were seen as having broadly similar policy stances but Brainard was viewed by some as more dovish.

Cash Treasuries won’t trade in Asia due to the Japan holiday. The dollar maintained an advance to around the highest since September 2020 and bullion held a slump. Oil retreated ahead of an expected announcement by the U.S. on a coordinated release of reserves.

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