The benchmark indices ended with sharp losses on Monday. As per provisional closing data, the barometer index, the S&P BSE Sensex, skid 1,170.12 points or 1.96% at 58,465.89. The Nifty 50 index lost 348.25 points or 1.96% at 17,416.55.
In the broader market, the S&P BSE Mid-Cap index declined 2.62% while the S&P BSE Small-Cap index slipped 2.96%.
The market breadth was weak. On the BSE, 910 shares rose and 2,492 shares fell. A total of 166 shares were unchanged.
The risk-off mood was triggered by fresh COVID-19 cases in Europe and lockdowns in countries like Austria. The dollar index climbing over 96 mark also spooked investors. Repeal of farms laws by the government, falling of Reliance-Aramco deal and the weak listing of Paytm also dented investors sentiment. However, the decline in crude oil prices is a positive for India.
Politics:
Prime Minister (PM) Narendra Modi, on Friday, 19 November 2021 announced that the government has decided to repeal all three farm laws in the upcoming Winter Session of Parliament.
The three farm bills were: Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020; Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020; and Essential Commodities (Amendment) Bill 2020.
These bills were passed by Parliament during the monsoon session last year. All three agricultural reform laws have sparked almost a year of massive protests by farmers from Punjab, Haryana and Uttar Pradesh.
Primary Market:
The initial public offer (IPO) of Go Fashion (India) received bids for over 91.62 crore shares as against 80.79 lakh shares on offer, according to stock exchange data at 15:18 IST on Monday (22 November 2021). The issue was subscribed 113.40 times.
The issue opened for bidding on 17 November 2021 and it will close on 22 November 2021. The price band of the IPO is fixed at Rs 655-690.
Buzzing Index:
The Nifty Consumer Durables index dropped 2.92% to 28,480.55. The index lost 4.79% in four trading sessions.
Dixon Technologies (India) (down 6.10%), V-Guard Industries (down 5.91%), Whirlpool of India (down 4.91%), Amber Enterprises India (down 4.29%) and Voltas (down 3.71%) were the top losers in the Consumer Durables segment.
Stocks in Spotlight:
Reliance Industries (RIL) dropped 4.36% after Saudi Aramco on Friday (19 November 2021) decided to re-evaluate the proposed Investment by Aramco in the oil-to-chemical (O2C) business in light of the RIL's new energy forays. Hence, the current application with National Company Law Tribunal (NCLT) for segregating the O2C business from RIL is being withdrawn, RIL said in a statement.
Indian Railway Catering and Tourism Corporation (IRCTC) shed 0.35%. The company said that the Ministry of Railways has conveyed the decision to resume the services of cooked food in trains.
Sastasundar Ventures was locked in 5% upper circuit at Rs 511.65 after the company said that the Flipkart Group has signed definitive agreements to acquire a majority share in Sastasundar Marketplace, which owns and operates SastaSundar.com, an online pharmacy and digital healthcare platform. The website focuses on providing consumers access to affordable and convenient healthcare and is supported by a network of more than 490 pharmacies. It aims to address the issues of access to affordable and quality healthcare in India by providing original products from authorized sources and delivering them across the country.
Laurus Labs shed 1.46%. The company said that it has signed an investment agreement with Immunoadoptive Cell Therapy to acquire 26.62% stake for a cash consideration of approximately Rs 46 crore. The acquisition is subject to the fulfilment of certain conditions, the company said. Additionally, senior management of Laurus Labs would also invest in ImmunoACT for a 5.64% stake for approximately Rs 9.75 crore, at same price and terms.
JBM Auto rallied 3.30% after the auto component maker's board will consider a stock split on 8 December 2021. The board of JBM Auto will consider the proposal of sub-division of the company's equity shares having face value of Rs 5 each.
Shree Ganesh Remedies lost 1.91%. The drug maker's board has approved the proposal for raising up to Rs 45 crore through rights issue of equity shares. The board of Shree Ganesh Remedies at its meeting held on 19 November 2021, approved the proposal for raising of funds by issuance of equity shares of the company for an amount not exceeding Rs 45 crore by way of a rights issue to the eligible equity shareholders. The record date will be determined and notified subsequently. The detailed terms in relation to the rights issue, including the issue price, rights entitlement ratio, record date, timing and terms of payment will be determined in due course.
Global Markets:
European stocks traded mixed on Monday, 22 November 2021 shrugging off concerns over COVID-19 restriction measures on the continent. Investors would keep an eye on the spread of COVID-19 across the continent after Germany and Austria re-imposed strict containment measures last week.
Asian stocks also ended mixed on Monday as China kept its benchmark lending rate unchanged. China on Monday kept the one-year Loan Prime Rate (LPR) unchanged at 3.85%. The five-year LPR was also left steady at 4.65%.
U.S. stocks ended mixed on Friday as the House passed a $1.75 trillion social spending bill while concern about a new coronavirus wave in Europe rattled investors.
The House of Representatives voted Friday to pass President Biden's $1.7 trillion social safety net bill, sending it to the Senate. Biden's spending measure was approved on a 220-213 vote.
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