Domestic equity indices snapped two day rising streak and ended with steep losses on Friday. Sentiment took a hit after India reported two Omicron Covid cases in southwest India. The benchmarks opened higher tracking supportive global cues however selling pressure at higher levels dragged the indices lower as the day progressed. The Nifty ended below the 17,200 mark after hitting the day's high of 17,489.80 in morning trade. Barring the Nifty Media index, all the sectoral indices on the NSE ended in the red.

The barometer index, the S&P BSE Sensex, dropped 764.83 points or 1.31% at 57,696.83. The Nifty 50 index tumbled 204.95 points or 1.18% at 17,196.70.

Power Grid Corporation of India (down 4.03%), Reliance Industries (down 3.05%), Kotak Mahindra Bank (down 2.58%), HDFC (down 1.36%) and HDFC Bank (down 0.82%) put pressure on the indices.

The broader indices bucked the trend. The S&P BSE Mid-Cap index ended almost flat while the S&P BSE Small-Cap index gained 0.33%.

Buyers outpaced sellers. On the BSE, 1,802 shares rose and 1,454 shares fell. A total of 141 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.03% to 18.46.

COVID-19 Update:

The Health Ministry on Thursday, 2 December 2021 reported two COVID-19 cases of the Omicron variant in Karnataka. On 26 November 2021, World Health Organization designated the variant B.1.1.529 a variant of concern, named Omicron. WHO said that it is not yet clear whether Omicron is more transmissible (e.g., more easily spread from person to person) compared to other variants, including Delta. The number of people testing positive has risen in areas of South Africa affected by this variant, but epidemiologic studies are underway to understand if it is because of Omicron or other factors.

In last 24 hours, India reported 9,216 new COVID-19 cases and 391 deaths. India's active caseload now stands at 99,976 cases.

Economy:

The seasonally adjusted India Services Business Activity Index stood at 58.1 in November, down only fractionally from 58.4 in October, pointing to the second-fastest rise in output since July 2011. According to monitored companies, the upturn reflected sustained increases in new work and ongoing improvements in market conditions.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.371% compared with 6.352% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 75.12, compared with its close of 75.02 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement rose 0.55% to Rs 47,660.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.01% to 96.17.

Global Markets:

European shares fell across the board while Asian stocks ended mixed on Friday. Investors continue to monitor the situation surrounding the omicron COVID-19 variant.

In Japan, the final au Jibun Bank Japan Services Purchasing Managers' Index (PMI) rose to a seasonally adjusted 53.0 from the prior month's 50.7 and a 52.1 flash reading.

In US, futures on the Dow Jones Industrial Average was down 76 points. The November jobs report is set for release Friday.

The three major US stock indices rebounded in Thursday's session. The Dow gained 617 points. The S&P 500 rose 1.4% and the Nasdaq Composite gained 0.8%. On the data front, initial jobless claims climbed by 28,000 to 222,000 for the week ended 27 November, the Labor Department reported Thursday.

Stocks in Spotlight:

Vodafone Idea surged 12.72% to Rs 14.44. The media reported that the Department of Telecommunications (DoT) has started releasing bank guarantees of Rs 20,000 crore issued by Bharti Airtel and Vodafone Idea.

Punjab Alkalies & Chemicals rose 0.48% after the company said its board approved 5-for-1 stock split.

Angel One jumped 1.32% after the stock broker said its client base jumped 146% year-on-year to 7.32 million in November 2021 over November 2020. On a sequential basis, the firm's client base grew 5.6% from 6.93 million clients in October 2021. Gross client acquisition stood at 0.45 million in November 2021, rising 3.5% from October 2021 and 193% from November 2020.

Larsen & Toubro (L&T) rose 0.72%. The company said that it has entered into a distribution agreement with Kemroc that will facilitate Kemroc products to be distributed and promoted in the Indian market by L&T. Kemroc is a global manufacturer of attachments for excavators and backhoe loaders.

ONGC added 1.29%. The PSU company announced the signing of a memorandum of understanding (MoU) with Solar Energy Corporation of India (SECI) for undertaking renewable energy projects including solar, wind, solar parks, EV value chain, green hydrogen, storage, etc.

Biocon fell 0.12%. The company said that its subsidiary, Biocon Pharma, has received approval of its ANDA for mycophenolic acid from the United States Food and Drug Administration (US FDA). The product is indicated for the prophylaxis of organ rejection in adult patients receiving a kidney transplant.

Adani Ports and Special Economic Zone (APSEZ) was down 0.18%. In 8 months of FY22 ending as on 30 November 2021, APSEZ's portfolio of ports handled a cargo volume of 209.45 MMT (million metric tonnes), registering a growth of 43% on a y-o-y (year-on-year) basis.

Sun Pharma Advanced Research Company (SPARC) gained 2.27% after the company said that it has entered into a licensing agreement with Biomodifying to acquire exclusive rights for antibody against unique oncology target.

Morepen Laboratories gained 3.14% after the drug company received USFDA approval for its anti-allergy drug fexofinadine hydrochloride that is market in India under the popular brand name 'Allegra'. Fexofinadine is most widely used, second generation antihistamine drug for the treatment of allergy symptoms and hay fever.

Sona BLW Precision Forgings rose 1.13% after the company said that India Ratings and Research has upgraded its long-term issuer rating to 'IND AA' from 'IND AA-' with stable' outlook. India Ratings said that the upgrade reflects the company's improved business profile with a more diversified revenue base and increasing contribution from the powertrain agnostic segment, along with a significant increase in its revenues as well as absolute EBITDA over FY21-1HFY22.

Supreme Petrochem (SPL) added 2.55% after the company signed a mass ABS technology license agreement with Italian chemical company Versalis.

Primary Market:

The initial public offer (IPO) of Anand Rathi Wealth received bids for over 2.44 crore shares as against 84.75 lakh shares on offer, according to stock exchange data at 16:24 IST on Friday (3 December 2021). The issue was subscribed 2.88 times.

The issue opened for bidding on 2 December 2021 and it will close on 6 December 2021. The price band of the IPO is fixed at Rs 530-550. The offer comprises an offer for sale by selling shareholders of up to 1.2 crore equity shares. The company will not receive any proceeds from the offer and all the offer proceeds will be received by the selling shareholders.

Anand Rathi Wealth offers a wide product portfolio of wealth solutions, financial product distribution, and technology solutions to its clients primarily through its flagship Private Wealth (PW) vertical where it managed Rs 29,472 crore in AuM as on August 31, 2021.

The initial public offer (IPO) of Tega Industries received bids for over 209.50 crore shares as against 95.68 lakh shares on offer, according to stock exchange data at 16.24 IST on Friday (3 December 2021). The issue was subscribed 218.95 times.

The issue opened for bidding on 1 December 2021 and it will close on 3 December 2021. The price band of the IPO is fixed at Rs 443-453. The offer comprises an offer for sale by selling shareholders of up to 13,66,978 equity shares. The company will not receive any proceeds from the offer and all the offer proceeds will be received by the selling shareholders.

Tega Industries is a manufacturer and distributor of specialized, critical, and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry.

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