Stock Market LIVE: Sensex down 200 pts, Nifty near 17,200; metals, realty hit

Share Market LIVE Updates: Indian equities fell on Monday even as Asian shares pared losses after presidents Joe Biden and Vladimir Putin agreed to hold a summit to and resolve the Ukraine crisis. Investors continue to focus on geopolitical risks and the US Fed’s imminent policy tightening 

The standoff, along with the worry that tightening Federal Reserve monetary policy could choke growth in the world’s biggest economy, raise the likelihood of more swings in markets in an already volatile year.

Reliance Jio to land next generation multi-terabit India-Asia-Xpress undersea cable system in Maldives: BSE filing 

Reliance Jio Infocomm Ltd. (Jio), part of Mukesh Ambani’s Reliance Industries Ltd. and India’s largest 4G and mobile broadband digital service provider, will land the next generation multi-terabit India-Asia-Xpress (IAX) undersea cable system in Hulhumale, Maldives.

The IAX system originates in Mumbai in the west and connects directly to Singapore, with branches including additional landings in India, Malaysia, and Thailand. The India- Europe-Xpress (IEX) system connects Mumbai to Milan, landing in Savona, Italy, and includes additional landings in the Middle East, North Africa, and the Mediterranean. IAX is expected to be ready for service end-2023, while IEX will be ready for service in mid-2024.

These high capacity and high-speed systems will provide more than 200Tb/s of capacity at speeds of 100Gb/s, over 16,000 kilometers. Employing open system technology and the latest wavelength switched RoADM/branching units ensures rapid upgrade deployment and the ultimate flexibility to add/drop waves across multiple locations.

Agencies on trail of Chitra Ramkrishna’s tax haven trips

Government agencies are widening the probe against Chitra Ramkrishna to include her frequent visits to tax havens and governance lapses during her tenure as the managing director of the National Stock Exchange (NSE), said three officials aware of the matter.

The agencies looking to scrutinise the affairs at India’s largest stock exchange include the corporate affairs ministry, income tax department and the Securities and Exchange Board of India (Sebi), the officials said, requesting anonymity.

ICICI Securities initiates coverage on Paytm with BUY rating , target price at Rs1,352/share

Paytm parent One 97 Communications’ two- sided digital ecosystem of 64.4mn average monthly transacting users (MTUs) (as of December 21) from >350mn consumer base and over 24.9mn merchants is core to its unit economics. 

Estimating that it currently generates revenue of Rs350-375 per MTU and Rs1.0k-1.1k per merchant and incurs direct cost (of acquisition and transaction) of Rs250-275 per MTU and Rs750-775 per merchant, we derive customer lifetime value of Rs2k per MTU and Rs29.6k per merchant. 

Superimposing this on FY24E estimated MTU and merchant base and adjusting further for fixed cost, net cash and value of associates/subsidiaries, we arrive at Paytm’s intrinsic business value of Rs940bn (Rs1,352 per share). 

We initiate coverage on the stock with BUY rating. Key risks being below expected monetisation through financial services business and unfavourable regulatory outcomes.

Nifty view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

“The market has opened with a gap down and has breached the 17200 level of support. If it closes below this level, it could slide further to 16800. On the upside the resistance is at 17250-17300. Until we do not get past that, any pull back can be utilized to short the Nifty.”

Strides Pharma receives US FDA approval for Amantadine Hydrochloride Softgel Capsules: BSE filing 

Strides Pharma Science Ltd on Monday said that its step-down wholly owned subsidiary, Strides Pharma Global Pte. Limited, Singapore, has received approval for Amantadine Hydrochloride Softgel Capsules USP,100 mg from the United States Food & Drug Administration (US FDA). The product is bioequivalent and therapeutically equivalent to the Reference Listed Drug (RLD), Symmetrel Capsules, 100 mg, of Endo Pharmaceuticals, Inc (Endo).

According to IQVIA MAT December 2021 data, the US market for Amantadine Hydrochloride Capsules USP,100 mg is approximately $11 million. The product will be manufactured at the company’s facility at Bengaluru and will be marketed by Strides Pharma Inc. in the US market.

Technical outlook: ICICI Securities

The index saw elevated volatility last week amid escalated geopolitical issues and spike in crude oil prices. In the process, the Nifty managed to hold the key support threshold of 16800 for fourth time in last two months while absorbing host of negative news, highlighting inherent strength. As a result, weekly price action formed a small bull candle with shadows on either side, indicating rise in volatility while sustaining above key support of 16800

Key point to highlight is that, in the ongoing corrective move (since mid-January 2022) the index has failed to sustain above previous week’s high. Therefore, in the coming expiry week, a decisive close above last week’s high (17490) along with cool off in India VIX (that gauges market sentiment) would be the key monitorable that would set the stage for a gradual move towards 17800 in coming weeks as it is confluence of: a) 61.8% retracement of mid-January decline (18350-16836), is at 17772 b) February high is placed at 17794

Binnopharm Group enters into agreement to acquire two anti-bacterial brands from Dr. Reddy’s in Russia & CIS region: BSE filing 

Through its affiliate joint stock company, Alium, Binnopharm Group will acquire two anti-bacterial brands Ciprolet and Levolet in Russia, Belarus and Uzbekistan to strengthen its antibiotic portfolio

For Dr. Reddy’s, this divestment of brands from its non-core areas will allow the company to focus its resources and capabilities on its key therapy spaces of gastro- enterology, pain management, cold and flu, allergy, oncology, neurology, paediatrics and women’s health as the Russia and CIS region continues to be a strong performer for the company

Oil slips on Ukraine summit plan, prospect of Iran nuclear deal

Oil prices fell on Monday on a plan for U.S. President Joe Biden and Russia’s Vladimir Putin to hold a summit on the Ukraine crisis and on prospects of a nuclear deal between Iran and world powers in the next week or two.

The office of French President Emmanuel Macron said in a statement on Monday he had pitched to both leaders a summit over “security and strategic stability in Europe.” The White House said Biden had accepted the meeting “in principle” but only “if an invasion hasn’t happened.”

Brent crude futures fell 73 cents or 0.8% to $92.81 a barrel, after having jumped more $1 than to $95.00 in early trade, its highest level since Wednesday.

Nifty view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

“The market is stuck in a range which is between 17200 and 17500. Until we do not get past either level, we will not witness a meaningful move. A break of either side will result in a 300-400 point move”

RBI orders five banks to list zero coupon bonds at “fair value”: report 

The Reserve Bank of India has ordered five state-owned banks, including the Bank of India, to list down zero coupon government bonds issued in lieu of equity at `fair value’. Since these bonds are typically offered at deep discounts to their face values, such an order could require the banks to raise more capital.

The regulatory direction comes after an assessment showed that valuing these instruments at face value could create a misleading picture of the banks’ financial strength and set a precedent that could be exploited in future by others and weaken the banking system, the Economic Times reported Monday.

Bikaji Foods looking to raise ₹1,000 cr via IPO at $1 billion valuation: report 

Bikaji Foods International, India’s largest manufacturer of ethnic savouries and sweets, is likely to file its draft red herring prospectus (DHRP) this week to raise ₹1,000 crore in an initial public offer at a valuation of around $1 billion.

The Rajasthan-based, ready-to-eat (RTE) products maker has appointed JM Financial, IIFL Securities and Intensive as its bankers to the issue.

India-UAE CEPA: Dubai gets an edge over Zurich for gold shipment

India has extended a 1% duty concession for gold imports from the United Arab Emirates (UAE) for up to 200 tonnes of inbound shipments under a comprehensive free trade pact signed on Friday.

“We are a major importer of gold and import about 800 tonnes of gold every year. We have given the UAE a tariff-rate quota (TRQ) of 200 tonnes. Tariff in perpetuity will be 1% less than whatever the tariff is charged from the rest of the world. So UAE has a 1% advantage in gold bars,” commerce secretary BVR Subrahmanyam said in a briefing on Saturday. 

India imported about 70 tonnes of gold from the UAE in 2020-21. With this concession, duty on yellow metal imported from UAE will effectively be 9% instead of 10%. 

As a result of the move, Dubai could replace Zurich as the biggest yellow metal exporter to India over time. Switzerland’s Zurich currently accounts for more than half of gold imports to India.

Biden agrees in principle to Ukraine summit with Putin: Reuters

U.S. President Joe Biden and Russian President Vladimir Putin have agreed in principle to a summit over Ukraine, the U.S. and French leaders said, offering a possible path out of one of the most dangerous European crises in decades.

The office of French President Emmanuel Macron said in a statement on Monday he had pitched both leaders on a summit over “security and strategic stability in Europe.” The White House said in a statement that Biden had accepted the meeting “in principle” but only “if an invasion hasn’t happened.”

“We are always ready for diplomacy,” White House Press Secretary Jen Psaki said. “We are also ready to impose swift and severe consequences should Russia instead choose war.”

Messages seeking comment from the Kremlin and from the office of Ukrainian President Volodymyr Zelenskiy were not immediately returned early Monday.

IndiGo co-founder Gangwal exits board

IndiGo’s co-founder Rakesh Gangwal resigned from the company’s board on Friday as part of a plan to gradually pare his stake in India’s largest airline, weeks after shareholders voted to lift stake-sale curbs on promoters, signalling the end of a bitter public feud with co-founder Rahul Bhatia.

In a letter to the board of InterGlobe Aviation Ltd, the operator of IndiGo, Gangwal expressed his desire to reduce his nearly 37% stake in the airline over the next five years and asked that no unpublished price-sensitive information be shared with him.

He, however, left the option of returning as a board member open. “Sometime in the future, I shall consider participating again as a board member,” he said, adding that “it’s only natural to someday think about diversifying one’s holdings”. 

Nifty view: Osho Krishnan, Sr. Analyst – Technical & Derivative Research, Angel One

It is advisable not to trade aggressively and should avoid carrying positions overnight. As far as levels are concerned, we witnessed some nervousness around 17450 – 17500. So if bulls have to regain any strength, they need to surpass these levels with some authority.

On the flipside, 17000 followed by 16800 is to be seen as make or break levels. In case of any aberration on the global front, the market will have to face challenging times after sliding below this sacrosanct support. Let’s be hopeful and keep a close watch on all these developments.

NHAI to roll out ₹1 trillion plan to connect 117 districts

India is set to unveil an ambitious ₹1 trillion programme to build 5,795km of national highways in 117 so-called aspirational districts, two officials aware of the matter said.

The road ministry has identified 221 projects for expansion, in addition to the 5,566km of highways already being built in these districts, comprising 222 projects at a total cost of ₹66,000 crore.

The National Highways Authority of India (NHAI) will spend a total of ₹1.04 trillion on the new highway projects, the officials cited above said on condition of anonymity.

The four-year-old Aspirational Districts Programme aims to quickly transform least-developed districts through the convergence of central and state schemes, the collaboration of central- and state-level officials, and monthly district rankings.

Govt to hire adviser to manage Voda-Idea equity conversion

The government will hire a transaction adviser to help manage the conversion of interest dues related to deferred spectrum payments and adjusted gross revenue into equity in Vodafone Idea Ltd, a senior government official said.

The adviser, along with the finance ministry and the department of telecommunications, will determine how much the government will hold in the third-largest telecom operator, a second government official said, requesting anonymity.

Vodafone Idea had proposed the government convert interest dues amounting to ₹16,000 crore for a 35.8% stake in the struggling operator. 

EPFO adds 1.46 million subscribers in Dec 2021

Retirement fund body Employees’ Provident Fund Organisation (EPFO) added 1.46 million subscribers on a net basis in December 2021, an increase of 16.4% compared to the year-ago period, according to the latest payroll data.

The provisional payroll data of the EPFO on Sunday showed that the EPFO had added 1.25 million net subscribers during December 2020. The net subscriber addition in December has increased by 19.98% as compared to the previous month of November 2021, a labour ministry statement said.

The net subscriber addition in November 2021 was revised downwards to 1.22 million from 1.39 million provisional estimates released in January 2022. Of the 1.46 million net subscribers added in December 2021, 0.91 million members have been enrolled under EPF & MP Act, 1952, for the first time.

SGX Nifty down 104 points in early deals  

Nifty futures on the Singapore Exchange traded 104.50 points lower at 17,175.50 in early deals on Monday, signalling that Indian benchmarks were headed for a lower start.

Asian stocks lower; Biden, Putin agree to summit meet

Asian stocks pared earlier losses Monday after President Joe Biden and Russian counterpart Vladimir Putin agreed to a summit on condition Russia doesn’t invade Ukraine.

Nasdaq 100 contracts erased an earlier drop of over 1% and S&P 500 futures also turned green. MSCI Inc.’s Asia-Pacific gauge came off its lows, though key markets including Japan, Hong Kong and China still posted modest losses.

Earlier, the U.S. has told allies that a Russian invasion of Ukraine could target multiple cities beyond the capital, Kyiv. Biden said on Friday he’s convinced Putin has decided to move against Ukraine. Moscow continues to deny it plans to invade.

The standoff, along with the worry that tightening Federal Reserve monetary policy could choke growth in the world’s biggest economy, raise the likelihood of more swings in markets in an already volatile year.

S&P 500 futures rose 0.6%., while Nasdaq 100 futures rose 0.5%. 

Japan’s Topix index fell 0.6%, Australia’s S&P/ASX 200 Index was steady, South Korea’s Kospi index fell 0.6%, Hang Seng Index fell 0.6%, and Shanghai Composite Index lost 0.3%.

On Friday on the Wall Street, the Dow Jones Industrial Average fell 0.68%, the S&P 500 lost 0.72% and the Nasdaq Composite dropped 1.23%.

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