The benchmark indices were trading with steep losses in morning trade, dragged by banks and financial services. The Nifty hovered above its crucial 17,000 level. All the sectoral indices on the NSE were in the red.
The sentiment was impacted by negative global cues and geopolitical worries. Asian stocks tumbled after the White House warned of a possible imminent Russian invasion of Ukraine. Crude oil prices spiked to 7-year highs due to the Ukraine crisis. In the commodities market, Brent crude for April 2022 settlement rose $1.06 at $95.50 a barrel.
The barometer index, the S&P BSE Sensex, tumbled 1,062.15 points or 1.83% at 57,090.77. The Nifty 50 index lost 320.10 points or 1.84% at 17,054.65.
In the broader market, the S&P BSE Mid-Cap index skid 2.09% while the S&P BSE Small-Cap index declined 2.32%.
The market breadth was weak. On the BSE, 609 shares rose and 2,680 shares fell. A total of 134 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 6,266.75 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,881.32 crore in the Indian equity market on 27 January 2022, provisional data showed.
Economy:
Industrial output slumped to a 10-month low of 0.4% in December 2021, dragged down by manufacturing, capital goods and consumer durables output along with an unfavourable base, according to data released on Friday by the National Statistical Office (NSO). The IIP had registered a growth of 1.3% a month ago and 2.2% in December 2020.
LIC IPO:
Life Insurance Corporation of India (LIC) has filed its draft share sale prospectus with the capital markets regulator SEBI, paving the way for India's largest initial public offering (IPO). LIC plans to sell 31.62 crore shares, which is about 5% of its total equity base. The IPO issue is expected to be the country's largest public issue and will hit the capital market in March 2022. LIC will offload 31.62 crore shares. As of September 2021, its assets under management (AUM) stood at Rs 39.6 lakh crore. The embedded value of LIC as of 30 September 2021, stood at Rs 5,39,686 cr.
Buzzing Index:
The Nifty Bank index skid 3% to 37,361.95. The index lost 4.22% in two trading sessions.
The Federal Bank (down 4.76%), Punjab National Bank (down 4.15%), IDFC First Bank (down 3.88%), IndusInd Bank (down 3.64%) and Bandhan Bank (down 3.48%) were the top losers in the Bank segment.
Bank of Baroda dropped 3.74%. The bank said that it will acquire Union Bank of India's 21% stake in IndiaFirst Life Insurance Company, a joint venture between Bank of Baroda, Union Bank of India and Carmel Point Investments. The government backed lender said that pursuant to a 'Right of First Offer' (ROFO) made by Union Bank of India (UBI) to the existing shareholders of IndiaFirst Life Insurance Company to divest 21% of its stake in the life insurance company and on completion of related processes under the shareholders agreement (SHA) and further, consequent upon receiving approvals from the respective boards of both banks, it has been decided by Bank of Baroda to acquire the 21% stake of Union Bank of India in IndiaFirst Life Insurance Company, subject to receiving all statutory and regulatory approvals.
Stocks in Spotlight:
Dr Reddy's Laboratories declined 2.26%. The pharmaceutical major has entered into an exclusive sales and distribution agreement with Novartis India (NIL) for the Voveran range, the calcium range and Methergine in India. Under the arrangement, Dr. Reddy's will have exclusive rights to promote and distribute the well-established Voveran range, the Calcium range and Methergine in India. The company will use its strengths in promotion and distribution to considerably expand its engagement with healthcare professionals with the aim of enabling access to patients in need.
Reliance Industries (RIL) fell 1.26%. Jio Platforms (JPL), India's leading digital service provider, and SES, a leading global satellite-based content connectivity solutions provider, today announced the formation of a joint venture - Jio Space Technology - to deliver the next generation scalable and affordable broadband services in India leveraging satellite technology. JPL, a subsidiary of RIL, and SES will own 51% and 49% equity stake in the joint venture.
The joint venture will use multi-orbit space networks that is a combination of geostationary (GEO) and medium earth orbit (MEO) satellite constellations capable of delivering multi-gigabit links and capacity to enterprises, mobile backhaul and retail customers across the length and breadth of India and neighbouring regions.
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