Thinner trading volumes heading into the Christmas holidays could exacerbate market swings, leaving strategists reluctant to read much into day-to-day gyrations during the period. Markets continue to be shadowed by escalating mobility curbs to fight omicron and a diminishing stimulus tailwind.
Metro Brands lists at 13% discount
Rakesh Jhunjhunwala-backed Metro Brands made a weak debut on the stock exchanges on Wednesday.
Shares of footwear retail chain opened at ₹436 apiece on the BSE, a discount of 12.8% to its issue price of ₹500. On the NSE, Metro Brands shares opened at ₹437 apiece.
Nifty view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The index has opened in the green but we are still not out of the bearish quarters. Until we do not get past 17150-17200 on a closing basis, the market trend is negative. If the markets break 16600-16650, the Nifty will retest 16400.
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Broader markets advance; India VIX down 3%
Oil climbs on weaker dollar, China, amid Omicron caution
Oil prices rose again on Wednesday as the dollar slipped, with risk appetite returning as some governments resist imposing lockdowns to curb the spread of the Omicron COVID-19 variant and as China said it would be able to sustain economic growth.
U.S. West Texas Intermediate (WTI) crude futures rose 50 cents, or 0.7%, to $71.62 a barrel, after jumping 3.7% on Tuesday.
Brent crude futures rose 44 cents, or 0.6%, to $74.42 a barrel after gaining 3.4% on Tuesday.
Oil prices typically move inversely to the U.S. dollar, with a weaker greenback making commodities cheaper for those holding other currencies.
Zee shares slip; company announces signing merger deal with Sony Pictures India
Media and entertainment conglomerates Zee Entertainment Enterprises Ltd. (ZEEL) and Sony Pictures Networks India Pvt Ltd (SPNI) on Wednesday announced signing definitive agreements to merge ZEEL with and into SPNI and combine their linear networks, digital assets, production operations and programme libraries.
The agreements follow the conclusion of a negotiation period during which ZEEL and SPNI conducted mutual due diligence, the two companies said in a statement to the stock exchanges.
After closing, the new combined company will be publicly listed in India. The closing of the transaction is subject to certain customary closing conditions, including regulatory, shareholder, and third-party approvals.
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Nifty tests 16,900 in opening deals
Sensex opens over 300 points higher
Nifty in the red in pre-open
Sensex drops 200 points in pre-open
Nifty view: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
If market has to confirm its near term bottom, Nifty needs to surpass 17000 – 17200 with some authority. Till then we are not completely out of the woods. For the coming session, 16840 – 16966 remains a strong resistance zone, while 16680 followed by 16500 are to be seen as intraday supports.
We advise traders not to be in a hurry to make any kind of bottom fishing, rather keep focusing on stock specific moves on both sides. But for investors with a slightly longer horizon, one can now start accumulating quality propositions in a staggered manner.
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ZEE Entertainment, Sony Pictures Network India sign definitive agreements to merge companies: BSE filing
Media and entertainment conglomerates Zee Entertainment Enterprises Ltd. (ZEEL) and Sony Pictures Networks India Pvt Ltd (SPNI) on Wednesday announced signing definitive agreement to merge ZEEL with and into SPNI and combine their linear networks, digital assets, production operations and programme libraries.
The agreement follow the conclusion of a negotiation period during which ZEEL and SPNI conducted mutual due diligence, the two companies said in a statement to the stock exchanges. After closing, the new combined company will be publicly listed in India.
The closing of the transaction is subject to certain customary closing conditions, including regulatory, shareholder, and third-party approvals. (Read here)
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listElement-graph-11640141634372-105537
Stocks to Watch
Shares of Reliance Industries, ZEE, Yes Bank, Dish TV, ITC, among others, will be in focus today.
Rakesh Jhunjhunwala-backed footwear retailer Metro Brands will make its stock exchange debut today. The IPO of the company saw tepid demand and was subscribed 3.64 times during 10-14 December at a price band of ₹485-500 apiece. (Read here)
SGX Nifty futures were up 0.3% at 16,884.00 in early deals
Asian shares climb higher despite Omicron concerns
Asian equities were higher on Wednesday as the risk appetite of global investors rose heading into year-end, despite the surging number of Omicron variant cases around the world.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.6%, after U.S. stocks ended the previous session with gains.
Australian shares were down 0.1%, which analysts said was the result of a higher US dollar overnight which weakened appetite for commodities and the sector’s related stocks.
Japan’s Nikkei stock index was 0.1% higher.
Hong Kong’s Hang Seng Index jumped 1.2% and China’s blue-chip CSI 300 Index was 0.23% up in eary trade. Tech stocks were the major driver of the Hong Kong strong open after trading in negative territory for most of the week.
A better night on Wall Street provided the positive lead for Asian markets with a sharp rebound in sentiment for U.S stocks.
The Dow Jones Industrial Average rose 560.54 points, or 1.6%, to 35,492.7, the S&P 500 gained 81.21 points, or 1.78%, to 4,649.23 and the Nasdaq Composite added 360.14 points, or 2.4%, to 15,341.09.
The jump came despite growing concerns as the spread of the Omicron variant in the lead-up to traditional holiday periods around the world.
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Read More: Market LIVE Updates: Sensex, Nifty higher; Metro Brands lists at discount