Investors are trying to evaluate how long and deep a hit global economic reopening faces from the omicron flareup, as a variety of nations step up mobility curbs.
India’s domestic oil production falls in November, gas output up 23%
India’s domestic oil production continued to fall in November with the crude oil production down 6.89% as compared to the corresponding period last year. However, according to the monthly production report released by ministry of petroleum and natural gas, there was a 23.09% increase in gas production in November.
SBI picks up minority stake in JSW Cement Ltd
The State Bank of India (SBI) has acquired a minority stake in JSW Cement Ltd, part of $ 13 billion JSW Group.
The bank has invested ₹100 crore in the company via compulsorily convertible preference shares (CCPS). The conversion of the CCPS into common equity of will be linked to the company’s future business performance and valuation determined at the time of the proposed initial public offering. This capital infusion will support JSW Cement’s capacity expansion from current 14 MTPA (million tonnes per annum) to 25 MTPA.
The SBI transaction with JSW Cement comes close on the heels of the ₹1,500 crore investments made by two global private equity investors, Apollo Global Management Inc. (through its investment entity in Singapore) and Synergy Metals Investments Holding Ltd earlier this year.
Petroleum ministry offers eight blocks under seventh OALP bid round
As part of India’s energy security strategy to boost domestic hydrocarbon production, the petroleum and natural gas ministry has launched the seventh bid round under the liberal open acreage licensing programme (OALP). Under the latest round, around 15,766 sq km has been offered to investors.
A total of eight blocks spread over six sedimentary basins are being offered and includes five onland blocks, two shallow water blocks and one ultra-deepwater block. Some of the terms of these bid rounds include reduced royalty rates, no oil cess, marketing and pricing freedom, round the year bidding, a single license to cover both conventional and unconventional hydrocarbon resources and exploration permission during the entire contract period. (Read here)
Jumbotail raises $85 mn from Invus affiliate, others; Kalaari exits partially
Business-to-business (B2B) e-commerce platform Jumbotail Technologies Pvt Ltd has raised $85 million (around ₹640 crore) in its Series C funding round led by Artal Asia Pte Ltd, an affiliate of the US-based Invus Group, the company said on Tuesday.
Ajax Capital, the family office of entrepreneur Ajay Gupta, also participated in the round. Gupta is the managing director of fast-moving consumer goods (FMCG) company Capital Foods Pvt Ltd.
This Series C funding round was a combination of primary and secondary investments. Nexus Venture Partners and Kalaari Capital partially exited the company with new investors coming in, the company said in a statement.
The latest fundraise takes the total capital raised by the company to $125 million, it added.
Nifty technicals: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd
Our market has been an underperformer as compared to the global peers of late. On Friday, Nifty closed below 17000 to put recent swing low of 16800 in danger. The moment global markets became nervous, we had a terrible start yesterday morning to breach the important support in opening trades only. As the day progressed, the selling aggrandized across the board to send Nifty towards the 16400 mark. At one point things looked extremely bleak, but fortunately for us there was no further damage done in the latter half. In fact due to modest recovery, Nifty managed to close tad above 16600.
It was probably the weakest session in recent months and with this, we are back to August month levels. If we take a glance at the daily time frame chart, we can see Nifty precisely entering our mentioned target zone of 16500 – 16200. Since we were not so far away from the sheet anchor support of ‘200-day SMA’, we had some respite around it. But by saying this, we do not consider this as a bottom. If we have to arrive at such decision, we need to assess the situation throughout this week. The intermediate structure remains weak and now the resistance zone shifts lower from 17700 to 17200 – 17000. Till the time we do not reclaim the higher end of this range, the trend remains bearish. Before this, yesterday’s gap area of 16840 – 16966 to be seen as immediate hurdles. On the flipside, key supports are placed around 16400 – 16200.
Since market is a bit oversold, we may see in between rebounds or time wise correction in key indices. So even if one wants to take a stock specific punt on the long side, it’s advisable to avoid aggressive bets and should follow strict stop losses. Barring few handful exceptions, there was complete carnage in individual stocks yesterday. Apart from this, the BANKNIFTY has finally slipped convincingly below 200-day SMA and hence, 36000 would now be seen as sturdy wall for it.
Two hundred Omicron cases reported in India so far, 5,326 new COVID-19 cases: union health ministry data
Nifty Metal surges most among sectoral indices
Wipro gains; company to acquire exas-headquartered Edgile for $230 million
Snapdeal files draft papers for IPO
SoftBank-backed Indian e-commerce platform Snapdeal filed for an initial public offering (IPO) on Tuesday.
Snapdeal’s IPO consists of a fresh issue of shares worth 12.5 billion rupees ($165.09 million) and an offer for sale of 30.8 million shares, according to its draft prospectus.
Broader markets advance; India VIX down 4%
Rupee rises 17 paise to 75.73 against US dollar in early trade
Omicron sweeps across America, now 73% of new US COVID cases
Omicron has raced ahead of other variants and is now the dominant version of the coronavirus in the US, accounting for 73 per cent of new infections last week, federal health officials said Monday.
The Centers for Disease Control and Prevention numbers showed nearly a six-fold increase in omicron’s share of infections in only one week.
In much of the country, it’s even higher. Omicron is responsible for an estimated 90 per cent or more of new infections in the New York area, the Southeast, the industrial Midwest and the Pacific Northwest. The national rate suggests that more than 650,000 omicron infections occurred in the US last week.
Oil prices edge higher but investor worries on Omicron spread remain
Oil prices edged higher on Tuesday, though investors remained worried about the rapid spread of the Omicron coronavirus variant globally, prompting countries to consider more restrictions potentially denting fuel demand.
Brent crude futures increased by 59 cents, or 0.8%, to $72.11 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose by 73 cents, or 1.1%, to $69.34 a barrel.
Top gainers/losers on Nifty
Nifty view: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
While the markets have opened with a gap up, traders should be cautious and not take hasty buy decisions. The trend continues to remain down and strategic methods can be adopted to find short selling opportunities. The resistance level for the Nifty is 17150-17200 and until that is not conquered, we are in an established downtrend.
L&T to acquire stake in Intelliflux Controls INC. for $2 mn
Larsen & Toubro International FZE, a wholly owned subsidiary of Larsen & Toubro Ltd, has entered into a share purchase agreement to purchase stake in…