On Tuesday, Indian equity indices were upbeat and closed higher for the third day in a row, getting cues from global markets. After a strong start, key indicators were erratic as traders became concerned about the latest data from the Centre for Monitoring Indian Economy (CMIE), which revealed that the country’s unemployment rate hit a four-month high of 7.91% in December 2021.

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The broader indices ended in green with the BSE Midcap index rising 0.05%, while the Small cap index was up by 0.39%. The top gaining sectoral indices on the BSE were Power up by 2.25%, Utilities up by 2.18%, Energy up by 1.77%, PSU up by 1.74% and Bankex up by 1.31%, while Healthcare down by 0.74%, Realty down by 0.58% and Metal down by 0.56% were the top losing indices on BSE.

The Nifty50 has formed a second long candle on the daily chart, reflecting the emergence of strong upside momentum, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities. “This is a positive indication and signals more upside in the short term… Any dip from here could open a bullish sequence of higher tops and bottoms on the daily timeframe,” he said.

According to pivot charts, the key support levels for the Nifty are placed at 17,656.67, followed by 17,508.13. If the index moves up, the key resistance levels to watch out for are 17,890.67 and 17,976.13.

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Indian Indices

Sensex rose 672.71 points or 1.14% to 59,855.93 and Nifty was up by 179.55 points or 1.02% to 17,805.25 in the previous session. Sensex touched high and low of 59,937.33 and 59,084.40, respectively and there were 25 stocks advancing against 5 stocks declining on the index while Nifty traded in a range of 17,827.60 and 17,593.55 and there were 35 stocks advancing against 15 stocks declining on the index.

SGX Nifty

The trends on SGX Nifty indicate a positive opening for the index in India with a 166-points gain. The Nifty futures were trading at 17,844.80 on the Singaporean Exchange around 06:20 hours IST.

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Asian Markets

Asian markets finished mixed. The Nikkei 225 gained 1.77% and the Hang Seng rose 0.06%. The Shanghai Composite lost 0.20%

US Markets

The S&P 500 fell 3.02 points or 0.1% to 4,793.54. The Nasdaq slid 210.08 points or 1.3% to 15,622.72. The Dow gained 214.59 points or 0.6% to 36,799.65. The Russell 2000 index fell 3.68 points, or 0.2%, to 2,268.87.

European Markets

European markets finished broadly higher yesterday with shares in London leading the region. The FTSE 100 was up 1.63% while France’s CAC 40 was up 1.39% and Germany’s DAX was up 0.82%.

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RBI cancels COA of Muthoot Vehicle and Asset Finance, Eko India Financial Services

The Reserve Bank of India (RBI) cancelled the Certificate of Authorisation (CoA) of two Payment System Operators (PSOs) — Muthoot Vehicle and Asset Finance Limited and Eko India Financial Services Private Limited on January 4, alleging non-compliance with regulatory criteria. The central bank made the decision by utilizing the authority granted to it under the Payment and Settlement Systems Act of 2007. According to the RBI, the cancellation of the COA would take effect on December 31, 2021. “Following the cancellation of the CoA, these companies cannot transact the business of issuance and operation of prepaid payment instruments,” the RBI said in a statement. However, customers or merchants having a valid claim on these companies as PSOs can approach them for settlement of their claims within three years from the date of cancellation, the statement added.

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Airtel withdraws scheme for new corporate structure 

Bharti Airtel on Tuesday said it will merge wholly-owned subsidiary Telesonic Networks with itself, resulting in consolidation of fibre assets into the company, while Nettle Infrastructure Investments too will be merged with Airtel. The scheme of arrangement for the new corporate structure announced on April 14, 2021 stands withdrawn as the board is of the view that the existing corporate structure of the company is optimal for leveraging emerging opportunities, unlocking value while continuing to scale up the digital businesses, it said in a statement. The company, as announced earlier, will pursue its plan to eventually fold the DTH business (Bharti Telemedia) into Airtel, the statement added. “Under a modified scheme, the company, as previously approved by the board, will merge its wholly-owned subsidiary Telesonic Networks Limited, resulting in consolidation of its fibre assets into Airtel,” the statement said. Nettle Infrastructure Investments Limited will also be merged with Airtel. “As announced earlier, the company will pursue its plan to eventually fold the DTH business (Bharti Telemedia) into Airtel to move towards the NDCP vision of converged services to customers,” it added.

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GAIL completes acquisition of 26% stake in Tripura unit from IL&FS

Infrastructure Leasing and Financial Services (IL&FS) has completed the sale of its 26% ownership in ONGC Tripura Power Company (OTPC) to Gas Authority of India Limited (GAIL) for Rs 1,227 crore. IL&FS has been selling assets as part of a large-scale initiative to raise money to pay off debt. The ailing infrastructure business has settled a debt of about Rs 3,656 crore through this deal, which was part of its overall debt of Rs 99,000 crore as of October 2018. After the cash strapped-company defaulted on several of its obligations In October 2018, the government constituted a new board to streamline operations and reduce its staggering debt. As per the last update from the new board of the company, the group has resolved over Rs  52,000 crore debt as against its aim to resolve around Rs 61,000 crore in total. IL&FS Group held its 26% stake in OTPC in through two subsidiaries – 12% by IL&FS Energy Development Company Ltd and 14% by IL&FS Financial Services Ltd. The group has received an aggregate sum of Rs 319 crore for its 26% stake from GAIL in the two companies.

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The Distributors Association has ended its boycott of HUL but will continue to campaign against Colgate -Palmolive

All India Consumer Products Distributors Federation (AICPDF) has ended its boycott of Hindustan Unilever (HUL) products after the company met with its representatives and addressed their concerns about emerging business-to-business platforms and cash-and-carry players such as Udaan, Jumbotail, Walmart Best Price, and Metro Cash and Carry, according to the association on January 4. “HUL has given assurance that it will give serious consideration to protecting the interests of its distributors and will take action against ill-practices in the market if proven correct,” said the association. Therefore, it added, we are ending the protest against HUL for now and will keep an eye on developments in the market for the next three months. “If the company, does not improve its practices after three months, then we will start the campaign again.” AICPDF, however, will continue to agitate against FMCG firm Colgate-Palmolive (India) and distributors in Maharashtra will not stock Colgate Max Fresh. AICPDF has warned that if the company continues to ignore its demands, distributors will boycott other brands by Colgate-Palmolive. “We had written all the major companies in the FMCG segment and most of them have given us an assurance about addressing our concerns, but Colgate-Palmolive continues with its stubborn attitude,” the association said in a strong-worded press statement on Tuesday.

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Dr Reddy’s will release Molflu for COVID treatment at a cost of Rs 35 per capsule

Dr Reddy’s Laboratories on Tuesday said it will launch Molflu (Molnupiravir) at Rs 35 per capsule to treat COVID-19 in the country. Molflu will be priced at Rs 35 per capsule, a spokesperson of the Hyderabad-based drugmaker said in a statement. With 10 capsules per strip, the total course of 40 capsules over 5 days would cost Rs 1,400, making it among the most affordable treatment options available to patients, it added. “Molflu is expected to be available from early next week in pharmacies throughout the country with particular focus on states with a high caseload of COVID-19,” the spokesperson noted.

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EKI Energy Services’ hits $1 billion valuation

EKI Energy Services on Tuesday said it has become India’s first BSE SME listed company to achieve a dollar one billion valuations. It has achieved this milestone within nine months of its debut on the BSE on April 7, 2021, with a market capitalization of Rs 96.23 crore, the Indore-based company said in a statement. On Tuesday, the shares of EKI Energy Services hit an all-time high of Rs 10,946 on BSE. The shares soon witnessed profit-booking and finally settled for the day at Rs 9,903.60 apiece. Its valuation surged manifolds especially in the last year as the company expanded its global footprint and launched multiple strategic projects including a joint venture with Royal Dutch Shell. The company recently incorporated an offshore wholly-owned subsidiary in the Dubai free zone. Axis Bank has started offering structured derivative products to leading companies including Reliance Industries after a ban on these deals was lifted by the Reserve Bank of India effective Monday.

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Axis Bank completes structured derivative transactions as the RBI ban is lifted

Axis Bank, India’s third-largest private sector bank said the first of these transactions were executed with Reliance Industries which involved the use of Barrier FX options for their currency risk management, it said in a statement. The bank also concluded another transaction with Supreme Petrochem Ltd. Hundreds of Indian corporates who had entered into such tailor-made, OTC contracts with banks prior to 2008, cried foul when their bets went sour. The bank also concluded another transaction with Supreme Petrochem Ltd. 

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Bulk Deal data

Altura Capital Advisors LLP bought 5,09,217 equity shares and Authum Investment & Infrastructure Limited sold 4,30,000 equity shares in ADF Foods at Rs 856.99 and Rs 857 per share on the NSE, according to the bulk deals data on Tuesday. 

Hitesh Amrutlal Patel and Nanalal Bhanji Dudhaiya bought 96,000 and 66,000 equity shares in Debock Sale Marketing Ltd at Rs 128 and 127.45 per share respectively, while Ramesh Bhandappa Munnoli sold 48,000 shares at Rs 127.69 apiece on the NSE, the bulk deals data showed. 

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Mark Corporate Advisors Pvt Ltd sold 60,000 shares and Shiv Parvati Leasing Limited bought 54,000 equity shares in Foce India Limited at Rs 226 and Rs 225.87 per share respectively on the NSE.

Krishan and Padmavati Investment each sold 3,39,434 and 4,00,000 shares in Moksh Ornaments Limited at Rs 44.7 and Rs 44.66 per share respectively, while Anupam Gupta bought 4,04,963 equity shares at Rs 44.7 apiece on the NSE. 

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Tushar Rameshchandra Mehta sold 96,132 equity shares in Veto Switchgear Cable Ltd at Rs 118.99 apiece, Kalpesh Javerilal Oswal bought 32,000 equity shares in Party Cruisers Limited at Rs 77.31 per share on the NSE, the bulk deals data showed. 

Smita Jain sold 84,800 equity shares in DP Wires Limited at Rs 264.17 per share and Avirat Enterprise dumped 59,150 equity shares Banaras Beads Ltd at Rs 95.94 per share on the NSE.

DII and FII data

Foreign institutional investors (FIIs) purchased shares worth a net Rs 1273.86 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 532.97 crore in the Indian equity market on January 4, as per provisional data available on the NSE.

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NSE F&O Ban

No security has been put under the F&O ban for January 5. Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.