Rebound

Nifty50: 17,352 ▲ 509 (+3.0%)

Sensex: 58,142 ▲ 1736 (+3.0%)

• The markets shrugged off an initial weakness and rebounded sharply, closing 3% higher. 
• 48 of the Nifty50 stocks closed in green indicating broad-based buying.
• The markets remained unsteady about the crisis in Ukraine, and reports of Russia de-escalating tensions fuelled optimism.

All Nifty sectoral indices closed in the green, and Auto (+4.0%) and PSU Bank (+3.9%) were the top gainers.

For more updates on F&O, click here.

Here are the top stories of the day.

Vedanta partners with Foxconn

The mining major has entered into a joint venture with the Taiwanese electronics contract manufacturer to manufacture semiconductors in India. Vedanta will hold a majority stake in the joint venture. Foxconn reportedly controls 40% of the global electronic manufacturing.

The centre in December 2021 had cleared a production linked incentive (PLI) scheme to the tune of ₹76,000 crore for semiconductor and display board production in the country over the next five to six years. The joint venture will seek to capitalise on a global chip-shortage problem.

NMDC falls as iron ore prices crash

The share of the iron ore producer fell over 4% today as iron ore futures traded in China reportedly crashed more than 10%. This development is negative for domestic iron ore producers like NMDC, whose own prices are largely influenced by global prices of the metal.

China is the world’s largest commodity consumer and the sharp decline in the iron ore prices comes in the wake of warnings by Chinese authorities over price manipulation. Shares of NMDC have fallen nearly 9% in the last three trading sessions.

Paytm GMV doubles in January

The digital payment and financial services company’s gross merchandise value (GMV) rose 105% year-on-year to ₹83,481 crore. GMV indicates total sales value for merchandise sold through a particular marketplace over a certain time frame.

The company also said that it disbursed 19 lakh loans in January 2022 aggregating to a total value of ₹921 crore, which was over three times higher compared with 4 lakh loans worth ₹212 crore disbursed in January 2021. It saw the highest ever growth in its monthly transacting users, which grew 40% year-on-year to nearly 6.9 crore.

IPO Corner

To apply for the IPO under the reserved quota, LIC has asked its policyholders to link their policy with the PAN card before 28 February 2022. The life insurer has set aside 10% of the issue size for policyholders. LIC filed its draft red herring prospectus with the SEBI on Sunday and is likely to launch its public issue in March this year.

Good to know

What is GMV?

Gross merchandise value (GMV) refers to the volume of goods sold over a given period of time. It is a metric commonly used by e-commerce companies. It helps the company understand how it is operating and growing. GMV doesn’t take into account accrued costs and expenses that come with an online business like shipping costs, discounts, return etc. It is pertinent to use other metrics alongside GMV to understand the overall health of the company.

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