Lacklustre day

Nifty50: 17,248▲+27 (0.1%)
Sensex: 57,901 ▲+113 (0.2%)

• After a gap-up opening market turned lacklustre. 
• 28 stocks from the Nifty50 pack advanced.. 
• Among the Nifty sectoral indices, Nifty IT (+1.1%) and Oil & Gas (+0.2%) closed in green.
• Whereas, Media (-1.7%) and PSU Bank (-0.9%) were the top losers.

For more updates on F&O, click here.

Here are the top stories of the day.

BEL bags biggest avionics order

State-owned defence company received an order worth ₹2,400 crore from Hindustan Aeronautics Ltd (HAL) for manufacturing and supplying 20 types of electronic systems which will be used in fighter aircraft - Tejas.

The contract will run for a span of 5 years starting 2023 and will involve supply electronics related to flight control computers, weapon computers and head up display among others. 

Shares of BEL and HAL closed nearly flat, despite increase in trading volumes. 

Passenger vehicle growth forecast cut

Rating agency ICRA has cut its growth forecast for domestic passenger vehicles sales from 14-17% earlier to 8-11% for fiscal ’22. 

The downward revision comes on the back of production loss to the tune of 5 lakh units on account of chip shortage. ICRA expects that car makers would suffer an earnings loss of about ₹1,800-2,000 crore due to this. The Nifty Auto index was down (-0.7%) today.

IOC cuts aviation turbine fuel prices

Downstream petroleum major has slashed aviation turbine fuel (ATF) prices for domestic airlines. The prices in Delhi are ₹74,022 per kilolitre, down about 10% from their early November rates. 

Jet Fuel makes up for 30-40% of the cost of running an airline in India. ATF prices have risen by nearly 95% in the last one year on the back of rise in crude oil prices. Any reduction in ATF would provide much needed relief to the ailing aviation industry. 

IPO corner

The IPO of Data Patterns received overwhelming response from investors with the public issue being oversubscribed more than 119 times on day 3. Similarly, HP Adhesives’ IPO was also oversubscribed around 8 times on day 2. 

Investors also showed interest in Supriya Lifescience, which launched its IPO today. This public issue was oversubscribed 2 times on day 1 itself. Meanwhile, the IPO rush continues next week with CMS Info Systems all set to launch its public issue on December 21. To pre-apply and apply for IPOs on Upstox, click here.  

Closing bell

Rising inflation and falling unemployment have prompted the US Fed to cut its liquidity infusion program. The Fed is likely to end its bond purchase program by March. Further, it could also raise interest rates three times next year. This may not be in favour of equity markets in the long term. However, as of now, major global equity markets are in the green. It seems that the markets have absorbed the US Fed news and are now looking beyond liquidity – towards growth!

Good to know

What are capital gains?

Any profit or gain that arises from a sale of a capital asset is a capital gain. This gain is an income and hence tax needs to be paid on it. It is called capital gain tax, which can be short term and long term. Land, building, vehicles used for business and shares among others are a few examples of capital assets.

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