Sell-off continues

Nifty50: 16,912 ▼-284.4 (-1.6%)
Sensex: 56,747 ▼-949.3 (-1.6%)

• After a weak start, markets continued to drift lower. 
• Of the Nifty50 pack, 49 stocks declined. 
• All the Nifty sectoral indices closed in red.
• Nifty IT (-2.7%) and Pharma (-1.8%) were the top losers.

For more updates on F&O, click here.

Here are the top stories of the day.

Tech Mahindra to buy Activus Connect

Tech Mahindra plans to acquire 100% stake in US-based Activus Connect for about ₹466 crore. This acquisition is expected to boost Tech M’s capability in the work-at-home Customer Experience Management (CXM) space. 

Activus, which employs over 1,750 employees, had revenues of about ₹127 crore in 2020. Tech M’s plans to close the transaction immediately with cash payment.

Godrej Prop ties up for a luxury project

Real estate major Godrej Properties has entered into a joint venture with Delhi-based TDI group to develop a luxury residential project in Connaught place. The project is expected to have a developable area of 1.25 lakh sq ft. and will primarily comprise residential apartments. 

This will be Godrej’s real estate arms third project in Delhi. It also plans to expand its presence across other leading cities. In November, it had acquired a 16-acre land parcel in Bengaluru to develop a mid-income housing project. Its shares rose 4.7% intraday but later pared gains and closed 2.8% lower.   

Eris enters insulin segment with a JV

Ahmedabad-based Eris Lifesciences has entered into a 70:30 joint venture with Mumbai-based M.J. Biopharm to enter biopharmaceuticals. The JV will primarily engage in marketing and distribution of human and analogue insulins.  

The JV is expected to help Eris expand its existing diabetic care portfolio. Shares of Eris rose nearly 10% intraday, but later erased gains amidst broader market weakness.

Closing bell

As such there is no positive news in sight and the markets are reacting accordingly. On the contrary, concerns over the new variant, liquidity reduction by central banks and risks of hike in interest rates remain overhang to the markets. Amidst this, continuous selling by the foreign investors over the last few days is acting as a sentiment spoiler. The India Vix rose by 9% today, indicating volatile days ahead. Markets need a heavy-weight sector such as banks to provide support. 

IPO Update

• On its final day, the wealth management company Anand Rathi’s IPO was oversubscribed around 10 times.
• RateGain Travel Technologies will launch its IPO with a price band of ₹405-₹425 per share tomorrow. You can pre-apply for this IPO on Upstox.

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Good to know

What is acquisition?

When a company purchases a part or all of another company’s shares or assets, it is called an acquisition. Unlike a merger where two companies combine into one, in an acquisition both the companies exist as separate entities. The acquiring company becomes the parent of the acquired company. With an acquisition the acquirer can strategically enter new markets/products or reduce competition. Meanwhile, the acquirer could also face resistance from the employees of the acquired company if there is a cultural mismatch.

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