google.com, pub-6433185532013521, DIRECT, f08c47fec0942fa0 STREET INVESTMENT easy money: Barometers tumble after a day's breather; Nifty below 17,200 level. 27January2022

Barometers tumble after a day's breather; Nifty below 17,200 level. 27January2022

  


The benchmark indices continued to incur losses on Thursday, after a sharp rally yesterday. IT, consumer durables and pharma stocks dragged the market. The Nifty despite hitting an intraday low of 16,866.75 during afternoon trade, managed to close above 17,100 mark.

As per provisional closing data, the barometer index, the S&P BSE Sensex, dropped 581.21 points or 1% at 57,276.94. The Nifty 50 index skid 167.80 points or 0.97% at 17,110.15. The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slipped 1.36% to 21.07.

In the broader market, the S&P BSE Mid-Cap index fell 1.25% while the S&P BSE Small-Cap index lost 0.82%.

The market breadth was negative. On the BSE, 1,481 shares rose and 1,882 shares fell. A total of 92 shares were unchanged.

The Budget session of Parliament is set to commence on 31 January 2022 and will conclude on 8 April 2022. The government will present the Budget for fiscal 2022-23 on 1 February 2022. The Economic Survey is likely to be tabled on 31 January 2022 after the president's address.

On the political front, developments in the upcoming assembly polls in Uttar Pradesh, Uttarakhand, Goa, Punjab, and Manipur will be closely watched. Polls in all the five states will be held between 10 February 2022 and 7 March 2022 in seven phases. The counting of votes and the result will be declared on 10 March 2022.

Economy:

The International Monetary Fund (IMF) has raised its forecast for growth in India's gross domestic product (GDP) in FY23 by 50 basis points (bps) to 9%. India's GDP growth forecast for FY24 was also raised by 50 bps to 7.1%. Explaining the upward revision in an update to its World Economic Outlook report, the IMF said it expects an improvement in India's credit growth which would boost consumption and investment and better-than-anticipated performance of the financial sector.

Primary Market:

The initial public offer (IPO) of Adani Wilmar received bids for over 5.63 crore shares as against 12.25 crore shares on offer, according to stock exchange data at 15:27 IST on Thursday, (27 January 2022). The issue was subscribed 0.46 times.

The issue opened for bidding on 27 January 2022 and it will close on 31 January 2022. The price band of the IPO is fixed at Rs 218-230. An investor can bid for a minimum of 65 equity shares and in multiples thereof. The IPO comprises a fresh issue of upto Rs 3,600 crore (including an anchor portions of 4,08,65,217 equity shares).

Buzzing Index:

The Nifty FMCG index fell 1.14% to 35,966.80. The index rose 1.23% in the past trading session.

United Spirits (down 3.65%), United Breweries (UBL) (down 2.95%), Radico Khaitan (down 2.69%), Dabur India (down 2.47%) and Nestle India (down 2.35%) were the top losers in the FMCG segment.

United Spirits fell 3.65%. United Spirits reported 26.6% rise in standalone net profit to Rs 291.1 crore on a 15.9% increase in net sales to Rs 2,884.7 crore in Q3 FY22 over Q3 FY21. The company said that the growth in sales reflected a strong quarter driven by resilient consumer demand in the off-trade channel, continued premiumisation and recovery of the on-trade channel. Underlying net sales increased 14.3%, excluding the one-off sale of bulk scotch.

Gross margin was 44.1%, down 49 bps on a reported basis, driven by input cost inflation, partially offset by favourable product mix and productivity savings. Adjusting the one-off sale of bulk scotch, underlying gross margin was 44.3%, down 31 bps. Reported EBITDA was Rs 491 crore, up 27.9%. Reported EBITDA margin was 17.0%, up 159 bps, primarily driven by operating leverage on fixed costs. The company upweighted its investment in marketing to support strategic priorities and on-going demand growth initiatives.

Colgate-Palmolive (India) fell 1.71%. The company reported 2% rise in net profit to Rs 252 crore on a 4% increase in sales to Rs 1,271 crore in Q3 FY22 over Q3 FY21. Total expenses during the quarter rose by 4% YoY to Rs 945 crore, due to higher raw material costs (up 6% YoY), higher employee expenses (up 16% YoY) and higher other expenses (up 8% YoY).

Stocks in Spotlight:

Cipla advanced 2.63%. The pharmaceutical major reported a 2.6% decline in consolidated net profit to Rs 729 crore in Q3 FY22 from Rs 748 crore posted in Q3 FY21. The drug maker's total revenue from operations grew by 6% year on year to Rs 5,479 crore in Q3 FY22 over Q3 FY21. Consolidated profit before tax grew by 3.2% to Rs 1,054 crore in Q3 FY22 over same period last year. Consolidated EBITDA fell 3% to Rs 1,243 crore in Q3 FY22 from Rs 1,281 crore posted in the same quarter last year. EBITDA margin declined to 22.7% in Q3 FY22 from 24.8% in Q3 FY21.

SRF dropped 4.31%. The company's consolidated net profit rose 55.68% to Rs 505.54 crore on 55.64% rise in net sales to Rs 3314.14 crore in Q3 December 2021 over Q3 December 2020. On a consolidated basis, profit before tax jumped 65% year-on-year to Rs 730.28 crore in Q3 December 2021. The company's Earnings before Interest and Tax (EBIT) increased 66% to Rs 796 crore in Q3FY22 when compared with the same period last year. Total expenses jumped 52.22% to Rs 2626.26 crore with cost of materials consumed rising 55.39% to Rs 1739.73 crore during the period under review. Power and fuel expense rose 54.24% to Rs 300.18 during the period under review.

Torrent Pharmaceuticals tumbled 14.92%. The company's consolidated net profit fell 16% to Rs 249 crore on 6% increase in revenue from operations to Rs 2,108 crore in Q3 December 2021 over Q3 December 2020. On a consolidated basis, EBITDA fell 5% year-on-year to Rs 585 crore in Q3 December 2021 over Q3 December 2020. R&D spend rose 9% to Rs 123 crore during the period under review. Profit before tax was flat at Y-o-Y at Rs 357 crore in Q3 FY22. India revenues stood at Rs 1,072 crore, up 15% Y-o-Y, driven by robust performance of top brands in all our focus therapies.

Macrotech Developers slipped 1.31%. Lodha's consolidated net profit jumped 23.6% to Rs 286.38 crore on a 36% jump in net sales to Rs 2,059.44 crore in Q3 FY22 over Q3 FY21.

TeamLease Services soared 7.34%. The company's consolidated net profit rose 31.05% to Rs 29.97 crore on 38.16% increase in revenue from operations to Rs 1,762.08 crore in Q3 December 2021 over Q3 December 2020.

Canara Bank jumped 8.77%. The public sector bank posted a 115.8% jump in standalone net profit to Rs 1,502 crore in Q3 FY22 from Rs 696 crore posted in Q3 FY21. The bank's total income stood at Rs 21,312.27 crore in Q3 FY22 as compared to Rs 21,365.39 crore in Q3 FY21. Operating profit before provisions and contingencies rose 10.1% year on year to Rs 5802.52 crore in Q3 FY22. Meanwhile, profit before tax zoomed 108% to Rs 2,202.7 crore in Q3 FY22 over Q3 FY21.

The bank's net interest income grew 14.1% year on year to Rs 6,946 crore in Q3 FY22. Net interest margin stood at 2.83% in quarter ended December 2021 as compared to 2.8% in quarter ended December 2020. Meanwhile, total non-interest income declined 15.3% year on year to Rs 3,612 crore in Q3 FY22. Total Provisions and Contingencies fell 35.5% to Rs 2,946 crore in Q3 FY22 from Rs 4,572 crore in Q3 FY21. Provision coverage ratio (PCR) stood at 83.26% as of 31 December 2021 improved from 82.44% on 30 September 2021.

Global Markets:

European stocks traded mixed on Thursday as global markets react badly to the latest monetary policy decision from the U.S. Federal Reserve. Asian stocks also continued to drag across the board as investors digest an overnight update from the U.S. Federal Reserve that indicated the central bank plans to raise interest rates as soon as March. The Taiwan market is closed for a holiday on Thursday.

U.S. stocks fell on Wednesday after the Federal Reserve signaled an interest rate hike could be coming soon, while supply concerns stemming from tension between Russia and Ukraine saw oil prices touch highs not seen since 2014.

The Federal Reserve on Wednesday said it is likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month in what U.S. central bank chief Jerome Powell pledged will be a sustained battle to tame inflation.

The committee is of a mind to raise the federal funds rate at the March meeting assuming that the conditions are appropriate for doing so, Powell said in a news conference, pinning down a policy statement from the central bank's Federal Open Market Committee that only said rates would rise soon.


CLICK HERE FOR GET DETAILS & JOIN OUR BEST ADVISORY  -

Visit My Website https://www.streetinvestment.in/

Visit My Facebook Page https://bit.ly/3FPps3j

Visit My Website https://bit.ly/3FUlvKK

Street Investment CALL US : 8989000006


No comments:

Post a Comment

Shooting Star Candlestick: How to Trade, Red vs Green and Quick Tips.

What Is a Shooting Star? Shooting star is a bearish reversal candlestick that forms after an uptrend. Traders recognize it by its small bod...