Current Market Situation
The benchmark indices continued trading with minor losses in mid-morning trade. IT stocks were under pressure. The Nifty was trading near 17,100 level.
The barometer index, the S&P BSE Sensex, declined 225.01 points or 0.39% at 57,266.50. The Nifty 50 index fell 55.50 points or 0.32% at 17,093.60.
Weak Asian stocks, worries of US Fed interest hike, geo-political tensions of Russia invading Ukraine and firm crude oil prices continue to impact investors sentiment.
In the broader market, the S&P BSE Mid-Cap index rose 0.37% while the S&P BSE Small-Cap index gained 0.11%.
The market breadth was positive. On the BSE, 1,637 shares rose and 1,574 shares fell. A total of 88 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 3,751.58 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 74.88 crore in the Indian equity market on 24 January 2022, provisional data showed.
Buzzing Index:
The Nifty PSU Bank index advanced 2.10% to 2,710.35. The index lost 5.24% in the past three trading sessions.
Canara Bank (up 3.43%), Bank of Baroda (up 3.02%), Jammu & Kashmir Bank (up 2.78%), State Bank of India (SBI) (up 2.26%) and UCO Bank (up 1.98%) were the top gainers in the PSU Bank segment.
Stocks in Spotlight:
IndiaMART InterMESH slumped 9.63%. The company's consolidated net profit declined 12.47% to Rs 70.20 crore on 8.35% rise in net sales to Rs 188.10 crore in Q3 December 2021 over Q3 December 2020. On a consolidated basis, profit before tax (PBT) fell 12.39% year-on-year (Y-o-Y) to Rs 93.30 crore in Q3 December 2021.
IndiaMART InterMESH said the growth in revenue was driven by improvement in realization from existing customers and increase in number of paying subscription suppliers. Deferred revenue grew by 25% Y-o-Y to Rs 790 crore as at 31 December 2021. EBITDA was Rs 79 crore (down 10% Y-o-Y). EBITDA margin for Q3 FY22 stood at 42%, lower than 51% in Q3 FY21. EBIT for the period was Rs 75 crore (down 10% Y-o-Y) with EBIT margin of 40% in Q3 FY22 as against 48% in Q3 FY21.
SBI Cards and Payment Services rallied 4.04%. The company reported an 84% jump in net profit to Rs 385.7 crore on a 23.6% rise in total income to Rs 3,139.66 crore in Q3 FY22 over Q3 FY21. SBI Cards said increase in revenue was primarily due to higher income from fees and services in Q3 FY22. Profit before tax grew by 83% to Rs 518 crore in Q3 FY22 over Q3 FY21. Earnings before credit costs increased by 23% to Rs 1,144 crore in Q3 FY22 as compared to Q3 FY21. Total operating cost rose 28% year on year to Rs 1,719 crore in Q3 FY22, due to higher business volumes & festive campaigns. Finance costs increased by 6% to Rs 277 crore in Q3 FY22 from RS 261 crore in Q3 FY21.
The Ramco Cements tumbled 5.56%. The company's standalone net profit declined 59% to Rs 83 crore despite a 16% rise in revenue to Rs 1,556 crore in Q3 FY22 over Q3 FY21. EBITDA fell by 41% to Rs 238 crore in Q3 FY22 from Rs 403 crore in Q3 FY21. While the variable costs had gone up due to sharp fuel price increase, cement prices had declined sharply in Dec'21, the company said. Cement sales rose 15% Y-o-Y to 3 million tonnes while generation of wind power declined by 35% Y-o-Y to 2.28 crore units in the third quarter.
Global Markets:
Overseas, Asian stocks fell across the board on Tuesday after a volatile session overnight on Wall Street.
South Korea's economy grew 1.1% in the fourth quarter of 2021 compared to the previous quarter, the Bank of Korea said in a press release on Tuesday. For the full year, the country's GDP expanded by 4% in 2021, the fastest in 11 years, as per reports.
Wall Street bounced back from a steep sell-off late in the session to close higher on Monday, with bargain hunters pushing the indexes into positive territory by closing bell. Investors are eyeing the Fed's policy meeting, which begins on Tuesday and wraps up Wednesday. Market participants will be looking for any signals on how much the central bank will raise interest rates this year and when it will start.
Geopolitical tensions are in focus, with fears of a Russian invasion of Ukraine growing, as the military buildup at the border shows no sign of dissipating and crisis talks remain at an impasse, as per reports.
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