Sensex falls 143 points; Nifty settles above 17,500. 04February2022

   

Benchmark indices ended a volatile trading session with tiny losses on Friday. The Nifty closed tad above the 17,500 mark. Barring metal and FMCG stocks, selling pressure was seen across the board.

The barometer index, the S&P BSE Sensex, fell 143.25 points or 0.24% at 58,644.60. The Nifty 50 index lost 43.9 points or 0.25% at 17,516.25.

Selling was broad based. The S&P BSE Mid-Cap index fell 0.68% while the S&P BSE Small-Cap index shed 0.45%.

Sellers outnumbered buyers. On the BSE, 1,595 shares rose and 1,746 shares fell. A total of 91 shares were unchanged.

Earnings Impact:

Aditya Birla Fashion and Retail fell 3%. The company's consolidated net profit surged to Rs 197 crore in Q3 FY22 from Rs 58 crore in Q3 FY21. Revenue during the quarter increased by 44% YoY to Rs 2,987 crore. The company said that Q3 saw a sharp rise in consumer footfalls which led to strong revenue growth across channels. Improved consumer sentiment led to a sharp demand recovery that was amplified by the concentrated wedding season. EBITDA improved by 44% to Rs 609 crore in Q3 FY22 from Rs 422 crore in Q3 FY21. EBITDA margin was 20.4% in Q3 FY22 as against 20.3% in Q3 FY21.

Bank of India fell 3.59%. The PSU bank reported a 90% rise in standalone net profit to Rs 1,027 crore in Q3 FY22 from Rs 541 crore in Q3 FY21. Total income during the quarter decreased by 8% YoY to Rs 11,211 crore. Net Interest Income (NII) was Rs 3,408 crore in Q3 FY22, which is lower by 9% as compared with Rs 3,739 crore in Q3 FY21. NIM (Global) stood at 2.27% and NIM (Domestic) at 2.51% in Q3 FY22. Operating Profit stood at Rs 2,096 crore in Q3 FY22, down by 21% from Rs 2,665 crore in Q3 FY21. Provisions (other tax) and contingencies amounted to Rs 335 crore (down 81% YoY), of which provisions for non-performing assets was Rs 693 crore (up 11% YoY). Gross NPA declined by 8.97% QoQ to Rs 45,760 crore as on 31 December 2021 from Rs 50,270 crore as on 30 September 2021.

Lupin fell 2.93%. The drug company's consolidated net profit jumped 24.47% to Rs 545.52 crore on a 3.57% rise in total revenue from operations to Rs 4160.93 crore in Q3 FY22 over Q3 FY21. Consolidated profit before tax (PBT) dropped 68.16% to Rs 167.08 crore in Q3 FY22 from Rs 524.84 crore in Q3 FY21. Total tax rebate during the quarter stood at Rs 382 crore in Q3 FY22 as against a tax expense of Rs 83.49 crore in Q3 FY21. Consolidated EBITDA skid 49.5% to Rs 403.90 crore in Q3 FY22 as compared to Rs 799.80 crore in Q3 FY21. EBITDA margin stood at 9.9% in Q3 FY22 from 20.4% in Q3 FY21.

PI Industries advanced 2.5% after the company reported 14% rise in consolidated net profit to Rs 223 crore on a 17% increase in revenue to Rs 1,356 crore in Q3 FY22 over Q3 FY21. Overheads amounted to Rs 333 crore in Q3 FY22, up by 24% from Rs 270 crore in Q3 FY21, mainly attributable to sharp increase in fuel and related utilities, shipping cost and one-time expenses pertaining to strategic initiatives. EBITDA improved by 8% to Rs 297 crore in Q3 FY22 from Rs 276 crore in Q3 FY21. EBITDA margin was 22% in Q3 FY22 as against 24% in Q3 FY21.

GAIL (India) fell 0.01%. The company's consolidated net profit soared 100.31% to Rs 380 crore on a 66.98% surge in revenue from operations to Rs 2,617.56 crore in Q3 FY22 over Q3 FY21. Consolidated profit before tax (PBT) surged 105.46% to Rs 481.98 crore in Q3 FY22 from Rs 234.58 crore in Q3 FY21. GAIL (India) has recorded a good financial performance in the third quarter of FY2021-22 on account of improved gas marketing spread, better product prices and improved operating efficiency in petrochemicals and liquid hydrocarbons.

Devyani International fell 3%. On a consolidated basis, the company's net profit rose 39.83% to Rs 66 crore on 64.71% increase in net revenue to Rs 624.40 crore in Q3 FY22 over Q3 FY21. The company said it recorded its highest-ever quarterly results in Q3 FY22. The performance surpassed pre-pandemic levels and was driven by new store openings coupled with solid momentum in demand. DIL reported improved profitability during the quarter on the back of several initiatives towards cost-optimization and improving store economics. Gross margins expanded by 270 basis points YoY to 71.4% in Q3 FY22. EBITDA improved by 67.38% to Rs 147.80 crore in Q3 FY22 from Rs 88.30 crore in Q3 FY21. EBITDA margin stood at 23.7% in Q3 FY22 as against 23.3% in Q3 FY21.

Venky's (India) slumped 9.35% after the company's net profit declined 80% to Rs 21.63 crore in Q3 FY22 from Rs 106.50 crore in Q3 FY21. Revenue from operations rose 18% YoY to Rs 1,098.50 crore during the quarter. Total expenses increased by 35% to Rs 1,079.77 crore in Q3 FY22 over Q3 FY21, due to a surge in raw material costs (up 45% YoY) and higher other expenses (up 13% YoY). The profit margins of the poultry and poultry products segment for the quarter as well as for the 9 months ended 31st December, 2021 have been severely affected due to steep rise in the prices of key poultry feed ingredients, especially soya which has seen unprecedented increase. The performance of Animal Health Products and Oilseed segments has been good,” the company said in a statement.

Global Markets:

European markets were trading mixed while Asian stocks closed on a positive note on Friday. Markets in Hong Kong returned to trade on Friday after being closed for most of this week due to the Lunar New Year holidays. Over in mainland China, markets remain closed on Friday for the holidays.

U.S. stocks fell on Thursday, dragged down by technology and social-media companies, as Facebook owner Meta Platforms plunged after a disappointing earnings report. Meta Platforms shares plunged after the company's quarterly profit fell short of expectations. The company also issued weaker-than-expected revenue guidance for the current quarter. It was the biggest drop ever for the Facebook parent.

On the data front, investors are awaiting the U.S. Labor Department's nonfarm payroll count due Friday, which is seen as one of the major indicators of the how the U.S. economy is doing.

In Europe, the Bank of England pressed ahead with raising borrowing costs Thursday, nudging up its policy rate to 0.5% from 0.25%. The European Central Bank kept its key interest rates unchanged, but ECB President Christine Lagarde signaled concern about inflation and opened the door to a possible rate hike later this year.

Indices decline in early trade; Nifty below 17,750. 03February2022

 

Key indices are trading lower in early trade as profit booking emerged after three-day upmove. The Nifty slipped below the 17,750 level.

The barometer index, the S&P BSE Sensex, declined 142.58 points or 0.24% at 59,415.27. The Nifty 50 index fell 35.7 points or 0.2% at 17,744.90.

In the broader market, the S&P BSE Mid-Cap index fell 0.28% while the S&P BSE Small-Cap index gained 0.18%.

The market breadth was strong. On the BSE, 1,594 shares rose and 1017 shares fell. A total of 98 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 183.60 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 425.96 crore in the Indian equity market on 2 February, provisional data showed.

Stocks in Spotlight:

Tata Consumer Products gained 3.29% after the FMCG company reported a 38.1% rise in consolidated net profit to Rs 194.48 crore in Q3 FY22 from Rs 140.86 crore posted in Q3 FY21. Net sales increased by 3.5% to Rs 2,030.48 crore in Q3 FY22 over Q3 FY21. EBITDA improved by 28% to Rs 468 crore in Q3 FY22 from Rs 365 crore in Q3 FY21. EBITDA margin was 14.6% in Q3 FY22 as against 11.9% in Q3 FY21.

Zee Entertainment Enterprises fell 1.38%. The media major reported 10.1% fall in consolidated net profit to Rs 298.70 crore on a 3% fall in operating revenue to Rs 2112.60 crore in Q3 FY22 over Q3 FY21.

Adani Total Gas declined 1.27%. The company reported 9% fall in consolidated net profit to Rs 145 crore on a 78% rise in revenue from operations to Rs 522 crore in Q3 FY22 over Q3 FY21.

Global Markets:

Asian stocks were trading mixed on Thursday amid some lingering concerns about global growth and ongoing geopolitical tensions. A number of major markets, including those on the Chinese mainland and in Hong Kong, remain shut for the Lunar New Year holidays.

US stocks rose for a fourth straight day Wednesday, as Alphabet propelled gains in tech thanks to strong quarterly earnings. Shares of Google-parent Alphabet surged after its quarterly numbers topped analyst expectations. The company also announced a 20-for-1 stock split.

On the data front, investors are awaiting the U.S. Labor Department's nonfarm payroll count due Friday, which is seen as one of the major indicators of the how the U.S. economy is doing.

Meanwhile, geopolitical tensions in eastern Europe remained at heightened levels after the Pentagon reportedly said it will move some of its Europe-based forces further east and deploy additional U.S.-based troops to Europe.

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NTPC And Blue Dart Express jumps after Q3 PAT. 31January2022

 

Blue Dart Express jumps after Q3 PAT rises 29% YoY to Rs Rs 123 cr.  

On a consolidated basis, profit before tax (PBT) rose 43% to Rs 165.38 crore in Q3 December 2021 over Q3 December 2020. EBITDA rose 8.3% year-on-year to Rs 288 crore in Q3 December 2021. EBITDA margin stood at 22.7% in Q3 December 2021 as against 25.5% in Q3 December 2020.

On a standalone basis, the company's net profit rose 39.86% to Rs 122.18 crore on 21.24% rise in net sales to Rs 1,254.75 crore in Q3 December 2021 over Q3 December 2020. EBITDA rose 15% year-on-year to Rs 211.70 crore in Q3 December 2021. EBITDA margin stood at 16.8% in Q3 December 2021 as against 17.7% in Q3 December 2020.

The company's board has declared interim dividend of Rs 25 per share for the Financial Year 2021-2022. Dividend will be paid to the shareholders on or after 24 February 2022.

NTPC Q3 PAT climbs 25% YoY to Rs 4132 cr. 

Profit before tax rose 51.87% to Rs 5409.01 crore in Q3 FY22 over Q3 FY21. Total expenses rose 12.54% year-on-year to Rs 24428.12 in Q3 FY22. Total fuel cost climbed 23.17% to Rs 15631.96 crore in Q3 FY22 over Q3 FY21.

On consolidated basis, total income was Rs 33,783.62 crore in Q3 FY22 and Rs 97,269.89 crore in 9M FY22 as against Rs 28,387.27 crore and Rs 83,859.59 crore during the previous corresponding periods of last year. PAT was Rs 4,626.11 crore in Q3 FY22 and Rs 11,760.78 crore in 9M FY22 as against Rs 3,876.36 crore and Rs 10,319.91 crore during the previous corresponding periods of last year, registering an increase of 19.34% and 13.96% respectively.

On the operational front, NTPC's gross power generation for the quarter ended December 2021 was 72.700 billion units (BU) compared to 65.418 BU in quarter ended December 2020. The Group's total installed capacity increased to 67,757.42 MW as on 30 December 2021 as against 62,975 MW as on 30 December 2020.

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Nifty nears 17,350; IT stocks rally. 31January2022

Benchmark indices traded with strong gains in morning trade, tracking positive Asian stocks. The Nifty hovered at 17,350 level. All the sectoral indices on the NSE traded in green.

The barometer index, the S&P BSE Sensex, jumped 810.38 points or 1.42% at 58,010.27. The Nifty 50 index advanced 244.05 points or 1.43% at 17,346.90.

In the broader market, the S&P BSE Mid-Cap index rose 1.47% while the S&P BSE Small-Cap index gained 1.14%.

The market breadth was strong. On the BSE, 2,103 shares rose and 1,151 shares fell. A total of 144 shares were unchanged.

Economy:

The Budget Session of Parliament begins today (31 January 2022). Economic Survey 2021-22 will also be tabled today. Finance Minister, Nirmala Sitharaman, will present the Union Budget for the year 2022-2023 tomorrow (1 February 2022) in the Lok Sabha and its copy will be laid on the Table of the Rajya Sabha soon thereafter. This year it will be a paperless budget and the Session will be held amidst Covid protocol.

With a view to ensure Covid safety protocol, both the Houses of Parliament will function in shifts from Wednesday (2 February 2022). The Rajya Sabha proceedings will be held from 10 AM to 3 PM and Lok Sabha from 4 PM to 9 PM. The first part of the Budget Session will continue till 11th of February and it will have 10 sittings. This time in the Rajya Sabha, the Zero Hour, which usually runs for one hour, has been reduced to 30 minutes. After a month-long recess, the second part of the session will begin from 14th of March and conclude on 8th of April this year in which there will be 19 sittings.

Results Today:

Tata Motors (up 0.64%), BPCL (up 2.19%), Indian Oil Corporation (up 1.21%), UPL (up 2.09%) and Sun Pharmaceutical Industries (up 1.71%) are Nifty companies that will announce their quarterly results today.

Hindustan Petroleum Corporation, DLF, Aarti Drugs, Ajanta Pharma, LT Foods, Edelweiss Financial Services, Exide Industries, GIC Housing Finance, Hester Biosciences, Infibeam Avenues, KEC International, KPIT Technologies, Krsnaa Diagnostics, Navin Fluorine International, Satin Creditcare Network, Shipping Corporation of India, Suven Life Sciences and UCO Bank will also announce their quarterly earnings today.

New Listing:

Shares of AGS Transact Technologies were currently trading at Rs 173.40 on the BSE, at a discount of 0.91% as compared to the issue price of Rs 175. The scrip was listed at Rs 176, representing a premium of 0.57% to the initial public offer (IPO) price. So far, the scrip has hit a high of Rs 181.85 and a low of Rs 168.05. Over 5.09 lakh shares of the company have changed hands in the counter till now. The initial public offer (IPO) of AGS Transact Technologies received bids for 22,34,74,265 shares as against 2,86,74,696 shares on offer, according to stock exchange data. The issue was subscribed 7.79 times.

The issue opened for bidding on 19 January 2022 and closed on 21 January 2022. The price band of the IPO is fixed at Rs 166-175.

Buzzing Index:

The Nifty IT index added 2.81% to 34,804, rising for second trading session. The IT index rallied nearly 4% in two days.

Mindtree (up 6.54%), Tech Mahindra (up 4.75%), L&T Technology Services (up 3.74%), L&T Infotech (up 3.49%), Wipro (up 3.47%), Infosys (up 3.01%) and HCL Technologies (up 2.84%) were top gainers in IT space.

Earnings Impact:

Blue Dart Express rose 2.95% to Rs 6928.70 after the company's consolidated net profit rose 29.48% to Rs 123.42 crore on 20.98% rise in net sales to Rs 1254.75 crore in Q3 FY22 over Q3 FY21. Profit before tax (PBT) rose 43% to Rs 165.38 crore in Q3 FY22 over Q3 FY21. EBITDA rose 8.3% year-on-year to Rs 288 crore in Q3 FY22. EBITDA margin stood at 22.7% in Q3 FY22 as against 25.5% in Q3 FY21. The company's board has declared interim dividend of Rs 25 per share for the financial year ended 2021-22.

Multi Commodity Exchange of India (MCX) fell 1.33% after the company reported a 52% fall in consolidated net profit to Rs 4.46 crore on a 17% decline in total income to Rs 104.06 crore in Q3 FY22 over Q3 FY21. EBITDA in the third quarter was Rs 52.78 crore, down by 28% from Rs 73.45 crore in Q3 FY21. The company made a provision of Rs 11.01 crore for tax during the quarter. It had written back tax provisions amounting to Rs 4.21 crore in the same period last year. The average daily turnover (ADT) in overall commodity futures stood at Rs 24,556 crore in Q3 FY 21-22 vis-à-vis Rs 32,684 crore in the corresponding quarter of FY 20-21. The notional ADT of options increased by 965% to Rs 8,610 crore in Q3 FY21-22 from Rs 808 crore during Q3 FY20-21.

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Market extends profit booking for second week even as these nine smallcap stocks gain up to 58%.

WEEKLY MARKET REVIEW

Among broader indices, BSE Smallcap index fell 3.4 percent and Midcap indices shed 3 percent.

Market extended profit booking in the second week ended January 28 losing another 3 percent amid high volatility as investors remained cautious on hawkish Fed, rising crude oil price, geo-political tensions and persistent FII selling.

In the last week, BSE Sensex declined 1,836.95 points (3.11 percent) to end at 57,200.23, while the Nifty50 lost 515.2 points (2.92 percent) to close at 17,101.95 levels.

Among sectors, Nifty Information Technology index lost 6 percent, Nifty Realty index declined 5 percent and Nifty Metal index fell 4.4 percent. However, Nifty PSU Bank index added 7 percent.

Among broader indices, BSE Smallcap index fell 3.4 percent and Midcap indices shed 3 percent.

Nine smallcap stocks gained 11-58 percent: Sharda Cropchem, Orient Bell, PSP Projects, Khaitan Chemicals and Fertilizers, HT Media, Gujarat Ambuja Exports, Gujarat Mineral Development Corporation, MMTC and TV18 Broadcast.

On the other hand, 43 stocks fell between 10-23 percent including Lux Industries, Indiamart Intermesh, Tata Teleservices (Maharashtra), Vikas Lifecare, Urja Global, Mahindra Logistics, Kriti Industries (India), APL Apollo Tubes and Butterfly Gandhimathi Appliances.

"This highly volatile week, the domestic market followed global reactions of Fed policy meeting, Russia-Ukraine tension and rising oil prices amid pre-budget jitters," said Vinod Nair, Head of Research at Geojit Financial Services.

"Fed in its policy announcement, reaffirmed its plan on ending the bond purchase program and hinted on possible rate hike during the March session. The volatility in global markets was further heightened on mounting geopolitical tensions in Ukraine which kept oil prices elevated on rising supply tensions."

"However, any moderation in the geopolitical situation will lead to bottom fishing. In the domestic market, banking stocks, especially PSBs, showed resilience during the week due to favorable earnings. Shares of new-age technology companies took a hit during the week due to a drop in growth of profitability amid expensive valuations," he added.

BSE Midcap index shed 3 percent with Torrent Pharmaceuticals, Jubilant Foodworks, The Ramco Cements, Vodafone Idea, Godrej Properties, PI Industries, P&G Hygiene and Health Care losing 8-15 percent.

The BSE 500 index lost 3 percent dragged by Lux Industries, Indiamart Intermesh, Tata Teleservices (Maharashtra), Mahindra Logistics, Torrent Pharmaceuticals, APL Apollo Tubes, Elgi Equipments, Trent, Vaibhav Global, Sobha, Finolex Industries, Saregama India, Blue Star, Affle India and Dixon Technologies.

"It was indeed a volatile week for our markets as ahead of the mid-week holiday, Nifty breached 17000 mark and made a low of 16836. However, the index recovered from the lows and witnessed some pullback in the last couple of trading sessions," said Ruchit Jain, Lead Research, 5paisa.com.

"Post the recent high of 18350, it initially seemed to be a normal correction within an uptrend and market participants expected just a knee jerk reaction. But the markets surprised everyone and corrected sharply to even breach the 17000 mark.

"If we look at the data, then primarily this correction seems to have been caused due to the sharp correction in the global markets and FII’s selling who sold equities in cash segment and also formed bearish positions in the index futures segment. They have even rolled over their bearish bets in the index futures segment from January to February series.

"But since the global market event of Fed policy and the monthly expiry for our markets is over, the focus would now solely be on the Budget 2022 which is likely to dictate short term trend," Jain added.

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Market ends in red; Adani Wilmar IPO fully bid. 28January2022

MARKET CLOSING UPDATE

The benchmark indices ended lower on Friday, dragged by banks, auto and financial stocks. The Nifty managed to close above 17,100 mark, falling sharply from an intraday high of 17,373.50. The NSE's India VIX, a gauge of market's expectation of volatility over the near term, skid 1.75% to 20.6950. Weak global cues, ongoing Russia-Ukraine conflict, fears of monetary policy tightening and rising crude oil prices worried investors. Banks and auto stocks were under pressure.

As per provisional closing data, the barometer index, the S&P BSE Sensex, fell 76.71 points or 0.13% at 57,200.23. The Nifty 50 index slipped 8.20 points or 0.05% at 17,101.95.

In the broader market, the S&P BSE Mid-Cap index rose 1.02% while the S&P BSE Small-Cap index gained 1.07%.

The market breadth was positive. On the BSE, 1,994 shares rose and 1,365 shares fell. A total of 99 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.

Primary Market:

The initial public offer (IPO) of Adani Wilmar received bids for over 12.73 crore shares as against 12.25 crore shares on offer, according to stock exchange data at 15:30 IST on Friday, (28 January 2022). The issue was subscribed 1.04 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 Pharma index rose 1.25% to 13,008.90. The index lost 1.87% in the past trading session.

Laurus Labs (up 7.96%), Strides Pharma Science (up 5.36%), Granules India (up 3.20%), Cadila Healthcare (up 3.19%) and Glenmark Pharmaceuticals (up 2.49%) were the top gainers in the Pharma segment.

Dr Reddy's Laboratories lost 0.83%. The drug maker reported a consolidated net profit of Rs 706.50 crore in Q3 December 2021, steeply higher than 19.80 crore in Q3 December 2020. On a consolidated basis, the company's revenue from operations rose 7.91% to Rs 5319.70 crore in in Q3 December 2021 over Q3 December 2020. Profit before tax soared 242% year-on-year to Rs 970.90 crore in Q3 December 2021. During the quarter, EBITDA was reported at Rs 1265.90 crore (up 6.82% Y-o-Y). The EBITDA margin stood 23.8% in Q3 December 2021 higher than 24% in Q3 December 2020 and 27% in Q2 September 2021. Research and Development (R&D) expenses rose 1% to Rs 415.90 crore. The company reported impairment charge of Rs 4.70 crore in Q3 FY22 compared with Rs 600 crore charge in Q3 FY21 taken on intangibles pertaining to certain products. Other operating income stood at Rs 24 crore in Q3 FY22 compared to Rs 12.8 crore in Q3 FY21. Net Finance income stood at Rs 28.9 crore in Q3 FY22 compared to Rs 49.3 crore in Q3 FY21.

Stocks in Spotlight:

Coforge soared 7.26%. The company's consolidated net profit increased by 25.2% to Rs 183.7 crore on a 5.7% rise in revenue to Rs 1,658.1 crore in Q3 FY22 over Q2 FY22. As compared to Q3 FY21, the company's net profit and revenue are higher by 50.7% and 39.3%, respectively. Adjusted EBITDA in the third quarter was Rs 322.6 crore, up 10.4% Q-o-Q (quarter-on-quarter) and up 50.4% Y-o-Y (year-on-year). Adjusted EBITDA margin for the quarter expanded to 19.5%. In dollar terms, the company's revenue for the quarter was $221.6 million, up 4.2% Q-o-Q and up 37.8% Y-o-Y. Total order book executable over the next 12 months at $701 million. Order intake was $247 million while 13 new clients were added during the quarter. Headcount in Q3 FY22 increased by 1,344 to 22,130 while the attrition was 16.3%.

Bharat Heavy Electricals (BHEL) declined 2.02%. The PSU company posted a standalone net profit of Rs 14.26 crore in Q3 FY22 as compared to a standalone net loss of Rs 230.99 crore registered in Q3 FY21. Standalone net sales grew by 17% to Rs 4,918 crore in Q3 FY22 from Rs 4,203 crore posted in Q3 FY21. BHEL posted a profit before tax of Rs 20.24 crore in Q3 FY22 as against a pre-tax loss of Rs 292.88 crore registered in the same quarter last year. BHEL reported a positive EBITDA of Rs 180 crore in Q3 FY22 as against a negative EBITDA of Rs 94 crore in Q3 FY21. The PSU enterprise said it achieved break-even at profit before tax level for Q3 FY21-22, mainly contributed by focus on provision withdrawal and strict budgetary control on expenses.

RBL Bank fell 2.81%. The firm's reported 6% rise in net profit to Rs 156 crore on a 11% increase in net interest income to Rs 1,010 crore in Q3 FY22 over Q3 FY21. Total income during the quarter rose by 3% Y-o-Y to Rs 2,664 crore. Net interest margin (NIM) for Q3 FY22 improved by 15 bps Y-o-Y to 4.34%. Operating profit, however, declined by 21% to Rs 631 crore in the third quarter from Rs 801 crore reported in the same period last year. Provisions (other than tax) in Q3 FY22 amounted to Rs 424 crore, which is lower by 30% as compared to Rs 606 crore recorded in Q3 FY21. Provision coverage ratio was 78.6% in Q3 FY22 as against 86.4% in Q3 FY21. The net non-performing assets aggregated to Rs 1,076 crore as at 31 December 2021 as against Rs 1,200 crore as at 30 September 2021 and Rs 402 crore as at 31 December 2020.

Bharti Airtel rose 1.39%. The telecom operator on Friday announced that Google will invest $1 billion in the company as part of its India Digitization Fund. Google and Bharti Airtel will partner on a long-term, multi-year agreement to accelerate the growth of India's digital ecosystem. As part of the partnership, Google will commit to equity investment as well as a corpus for potential commercial agreements, to be identified and agreed on mutually agreeable terms over the course of the next five years.

Google will make an equity investment of $700 million for a 1.28% stake in Bharti Airtel at a price of Rs 734 per share. Meanwhile, $300 million will go towards implementing commercial agreements, which will include investments in scaling Airtel's offerings that covers a range of devices to consumers via innovative affordability programs as well as other offerings aimed at accelerating access and digital inclusion across India's digital ecosystem. The deal will be subject to necessary regulatory approvals. Both organizations are committed to working towards building an open technology ecosystem that serves customers and businesses with innovative digital services, and have agreed to jointly explore and invest across a wide spectrum of areas to create digital solutions that uniquely serve India's requirements.

LIC Housing Finance surged 11.48%. The housing finance company's Q3 FY22 PAT stood at Rs 767.33 crore as against Rs 727.04 crore for Q3 FY21, a growth of 6% year-on-year. Q3 FY22 revenue from operations Rs 5,054 crore as against Rs 4907 crore, a growth of 3% Y-o-Y. Outstanding loan portfolio rose 11% to Rs 2,43,412 crore as against Rs 2,20,197 crore. Individual loan portfolio Rs 2,29,321 crore as against Rs 2,04,444 crore, a growth of 12%. The Q3 FY22 total disbursements stood at Rs 17,770 crore as against Rs 16,857 crore, up by 5%. Net Interest Income stood at Rs 1,455 crore, as against Rs 1,281 crore, growth of 14% Y-o-Y. Net Interest Margins were at 2.42% for Q3 FY22 as against 2.36% for Q3 FY21.

Kotak Mahindra Bank gained 0.65%. The private sector bank's net profit increased by 15% to Rs 2131.36 crore in Q3 FY22 from Rs 1,853.54 crore in Q3 FY21. The bank's total income in the third quarter rose by 4% Y-o-Y to Rs 8,260.48 crore. The bank's operating profit before provisions and contingencies for the quarter declined by 7.1% year on year to Rs 2,701 crore. Net interest income (NII) grew by nearly 12% year on year to Rs 4,334 crore in Q3 FY22 from Rs 3,876 crore posted in Q3 FY21. Net interest margin (NIM) for Q3 FY22 improved to 4.62% in Q3 FY22. As of 31 December 2021, COVID related provisions stood at Rs 1,000 crore. In accordance with COVID and MSME resolution frameworks announced by RBI, the bank had standard restructured fund-based outstanding of Rs 1,364 core (0.54% of advances) as of 31 December 2021.

Deepak Fertilisers & Petrochemicals Corporation was locked in an upper circuit of 5% at Rs 542.25. The company posted a 103% jump in consolidated net profit to Rs 180.61 crore in Q3 FY22 from Rs 88.95 crore registered in Q3 FY21. Revenue from operations increased 35.1% year on year to Rs 1,955.7 crore in Q3 FY22 from Rs 1,447.1 crore posted in the same period last year. Consolidated profit before tax stood at Rs 267.09 crore in Q3 FY22, rising 105% from Rs 130 crore posted in Q3 FY21.

Global Markets:

European markets fell across the board while Asian stocks ended mixed on Friday as global stocks closed out a week of extreme volatility following the U.S. Federal Reserve's monetary policy meeting.

Markets have whipsawed throughout the week as investors reacted to the Fed's indication on Wednesday that it could soon raise interest rates for the first time in more than three years, and to rising geopolitical tensions between Russia and the West over Ukraine.

The US economy expanded by 5.7% in 2021. It was the strongest calendar-year growth since a 7.2% surge in 1984 after a previous recession. The economy ended the year by growing at a solid 6.9% annual pace from October through December, the Commerce Department reported Thursday.

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Sensex, Nifty trade range bound; breadth strong. 28January2022

The benchmark indices traded in a range during mid-morning trade. The Nifty sectoral indices rallied across the board. The Nifty continued to hover above 17,300 level.

The barometer index, the S&P BSE Sensex, jumped 660.3 points or 1.15% at 57,937.24. The Nifty 50 index advanced 221.15 points or 1.29% at 17,331.30.

In the broader market, the S&P BSE Mid-Cap index rallied 2.58% while the S&P BSE Small-Cap index rose 2.28%.

The market breadth was strong. On the BSE, 2,451 shares rose and 738 shares fell. A total of 112 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 6,266.75 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,881.32 crore in the Indian equity market on 27 January 2022, provisional data showed.

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.

Primary Market:

The initial public offer (IPO) of Adani Wilmar received bids for over 5.09 crore shares as against 12.25 crore shares on offer, according to stock exchange data at 11:09 IST on Friday, (28 January 2022). The issue was subscribed 0.42 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 Metal index advanced 2.26% to 5,569.10. The index fell 0.72% in the past trading session.

Jindal Steel & Power (JSPL) (up 4.21%), Hindustan Copper (up 3.36%), National Aluminium Co. (NALCO) (up 3.25%), NMDC (up 2.83%) and Steel Authority of India (SAIL) (up 2.70%) were the top gainers in the Metal segment.

Stocks in Spotlight:

Bharti Airtel advanced 2.06%. The telecom operator on Friday announced that Google will invest $1 billion in the company as part of its India Digitization Fund. Google and Bharti Airtel will partner on a long-term, multi-year agreement to accelerate the growth of India's digital ecosystem. As part of the partnership, Google will commit to equity investment as well as a corpus for potential commercial agreements, to be identified and agreed on mutually agreeable terms over the course of the next five years.

Google will make an equity investment of $700 million for a 1.28% stake in Bharti Airtel at a price of Rs 734 per share. Meanwhile, $300 million will go towards implementing commercial agreements, which will include investments in scaling Airtel's offerings that covers a range of devices to consumers via innovative affordability programs as well as other offerings aimed at accelerating access and digital inclusion across India's digital ecosystem. The deal will be subject to necessary regulatory approvals. Both organizations are committed to working towards building an open technology ecosystem that serves customers and businesses with innovative digital services, and have agreed to jointly explore and invest across a wide spectrum of areas to create digital solutions that uniquely serve India's requirements.

Route Mobile soared 7.02%. The company's consolidated net profit rose 22.43% to Rs 46.51 crore on 46.23% increase in net sales to Rs 562.77 crore in Q3 December 2021 over Q3 December 2020. On a consolidated basis, profit before tax jumped 24.77% to Rs 57.92 crore in Q3 December 2021 over Q3 December 2020. Sequentially, Route Mobile's net profit rose 10.29% and net sales rose 29.2% last quarter. EBITDA stood at Rs 77.2 crore, a Y-o-Y growth of 73.5% and sequential growth of 25.2%. EBITDA margin was at 13.7%, 14.2% and 11.6% in Q3 FY22, Q2 FY22 and Q3 FY21, respectively. EBITDA margin declined sequentially owing to increase in sales & marketing cost and hiring of developers related to Rapid initiative.

Birlasoft rallied 2.90%. The company's consolidated net profit rose 10.5% to Rs 114 crore on a 6% increase in revenue to Rs 1,071.9 crore in Q3 FY22 over Q2 FY22. As compared Q3 FY21, the company's net profit and revenue are higher by 18.2% and 21.7%, respectively. EBITDA in the third quarter was Rs 162.8 crore, up 7.2% Q-o-Q and up 12.7% YoY. In dollar terms, the company's revenue for Q3 FY22 was $143.4 million, up 4.7% Q-o-Q and up 20.1% Y-o-Y. Revenue was up 5% Q-o-Q in constant currency. The company had signed deals of total contract value (TCV) $182 million during the quarter.

Global Markets:

Most Asian stocks advanced on Friday, following a volatile session on Wall Street overnight where investors reacted to comments from the Federal Reserve and U.S. GDP data. The Taiwan market is closed for a holiday on Friday.

Wall Street gyrated wildly on Thursday as investors juggled positive economic news with mixed corporate earnings, geopolitical unrest and the prospect of a more hawkish Federal Reserve.

On the macro front, the US economy expanded by 5.7% in 2021. It was the strongest calendar-year growth since a 7.2% surge in 1984 after a previous recession. The economy ended the year by growing at a solid 6.9% annual pace from October through December, the Commerce Department reported Thursday.

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Shares trade with minor losses. 25-January-2022

 

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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