Indices edge higher, breadth strong. 12 Jan 2023

  

The domestic equity benchmarks were trading with minor gains in early trade. The Nifty traded above the 17,900 level. IT, consumer durables and realty stocks advanced while metal, oil & gas and healthcare shares declined.

The barometer index, the S&P BSE Sensex, was up 65.59 points or 0.11% to 60,171.09. The Nifty 50 index rose 21.20 points or 0.12% to 17,916.90.

In the broader market, the S&P BSE Mid-Cap index added 0.07% while the S&P BSE Small-Cap index gained 0.30%.

The market breadth was strong. On the BSE, 1,653 shares rose and 978 shares fell. A total of 127 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,208.15 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,430.62 crore in the Indian equity market on 11 January, provisional data showed.

Investors look ahead to the U.S. consumer price index report due later in the day. The December CPI report will inform investors as to whether the Federal Reserve needs to move forward with more aggressive interest rate hikes to tame inflation, or if the central bank can pull back as inflation is showing signs of steadily cooling off.

On the macro front, the Industrial Production and Manufacturing Production data for November will be released today. Inflation rate for December will also be declared today.

Stocks in Spotlight:

Hindustan Unilever (HUL) shed 0.07%. The FMCG major has completed the acquisition of 51% shareholding of Zywie for a total consideration of Rs 264.28 crore for the first tranche. Consequently, Zywie Ventures Private Limited has become a subsidiary of the company.

Route Mobile rallied 3.74% after the company said that it has signed an exclusive SMS firewall solution and connectivity service agreement with a leading Mobile Network Operator (MNO) in Sri Lanka to provide an end-to-end A2P monetization suite for all international A2P SMS' terminating on its network.

Central Bank of India declined 1.14%. The bank has entered into a strategic Co-Lending Partnership with Mamta Projects Private Limited (MPPL) to offer MSME loans to Borrowers at competitive rates. MPPL is a new-age, tech and risk-analytics focused lending institution.

RailTel Corporation of India gained 2.62% after the public sector enterprise received the work order from Department of Revenue and Disaster Management, Government of Puducherry, valued at Rs 170.11 crore.

Global Markets:

Asian stocks were trading mixed as investors look ahead to the U.S. consumer price index report Thursday.

Inflation in China accelerated 1.8% in December compared with a year ago as food prices rose, data from the National Bureau of Statistics showed. The CPI figure was in line with expectations and higher than the previous month's reading of 1.6%.

US stocks ended up sharply on Wednesday as investors were optimistic ahead of an inflation report that could give the Federal Reserve room to dial back on its aggressive interest rate hikes.

Sensex, Nifty advance in early trade; breadth strong. 23February2022

Equity indices advanced in early trade as buying resumed after recent market slide. All sectoral indices on the NSE traded in the green.

The barometer index, the S&P BSE Sensex, was up 262.72 points or 0.46% to 56,563.65. The Nifty 50 index added 85 points or 0.5% to 17,177.20.

In the broader market, the S&P BSE Mid-Cap index rose 0.92% while the S&P BSE Small-Cap index gained 1.37%.

The market breadth is strong. On the BSE, 2222 shares rose and 559 shares fell. A total of 91 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,245.52 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 4,108.58 crore in the Indian equity market on 22 February, provisional data showed.

Stocks in Spotlight:

Wipro rose 0.43%. The IT major announced that it has formed a joint go-to market partnership with vFunction, a Palo Alto-based startup that has developed a scalable, AI-based technology platform for modernizing Java applications and accelerating migration to the cloud.

Dilip Buildcon added 3.49% after the road construction company announced that it was declared as L-1 bidder for a new HAM project under Raipur-Visakhapatnam in Chhattisgarh. The order is worth Rs 1141 crore.

Global Markets:

Most Asian stocks were trading higher on Wednesday as investors continue monitoring the intensifying crisis surrounding Ukraine. Markets in Japan are closed on Wednesday for a holiday.

Wall Street's main indices fell on Tuesday, with the S&P 500 confirming a correction, as the Ukraine-Russia crisis kept investors on the edge after Russian President Vladimir Putin recognised two breakaway regions in the country and ordered troops to the area.

U.S. President Joe Biden said Tuesday Russia has begun “an invasion” of Ukraine and announced sanctions against Russian banks and the country's sovereign debt, among others. Biden's announcement came following the Russian parliament's approval of President Vladimir Putin's Tuesday request to use military force outside the country's borders.

On the economic data front, the IHS Markit manufacturing PMI rose to 52.5 in February from 50.5. The IHS Markit services PMI jumped to 56 in February from 51.1 the month prior.

Market ends with heavy losses; Nifty ends below 16,900 level. 14February2022

The benchmark indices ended with substantial losses on Monday. All the sectoral indices on the NSE ended in the red. The sentiment was impacted by negative global cues and geopolitical worries. Global stocks tumbled after the White House warned of a possible imminent Russian invasion of Ukraine. Crude oil prices spiked to 7-year highs due to the Ukraine crisis. In the commodities market, Brent crude for April 2022 settlement was hovering near $95 a barrel mark.

As per provisional closing data, the barometer index, the S&P BSE Sensex, fell 1814.55 points or 3.12% at 56,338.37. The Nifty 50 index slipped 556.05 points or 3.20% at 16,818.70.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 25.92% to 23.5225.

In the broader market, the S&P BSE Mid-Cap index skid 3.78% while the S&P BSE Small-Cap index lost 4.31%.

The market breadth was weak. On the BSE, 577 shares rose and 2,973 shares fell. A total of 120 shares were unchanged.

Economy:

India's inflation based on wholesale price index (WPI) stood at 12.96% in January 2022 compared with 2.51% in January 2021.

The high rate of inflation in January, 2022 is primarily due to rise in prices of mineral oils, crude petroleum & natural gas, basic metals, chemicals and chemical products, food articles etc as compared the corresponding month of the previous year, the Ministry of Commerce & Industry said in a statement today.

WPI grew 13.56% in December 2021, while the figure for November 2021 was 14.87%.

Meanwhile, India's Industrial output slumped to a 10-month low of 0.4% in December 2021, dragged down by manufacturing, capital goods and consumer durables output along with an unfavourable base, according to data released on Friday by the National Statistical Office (NSO). The IIP had registered a growth of 1.3% a month ago and 2.2% in December 2020.

LIC IPO:

Life Insurance Corporation of India (LIC) has filed its draft share sale prospectus with the capital markets regulator SEBI, paving the way for India's largest initial public offering (IPO). LIC plans to sell 31.62 crore shares, which is about 5% of its total equity base.

The IPO issue is expected to be the country's largest public issue and will hit the capital market in March 2022. The IPO is 100% offer for sale by Government of India and there will be no fresh issue of shares by LIC.

LIC has 66% market share in New Business Premiums with 283 million policies and 1.35 million agents as of 31st March last year. As of September 2021, its assets under management (AUM) stood at Rs 39.6 lakh crore. The embedded value of LIC as of 30 September 2021, stood at Rs 5,39,686 crore.

Buzzing Index:

The Nifty Oil & Gas index skid 2.62% to 7,410.65. The index lost 2.62% in two trading sessions.

Mangalore Refinery & Petrochemicals (down 7.39%), Adani Total Gas (down 5%), Indian Oil Corporation (IOCL) (down 4.67%), Hindustan Petroleum Corporation (HPCL) (down 3.83%) and Gujarat State Petronet (down 3.66%) were the top losers in the Oil & Gas segment.

Reliance Industries (RIL) fell 1.63%. Jio Platforms (JPL), India's leading digital service provider, and SES, a leading global satellite-based content connectivity solutions provider, today announced the formation of a joint venture - Jio Space Technology - to deliver the next generation scalable and affordable broadband services in India leveraging satellite technology. JPL, a subsidiary of RIL, and SES will own 51% and 49% equity stake in the joint venture. The joint venture will use multi-orbit space networks that is a combination of geostationary (GEO) and medium earth orbit (MEO) satellite constellations capable of delivering multi-gigabit links and capacity to enterprises, mobile backhaul and retail customers across the length and breadth of India and neighbouring regions.

Stocks in Spotlight:

Grasim Industries declined 4.11%. Grasim Industries reported 26% rise in consolidated net profit to Rs 1,746 crore on a 16% increase in revenue to Rs 24,402 crore in Q3 FY22 over Q3 FY21. EBITDA declined by 8% to Rs 4,107 crore in Q3 FY22 from Rs 4,476 crore in Q3 FY21. With regard to Viscose business, Grasim said that the growth in the global demand for textile products in the US and Europe led to a positive demand environment for VSF. The VSF prices averaged higher in Q3FY22 compared to the previous quarter. Though towards the end of December-21, the realization started to trend downwards due to COVID concerns. The strong operational performance of VSF has been induced by strong demand for textile products in India during Q3FY22, despite the curbs imposed by various state governments. The domestic textile value chain has been operating close to its peak capacity, which is led by the demand uptick.

Dr Reddy's Laboratories declined 2.83%. The pharmaceutical major has entered into an exclusive sales and distribution agreement with Novartis India (NIL) for the Voveran range, the calcium range and Methergine in India. Under the arrangement, Dr. Reddy's will have exclusive rights to promote and distribute the well-established Voveran range, the Calcium range and Methergine in India. The company will use its strengths in promotion and distribution to considerably expand its engagement with healthcare professionals with the aim of enabling access to patients in need.

Sequent Scientific spurted 5.89%. The company's consolidated net profit dropped 51.1% to Rs 18.56 crore on a 0.8% increase in net sales to Rs 358.05 crore in Q3 FY22 over Q3 FY21. Consolidated profit before tax (PBT) tanked 52.3% to Rs 23.61 crore in Q3 FY22 from Rs 49.54 crore in Q3 FY21. Active Pharmaceutical Ingredients (API) sales fell 18.8% to Rs 102.60 in Q3 December 2021 as against Rs 126.40 crore in Q3 December 2020. EBITDA (post-ESOP) skid 42.81% to Rs 36.20 crore in Q3 FY22 as against Rs 63.30 crore in Q3 FY21. EBITDA margin stood at 10.1% in Q3 December 2021 from 17.8% in Q3 December 2020. Profit margin stood at 4.8% in Q3 December 2021 from 10% in Q3 December 2020.

Glenmark Pharmaceuticals slipped 2.54%. The pharmaceutical major's consolidated net profit fell 3.4% to Rs 239.75 crore on a 13.9% rise in net sales to Rs 3,141.47 crore in Q3 December 2021 over Q3 December 2020. Consolidated profit before tax (PBT) slipped 1.4% to Rs 343.04 crore in Q3 FY22 from Rs 347.97 crore in Q3 FY21. EBITDA was at Rs 693.20 crore for the quarter ended as on 31 December 2021 as against Rs 530.10 crore in the previous corresponding quarter, registering an increase of 30.8% Y-o-Y (year-on-year). On a consolidated basis, Active Pharmaceutical Ingredients (API) sales fell 5.27% to Rs 303.20 in Q3 December 2021 as against Rs 320.10 crore in Q3 December 2020.

Ipca Laboratories shed 3%. The company's consolidated net profit fell 25.81% to Rs 196.96 crore on 1.48% increase in net sales to Rs 1430.47 crore in Q3 December 2021 over Q3 December 2020. On a consolidated basis, profit before tax (PBT) fell 20.17% to Rs 260.66 crore in Q3 December 2021 over Q3 December 2020. Total expenses rose 7.65% year-on-year to Rs 1182.74 crore in Q3 December 2021. Cost of raw material consumed rose 5.98% to Rs 417.04 crore. EBITDA before forex gains declined 18% to Rs 310.83 crore. EBITDA margin stood at 21.53% in Q3 FY22 as against 6.47% in Q3 FY21. The company reported forex gain of Rs 9.91 crore in Q3 December 2021 as against forex gain of Rs 4.99 crore in Q3 December 2020. Revenue from formulations business rose 4% YoY to Rs 992.77 crore. Indian formulations income rose 23% at Rs 645.27 crore. Revenue from APIs business declined 12% to Rs 309.38 crore.

Bharat Dynamics rallied 3.86%. The company's net profit surged 333.54% to Rs 213.26 crore on 75.13% increase in total revenue from operations sales to Rs 803.90 crore in Q3 December 2021 over Q3 December 2020. Profit before tax (PBT) rose 335.57% to Rs 298.54 crore in Q3 December 2021 over Q3 December 2020. Total expenses rose 26.96% year-on-year to Rs 540.02 crore in Q3 December 2021. Cost of raw material consumed increased 27.46% to Rs 316.59 crore. The supply chain disruptions due to COVID pandemic had adversely impacted the production and sales during the last two quarters of this financial year and the preceding financial year. The easing of restrictions in movement of men and material have resulted in improved production and sales in third quarter of current financial year, the company said.

Mrs. Bector Food Specialities skid 3.42%. The company's consolidated net profit dropped 25% to Rs 16 crore on a 17% rise in revenues to Rs 263 crore in Q3 FY22 over Q3 FY21. On a consolidated basis, EBITDA skid 16% to Rs 33 crore in Q3 FY22 as against Rs 40 crore in Q3 FY21. EBITDA margin stood at 12.6% in Q3 December 2021 from 17.6% in Q3 December 2020. Profit margin stood at 5.9% in Q3 December 2021 from 9.2% in Q3 December 2020.

Global Markets:

Shares in Europe and Asia tumbled on Monday as investors continued to track tensions in Ukraine and remarks from U.S. Federal Reserve officials about the interest rate outlook.

Multiple countries have urged their citizens to leave Ukraine amid fears of an imminent Russian invasion, with U.S. President Joe Biden's national security advisor Jake Sullivan warning on Sunday that the Kremlin has accelerated its extraordinary military buildup along the country's border over the past 10 days.

Western leaders have threatened severe sanctions against Russia in the event of any incursion into Ukraine, as leaders continue to pursue diplomatic solutions. The Kremlin has denied any intention to invade its neighbor, accusing Washington of stoking hysteria.

Shares under pressure; breadth remains weak. 14February2022

The benchmark indices continued to trade near the day's low in mid-morning trade. The Nifty hovered above its crucial 17,000 level. All the sectoral indices on the NSE were in the red.

The sentiment was impacted by negative global cues and geopolitical worries. Asian stocks tumbled after the White House warned of a possible imminent Russian invasion of Ukraine. Crude oil prices spiked to 7-year highs due to the Ukraine crisis. In the commodities market, Brent crude for April 2022 settlement rose $1.06 at $95.50 a barrel.

The barometer index, the S&P BSE Sensex, dropped 1,182.30 points or 2.03% at 56,970.62. The Nifty 50 index lost 359.20 points or 2.07% at 17,015.55.

In the broader market, the S&P BSE Mid-Cap index fell 1.92% while the S&P BSE Small-Cap index shed 2.15%.

The market breadth was weak. On the BSE, 665 shares rose and 2,694 shares fell. A total of 148 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.

Economy:

Industrial output slumped to a 10-month low of 0.4% in December 2021, dragged down by manufacturing, capital goods and consumer durables output along with an unfavourable base, according to data released on Friday by the National Statistical Office (NSO). The IIP had registered a growth of 1.3% a month ago and 2.2% in December 2020.

LIC IPO

Life Insurance Corporation of India (LIC) has filed its draft share sale prospectus with the capital markets regulator SEBI, paving the way for India's largest initial public offering (IPO). LIC plans to sell 31.62 crore shares, which is about 5% of its total equity base. The IPO issue is expected to be the country's largest public issue and will hit the capital market in March 2022. LIC will offload 31.62 crore shares. As of September 2021, its assets under management (AUM) stood at Rs 39.6 lakh crore. The embedded value of LIC as of 30 September 2021, stood at Rs 5,39,686 crore.

Buzzing Index:

The Nifty Metal index declined 2.59% to 5,867.50. The index lost 3.16% in two trading sessions.

JSW Steel (down 5.06%), Hindustan Copper (down 4.72%), APL Apollo Tubes (down 4.26%), Welspun Corp (down 3.10%) and Tata Steel (down 2.99%) were the top losers in the Metal segment.

Maithan Alloys soared 10.37%. The company's consolidated net profit surged 441.23% to Rs 300.11 crore on 107.08% rise in net sales to Rs 923.32 crore in Q3 December 2021 as over Q3 December 2020. On a consolidated basis, profit before tax (PBT) jumped 451.52% to Rs 394.34 crore in Q3 December 2021 over Q3 December 2020. Total expenses rose 40.23% year-on-year to Rs 533.53 crore in Q3 December 2021. Cost of raw material consumed rose 38.01% to Rs 262.12 crore and employee benefit expense surged 188.36% to Rs 28.49 crore.

Stocks in Spotlight:

Sobha rose 0.05%. The firm reported 60% rise in consolidated net profit to Rs 33.2 crore on a 1% decline in total income to Rs 688.8 crore in Q3 FY22 over Q3 FY21. On the segmental front, Real Estate revenue was Rs 446.6 crore (down 4% Y-o-Y), Contractual & Manufacturing revenue was Rs 221.6 crore (up 1% Y-o-Y) and other income was Rs 20.6 crore (up 2.3x Y-o-Y) during the quarter. EBIDTA was down 1% to Rs 135.9 crore in Q3 FY22 from Rs 159.8 crore in Q3 FY21. EBIDTA margin was 20% in Q3 FY22 as against 19% in Q3 FY21.

Sequent Scientific spurted 9.35%. The company's consolidated net profit dropped 51.1% to Rs 18.56 crore on a 0.8% increase in net sales to Rs 358.05 crore in Q3 FY22 over Q3 FY21. Consolidated profit before tax (PBT) tanked 52.3% to Rs 23.61 crore in Q3 FY22 from Rs 49.54 crore in Q3 FY21. Active Pharmaceutical Ingredients (API) sales fell 18.8% to Rs 102.60 in Q3 December 2021 as against Rs 126.40 crore in Q3 December 2020. EBITDA (post-ESOP) skid 42.81% to Rs 36.20 crore in Q3 FY22 as against Rs 63.30 crore in Q3 FY21. EBITDA margin stood at 10.1% in Q3 December 2021 from 17.8% in Q3 December 2020. Profit margin stood at 4.8% in Q3 December 2021 from 10% in Q3 December 2020.

Glenmark Pharmaceuticals slipped 0.07%. The pharmaceutical major's consolidated net profit fell 3.4% to Rs 239.75 crore on a 13.9% rise in net sales to Rs 3,141.47 crore in Q3 December 2021 over Q3 December 2020. Consolidated profit before tax (PBT) slipped 1.4% to Rs 343.04 crore in Q3 FY22 from Rs 347.97 crore in Q3 FY21. EBITDA was at Rs 693.20 crore for the quarter ended as on 31 December 2021 as against Rs 530.10 crore in the previous corresponding quarter, registering an increase of 30.8% Y-o-Y (year-on-year). On a consolidated basis, Active Pharmaceutical Ingredients (API) sales fell 5.27% to Rs 303.20 in Q3 December 2021 as against Rs 320.10 crore in Q3 December 2020.

Global Markets:

Overseas, most Asian stocks are trading lower on Monday on tensions between Russia and Ukraine. Some airlines have reportedly canceled or diverted flights to Ukraine amid heightened fears that an invasion by Russia is imminent despite intensive weekend talks between the Kremlin and the West.

US stocks slid on Friday as increased tensions between Ukraine and Russia led investors to dump risky assets like equities.

In economic data, the University of Michigan's preliminary February gauge of consumer sentiment fell to 61.7, from January's level of 67.2, the lowest reading since October of 2011.