Nifty trades near 17,400; NSE VIX drops over 2%. 16February2022

   

The key equity indices bounced back from the day's low and were trading with minor gains in early afternoon trade. The Nifty hovered near the 17,400 mark. Pharma shares rose for the second day.

The barometer index, the S&P BSE Sensex, was up 20.17 points or 0.13% to 58,219.99. The Nifty 50 index added 40.15 points or 0.23% at 17,392.60.

In the broader market, the S&P BSE Mid-Cap index rose 0.55% while the S&P BSE Small-Cap index gained 0.91%.

The market breadth was strong. On the BSE, 2,237 shares rose and 1,009 shares fell. A total of 110 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.14% to 20.17. The Nifty 24 February 2022 futures were trading at 17,380.60, at a discount of 12 points as compared with the spot at 17,392.60.

The Nifty option chain for 24 February 2022 expiry showed maximum Call OI of 27.9 lakh contracts at the 17,500 strike price. Maximum Put OI of 38.9 lakh contracts was seen at 17,000 strike price.

Buzzing Index:

The Nifty Pharma index rose 0.51% to 13,425.25, extending gains for second day. The index has added 1.31% in two sessions.

Strides Pharma (up 4.22%), Abbott India (up 4%), Divi's Labs (up 2.41%), Lupin (up 1.60%), Dr. Reddy's Labs (up 1.18%), Pfizer (up 0.67%) advanced while Sun Pharma (down 0.75%), Alembic Pharmaceuticals (down 0.57%), Gland Pharma (down 0.43%) and Natco Pharma (down 0.37%) declined.

Stock in Spotlight:

Wheels India rose 1.94% to Rs 654. The company said that the credit ratings agency ICRA had downgraded the company's long-term and short-term ratings while reaffirming the medium-term rating. ICRA said that the downgrade in the long-term and short-term ratings considers substantial increase in Wheels India's debt levels resulting in moderation in the company's debt metrics and the expectation that it would remain relatively high over the medium term.

Info Edge (India) fell 1.18% to Rs 4623.50. The company said that it has entered into an agreement to acquire 25% stake in Juno Learning (Juno) for an amount of about Rs 11.25 crore. Juno is engaged in the business, which is an interactive, online school that teaches sales techniques, processes, and tools to students and entry-level professionals in an experiential manner, to enhance employability..

Sensex Spurts 805 pts, Nifty Above 17,090; Breadth Positive. 15February2022

  

The key equity benchmarks were trading near the day's high in afternoon trade. The Nifty was was trading above the 17,090 mark after hitting the day's low of 16,839.25 in morning trade. All the sectoral indices on the NSE were trading in the green. Auto, media and FMCG shares were in demand.

The barometer index, the S&P BSE Sensex, was up 804.45 points or 1.43% to 57,210.29. The Nifty 50 index added 247.40 points or 1.47% to 17,090.20.

Value buying emerged after the Nifty slumped 4.33% in the past two sessions. The sentiment was impacted by weak global cues on account on Russia-Ukraine tensions. Firm crude oil prices and continuous selling of domestic equities by foreign portfolio investors also put pressure on shares.

In the broader market, the S&P BSE Mid-Cap index rose 0.68% while the S&P BSE Small-Cap index gained 0.13%.

The market breadth was negative. On the BSE, 1483 shares rose and 1801 shares fell. A total of 107 shares were unchanged.

Eicher Motors (up 5.36%), Hero Motocorp (up 4.25%), Shree Cement (up 4.12%), Nestlé India (up 3.20%) and Hindustan Unilever (up 2.96%) were top Nifty gainers.

Cipla (down 2.83%), Tata Steel (down 1.97%), ONGC (down 0.75%) and Power Grid Corporation of India (down 0.67%) were major Nifty losers.

Economy:

India's retail inflation jumped to 6.01% in January 2022 compared to 5.56% in December 2021. As per the Ministry of Statistics and Programme Implementation data, rate based on the Consumer Price Index (CPI) Inflation in food and beverages rose to 5.58% compared to 4.5% in December. However, on a month-on-month basis, retail inflation fell by 0.3%.

The inflation print for January 2022 is along expected lines, with Reserve Bank of India (RBI) Governor Shaktikanta Das saying earlier that it was likely to come in around the 6% mark.

Shares end near the day ahead of RBI meet outcome. 09February2022

 

The benchmarks indices ended with near the day's, with strong gains on Wednesday. The Nifty closed above the 17,450 mark. Shares across sectors advanced, with autos, metal and IT gaining the most.

As per provisional closing data, the barometer index, the S&P BSE Sensex, advanced 657.39 points or 1.14% to 58,465.97. The Nifty 50 index added 197.05 points or 1.14% to 17,463.80.

In the broader market, the S&P BSE Mid-Cap index gained 1.23% while the S&P BSE Small-Cap index rose 0.57%.

The market breadth was almost even. On the BSE, 1749 shares rose and 1585 shares fell. A total of 111 shares were unchanged.

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) started its two-day meet on Tuesday, 8 February 2022. The RBI's MPC will announce its interest rate decision on 10 February 2022.

Buzzing Index:

The Nifty Auto index rose 2.28% to 11,690.80, extending gains for second consecutive session. The index has added 2.49% in two sessions.

Maruti Suzuki (up 4.13%), Bharat Forge (up 3.10%), Ashok Leyland (up 3.06%), Bajaj Auto (up 2.79%), Hero MotoCorp (up 2.14%), Eicher Motors (up 1.77%), Tata Motors (up 1.71%), Mahindra & Mahindra (up 1.19%) and TVS Motor Company (up 1.17%) advanced.

Stocks in Spotlight:

BASF India slumped 6.29% to Rs 2950.95 after the company reported a 4.1% fall in net profit to Rs 110.37 crore in Q3 FY22 from Rs 115.1 crore posted in Q3 FY21.

Mahanagar Gas fell 3.51% to Rs 799 after the company reported a 74% fall in net profit to Rs 56.79 crore in Q3 FY22 from Rs 217.2 crore posted in Q3 FY21. Net sales for Q3 FY22 grew by 54.2% to Rs 1,027.8 crore from Rs 666.4 crore registered in Q3 FY21.

Jindal Steel & Power (JSPL) fell 1.53% to Rs 415.90 after the company's standalone net profit from continuing operations declined 23% to Rs 1,714 crore despite 37% increase in net revenue to Rs 11,955 crore in Q3 FY22 over Q3 FY21.

Latent View Analytics jumped 4.03% to Rs 532.10 after the company's consolidated net profit surged 122.4% to Rs 49.93 crore on a 37.7% increase in net sales to Rs 107.75 crore in Q3 FY22 over Q3 FY21.

Larsen & Toubro (L&T) rose 0.62% to Rs 1886.05. The construction arm of L&T has secured an order to construct Hi-Tech IT Parks at 8 locations (2 packages at 4 locations each) across Bangladesh. As per L&T's classification, the value of the significant project is 1,000 to 2,500 crore.

BSE jumped 7.29% to Rs 2,229.05. On a consolidated basis, BSE's net profit surged 89.34% to Rs 61.29 crore on 35.13% increase in net sales to Rs 213.08 crore in Q3 December 2021 over Q3 December 2020.

Gujarat Gas shed 0.52% to Rs 661.15. The company posted a 68.8% fall in standalone net profit to Rs 121.93 crore in Q3 FY22 from Rs 390.78 crore registered in Q3 FY21. Net sales jumped 81.6% to Rs 5,144.43 crore in Q3 FY22 from Rs 2,833 crore reported in Q3 FY21.

Indraprastha Gas fell 1.09% to Rs 387.35 after the company posted an 8% fall in standalone net profit to Rs 308.52 crore in Q3 FY22 from Rs 334.87 crore registered in Q3 FY21. Net sales jumped 53.2% to Rs 2,215.46 crore in Q3 FY22 from Rs 1,466 crore reported in Q3 FY21. EBITDA margin fell to 21% in Q3 FY22 from 35% in Q3 FY21.

NMDC rose 1.57% to Rs 155.70. The company reported a 2.8% fall in standalone net profit to Rs 2,050 crore in Q3 FY22 from Rs 2,108.9 crore posted in Q3 FY21. Net sales grew by nearly 35% to Rs 5,873.77 crore in Q3 FY22 from Rs 4,355 crore posted in Q3 FY21.

Bata India added 0.66% to Rs 1895.40. The footwear maker reported consolidated net profit of Rs 72.32 crore in Q3FY22 against Rs 26.41 crore in Q3FY21. Total income surged to Rs 854.8 crore from Rs 628.8 crore YoY.

Procter & Gamble Hygiene & Health Care gained 0.85% to Rs 15351.60. The company reported 15% fall in net profit to Rs 212 crore in Q3 FY22 from Rs 251 crore in Q3 FY21. The company delivered sales of Rs 1,093 crore, up 7% vs year ago behind the strength of its trusted product portfolio and strong retail execution.

Bosch advanced 1.03% to Rs 16230.50. The company reported 27.5% rise in consolidated net profit to Rs 235 crore on a 2.6% increase in revenue from operations to Rs 3,109 crore in Q3 FY22 over Q3 FY21.

Bharti Airtel rose 1.76% to Rs 721.30. The telecom major reported a 2.8% decline in consolidated net profit to Rs 830 crore in Q3 FY22 from Rs 853.6 crore posted in Q3 FY21. Total revenues stood at Rs 29,867 crore, up 18.3% YoY on a comparable basis.

Vedanta added 2.03% to Rs 377.10. The board of directors of the company concluded that the current structure is optimal and is commensurate with the current scale and its diversified lines of businesses. Therefore, the company will not undertake any corporate restructure including demerger/spin off etc. and will continue with its existing structure.

IRCTC advanced 1.47% to Rs 850.40. The company reported net profit at Rs 208.8 crore in Q3FY22 as against Rs 78.08 crore in Q3FY21. Total revenue jumped to Rs 556.51 crore from Rs 245.23 crore YoY.

Jindal Steel & Power (JSPL) slipped 1.05% to Rs 417.90. The company posted consolidated net profit of Rs 1622 crore in Q3FY22 against Rs 2440 crore in Q3FY21. Gross revenue rose to Rs 14152 crore from Rs 10449 crore YoY.

Global Markets:

Shares in Europe and Asia advanced on Wednesday.

U.S. stocks rose on Tuesday as investors digested another batch of corporate earnings and awaited key inflation data later this week.

The US trade deficit surged to a record high in 2021 as imports increased sharply amid the restocking of shelves by businesses to meet robust domestic demand. The Commerce Department said on Tuesday that the trade deficit increased 27% last year to an all-time high of $859.1 billion. The deficit was at $676.7 billion in 2020.

Meanwhile, investors await the release of U.S. consumer inflation data expected Thursday for clues on how the Federal Reserve could react to the rising price pressures.