Equity indices extended their winning run to third sessiona and ended at the day's high on Wednesday. The Nifty managed to close tad below the 17,800 mark. All the sectoral indices on the NSE ended in the green with healthcare, realty, banking and financial stocks rising the most.
As per the provisional closing data, the barometer index, the S&P BSE Sensex, added 695.72 points or 1.18% to 59,558.75. The Nifty 50 index advanced 203.15 points or 1.16% to 17,780.40.
The broader market ended with major gains as well. The S&P BSE Mid-Cap index added 1.08% while the S&P BSE Small-Cap index rallied 1.54%.
The market breadth was strong. On the BSE, 2301 shares rose and 1058 shares fell. A total of 98 shares were unchanged.
Investors cheered the union budget 2022-23 with its higher capital expenditure and thrust on infra. The government's focus on boosting manufacturing as well as an underlined emphasis on areas such as startups, modern mobility and clean energy, boosted investors sentiment.
Union Budget Views:
MD & CEO, Bombay Stock Exchange Ashish kumar Chauhan while giving his views on Union Budget 2022-23 said, it is a very balanced budget. He said it continues the incremental growth-oriented approach of the last budget. Chauhan said that in this budget the Finance Minister has provided a springboard for an investment cycle with the highest ever share of capex, focus on the development of national manufacturing capabilities and clean energy, tax rationalization with no new taxes while maintaining its continuous growth focus on “Aatmanirbhar Bharat. He added that it boosts spending towards policies that are growth-oriented, create jobs, boost manufacturing, help agri-economy and infrastructure creation. He summarised that a mix of short-term boost and long-term structural emphasis has been the hallmark of this Budget.
Bandhan Bank MD & CEO, Chandra Shekhar Ghosh said that the Union Budget for 2022-23 seeks to support the recent economic growth momentum India has seen and helps it sustain over the long term. He said that the substantial rise in planned capital expenditure for the creation of infrastructure, focus on affordable housing, welfare & development of MSMEs, and the farm economy will prepare India for the next phase of growth. He added that this can lead to creation of millions of new jobs, helping India leverage its young demographic dividend. He also said that the new business opportunities and enterprises that will come up due to these projects will also benefit the banking sector.
Earnings Impact:
Jubilant Foodworks declined 4%. The QSR chain operator reported 9.8% growth in net profit to Rs 1,373 crore as revenue from operations rose by 12.9% to Rs 11,935 crore in Q3 FY22 over Q3 FY21. EBITDA in Q3 FY22 was Rs 3,174 crore, up by 13.9% from Rs 2,786 crore in Q3 FY21. EBITDA margin was 26.6% in Q3 FY22 as against 26.4% in Q3 FY21. Domino's Like-for-Like (LFL) sales growth stood at 7.5% in Q3 FY22 as compared to a negative 0.2% in Q3 FY21. LFL sales growth refers to the year-over-year growth in sales for non-split restaurants opened before previous financial year. Meanwhile, the board of directors has approved and recommended for approval of shareholders, the sub-division of equity shares from face value of Rs 10 each to face value of Rs 2 each.
HDFC rose 2% after the company's standalone net profit rose 11.44% to Rs 3,260.69 crore. The housing finance company's total income stood at Rs 11792.21 crore in Q3 FY22. Profit before tax rose 7.88% to Rs 4048.18 crore in Q3 FY22 over Q3 FY21. The net interest income (NII) for the quarter ended 31 December 2021 stood at Rs 4,284 crore compared to Rs 4,005 crore in the previous year. The reported Net Interest Margin (NIM) was 3.6%. As at 31 December 2021, the assets under management (AUM) stood at Rs 6,18,917 crore as against Rs 5,52,167 crore in the previous year.
Procter & Gamble Hygiene & Health Care fell 0.61%. The FMCG company reported a 15.4% fall in net profit to Rs 212.06 crore in quarter ended December 2021 from Rs 250.62 crore posted in quarter ended December 2020. Net sales increased by 7.3% to Rs 1,092.98 crore in quarter ended December 2021 from Rs 1,018.44 crore recorded in the same period last year. Profit before tax fell nearly 15% to Rs 287.50 crore in quarter ended December 2021 versus quarter ended December 2020.
Laxmi Organic Industries hit an upper circuit limit of 5% at Rs 477.75 after the company's consolidated net profit surged 81.60% to Rs 82.10 crore on 97.44% increase in net sales to Rs 859.88 crore in Q3 FY22 over Q3 FY21. Profit before tax (PBT) jumped 87.66% year-on-year to Rs 100.36 crore in Q3 FY22. Total expenses jumped 98.34% to Rs 761.53 crore with cost of materials consumed soaring 176.74% to Rs 553.72 crore during the period under review.
Alkyl Amines Chemicals fell 3.73% after the company's net profit declined 45.70% to Rs 45.88 crore on 16.30% increase in revenue from operations to Rs 376.66 crore in Q3 FY22 over Q3 FY21. Profit before tax fell 46.24% to Rs 62.26 crore in Q3 FY22 over Q3 FY21. EBITDA fell 46% year-on-year to Rs 66.6 crore in Q3 FY22. EBITDA margin stood at 17.7% in Q3 FY22, lower than 21.6% in Q2 FY22 and 38% in Q3 FY21.
VIP Industries surged 11% after the company posted a consolidated net profit of Rs 33.47 crore in Q3 FY22 as compared to a net loss of Rs 7 crore reported in Q3 FY21. Net sales jumped 70.9% to Rs 397.34 crore in Q3 FY22 from Rs 232.53 crore posted in Q3 FY21. The company posted a pre tax profit of Rs 43.71 crore in Q3 FY22 as against a pre tax loss of Rs 8 crore registered in Q3 FY21.
Global Markets:
European markets traded higher while most Asian stocks closed on a positive note on Wednesday. Markets in mainland China, Hong Kong, Singapore and South Korea are closed on Wednesday for the Lunar New Year holidays.
US stocks rose for a third day Tuesday, as Wall Street tried to recover its footing after a wild January. Bank stocks led the market higher.
On the macro front, the Institute for Supply Management said its manufacturing index came in at 57.6 for January, down 1.2 points from December. The data also showed that prices jumped by 7.9 points to 76.1 month over month.
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