Market rebounds in Budget week, these 80 smallcap stocks gain 10-47.

 

All the sectoral indices ended in the green with Nifty Metal index added 6.6 percent, Nifty Pharma index rose 4.6 percent and Nifty FMCG index added 3.6 percent.

In the Budget week, the market broke its two-week losing streak and ended with over 2 percent gain amid volatility due to mixed data including decent earnings from Indian Inc., continued FII selling, weak PMI data, rate hike by BoE and hawkish ECB’s stance.

In the last week, BSE Sensex added 1,444.59 points (2.52 percent) to end at 58,644.82, while the Nifty50 rose 414.35 points (2.42 percent) to close at 17,516.3 levels.

All the sectoral indices ended in the green with Nifty Metal index added 6.6 percent, Nifty Pharma index rose 4.6 percent and Nifty FMCG index added 3.6 percent.

Broader indices also performed inline with main indices with BSE Midcap and Smallcap indices added over 2 percent each.

80 smallcap stocks gained between 10-47 percent including Bharat Road Network, Jindal Drilling Industries, Ambika Cotton Mills, Elgi Equipments, MAS Financial Services, Nahar Poly Films, DB Realty, Prime Focus, Gujarat Fluorochemicals, IRB Infrastructure Developers and Genus Power Infrastructures.

On the other hand, Apar Industries, IFB Agro Industries, UTI Asset Management Company, Neuland Laboratories, Gujarat Themis Biosyn, Welspun India, IFB Industries, Multi Commodity Exchange of India and Radico Khaitan remained among major losers.

"The Nifty attempted a bounce in the week gone-by, however faced resistance near the 20 DMA & 61.8% retracement of the Jan decline i.e. near 17770. Thereon it has stepped into a consolidation mode," said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.

"On the way down it has broken the key hourly & the daily moving averages as well as broken down from a rising channel on the hourly chart."

"Going ahead, 17400 is a key support to watch out for below which the index can test 17200 in the short term. On the other hand, 17800 will act as the upper end of the short term consolidation range," Ratnaparkhi added.

The BSE Midcap index rose 2.3 percent supported by Jindal Steel & Power, Info Edge India, Canara Bank, TVS Motor Company, Steel Authority of India, PI Industries, Biocon, United Breweries and Torrent Power.

The BSE 500 index added 2.4 percent with Elgi Equipments, MAS Financial Services, Gujarat Fluorochemicals, IRB Infrastructure Developers, Spandana Sphoorty Financial and Deepak Fertilisers and Petrochemicals Corpn adding over 20 percent each.

"The equity market continued to be in the grip of extreme volatility, which has been a continuous feature of the markets during the whole week," said Joseph Thomas, Head of Research, Emkay Wealth Management.

"The concerns over rising interest rates in the US, the likely Fed rate action, the build- up of political and military tensions in Eastern Europe, and the adverse effects of the new variant of the pandemic, are all factors that worked on the minds of the investors. These factors, by their very nature, are likely to influence the markets in the coming weeks too," he added.

Sensex drops 143 pts, Nifty holds 17,500; SBI drops 1.8%

Benchmark indices ended with small losses on Friday. The Nifty closed a tad above the 17,500 mark after hitting the day's low of 17,462.55 in afternoon trade. Metal, IT and FMCG stocks bucked a broader selling pressure.

The barometer index, the S&P BSE Sensex, fell 143.25 points or 0.24% at 58,644.82. The Nifty 50 index lost 43.9 points or 0.25% at 17,516.30.

SBI (down 1.83%), HDFC (down 0.99%), Reliance Industries (down 0.89%) and Kotak Mahindra Bank (down 1.32%) were major drags.

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, 1591 shares rose and 1748 shares fell. A total of 93 shares were unchanged.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.904% compared with its previous close of 6.889%.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 74.70, compared with its close of 74.8850 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement rose 0.37% to Rs 48,093.

In the commodities market, Brent crude for April 2022 settlement rose $1.37 or 1.50% at $92.48 a barrel. This is the first time that the benchmark has topped $90 since October 2014. Crude prices rose as demand for petroleum products surges while supply remains constrained.

Global Markets:

European markets were trading mixed while Asian stocks closed higher 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.

Buzzing Segment:

The Nifty Metal index rose 1.18% to 5,829.50. The index fell 0.31% in the previous session.

Hindustan Copper (up 5.84%), Vedanta (up 3.20%), Ratnamani Metals & Tubes (up 2.86%), Hindalco Industries (up 2.45%), Hindustan Zinc (up 1.76%), Jindal Steel and Power (up 1.63%), National Aluminium Company (up 1.03%), Tata Steel (up 0.67%), JSW Steel (up 0.59%), SAIL (up 0.43%), Welspun Corp (up 0.40%) and Adani Enterprises (up 0.15%) advanced.

Stocks in Spotlight:

Godrej Properties (GPL) slumped 9.75% to Rs 1506.55 after a foreign brokerage reportedly maintained a sell rating on the stock and cut its target price to Rs 1,424 from Rs 1,563.

The brokerage reportedly stated that GPL's deal with DB Realty (DBR) lacks merit due to the direct purchase of a stake in the company. The brokerage is concerned over convoluted deal structure and risk-prone slum rehab projects of GPL. Both the deal with DBR and the foray into slum rehab project was unwarranted, it added.

The board of GPL on 3 February 2022 approved a potential investment in DBR and also the setting up of a special purpose vehicle along with DBR to jointly undertake slum rehabilitation and MHADA redevelopment projects. GPL will subscribe to warrants convertible into equity shares aggregating to approximately 10% of the issued and paid-up capital of DBR for an aggregate amount of approximately Rs 400 crore.

Meanwhile, on 3 February 2022 GPL said its consolidated net profit surged 171.43% to Rs 38.95 crore on 63.51% increase in net revenue to Rs 278.76 crore in Q3 December 2021 as compared with Q3 December 2020. Profit before tax surged 116.44% to Rs 67.94 crore in Q3 FY22 from Rs 31.39 crore in Q3 FY21. EBITDA jumped 42% year-on-year to Rs 115 crore in Q3 FY22. EBITDA margin stood at 28.8% in Q3 FY22 as against 26.6% in Q3 FY21.

ITC fell 0.06% to Rs 234.15 after the company's standalone net profit rose 12.70% to Rs 4,156.20 crore on 32.06% increase in net revenue to Rs 15,689.29 crore in Q3 December 2021 over Q3 December 2020. EBITDA improved by 18.2% to Rs 5,102 crore in Q3 FY22 from Rs 4,315 crore in Q3 FY21. Profit before tax in the third quarter stood at Rs 5,492.03 crore, up by 12.53% from Rs 4,880.43 crore reported in the same period last year.

Aditya Birla Fashion and Retail fell 2.91%. 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 3.34%. 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 3.25%. 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 2.69% 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 0.24%. 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 3.07%. 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 8.58% 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.

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.

Barometers trade with modest losses; Nifty holds 17,500 level. 04February2022

The benchmark indices were trading modest losses in afternoon trade, dragged by bank and auto stocks. Metal, IT and FMCG bucked the weak market trend. The Nifty regained the 17,500 level after hitting the day's low of 17,462.55 in afternoon trade.

The barometer index, the S&P BSE Sensex, dropped 163.42 points or 0.28% at 58,624.60. The Nifty 50 index lost 42.95 points or 0.24% at 17,517.25.

Reliance Industries (RIL) (down 0.93%), ICICI Bank (down 0.95%) and Housing Development Finance Corporation (HDFC) (down 0.74%) were major drags.

Selling was broad based. The S&P BSE Mid-Cap index fell 0.48%. The S&P BSE Small-Cap index shed 0.28%.

Sellers outnumbered buyers. On the BSE, 1,586 shares rose and 1,683 shares fell. A total of 100 shares were unchanged.

Tata Steel (up 1.45%) and Shree Cement (up 0.27%) will announce their quarterly results today.

Gainers & Losers:

Hindalco Industries (up 2.11%), Divi's Laboratories (up 1.88%), Ultratech Cement Co. (up 1.48%), Oil & Natural Gas Corporation (ONGC) (up 1.31%) and JSW Steel (up 0.90%) were major gainers in Nifty 50 index.

Hero MotoCorp (down 2.21%), State Bank of India (SBI) (down 2.20%), Mahindra & Mahindra (M&M) (down 2.16%), Eicher Motors (down 1.93%) and SBI Life Insurance Company (down 1.59%) were major losers in Nifty 50 index.

Stocks in Spotlight:

GAIL (India) rose 1.06%. The state-run 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 December 2021 over Q3 December 2020. 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.

EIH dropped 3.56%. The firm's consolidated net profit stands at Rs 40.80 crore in Q3 December 2021 as compared to a net loss of Rs 55.78 crore in Q3 December 2020. Consolidated net sales surged 103.9% to Rs 365.38 crore in Q3 December 2021 over Rs 179.16 crore in Q3 December 2020. Pre-tax gains stood at Rs 56.10 crore in Q3 FY22 as against pre-tax loss of Rs 67.41 crore in Q3 FY21.

Inox Leisure shed 1.29%. The company commenced the commercial operations of a multiplex cinema theatre taken on a management contract basis, located at INOX Leisure, in Thiruvalam Road, Katpadi, Vellore (Tamil Nadu) with effect from today, i.e. Friday, 4 February 2022. The multiplex cinema theatre has three screens and 483 seats. INOX is now present in 71 cities with 159 multiplexes, 670 screens and a total seating capacity of 1,51,104 seats across India.

Benchmarks hit the day's low; PSU bank fall for 2nd day. 04February2022

The domestic equity barometers edged lower as they hit the day's low in early afternoon trade. The Nifty was trading below the 17,500 level. PSU banks extended their decline for second consecutive session.

The barometer index, the S&P BSE Sensex, was down 276.31 points or 0.47% to 58,511.71. The Nifty 50 index lost 76.20 points or 0.43% to 17,484.

In the broader market, the S&P BSE Mid-Cap index fell 0.45% while the S&P BSE Small-Cap index shed 0.25%.

The market breadth was positive. On the BSE, 1,639 shares rose and 1,589 shares fell. A total of 103 shares were unchanged.

Primary Market:

The initial public offer (IPO) of Vedant Fashions (Manyavar) received bids for 19,64,588 shares as against 2,54,55,388 shares on offer, according to stock exchange data at 11:54 IST on Friday (4 February 2022). The issue was subscribed 8%.

The issue opened for bidding on 4 January 2022 and it will close on 8 February 2022. The price band of the IPO is fixed at Rs 824-866. An investor can bid for a minimum of 17 equity shares and in multiples thereof.

Buzzing Index:

The Nifty PSU Bank index fell 1.15% to 3,015.75, extending its decline for the second day. The index has lost 1.64% in two sessions.

Indian Bank (down 2.80%), Punjab National Bank (down 1.88%), Central Bank of India (down 1.82%), Bank Of Baroda (down 1.73%), Bank of Maharashtra (down 1.67%), Indian Overseas Bank (down 1.62%), Jammu and Kashmir Bank (down 1.44%), Canara Bank (down 1.37%), UCO Bank (down 1.10%) and SBI (down 0.80%) declined.

Stocks in Spotlight:

Adani Power added 1.77% to Rs 109.50 after the company reported a consolidated net profit of Rs 218 crore in Q3 FY22 as against a net loss of Rs 289 crore in Q3 FY21. Total Income for Q3 FY 2022 was Rs 5,594 crore, down by 21% as compared to Rs 7,099 crore in Q3 FY 2020-21.

Sigachi Industries fell 2.45% to Rs 372.75. The company reported a 34.3% jump in consolidated net profit to Rs 9.55 crore in Q3 FY22 from Rs 7.11 crore posted in Q3 FY21. Net sales grew by 35.8% to Rs 65.59 crore in Q3 FY22 from Rs 48.30 crore registered in Q3 FY21.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 0.43% to 19.08. The Nifty 24 February 2022 futures were trading at 17,489.75, at a premium of 5.75 points as compared with the spot at 17,484.

The Nifty option chain for 24 February 2022 expiry showed maximum Call OI of 21.9 lakh contracts at the 18,000 strike price. Maximum Put OI of 42.5 lakh contracts was seen at 16,500 strike price.

Sensex, Nifty trade flat; Godrej Properties down 6%. 04February2022

  

Key equity indices traded sideways with tiny gains in mid morning trade. The Nifty hovered above the 17,550 level. Metal stocks saw buying while realty, media and auto shares declined.

The barometer index, the S&P BSE Sensex, rose 20.98 points or 0.04% at 58,809.27. The Nifty 50 index was up 7.5 points at 17,567.40.

In the broader market, the S&P BSE Mid-Cap index fell 0.04% while the S&P BSE Small-Cap index gained 0.18%.

The market breadth was positive. On the BSE, 1,851 shares rose and 1341 shares fell. A total of 99 shares were unchanged.

Buzzing Index:

The Nifty Realty index slipped 1.41% to 480.05, slipping for second trading session in a row. The realty index lost 3% in two days.

Prestige Estates Projects (down 1.61%), Macrotech Developers (down 1.42%), Brigade Enterprises (down 1.05%) and Phoenix Mills (down 0.68%) were top losers in realty space.

Godrej Properties slumped 6.66% after a foreign brokerage reportedly maintained a sell rating on the stock and cut its target price to Rs 1,424 from Rs 1,563. The brokerage reportedly stated that Godrej Properties (GPL)'s deal with DB Realty (DBR) lacks merit due to the direct purchase of a stake in the company. The brokerage is concerned over convoluted deal structure and risk-prone slum rehab projects of GPL. Both the deal with DBR and the foray into slum rehab project was unwarranted, it added. The board of GPL on 3 February 2022 approved a potential investment in DBR and also the setting up of a special purpose vehicle along with DBR to jointly undertake slum rehabilitation and MHADA redevelopment projects. Following the news, shares of D B Realty hit an upper circuit limit of 5% at Rs 100.90.

Global Markets:

Asian stocks were trading higher on Friday, following heavy losses overnight on Wall Street that saw the tech-heavy Nasdaq Composite plunging nearly 4%. 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 commodities, front-month U.S. oil futures rose 2.3% to settle at $90.27 per barrel, the first time the benchmark had topped $90 since October 2014. Crude prices rose as demand for petroleum products surges while supply remains constrained.

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.

Nifty hovers at 17,550; metal stocks shine. 04February2022

Benchmark indices traded sideways with tiny losses amid bout of volatility in morning trade. The Nifty hovered at 17,550 level. Metal stocks saw buying while realty and auto shares declined.

The barometer index, the S&P BSE Sensex, fell 44.63 points or 0.08% at 58,743.27. The Nifty 50 index was down 6.8 points at 17,553.40.

In the broader market, the S&P BSE Mid-Cap index fell 0.09% while the S&P BSE Small-Cap index gained 0.12%.

The market breadth was positive. On the BSE, 1,782 shares rose and 1300 shares fell. A total of 93 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,597.54 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 370.58 crore in the Indian equity market on 3 February, provisional data showed.

Results Today:

Shree Cement, Bank of India, InterGlobe Aviation, One 97 Communications (Paytm), Siemens, Aditya Birla Fashion, Alkem Laboratories, Astral, Birla Corporation, CMS Info Systems, City Union Bank, Devyani International, Godrej Agrovet, Jubilant Pharmova, Mahindra Lifespace Developers, Minda Corporation and Thermax are some of the companies that will announce their quarterly results today.

Buzzing Index:

The Nifty Metal index added 1.86% to 5,868.95, continuing its winning streak after a day's pause. The metal index declined 0.31% in previous trading session but added 6% in last four trading days.

Vedanta (up 3.59%), Hindalco Industries (up 2.79%), Jindal Steel & Power (up 2.49%) and Steel Authority of India (up 1.82%) were the top gainers. Among the other gainers were JSW Steel (up 1.6%), Coal India (up 0.81%), NMDC (up 0.68%) and Hindustan Zinc (up 0.39%).

Tata Steel (up 2.46%) will announce its financial result for quarter ended December 2021 today.

Earnings Impact:

Lupin fell 2.25%. The drug maker's consolidated net profit jumped 24.5% to Rs 545.52 crore on a 3.6% 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. 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.

Pfizer fell 1.55%. The drug maker's reported 2% rise in net profit to Rs 143.91 crore on a 14% increase in net sales to Rs 675.90 crore in Q3 FY22 over Q3 FY21. Total expenditure rose 21% YoY to Rs 480.73 crore during the quarter. Profit before tax in Q3 FY22 stood at Rs 184.09 crore, up 2% from Rs 180.26 crore recorded in Q3 FY21.