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.

Indices trade sideways with gains. 09February2022

 

Benchmark indices traded sideways with strong gains in afternoon trade. The Nifty traded near the 17,400 mark. Barring the Nifty PSU Bank index, all sectoral indices on the NSE traded in the green.

The barometer index, the S&P BSE Sensex, was up 473.26 points or 0.82% to 58,282.84. The Nifty 50 index added 144.15 points or 0.83% to 17,410.90.

In the broader market, the S&P BSE Mid-Cap index gained 0.89% while the S&P BSE Small-Cap index rose 0.20%.

The market breadth was almost even. On the BSE, 1606 shares rose and 1663 shares fell. A total of 115 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.

Gainers & Losers:

Coal India (up 4.6%), Maruti Suzuki (up 3.15%), IndusInd Bank (up 3.02%), Indian Oil Corp (up 2.68%) and Bajaj Auto (up 2.46%) were top gainers in Nifty 50 index.

ONGC (down 1.65%), ITC (down 0.65%), Tata Steel (down 0.57%) and PowerGrid Corp of India (down 0.43%) were top losers in Nifty 50 index.

Stocks in Spotlight:

Jindal Steel & Power (JSPL) fell 2.14% 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. The decline in profitability was due to lower operating profit and higher tax expense partially offset by lower finance costs. EBITDA in Q3 FY22 was Rs 3,168 crore (down 19% YoY) as impact of higher realisations was more than offset by sharp rise in raw material cost, lower steel and pellet sales. During Q3FY22, JSPL reported steel sales (incl. pig iron) of 1.82 million tonnes, which were lower than production of 1.96 million tonnes due to logistical challenges encountered earlier and subdued domestic demand.

Mahanagar Gas declined 4.44% to Rs 791.35 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. Profit before tax slipped 74.2% to Rs 75.18 crore in Q3 FY22 over Q3 FY21. EBITDA declined 65.8% to Rs 103 crore in Q3 FY22 from Rs 301.7 crore registered in Q3 FY21. EBITDA margin deteriorated to 10.03% in Q3 FY22 from 36.35% posted in the same quarter last year.

Sensex jumps 488 pts, Nifty above 17,420; media stocks climb. 09February2022

The key indices were trading near the day's high in mid-morning trade. The Nifty was trading above the 17,400 mark. Media stocks bounced after a four-day decline.

The barometer index, the S&P BSE Sensex, was up 488.24 points or 0.84% to 58,296.82. The Nifty 50 index added 158.50 points or 0.92% to 17,425.25.

In the broader market, the S&P BSE Mid-Cap index gained 0.91% while the S&P BSE Small-Cap index rose 0.25%.

The market breadth was positive. On the BSE, 1612 shares rose and 1627 shares fell. A total of 105 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 Segment:

The Nifty Media index rose 2.05% to 2,219.30. The index fell 4.90% in the past four sessions.

TV18 Broadcast (up 11.49%), Network18 Media & Investments (up 4.96%), Sun TV (up 4.09%), Hathway Cable & Datacom (up 1.6%), DishTV India (up 0.92%), INOX Leisure (up 0.84%), PVR (up 0.66%), Zee Entertainment Enterprises (up 0.57%) and Nazara Technologies (up 0.55%) advanced.

Stocks in Spotlight:

Mahanagar Gas declined 3.53% 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. Profit before tax slipped 74.2% to Rs 75.18 crore in Q3 FY22 over Q3 FY21.

Latent View Analytics surged 3.46% 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. Consolidated EBITDA grew 19.1% year on year to Rs 32.2 crore in Q3 FY22. EBITDA margins fell to 29.9% in Q3 FY22 from 34.6% in Q3 FY21.

Larsen & Toubro (L&T) rose 1.01%. 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. The order is from the Bangladesh Hi-Tech Park Authority. This project is being funded by the Indian EXIM Bank and is the first IT & office space order that L&T has secured in Bangladesh.

As per L&T's classification, the value of the significant project is 1,000 to 2,500 crore.

Nifty above 17,400; auto shares edge higher. 09February2022

The key indices extended gains as they hit fresh intraday high in mid-morning trade. The Nifty was trading above the 17,400 mark. Auto stocks gained for second day in a row.

The barometer index, the S&P BSE Sensex, was up 434.26 points or 0.75% to 58,242.84. The Nifty 50 index added 136.15 points or 0.79% to 17,402.90.

In the broader market, the S&P BSE Mid-Cap index gained 0.79% while the S&P BSE Small-Cap index rose 0.26%.

The market breadth was positive. On the BSE, 1619 shares rose and 1567 shares fell. A total of 114 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 1.79% to 11,634.45, extending gains for second consecutive session. The index has added 1.99% in two sessions.

Maruti Suzuki (up 3.31%), Ashok Leyland (up 2.69%), Bajaj Auto (up 2.42%), Hero MotoCorp (up 2.11%), Bharat Forge (up 1.95%), Tata Motors (up 1.93%), Mahindra & Mahindra (up 1.15%), TVS Motor Company (up 0.21%) and Eicher Motors (up 0.09%) advanced.

Stocks in Spotlight:

BSE jumped 7.44% to Rs 2,232.15. 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 0.08% to Rs 664.10. 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.

Global Markets:

Asian stocks were trading higher on Wednesday, with stocks in Hong Kong leading gains regionally.

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.

Indices spurt in early trade; strong market breadth. 09February2022

The key equity benchmarks edged higher in early trade amid across the board buying in index pivotals. The Nifty hovered near the 17,400 mark. Positive Asian stocks boosted sentiment.

The barometer index, the S&P BSE Sensex, was up 477.64 points or 0.83% to 58,286.22. The Nifty 50 index added 132.40 points or 0.77% at 17,399.15.

In the broader market, the S&P BSE Mid-Cap index gained 0.79% while the S&P BSE Small-Cap index advanced 0.86%.

The market breadth was strong. On the BSE, 1863 shares rose and 683 shares fell. A total of 71 shares were unchanged.

Meanwhile, the Reserve Bank of India (RBI)'s rate-setting Monetary Policy Committee (MPC) meeting commenced on 8 February 2022 and the outcome would be announced on 10 February 2022. The RBI may hold its repo rate steady but an increase in the reverse repo rate is expected as part of a process to reduce the surplus liquidity poured into the markets earlier during the pandemic, as per reports.

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 February 10 and March 7 in seven phases. The counting of votes and the result will be declared on March 10.

Stocks in Spotlight:

Bharti Airtel shed 0.30% to Rs 706.70. 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 slipped 0.51% to Rs 367.70. 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 2.06% to Rs 855.35. 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) fell 3.79% to Rs 406.35. 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:

Asian stocks are trading higher on Wednesday, with stocks in Hong Kong leading gains regionally.

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.

Nifty slips below 17,150 mark; realty shares fall for 4th day. 08February2022

 

The key equity indices tumbled further and hit fresh intraday low in mid-morning trade. The Nifty was trading below the 17,150 mark. Realty stocks declined for the fourth consecutive session.

The barometer index, the S&P BSE Sensex, was down 335.53 points or 0.58% to 57,285.66. The Nifty 50 index lost 96.55 points or 0.56% to 17,117.05.

In the broader market, the S&P BSE Mid-Cap index slipped 0.90% while the S&P BSE Small-Cap index declined 1.69%.

The market breadth was weak. On the BSE, 734 shares rose and 2,433 shares fell. A total of 106 shares were unchanged.

Primary Market:

The initial public offer (IPO) of Vedant Fashions (Manyavar) received bids for 54,88,926 shares as against 2,54,55,388 shares on offer, according to stock exchange data at 11:12 IST on Tuesday (8 February 2022). The issue was subscribed 22%.

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 Realty fell 1.80% to 459.75, extending decline for fourth day in a row. The index has declined 7.21% in four sessions.

Indiabulls Real Estate (down 4.99%), Macrotech Developers (down 3.35%), DLF (down 2.11%), Godrej Properties (down 1.83%), Sunteck Realty (down 1.72%) and Oberoi Realty (down 1.18%) declined.

Stocks in Spotlight:

Chemcon Speciality Chemicals declined 6.09% to Rs 340. The chemical maker posted a 18.1% fall in net profit to Rs 13.49 crore in Q3 FY22 from Rs 16.48 crore registered in Q3 FY21. Net sales fell 23.6% YoY to Rs 49.54 crore in Q3 FY22.

Jindal Stainless fell 2.87% to Rs 211.30. The company's consolidated net profit surged 159.6% to Rs 441.78 crore on a 58.2% surge in net sales to Rs 5,670.02 crore in Q3 December 2021 over Q3 December 2020.

The Phoenix Mills shed 0.45% to Rs 968.10. The company reported a 45% jump in consolidated net profit to Rs 98.9 crore on a 29.5% rise in net sales to Rs 425 crore in Q3 FY22 over Q3 FY21.

Global Markets:

Most Asian stocks were trading higher on Tuesday. Investors in the region continue to assess the inflation and central bank policy outlook.

Wall Street ended lower on Monday as traders weighed the latest quarterly earnings reports and awaited key U.S. inflation data. Corporate earnings were again a source of volatility for stocks on Monday.

Big inflation news is on the horizon, with the Labor Department on Thursday set to release consumer price index data for January.

Jindal Stainless Q3 PAT grows 160% YoY to Rs 442 cr. 08February2022

Consolidated profit before tax (PBT) soared 139.1% to Rs 654.07 crore in Q3 FY22 from Rs 273.60 crore in Q3 FY21. EBITDA during the quarter stood at Rs 797 crore. Domestic share of sales volume stood at 74% in Q3 FY22 as against 85% in Q3 FY21 and 77% in Q2 FY22. Exports share of sales volumes was at 26% in Q3 FY22 as compared to 15% in Q3 FY21 and 23% in Q2 FY21.

Jindal Stainless (JSL) continued to register profitable growth by harnessing export markets, while maintaining total sales level on a Y-o-Y basis. A sharp product mix, attuned to market demands, helped the company remain agile and responsive to customer requirement.

The company maintained its stronghold in the lifts and escalators segment. Due to a bullish demand from the industrial and construction sectors, JSL worked on various government infrastructure projects where stainless steel is a preferred alternative on a lifecycle costing approach. As part of its drive to increase its proportion of value-added products, JSL upped sales of its special grades (such as Duplex, Super Austenitic) and Chequered Plates.

The company supplied customized and value-added grades for Desalination Plant at Dahej, Assam Bio refinery, HURL Fertilizer plants, and fleet mode nuclear projects, among others. However, shortage of semiconductor in the passenger vehicle segment and moderate demand from two-wheeler segment led to slight dip in the automotive sector during the quarter. The pipe and tube segment also witnessed a minor decline owing to a lower than expected market demand and higher raw material prices.

In order to counter imports of subsidized stainless steel (SS) from China and Indonesia, which have doubled on a year-to-date basis, JSL strategically increased its exports share from 15% in Q3 FY21 to 26% during Q3 FY22.

On a sequential basis, consolidated revenue and PAT in Q3 FY22 grew 13% Q-o-Q and 7% Q-o-Q respectively. Consolidated SS Sales Volume fell 4% to 2,47,607 MT in Q3 FY22 as compared to 2,56,664 MT in Q2 FY22. EBITDA grew 7% to Rs 797 crore in Q3 FY22 from Rs 748 crore in Q2 FY22.

Standalone revenue and PAT in Q3 FY22 grew 11% Q-o-Q and 3% Q-o-Q respectively, in line with global commodity price increase. With 36% of domestic market captured by imports, JSL managed to maintain its profitability with better product mix and export planning. The interest cost stood at Rs 89 crore in Q3 FY22 over Rs 79 crore in Q2 FY22 due to higher working capital utilization during the Q3 FY22.

Commenting on the Q3 performance, Abhyuday Jindal, the managing director (MD) of JSL, said, An intelligent product mix and the agility to step up exports helped JSL in maintaining profitability despite stiff and unfair competition from Chinese and Indonesian imports. We are always on the lookout for new avenues for stainless steel applications that can keep us ahead of competition and boost our share in domestic and export markets. Sharp focus on financial prudence and strong operating fundamentals have served us well, and we will continue to strategize business as per market dynamics.

The board has decided to raise funds, along with any other co-issuer, by way of issue of debt securities including secured or unsecured non-convertible redeemable debentures or bonds or commercial paper or notes (listed/unlisted) or any combination thereof, through private placement basis or otherwise, in one or more tranches or any other method in the domestic/ international market up to an aggregate principal amount of Rs 3,500 crore or its equivalent in any freely convertible foreign currency.

Shares of Jindal Stainless (JSL) declined 3.59% to Rs 209.75 on BSE. JSL is one of the largest manufacturers of SS in India with steel melting capacity of 1.1 MTPA (metric tonnes per annum).

Phoenix Mills gains after Q3 PAT jumps 45% YoY. 

Profit before tax stood sharply higher at Rs 137.8 crore in Q3 FY22 as against Rs 35.17 crore in Q3 FY21. EBITDA grew 45% to Rs 230.5 crore in Q3 FY22 from Rs 158.8 crore posted in Q3 FY21. EBITDA margin stood at 56% in Q3 FY22 as compared to 47% in Q3 FY21.

The company's net debt at group level stood at 1810.2 crore as of 31 December 2021. Average cost of debt declined to 7.61% in December 2021 from 7.84% in September 2021, down by 23 bps quarter on quarter.

The Phoenix Mills group is the largest player in the Indian retail mall segment, and has a portfolio of of eight retail mall assets across major cities in the country. It also has an office portfolio of in Mumbai and Pune, two operational hotels (one in Mumbai and another in Agra), and residential real estate in Bengaluru and Chennai.