Sensex, Nifty at the high point of the day. 15February2022

 

The key equity barometers traded with strong gains in early afternoon trade. The Nifty was was trading above the 17,050 mark. Auto stocks witnessed some bit of bargain buying after a three-day fall.

The barometer index, the S&P BSE Sensex, was up 790.17 points or 1.40% to 57,196.01. The Nifty 50 index added 223.35 points or 1.33% to 17,066.15.

In the broader market, the S&P BSE Mid-Cap index rose 0.91% while the S&P BSE Small-Cap index gained 0.26%.

The market breadth was weak. On the BSE, 1445 shares rose and 1799 shares fell. A total of 103 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slumped 4.98% to 21.83. The Nifty 24 February 2022 futures were trading at 17,044.60, at a discount of 21.55 points as compared with the spot at 17,066.15.

The Nifty option chain for 24 February 2022 expiry showed maximum Call OI of 77.9 lakh contracts at the 17,500 strike price. Maximum Put OI of 54 lakh contracts was seen at 17,000 strike price.

Buzzing Index:

The Nifty Auto index rose 2.06% to 11,335.45. The index had declined 4.91% in the past three sessions.

Hero MotoCorp (up 4.26%), Eicher Motors (up 4.13%), Bajaj Auto (up 3.06%), Mahindra & Mahindra (up 2.25%), Tata Motors (up 2.03%), Ashok Leyland (up 2.02%), TVS Motor Company (up 1.98%), Maruti Suzuki (up 1.31%) and Bharat Forge (up 0.55%) advanced.

Stocks in Spotlight:

Graphite India rose 2.07% to Rs 491.25 after the company's consolidated net profit surged 473.91% to Rs 132 crore on 76.35% increase in net sales to Rs 880 crore in Q3 December 2021 over Q3 December 2020.

Adani Enterprises (AEL) added 0.23% to Rs 1667.25. AEL reported a consolidated net loss of Rs 12 crore in Q3 FY22 as against a net profit of Rs 297 crore in Q3 FY21.Total income increased by 61% YoY during the quarter to Rs 18,963 crore due to improved realization on the back of higher index prices in IRM segment.

Indices pare gains; Nifty hovers above 16,900. 15February2022

  

After a strong start, the benchmark indices trimmed gains in morning trade. IT, FMCG and auto stocks were trading firm. The Nifty was hovering above the 16,900 level.

The barometer index, the S&P BSE Sensex, rose 236.37 points or 0.42% at 56,642.21. The Nifty 50 index gained 63.60 points or 0.38% at 16,906.40.

In the broader market, the S&P BSE Mid-Cap index fell 0.22% while the S&P BSE Small-Cap index lost 0.92%.

The market breadth was weak. On the BSE, 1,000 shares rose and 2,112 shares fell. A total of 102 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,253.70 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,170.29 crore in the Indian equity market on 14 February 2022, provisional data showed.

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.

Buzzing Index:

The Nifty Metal index slipped 1.54% to 5,630.85. The index lost 7.07% in three trading sessions.

NMDC (down 4.19%), Jindal Steel & Power (JSPL) (down 2.70%), Hindustan Copper (down 2.26%), APL Apollo Tubes (down 2.21%) and Tata Steel (down 1.94%) were the top losers in the Metal segment.

Vedanta lost 0.50%. The company announced signing a memorandum of understanding (MoU) with Foxconn to form a joint venture company that will manufacture semiconductors in India. Taiwan-based Hon Hai Technology Group (Foxconn) is the world's largest electronics manufacturing company. According to the MOU signed between the two companies, Vedanta will hold the majority of the equity in the JV, while Foxconn will be the minority shareholder. Vedanta chairman Anil Agarwal will be the chairman of the joint venture company.

Stocks in Spotlight:

Coal India shed 0.53%. The state-run coal major's consolidated net profit jumped 47.74% to Rs 4,558.39 crore on 19.73% increase in sales to Rs 25,990.97 crore in Q3 December 2021 over Q3 December 2020. Profit before tax jumped 32.90% to Rs 6,302.20 crore in Q3 December 2021 as against Rs 4,742.20 crore in Q3 December 2020. Total expenses rose 16.27% year-on-year (Y-o-Y) to Rs 22,780.95 crore in Q3 December 2021. Cost of raw material consumed increased 25.55% to Rs 2389.29 crore. Consolidated coal production (raw coal) rose 4.49% to 163.82 million tonnes (MT) in Q3 FY22 as against 156.78 million tonnes (MT) in Q3 FY21. Offtake (raw coal) jumped 12.50% to 173.77 MT in Q3 FY22 as against 154.46 MT in Q3 FY21.

Eicher Motors rose 1.22%. The firm recorded 14% fall in consolidated net profit to Rs 456 crore despite a 1.9% rise in total revenues to Rs 2,881 crore in Q3 FY22 over Q3 FY21. EBITDA was at Rs 582 crore as compared to Rs 672 crore in the same quarter of the previous financial year, down 13% Y-o-Y. Royal Enfield sold 1,67,664 motorcycles during the quarter, a decline of 15.6% from 1,98,557 motorcycles sold over the same period in FY2020-21.

Market opens on firm note; breadth strong. 15February2022

The domestic indices opened on a firm note on buying demand in index pivotals after yesterday's slide. Asian stocks are trading mixed.

The barometer index, the S&P BSE Sensex, jumped 509.61 points or 0.90% at 56,915.45. The Nifty 50 index surged 142.30 points or 0.84% at 16,985.10.

In the broader market, the S&P BSE Mid-Cap index rose 0.94% while the S&P BSE Small-Cap index gained 1.11%.

The market breadth was strong. On the BSE, 1,729 shares rose and 760 shares fell. A total of 66 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,253.70 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,170.29 crore in the Indian equity market on 14 February 2022, provisional data showed.

Economy:

India's headline inflation rate based on the Consumer Price Index (CPI) jumped to 6.01% in January 2022, as per data released by the National Statistical Office on 14 February 2022. CPI inflation was 5.66% in December 2021.

Stocks in Spotlight:

Reliance Industries (RIL) rose 0.50%. Glance, a leading AI-driven lock-screen platform, announced today that it has agreed to raise $200 million from Jio Platforms (Jio) in its Series D round of funding. Jio is a subsidiary of RIL.

Cipla dropped 3.08%. The promoters of the drugmaker, Yusuf Khwaja Hamied and Mustafa Khwaja Hamied, will sell up to 2.5% of their stake in the company through a block trade that could fetch as much as Rs 1,849 crore, or $244.6 million, as per reports.

Coal India gained 1.30%. The company has reported a consolidated net profit of Rs 4,556.54 crore in Q3 FY22 as compared to net profit of Rs 3,084.10 crore in Q3 FY21. Total income rose to Rs 29,086.35 crore from 24,334.62 crore.

Eicher Motors declined 2.53%. The company recorded total revenues stood at Rs 2,881 crore, up by 1.9% as compared to Rs 2,828 crore in the corresponding quarter of FY 2020-21. The profit after tax was recorded at Rs 456 crore as against a profit of Rs 533 crore during the same period last year.

Vedanta added 1.99%. The company has reportedly partnered Taiwan's Foxconn, the world's largest contract electronics manufacturer, to make semiconductors in India. Vedanta will be the majority shareholder in a new joint venture company with Foxconn.

Global Markets:

Asian stocks edged lower on Tuesday as investors in the region continued to monitor tensions between Russia and Ukraine. Japan's economy expanded 5.4% on an annualized basis in the final quarter of 2021, according to government data released Tuesday.

The Dow Jones Industrial Average and S&P 500 retreated on Monday as investors evaluated concerns about the Federal Reserve's plan for interest rate hikes and tensions between Russia and Ukraine.

Global markets have been kept on edge amid fears of a Russian attack on Ukraine, with the U.S. closing its embassy in Kyiv. US Secretary of State Antony Blinken cited the “dramatic acceleration in the buildup of Russian forces” on Ukraine's border.

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.

Breadth remains weak; Nifty holds 17,000 mark. 14 February 2022

Key domestic equity benchmarks continued trading with steep losses in afternoon trade. All the sectoral indices on the NSE were in the red. Banks and metal shares were under pressure.

The barometer index, the S&P BSE Sensex, was down 1,141.04 points or 1.96% to 57,011.88. The Nifty 50 index lost 343.55 points or 1.98% to 17,031.20.

In the broader market, the S&P BSE Mid-Cap index fell 2.19% while the S&P BSE Small-Cap index slipped 2.57%.

The market breadth was weak. On the BSE, 679 shares rose and 2790 shares fell. A total of 123 shares were unchanged.

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 was above $95 a barrel mark.

JSW Steel (down 6.07%), HDFC Life Insurance (down 5.05%), Maruti Suzuki India (down 4.10%), HDFC (down 4.02%) and Tata Steel (down 3.78%) were major Nifty losers.

TCS (up 0.95%), ONGC (up 0.30%) and Sun Pharmaceutical Industries (up 0.03%) were top Nifty gainers.

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.

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.

Sensex slumps 1000 pts, Nifty holds 17K mark. 14February2022

The benchmark indices were trading with steep losses in morning trade, dragged by banks and financial services. 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, tumbled 1,062.15 points or 1.83% at 57,090.77. The Nifty 50 index lost 320.10 points or 1.84% at 17,054.65.

In the broader market, the S&P BSE Mid-Cap index skid 2.09% while the S&P BSE Small-Cap index declined 2.32%.

The market breadth was weak. On the BSE, 609 shares rose and 2,680 shares fell. A total of 134 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 cr.

Buzzing Index:

The Nifty Bank index skid 3% to 37,361.95. The index lost 4.22% in two trading sessions.

The Federal Bank (down 4.76%), Punjab National Bank (down 4.15%), IDFC First Bank (down 3.88%), IndusInd Bank (down 3.64%) and Bandhan Bank (down 3.48%) were the top losers in the Bank segment.

Bank of Baroda dropped 3.74%. The bank said that it will acquire Union Bank of India's 21% stake in IndiaFirst Life Insurance Company, a joint venture between Bank of Baroda, Union Bank of India and Carmel Point Investments. The government backed lender said that pursuant to a 'Right of First Offer' (ROFO) made by Union Bank of India (UBI) to the existing shareholders of IndiaFirst Life Insurance Company to divest 21% of its stake in the life insurance company and on completion of related processes under the shareholders agreement (SHA) and further, consequent upon receiving approvals from the respective boards of both banks, it has been decided by Bank of Baroda to acquire the 21% stake of Union Bank of India in IndiaFirst Life Insurance Company, subject to receiving all statutory and regulatory approvals.

Stocks in Spotlight:

Dr Reddy's Laboratories declined 2.26%. 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.

Reliance Industries (RIL) fell 1.26%. 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.