Sensex, Nifty trade with small losses; realty stocks in demand. 16February2022

 

The benchmark indices reversed early gains and were trading with minor cuts in morning trade. Banks stocks were under pressure. The Nifty was trading a tad below 17,350 mark.

The barometer index, the S&P BSE Sensex, fell 68.02 points or 0.12% at 58,074.03. The Nifty 50 index slipped 7.05 points or 0.04% at 17,345.40.

In the broader market, the S&P BSE Mid-Cap index rose 0.58% while the S&P BSE Small-Cap index gained 1.04%.

The market breadth was strong. On the BSE, 2,273 shares rose and 857 shares fell. A total of 95 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,298.76 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 4,411.60 crore in the Indian equity market on 15 February 2022, provisional data showed.

Economy:

India's overall exports in January this year are estimated to be 61.41 billion dollars, exhibiting a positive growth of 36.76% over the same period last year and a positive growth of 38.90% over January 2020. Overall imports in January this year are estimated to be 67.76 billion dollars, exhibiting a slower rate of growth of 30.54% over the same period last year and a positive growth of 30.19% over January 2020.

India's overall exports in April to January 2021-22 are estimated to be 545.71 billion dollars. This is a positive growth of 37.68% over the same period last year and a positive growth of 23.29% over April-January 2019-20. Overall imports in April-January 2021-22 are estimated to be 616.91 billion, exhibiting a positive growth of 54.35% over the same period last year and a positive growth of 20.15% over April-January 2019-20.

New Listing:

Shares of Vedant Fashions (Manyavar) were currently trading at Rs 954.65 on BSE, at a premium of 10.24% as against the issue price of Rs 866. The scrip was listed at Rs 936, representing a premium of 8.08% to the initial public offer (IPO) price. So far, the scrip has hit a high of Rs 975.30 and a low of Rs 926.25. Over 2.91 lakh shares of the company have changed hands in the counter till now.

The initial public offer (IPO) of Vedant Fashions (Manyavar) was subscribed 2.57 times. The issue opened for bidding on 4 February 2022 and closed on 8 February 2022. The price band of the IPO was fixed at Rs 824-866 per share.

Buzzing Index:

The Nifty Realty index rose 1.71% to 458.40. The index gained 4.80% in two trading sessions.

Godrej Properties (up 3.39%), Macrotech Developers (Lodha) (up 2.85%), IndiaBulls Real Estate (up 2.59%), Oberoi Realty (up 2.10%) and Brigade Enterprises (up 1.91%) were the top gainers in the Realty segment.

Stocks in Spotlight:

Tech Mahindra rose 0.49%. The IT major said that its wholly owned subsidiary Tech Mahindra (Singapore) has approved the proposal to acquire 80% equity shares in Geomatic.AI. Tech Mahindra is creating a next-generation artificial intelligence firm Geomatic.AI to focus on digital platforms led non-linear growth, in partnership with AusNet Services, an Australian energy & utilities distributor. Geomatic.AI will build digital twins for linear assets leveraging cloud, drone and mobility technologies in the geospatial domain. As part of this deal, Tech Mahindra will have 80% equity shareholding in Geomatic.AI, for a cash consideration of 6 million Australian dollars (AUD).

Info Edge (India) lost 0.97%. The company said that it has entered into an agreement to acquire securities 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. Juno is newly incorporated and is under first year of its operations. As part of the Info Edge's strategy, the investment would help the company create and consolidate its presence into a niche vertical of Sales upskilling. It perfectly fits into the company's playbook to invest in adjacencies to recruitment and education verticals and create synergies with its existing businesses.

Indices make a positive start; breadth strong. 16February2022

 

The domestic indices drifted higher in early trade on buying demand in oil & gas, financial services and auto stocks.

The barometer index, the S&P BSE Sensex, rose 62.84 points or 0.11% at 58,204.89. The Nifty 50 index gained 28.15 points or 0.16% at 17,380.60.

In the broader market, the S&P BSE Mid-Cap index added 0.68% while the S&P BSE Small-Cap index rose 1%.

The market breadth was strong. On the BSE, 2,007 shares rose and 563 shares fell. A total of 77 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,298.76 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 4,411.60 crore in the Indian equity market on 15 February 2022, provisional data showed.

Stocks in Spotlight:

Tech Mahindra rose 0.83%. The wholly owned subsidiary of the company viz., Tech Mahindra (Singapore) Pte. has approved the proposal to acquire 80% equity shares in Australian artificial intelligence firm, Geomatic.ai Pty for a consideration of A$6 million. Geomatic.ai Pty is a company incorporated under Australian laws on 7 February 2022 and operates in the field of energy and utilities.

Burger King India gained 1.40%. The company has closed its qualified institutional placement issue and finalised the issue price at Rs 129.25 per share, a discount of 5% to the floor price of Rs 136.05 per share.

Torrent Power added 0.13%. The company has completed transaction of acquisition of 100% equity share capital of Visual Percept Solar Projects.

Global Markets:

Asian stocks are trading higher on Wednesday, as investors react to China's inflation data. Meanwhile, tensions appeared to ease between Russia and Ukraine, boosting markets.

China's consumer price index for January rose 0.9% as compared with a year ago, slightly lower than expectations. Chinese producer inflation for January was also below expectations. The producer price index for January rose 9.1% as compared with a year earlier.

Wall Street ended sharply higher on Tuesday, as signs of de-escalating tensions along the Russia-Ukraine border sparked a risk-on session.

Russia's government announced Tuesday that Moscow is starting to return some troops at the Ukrainian border, though NATO's chief warned that the military alliance has so far not seen any sign of de-escalation on the ground from the Russian side.

Nifty settles above 17,350 mark. 15February2022

 

The benchmark indices ended with robust gains on Tuesday. All the sectoral indices on NSE ended in the green. Auto, FMCG and media shares were in demand. The Nifty bounced from the day's low of 16,839.25 hit in the morning trade and settled above the 17,350 mark.

As per provisional closing data, the barometer index, the S&P BSE Sensex, soared 1,736.21 points or 3.08% at 58,142.05. The Nifty 50 index surged 509.65 points or 3.03% at 17,352.45.

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.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, dropped 10.29% to 20.61.

In the broader market, the S&P BSE Mid-Cap index jumped 2.68% while the S&P BSE Small-Cap index rose 1.97%.

The market breadth was strong. On the BSE, 2,050 shares rose and 1,321 shares fell. A total of 93 shares were unchanged.

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 FMCG index advanced 2.18% to 36,438.70. The index lost 3.57% in the past two trading sessions.

Radico Khaitan (up 5.83%), United Spirits (up 4.60%), Nestle India (up 2.86%), Hindustan Unilever (HUL) (up 2.76%) and Marico (up 2.69%) were the top gainers in the FMCG segment.

Godrej Consumer Products advanced 2.11%. The company said it has divested its entire stake in Bhabani Blunt Hair Dressing (Bblunt) to Honasa Consumer for Rs 84.5 crore. Honasa Consumer (HCPL), the parent company of direct to consumer brand, Mamaearth, has acquired Bblunt, a hair care, hair colour and styling products brand from Godrej Consumer Products (GCPL), along with Bblunt salons operated by Bhabani Blunt Hair Dressing. Godrej Consumer Products will receive a total of Rs 84.5 crore from the divestment business.

Stocks in Spotlight:

Coal India rose 1.42%. 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 jumped 5.87%. 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.

Reliance Industries (RIL) rallied 3.36%. The company said that Jio Platforms will invest $200 million in Glance, an AI-driven lock-screen platform. The transaction is subject to the satisfaction of customary closing conditions and regulatory approvals. Jio Platforms (Jio), a subsidiary of Reliance Industries, has built an all-IP data strong future proof network with latest 4G LTE technology (through its wholly owned subsidiary, Reliance Jio Infocomm). The proposed investment by Jio is aimed at accelerating Glance's launch in several key international markets outside of Asia such as the USA, Brazil, Mexico and Russia. The company is aiming to create the world's largest live content and commerce ecosystem on the lock screen and will use the funds raised to expand globally.

One 97 Communications (Paytm) slipped 1.42%. The company said that it had disbursed 1.9 million loans through its platform in January 2022, up 331% Y-o-Y (year-on-year). The value of the loans disbursed was Rs 921 crore, an increase of 334% Y-o-Y. Gross Merchandise Value (GMV) processed through the Paytm platform during January 2022 aggregated to approximately Rs 83,481 crore, up 105% Y-o-Y.

Vedanta advanced 2.85%. 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.

Balkrishna Industries gained 2.17%. The company reported 2% rise in net profit to Rs 329 crore on a 39% increase in total income to Rs 2,079 crore in Q3 FY22 over Q3 FY21. Raw Material costs zoomed 58% to Rs 1,015 crore in Q3 FY22 from Rs 642 crore in Q3 FY21. EBITDA in Q3 FY22 was Rs 507 crore, up 6% Y-o-Y. EBITDA margin was 24.4% in Q3 FY22 as against 31.9% in Q3 FY21. EBITDA margin was impacted on account of higher Raw Material costs, increased power and fuel costs and marketing spends,” the company said in a statement.

Anant Raj hit an upper circuit of 10% at Rs 73.55. The company's net profit rose 59.51% to Rs 11.82 crore on 34.01% rise in net sales to Rs 97.37 crore in Q3 December 2021 over Q3 December 2020. On a consolidated basis, profit before tax (PBT) spurted 682.35% year-on-year to Rs 18.62 crore in Q3 December 2021. Total expenses rose 12% year-on-year to Rs 84.84 crore in Q3 December 2021. Cost of sales increased 18.87% to Rs 65.90 crore.

Spicejet soared 8.02%. The airline company jumped 6.41% to Rs 63.05 after the company reported a standalone net profit of Rs 23.28 crore in Q3 FY22 as against a net loss of Rs 56.95 crore in Q3 FY21. Total revenue from operations increased by 34% YoY to Rs 2,259.29 crore during the quarter. Air Transport Service revenue was Rs 1681.40 crore (up 22% YoY) while that from Freighter & Logistics service was Rs 583.76 crore (up 89% YoY) in Q3 FY22. Capacity (in terms of Seat Kilometres) increased by 78% as compared to the previous quarter.

Global Markets:

The Dow Jones index futures were up 273 points, indicating a strong opening in the US stocks today.

European stocks rallied across the board while Asian stocks ended mixed on Tuesday as global investors continued to monitor the geopolitical situation in Ukraine.

Japan's economy expanded 5.4% on an annualized basis in the final quarter of 2021, according to government data released on Tuesday.

The media reported that over 10,000 Russian troops have been returning to their permanent bases after month-long drills near Ukraine. The drills were held in several regions near Ukraine, including in Crimea, which Russia annexed in 2014, as well as in the southern Russian regions of Rostov and Kuban. Russia's deployment of tens of thousands of troops to the north, east and south of Ukraine had fuelled fears in Kyiv and Western capitals that Moscow was planning an attack.

Russian President Vladimir Putin and German Chancellor Olaf Scholz will hold talks in Moscow today as diplomatic efforts ramp up amid fears that Russia could invade Ukraine in the coming days, a claim the Kremlin has repeatedly denied.

The United States on Monday ordered the closure of its embassy in Kyiv and ordered the relocation of staff to the western Ukrainian city of Lviv, citing the dramatic acceleration in the buildup of Russian forces at Ukraine's border.

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.

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.