Sensex soars 651 pts, Nifty settles above 18,000 mark; PSU banks rally

Domestic equity indices settled with robust gains on Monday. The Nifty closed above the 18,000 mark. Traders built fresh positions in anticipation of yet another strong earnings season. IT majors and HDFC Bank will kick off Q3 results season later this week. All the sectoral indices on the NSE ended in the green. PSU banks, media and auto shares were in demand.

The barometer index, the S&P BSE Sensex, advanced 650.98 points or 1.09% to 60,395.63. The Nifty 50 index added 190.6 points or 1.07% to 18,003.30.

HDFC (up 2.43%), ICICI Bank (up 2.16%) and Infosys (up 2.09%) were major index movers.

The broader market traded with strong gains. The S&P BSE Mid-Cap index rose 0.69% while the S&P BSE Small-Cap index added 1.19%.

The market breadth was strong. On the BSE, 2,640 shares rose and 1,001 shares fell. A total of 107 shares were unchanged.

COVID-19 Update:

India saw a single-day rise of 1,79,723 new coronavirus cases, raising the tally to 3.57 crore, which included 4,033 cases of Omicron variant reported across 27 states and union territories. The country reported 146 deaths linked to the virus.

Economy:

India`s Gross Domestic Product (GDP) is estimated to rise 9.2% in the current fiscal as compared to a contraction of 7.3% in the financial year 2020-21. This was stated by the Statistics and Programme Implementation Ministry in its First Advance Estimates of National Income for the financial year 2021-22.

It has also been stated that real GDP or GDP at Constant Prices in the current fiscal year is estimated at Rs 147.54 lakh crore as against the Provisional Estimate of GDP for the year 2020-21 of Rs 135.13 lakh crore. Second Advance Estimates of National Income for the year 2021-22 and quarterly GDP estimate for the quarter October-December, 2021 will be released next month.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.589% as compared with 6.542% at close in the previous trading session.

In the foreign exchange market, the rupee higher against the dollar. The partially convertible rupee was hovering at 74.05, compared with its close of 74.3425 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement was trading flat at Rs 47,453.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.22% to 95.93.

In the commodities market, Brent crude for March 2022 settlement shed 19 cents or 0.23% to $81.56 a barrel.

Global Markets:

European shares declined while Asian stocks ended mixed on Monday as global markets await key U.S. inflation data this week and more comment from U.S. Federal Reserve Chairman Jerome Powell on interest rate hikes.

The U.S. consumer price index is set for release Wednesday and the producer price index is slated for Thursday.

Investors will be looking out for more comments on the timing of forthcoming interest rate rises, as the Fed chair is scheduled to testify Tuesday at his nomination hearing before a Senate panel.

Last Friday, inflation in the euro zone hit a new record high in December coming in at 5% compared with the same month last year.

On Friday, the Labor Department reported the U.S. economy added far fewer jobs in December than expected. The nonfarm payrolls report showed an increase of 199,000 in December. The U.S. unemployment rate fell to 3.9% in December from 4.2% in November, the jobs report showed.

Buzzing Segment:

The Nifty PSU Bank index jumped 3.23% to 2,759.85. Th index has climbed 10.83% in seven trading sessions.

Bank of Baroda (up 4.91%), Punjab National Bank (up 3.98%), Canara Bank (up 3.46%), Indian Bank (up 3.23%), Indian Overseas Bank (up 3.16%), Central Bank of India (up 3.02%), Jammu & Kashmir Bank (up 2.78%), SBI (up 2.75%), Punjab & Sind Bank (up 2.71%), UCO Bank (up 1.89%), Bank of India (up 1.74%), Union Bank of India (up 1.55%) and Bank of Maharashtra (up 1.47%) surged.

Stocks in Spotlight:

IT major TCS rose 0.64% to Rs 3879.35. The IT major said its board will consider a buyback proposal on January 12. Its board will also take on record the financial results of the company for the third quarter and nine months ending 31 December 2021.

SJVN advanced 5.46% after the company bagged 125 MW grid connected solar power project in UP Solar Park in Uttar Pradesh.

KEC International jumped 4.46% after the company said that it has secured new orders of Rs 1,025 crore across its various businesses.

Avenue Supermarts (DMart) fell 2.07%. The company`s consolidated net profit rose 23.62% to Rs 552.56 crore on 22.22% increase in net sales to Rs 9217.76 crore in Q3 FY22 over Q3 FY21. The company`s earnings before interest, tax, depreciation and amortization (EBITDA) in Q3FY22 stood at Rs 866 crore compared with Rs 689 crore in the corresponding quarter of last year. EBITDA margin stood at 9.4% in Q3FY22 as against 9.1% in Q3FY21.

Tata Steel rose 0.75%. The steel maker said that the crude steel production of the India business increased by 4.3% to 4.80 million tons in Q3 FY22 from 4.60 MT in Q3 FY21. Delivery volumes for Tata Steel India fell by 5.2% YoY to 4.41 MT in the third quarter. During Q3 FY22, crude steel production was up 1.5% QoQ while overall deliveries were lower by 4% QoQ as an increase in domestic deliveries was offset by lower exports.

G N A Axles slumped 11.88% after the company`s consolidated net profit declined 37.42% to Rs 16.67 crore despite a 9.14% rise in revenue from operations to Rs 301.26 crore in Q3 FY22 over Q3 FY21. Profit before tax in Q3 FY22 stood at Rs 23.10 crore, down by 35.82% from Rs 35.99 crore in Q3 FY21.

Sobha rose 0.31%. The realty company reported Q3 sales volume of 1,322,684 square feet of super built-up area, an increase of 17% YoY. The sales volume was valued at Rs 1,048 crore. The company had reported a sales volume of 1,133,574 square feet that was valued at Rs 887.6 crore in Q3 FY21. It also reported the highest ever share of the sale value of Rs 908 crore during the quarter, up by 34% YoY.The average price realization during the quarter was Rs 7,920 per square feet (up 1% YoY).

Sunteck Realty jumped 11.52% after the company`s pre-sales jumped 23% Y-o-Y to Rs 352 crore in Q3 FY22 as against Q3 FY21. Collections soared 41% to Rs 270 crore in Q3 FY22 as compared to Q3 FY21.

Alembic Pharmaceuticals added 2.13% after the company said that it has received tentative approval from the US Food & Drug Administration (USFDA) for its ANDA for Dronedarone Tablets. The tentatively approved abbreviated new drug application (ANDA) is therapeutically equivalent to the reference listed drug product (RLD) Multaq Tablets of Sanofi-Aventis U.S. LLC. Dronedarone is indicated to reduce, the risk of hospitalization for atria) fibrillation in patients in sinus rhythm with a history of paroxysmal or persistent atrial fibrillation.

Larsen & Toubro (L&T) rose 2.54% after the company`s construction arm bagged a `significant` contract for its heavy civil infrastructure business. The contract has been awarded by the National High Speed Rail Corporation (NHSRCL). L&T is already executing two other projects of the high-speed corridor. The construction major has classified the contract as `significant`, implying that the project value was between Rs 1,000 crore to Rs 2,500 crore.

Anupam Rasayan India rose 0.71% after the company signed a letter of intent (LoI) worth $95 million (i.e. Rs 700 crore) with a major multinational crop protection company to supply a new life science related active ingredient. The company will enter into a long-term contract to supply this life science related speciality chemical product for the next five years. The new molecule is in addition to the existing product portfolio with this customer.

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