Barometers advance in early trade; breadth strong

Trading for calendar 2022 began on an upbeat note as the key benchmark indices nudged higher in early trade on buying demand in index pivotals. Auto stocks rose after declaring sales figures for December 2021.

At 9:30 IST, the barometer index, the S&P BSE Sensex, jumped 334.53 points or 0.57% at 58,588.35. The Nifty 50 index surged 99 points or 0.57% at 17,453.05.

In the broader market, the S&P BSE Mid-Cap index rose 0.43% while the S&P BSE Small-Cap index added 0.76%.

The market breadth was strong. On the BSE, 2,279 shares rose and 694 shares fell. A total of 98 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 575.39 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,165.62 crore in the Indian equity market on 31 December 2021, provisional data showed.

Economy:

The gross GST (Goods and Services Tax) revenue collected in December 2021 stood at Rs 1,29,780 crore, which is slightly lower than the revenue collected in November 2021. The gross GST collection in November 2021 stood at Rs 1.31 lakh crore.

Stocks in Spotlight:

Maruti Suzuki India rose 1.80%. Maruti Suzuki India recorded total sales of 1,53,149 units in December 2021, down 4% as against 1,60,226 units sold in December 2020. On a sequential basis, however, the company`s total sales have improved by 10%. The auto maker had sold 1,39,184 units in November 2021. While domestic sales fell by 13% to 1,30,869 units, exports jumped more than twofold to 22,280 units in December 2021 over December 2020.

Tata Motors advanced 2.76%. Tata Motors said that its sales in the domestic & international market in Q3 FY22 stood at 1,99,633 vehicles, up 26% as against 1,58,218 units in Q3 FY21. The company sold 66,307 vehicles (up 24% YoY) in the domestic market in the month of December 2021. Total domestic sales were 1,89,531 units in Q3 FY22, up by 26% from 1,50,961 units sold in Q3 FY21.

Mahindra & Mahindra lost 0.21%. Mahindra & Mahindra`s overall auto sales for the month of December 2021 stood at 39,157 vehicles, up by 11% from 35,187 vehicles sold in December 2020. The passenger vehicles segment (which includes UVs, Cars and Vans) sold 17,722 vehicles in December 2021. In the commercial vehicles segment, Mahindra sold 15,938 vehicles in December 2021 with growth of 14%. Exports for the month of December 2021 were at 3,017 vehicles.

Hero MotoCorp added 0.40%. Hero MotoCorp`s total sales stood at 3.94 lakh units in December 2021, down from 4.47 lakh units sold in December 2020.

Eicher Motors rallied 3.01%. Eicher Motors subsidiary, VE Commercial Vehicles (VECV) sold 6,154 units of commercial vehicles in December 2021, registering a growth of 25.8% on a year-on-year (Y-o-Y) basis from 4,892 units in December 2020. VECV, the unlisted subsidiary of Eicher Motors, had sold 4,085 units of commercial vehicles in November 2021.

Escorts rose 0.03%. Escorts said Escorts Agri Machinery (EAM) in December 2021 sold 4,695 tractors as against 7,733 tractors sold in December 2020, a drop of 39.3% year-on-year (YoY). On a sequential basis, Escorts recorded a 34.02% decline in total tractor sales in December 2021 from 7,116 units sold in November 2021. The company`s domestic tractor sales in December 2021 stood at 4,080 units as against 7,230 units in December 2020, registering a decline of 43.57% YoY.

SML Isuzu soared 11.89%. SML Isuzu`s total sales grew 38% to 701 units in December 2021 as compared with 509 units sold in December 2020. Sequentially, the company`s total sales surged 33.67% in December 2021 from 2,723 units sold in November 2021.

VST Tillers & Tractor jumped 4.63%. VST Tillers & Tractors` total sales jumped 28.53% to 3,640 units in December 2021 from 2,832 units sold in December 2020. On a sequential basis, total sales jumped 16.25% from 603 units sold in November 2021.

TVS Motor Company fell 0.76%. TVS Motor Company said that it had registered sales of 250,933 units in December 2021, which is lower by 8% as compared with sales of 272,084 units in the month of December 2020. While the total two-wheeler sales fell by 9% to 235,392 units, three-wheeler sales rose by 12% to 15,541 units in December 2021 over December 2020.

Global Markets:

Asian stocks are trading mixed on Monday, 3 January 2022 as trading in 2022 kicked off, with some major markets in the region closed. Markets in Australia, mainland China and Japan are closed on Monday for a holiday.

Singapore`s economy grew slightly more than expected in the fourth quarter from a year earlier, preliminary data showed on Monday. Gross domestic product (GDP) expanded 5.9% in October-December on a year-on-year basis, the Ministry of Trade and Industry said in a statement.

U.S. stocks finished their final trading session of the year lower, capping off a record-setting 2021 that came despite the persistent headwinds of COVID-19.

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