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Barometers drag heavy losses ahead of Fed rate hike buzz; Nifty holds 17,200 level

Published on Apr 22, 2022 10:35

The benchmark indices suffered major losses during morning trade. Barring media stocks, the sectoral indices on the NSE were in the red. The Nifty index managed to hover above 17,200 mark. Sentiment was dented after Federal Reserve Chair Jerome Powell hinted a two or more half percentage-point interest-rate increases in the upcoming policy meeting.

At 10:30 IST, the barometer index, S&P BSE Sensex dropped 528.24 points or 0.91% at 57,383.44. The Nifty 50 index declined 166.45 points or 0.96% at 17,226.15.

The S&P BSE Mid-Cap index lost 0.10%. The S&P BSE Small-Cap index added 0.25%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,598 shares rose while 1,505 shares fell. A total of 141 shares were unchanged.

Oil prices rose on Thursday, buffeted by concerns about tightened supply as the European Union (EU) mulls a potential ban on Russian oil imports that would further restrict worldwide oil trade.

Foreign portfolio investors (FPIs) sold shares worth Rs 713.69 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,823.43 crore in the Indian equity market on 21 April 2022, as per provisional data showed.

COVID-19 Update:

India recorded 2,451 new COVID-19 cases and 54 deaths on Friday, according to the Union Ministry of Health and Family Welfare. The active cases increased to 14,241 while the recovery rate remained unchanged at 98.75%.

Results Today:

Aditya Birla Money (up 1.14%), Hindustan Zinc (up 0.66%), Tata Metaliks (up 0.98%), Tejas Networks (down 1.46%) and Wendt (India) (up 1.19%) will release quarterly earnings on 22 April 2022. Meanwhile, ICICI Bank (down 1.40%) will announce its quarterly earnings on 23 April 2022.

Crypto Market:

Among the popular crypto currencies, Tether (USDT) (up 0.40%) advanced.

However, Ethereum (ETH) (down 2.16%), Binance Coin (BNB) (down 2.07%), Bitcoin (BTC) (down 1.94%) and Doge Coin (Doge) (down 1.94%) declined.

Buzzing Index:

The Nifty Bank index fell 1.43% to 36,288.15. The index added 1.38% in the past trading session.

Among the components of the Nifty Bank index, Bandhan Bank (down 0.07%), IDFC First Bank (down 0.12%), Punjab National Bank (PNB) (down 0.14%), Federal Bank (down 0.41%) and AU Small Finance Bank (down 0.99%) were the top losers.

Among the other losers were IndusInd Bank (down 1.07%), Bank of Baroda (down 1.19%), HDFC Bank (down 1.27%), ICICI Bank (down 1.41%) and Kotak Mahindra Bank (down 1.51%).

Earnings in Spotlight:

HCL Technologies rose 1.97%. The IT company reported 4.4% rise in consolidated net profit to Rs 3,593 crore and 1.2% increase in revenue to Rs 22,597 crore in Q4 FY22 over Q3 FY22. Compared with Q4 last year, adjusted net profit rose 23.9% while topline rose 15.1% in the last quarter. The company`s adjusted net income rose 4.3% to Rs 13,499 crore on 13.6% increase in revenue to Rs 85,651 crore in the year ended March 2022 over the year ended March 2021.

For comparison purposes, net income of Q4 FY21 and full year FY21 excludes the impact of onetime milestone bonus paid to employees (US$ 78.8 million, Rs 575 crore net of tax) and the DTL on Goodwill impact in the tax expense ($165.1 million, Rs 1,222 crore) in Q4 FY21. HCL expects revenue to grow at Rs 22,597 crore, up 1.2% QoQ & up 15.1% YoY. Net Income is expected at Rs 3,593 crore, up 4.4% QoQ & up 23.9% YoY.

CRISIL advanced 3.03%. The credit rating agency recorded 45.6% rise in consolidated net profit to Rs 121.6 crore in Q1 March 2022 from Rs 83.5 crore in Q1 March 2021. Consolidated income from operations for the quarter ended 31 March 2022 increased by 20.1% to Rs 594.9 crore, compared with Rs 495.2 crore reported in the quarter ended 31 March 2021. CRISIL said that the first quarter of 2022 was marked by the highly transmissible third COVID-19 wave, leading to temporary disruption of economic activities. The inflationary trends, rising interest rates in the developed economies, and geopolitical situation has introduced additional volatility and impacted investor appetite in the global markets.

In India, corporate bond issuances declined 15% by value and 22% by quantum in Q1 2022 year-on-year (YoY). Bank credit growth to the large corporate segment was muted. Despite this challenging scenario, the Rating segment revenue grew by 9.7% YoY to Rs 163.32 crore in Q1 2022.

Tata Communications slipped 1.13%. The firm reported a 22% rise in consolidated net profit to Rs 365 crore on a 4.7% increase in net sales to Rs 4,263 crore in Q4 FY22 over Q4 FY21. On a sequential basis, net profit declined 7.6% while net sales rose nearly 2% in Q4 FY22 over Q3 FY22. Profit before tax jumped by nearly 26% quarter on quarter and 57.9% year on year to Rs 609.48 crore in Q4 FY22. For the quarter ended March 2022, EBITDA margin came in at 24.5% as compared to 25.9% margin posted in the previous quarter.

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