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Barometers off day`s high; Nifty below 17,700 level

Published on Jan 04, 2022 11:28

The benchmark indices pared gains in mid-morning trade. Metals, healthcare and IT stocks witnessed correction. The Nifty slipped below its 17,700 mark.

At 11:30 IST, the barometer index, the S&P BSE Sensex, jumped 265.94 points or 0.45% at 59,449.16. The Nifty 50 index added 65.25 points or 0.37% at 17,690.95.

In the broader market, the S&P BSE Mid-Cap index rose 0.07% while the S&P BSE Small-Cap index gained 0.12%.

The market breadth was positive. On the BSE, 1,875 shares rose and 1,385 shares fell. A total of 117 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 902.64 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 803.11 crore in the Indian equity market on 3 January 2022, provisional data showed.

Economy:

Commerce Minister Piyush Goyal has said India`s exports in December surged 37% on an annual basis to 37.29 billion US Dollars, which is highest-ever monthly figure. He said India`s exports of goods will cross 400 billion dollars this fiscal. Imports in December too rose by 38% to 59.27 billion dollars on account of an increase in oil imports, which soared 65.17% to 15.9 billion dollars.

Cumulatively, during April-December 2021-22 exports rose by 48.85% to 299.74 billion dollars. Imports during the period increased by 69.27% to 443.71 billion dollars, leaving a trade deficit of 143.97 billion dollars.

Federation of Indian Export Organisations (FIEO) President A Sakthivel said looking at the current trend, India will achieve the 400 billion dollar merchandise exports target for the current fiscal.

Buzzing Index:

The Nifty Bank index rose 0.97% to 36,774.85. The index has added 4.93% in the four trading sessions.

AU Small Finance Bank (up 2.58%), State Bank of India (SBI) (up 2.47%), Axis Bank (up 1.50%), ICICI Bank (up 1.26%) and Kotak Mahindra Bank (up 1.15%) were the top gainers in the Bank segment.

HDFC Bank was down by 0.01%. The private lender`s advances aggregated to approximately Rs 12,60,000 crore as of 31 December 2021, a growth of around 16.4% over Rs 10,82,300 crore as of 31 December 2020. On a sequential basis, advances grew by 5.1% over Rs 11,98,800 crore as of 30 September 2021. As per the bank`s internal business classification, retail loans grew by around 13.5% over 31 December 2020 and around 4.5% over 30 September 2021. Commercial & rural banking loans grew by around 29.5% over 31 December 2020 and around 6% over 30 September 2021. Corporate & other wholesale loans grew by around 7.5% over 31 December 2020 and around 4.5% over 30 September 2021.

The bank`s deposits aggregated to approximately Rs 14,46,000 crore as of 31 December 2021, a growth of around 13.8% over Rs 12,711,00 crore as of 31 December 2020 and a growth of around 2.8% over Rs 14,06,300 crore as of 30 September 2021. Retail deposits grew by around 17% over 31 December 2020 while wholesale deposits grew by around 1% over 31 December 2020.

Karnataka Bank rose 1.03%. The bank`s core deposits grew by 6.27% to Rs 78,424.66 crore as on 31 December 2021 from Rs 73,800.14 crore as on 31 December 2020. The core deposits have registered an increase of 1.96% as compared with Rs 76,916.79 crore as on 30 September 2021. Share of CASA to total deposits was 31.31% as on 31 December 2021 as compared with 30.08% as on as on 31 December 2020 and 30.89% as on 30 September 2021. Gross advances grew by 4.87% year-on-year (Y-o-Y) to Rs 56,655.16 crore as on 31 December 2021, while sequential growth over September 2021 was 1.90%.

Stocks in Spotlight:

Jindal Steel & Power (JSPL) gained 0.44%. The steel maker posted a strong recovery in steel sales sequentially in December 2021. The company reported steel sales of 6.85 lakh tonnes, rising 27% month on month. JSPL said steel sales would have been higher but for the impact of the non-availability of railway rakes for third month. Steel sales in Q3 FY22 stood at 1.82 MT were also constrained due to limited rake availability and unseasonal rains in many states. Meanwhile, exports accounted for 28% of steel sales in December 2021 and 23% of quarter. Jindal Steel reported 9% rise in steel production at 5.904 million tonnes in nine months ended of FY22.

Larsen & Toubro (L&T) added 0.36%. The heavy civil infrastructure business of L&T construction has won an order from Delhi Metro Rail Corporation (DMRC) for the design and construction of the underground metro project of Phase-1 of Patna MRTS. Significant orders are valued between Rs 1,000 to Rs 2,500 crore. The project is scheduled to be completed within 42 months. It is funded by Patna Metro Rail Corporation (PMRC) and, upon completion, will be operated by PMRC.

Global Markets:

Asian stocks were mixed on Tuesday, 4 January 2022. China`s factory activity grew at its fastest pace in six months in December, driven by production hikes and easing price pressures, a private survey showed on Tuesday. The Caixin/Markit Manufacturing Purchasing Managers` Index (PMI) rose to 50.9 in December, from 49.9 in November.

In US, the S&P 500 and Dow Jones Industrial Average posted closing record highs on the first trading day of the year on Monday, helped by gains in Tesla Inc and bank shares.

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