Benchmarks snap 5-day rising streak; Nifty holds 18,250 mark

Key indices ended almost flat with negative bias on Friday. The Nifty ended above the 18,250 mark after hitting the day`s low of 18,119.65 in early trade. Realty, IT and consumer durables stocks advanced while FMCG, pharma and healthcare stocks were under pressure.

The barometer index, the S&P BSE Sensex, fell 12.27 points or 0.02% at 61,223.03. The Nifty 50 index declined 2.05 points or 0.01% at 18,255.75. Both these indices rose about 2.8% in the past five sessions.

Asian Paints (down 2.66%), Axis Bank (down 2.54%) and Mahindra & Mahindra (down 1.61%), HDFC (down 1.52%) were major drags.

In the broader market, the S&P BSE Mid-Cap index rose 0.22% while the S&P BSE Small-Cap index added 0.50%.

Buyers outnumbered sellers. On the BSE, 2,062 shares rose and 1,345 shares fell. A total of 96 shares were unchanged.

COVID-19 Update:

In last 24 hours, India reported 2,64,202 fresh COVID cases, as per the health ministry`s data. The country reported 315 new deaths taking the death toll to 4,85,350. Total 5,753 Omicron cases have been detected so far, an increase of 4.83% since yesterday.

Economy:

The wholesale inflation across the country rose to 13.56% in December, data released by the Ministry of Commerce & Industry showed.

The wholesale price index (WPI) grew 14.23% during the month of November, while the WPI for October was revised to 13.83% from 12.54%, the data showed. The WPI in December 2020 was at 1.95%.

"The high rate of inflation in December 2021 is primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, chemicals and chemical products, food products, textile and paper and paper products etc as compared to the corresponding month of the previous year," the statement read.

India`s overall exports (Merchandise and Services combined) in December 2021 are estimated to be $57.87 Billion, exhibiting a positive growth of 25.05% over the same period last year and a positive growth of 23.35% over December 2019. Overall imports in December 2021 are estimated to be $72.35 Billion, exhibiting a positive growth of 33.86% over the same period last year and a positive growth of 40.30% over December 2019.

Meanwhile, India and the UK have formally launched negotiations for a Free Trade Agreement between two countries. The Joint Statement of Commerce and Industry Minister Piyush Goyal and UK Secretary of State for International Trade Anne-Marie Trevelyan said the Free Trade Agreement would be a substantial opportunity for both economies and a significant moment in the bilateral relationship. India and the UK will seek to agree a mutually beneficial agreement supporting jobs, businesses and communities in both countries. Trade negotiations will be a priority for both countries.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 6.584% as compared with 6.561% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.15, compared with its close of 73.90 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement rose 0.31% to Rs 47,885.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.01% to 94.80.

In the commodities market, Brent crude for March 2022 settlement rose 95 cents or 1.12% to $85.42 a barrel.

Global Markets:

Shares in Europe and Asia declined on Friday as the recent rally in U.S. stocks broke momentum with the Nasdaq snapping a three-day winning streak.

China released trade data on Friday, which showed that its dollar-denominated exports grew 29.9% compared to the past year, and its imports rose 30.1% in the same period.

Meanwhile, South Korea`s central bank raised its benchmark rate by 25 basis points to 1.25%, the highest since March 2020 and back to the rate it was at before the pandemic.

On the macro front, the number of Americans filing new claims for unemployment benefits increased to an eight-week high in the first week of January amid raging COVID-19 infections. Initial claims for state unemployment benefits increased 23,000 to a seasonally adjusted 230,000 for the week ended January 8, the highest reading since mid-November.

In another report on Thursday, the Labor Department said the producer price index for final demand increased 0.2% last month. That was the smallest gain in the PPI since November 2020 and followed a 1% jump in November.

Buzzing Segment:

The Nifty FMCG index fell 0.71% at 37,816. The index rose 0.63% in the past two sessions.

Hindustan Unilever (down 2.06%), Nestl� India (down 1.64%), Britannia Industries (down 1.31%), Dabur India (down 0.81%), Radico Khaitan (down 0.57%), Godrej Consumer Products (down 0.52%), ITC (down 0.47%), United Breweries (down 0.41%), Colgate Palmolive (India) (down 0.37%), Marico (down 0.3%) and Emami (down 0.28%) declined.

Stocks in Spotlight:

Jubilant FoodWorks rose 0.35%. The company said its board will consider a stock split and Q3 results on 2 February 2022.

Hero MotoCorp lost 1%. The two wheeler marker said that it has expanded its operations and commenced retail sales at a newly opened flagship store in El Salvador`s capital city San Salvador.

Tata Motors fell 0.43%. The Tata Motors Group global wholesales in Q3 FY22, including Jaguar Land Rover, were 2,85,445 units, higher by 2%, as compared to Q3 FY21. Global wholesales of all Tata Motors` commercial vehicles and Tata Daewoo range in Q3 FY22 were at 1,02,772 units, higher by 14%, over Q3 FY21. Global wholesales of all passenger vehicles in Q3 FY22 were at 1,82,673 units, lower by 3% as compared to Q3 FY21.

Aditya Birla Money slipped 2.54%. The company`s net profit jumped 53.8% to Rs 6.46 crore on a 23% rise in total income to Rs 60.75 crore in Q3 FY22 over Q3 FY21. On the segmental front, revenue from Broking business was Rs 53.66 crore (up 32.9% YoY), Income/Gain from securities was Rs 5.12 crore (down 25.6% YoY) and other revenue was Rs 1.47 crore (down 4.2% YoY) during the period under review. While the company`s net profit has remained flat, total income has risen by 4.7% in Q3 FY22 as compared with Q2 FY22. Operating margin was 15.19% in Q3 FY22 as against 12.26% in Q3 FY21 and 15.80% in Q2 FY22.

Tata Metaliks fell 3.96% after the company`s net profit declined 52.58% to Rs 35.65 crore on 31.08% rise in net sales to Rs 689.80 crore in Q3 FY22 over Q3 FY21. Profit before tax fell 54% to Rs 50.3 crore in Q3 FY22 over Q3 FY21.

Mindtree reported fell 4.19%. The IT company reported a 9.7% rise in consolidated net profit to Rs 437.50 crore on 6.3% increase in revenue from operations to Rs 2,750 crore in Q3 FY22 over Q2 FY22.

Glenmark Pharmaceuticals fell 1.06%. The drug maker announced that its wholly-owned subsidiary, Glenmark Specialty S.A. (Switzerland), received a United States Food & Drug Administration (FDA) approval for its new drug Ryaltris nasal spray.

Ashoka Buildcon fell 0.91%. The company said it has emerged as the lowest bidder (L-1) for a road construction project in Karnataka. The quoted bid price of the project is Rs 829.49 crore.

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