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Market pares losses; Nifty reclaims 17,000 level

Published on Jan 25, 2022 10:35

The benchmark indices recovered from early lows to hover near flat line. The Nifty reclaimed its crucial 17,000 level. Metal stocks were in demand. Weak Asian stocks, worries of US Fed interest hike, geo-political tensions of Russia invading Ukraine and firm crude oil prices continue to impact investors sentiment.

At 10:30 IST, the barometer index, the S&P BSE Sensex, dropped 291.37 points or 0.51% at 57,200.14. The Nifty 50 index lost 112.75 points or 0.66% at 17,036.35.

In the broader market, the S&P BSE Mid-Cap index rose 0.24% while the S&P BSE Small-Cap index gained 0.06%.

The market breadth was positive. On the BSE, 1,646 shares rose and 1,470 shares fell. A total of 101 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,751.58 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 74.88 crore in the Indian equity market on 24 January 2022, provisional data showed.

Upcoming Results:

Among Nifty50 companies, Maruti Suzuki India (up 0.02%) and Cipla (down 0.06%) will declare their quarterly results today.

Meanwhile, Allsec Technologies, APL Apollo Tubes, Astec Lifesciences, Burnpur Cement, Can Fin Homes, CarTrade Tech, Cosmo Films, Federal Bank, Finolex Industries, Indiabulls Real Estate, ICRA, Macrotech Developers, Max India, Pidilite Industries, Raymond, Skipper, Snowman Logistics, SRF, Star Cement, Torrent Pharmaceuticals, United Spirits and Uttam Galva Steels will also declare their quarterly earnings today.

Buzzing Index:

The Nifty Metal index rose 1.26% to 5,489. The index lost 7.04% in the past two trading sessions.

Welspun Corp (up 3.69%), National Aluminium Co. (NALCO) (up 2.42%), Steel Authority of India (SAIL) (up 2%), NMDC (up 1.98%) and JSW Steel (up 1.94%) were the top gainers in the Metal segment.

Stocks in Spotlight:

Axis Bank rallied 4.36%. The private sector bank`s net profit increased by 224% to Rs 3,614 crore in Q3 FY22 from Rs 1,117 crore in Q3 FY21. Total income in the third quarter rose by 15% Y-o-Y to Rs 21,101 crore. The bank`s operating profit for the quarter grew 17% Y-o-Y and 4% Q-o-Q to Rs 6,162 crore.

Net interest income (NII) grew 17% Y-o-Y and 10% Q-o-Q to Rs 8,653 crore. Net interest margin (NIM) for Q3 FY22 improved by 14 bps Q-o-Q to 3.53%. Non-interest income (comprising of fee, trading profit and miscellaneous income) for Q3 FY22 stood at Rs 3,840 crore, up 31% Y-o-Y and 1% Q-o-Q.

Provisions (excluding provision for tax) declined by 64% to Rs 1,335 crore in Q3 FY22 from Rs 3,757 crore in Q3 FY21. Provision coverage ratio (including specific + standard + additional + COVID-19 provisions) stood at 130% of GNPA as on 31 December 2021. Specific loan loss provisions for Q3 FY22 were Rs 790 crore as compared to Rs 927 crore in Q2 FY22. The bank holds cumulative provisions (standard + additional other than NPA) of Rs 13,404 crore at the end of Q3 FY22.

The net non-performing assets aggregated to Rs 6,513 crore as at 31 December 2021 as against Rs 7,200 crore as at 30 September 2021 and Rs 4,610 crore as at 31 December 2020. The net NPA ratio was 0.91% as at 31 December 2021 as against 1.08% as at 30 September 2021 and 0.74% as at 31 December 2020. Total deposits increased by 20% Y-o-Y to Rs 7,71,670 crore as at 31 December 2021. The bank`s advances grew 17% Y-o-Y to Rs 6,64,866 crore as on 31 December 2021.

Indian Energy Exchange (IEX) rose 0.81%. The company reported a 38.2% rise in consolidated net profit to Rs 80.36 crore on a 37.9% rise in net sales to Rs 117.54 crore in Q3 FY22 over Q3 FY21. Consolidated profit before tax stood at Rs 107.14 crore in Q3 FY22, rising 41.5% from Rs 75.74 crore registered in Q3 FY21. EBITDA grew by 39.3% to Rs 112 crore in Q3 FY22 over Q3 FY21.

Burger King India gained 0.08%. The firm`s net loss in Q3 FY22 narrowed to Rs 15.15 crore from Rs 29.02 crore in Q3 FY21. Revenue from operations in the third quarter was Rs 279.89 crore, up 72% Y-o-Y. Gross profit was Rs 184.92 crore in Q3 FY22, up by 77.38% from Rs 104.25 crore in Q3 FY21. The company EBITDA in Q3 FY22 was at Rs 32.82 crore as against Rs 24.09 crore in Q3 FY21, up 36% Y-o-Y. However, EBITDA margin in the third quarter had declined to 11.7% from 14.8% in the corresponding quarter last fiscal. During the quarter, Burger King added 20 restaurants and as on 31 December 2021, its total restaurant count was 294. According to the company, presently 9 restaurants are under construction and 65 are in pipeline.

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