Market rallies on value buying; Nifty regains 17,350 mark

The benchmark indices ended with robust gains on Tuesday after registering steep losses in the past two sessions. All the sectoral indices on the NSE ended in the green with auto, banks and media shares soaring. The Nifty bounced from the day`s low of 16,839.25 hit in the morning trade and settled above the 17,350 mark.

The S&P BSE Sensex, soared 1,736.21 points or 3.08% at 58,142.05. The Nifty 50 index surged 509.65 points or 3.03% at 17,352.45.

Value buying emerged after the Nifty slumped 4.33% in the past two sessions. The sentiment was impacted by weak global cues on account on Russia-Ukraine tensions. Firm crude oil prices and continuous selling of domestic equities by foreign portfolio investors also put pressure on shares.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, dropped 10.29% to 20.61.

In the broader market, the S&P BSE Mid-Cap index jumped 2.68% while the S&P BSE Small-Cap index rose 1.97%.

The market breadth was strong. On the BSE, 2,056 shares rose and 1,316 shares fell. A total of 92 shares were unchanged.

Economy:

India`s retail inflation jumped to 6.01% in January 2022 compared to 5.56% in December 2021. As per the Ministry of Statistics and Programme Implementation data, rate based on the Consumer Price Index (CPI) Inflation in food and beverages rose to 5.58% compared to 4.5% in December. However, on a month-on-month basis, retail inflation fell by 0.3%.

The inflation print for January 2022 is along expected lines, with Reserve Bank of India (RBI) Governor Shaktikanta Das saying earlier that it was likely to come in around the 6% mark.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.679% as compared with 6.667% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 75.32, compared with its close of 75.60 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement fell 0.88% to Rs 49,475.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.35% to 96.04.

In the commodities market, Brent crude for April 2022 settlement fell sharply by $2.45 to $94.03 a barrel.

Global Markets:

The Dow Jones index futures were up 354 points, indicating a strong opening in the US stocks today.

European stocks rallied across the board while Asian stocks ended mixed on Tuesday as global investors continued to monitor the geopolitical situation in Ukraine.

Japan`s economy expanded 5.4% on an annualized basis in the final quarter of 2021, according to government data released on Tuesday.

The media reported that over 10,000 Russian troops have been returning to their permanent bases after month-long drills near Ukraine. The drills were held in several regions near Ukraine, including in Crimea, which Russia annexed in 2014, as well as in the southern Russian regions of Rostov and Kuban. Russia`s deployment of tens of thousands of troops to the north, east and south of Ukraine had fuelled fears in Kyiv and Western capitals that Moscow was planning an attack.

Russian President Vladimir Putin and German Chancellor Olaf Scholz will hold talks in Moscow today as diplomatic efforts ramp up amid fears that Russia could invade Ukraine in the coming days, a claim the Kremlin has repeatedly denied.

The United States on Monday ordered the closure of its embassy in Kyiv and ordered the relocation of staff to the western Ukrainian city of Lviv, citing the "dramatic acceleration in the buildup of Russian forces" at Ukraine`s border.

Buzzing Segment:

The Nifty Auto index jumped 4.01% to 11,552.30. The index fell 4.91% in the past three sessions.

Tata Motors (up 6.69%), Hero Motocorp (up 4.78%), Tube Investments of India (up 4.65%), Ashok Leyland (up 3.59%), M&M (up 3.51%), TVS Motor Company (up 3.48%), Bajaj Auto (up 3.05%), Maruti Suzuki India (up 2.91%), Amara Raja Batteries (up 2.64%), Bharat Forge (up 2.55%), Exide Industries (up 2.30%), Balkrishna Industries (up 2.02%), Bosch (up 1.64%) and MRF (up 1.17%) surged.

Eicher Motors jumped 5.87%. The firm recorded 14% fall in consolidated net profit to Rs 456 crore despite a 1.9% rise in total revenues to Rs 2,881 crore in Q3 FY22 over Q3 FY21. EBITDA was at Rs 582 crore as compared to Rs 672 crore in the same quarter of the previous financial year, down 13% Y-o-Y. Royal Enfield sold 1,67,664 motorcycles during the quarter, a decline of 15.6% from 1,98,557 motorcycles sold over the same period in FY2020-21.

Stocks in Spotlight:

Vedanta rose 2.85% after the company announced signing a memorandum of understanding (MOU) with Taiwan-based Foxconn to form a joint venture company that will manufacture semiconductors in India. According to the MOU signed between the two companies, Vedanta will hold the majority of the equity in the JV, while Foxconn will be the minority shareholder.

Spicejet soared 8.02%. The airline company reported a standalone net profit of Rs 23.28 crore in Q3 FY22 as against a net loss of Rs 56.95 crore in Q3 FY21. Total revenue from operations increased by 34% YoY to Rs 2,259.29 crore during the quarter. Air Transport Service revenue was Rs 1681.40 crore (up 22% YoY) while that from Freighter & Logistics service was Rs 583.76 crore (up 89% YoY) in Q3 FY22. Capacity (in terms of Seat Kilometres) increased by 78% as compared to the previous quarter.

Godrej Consumer Products advanced 1.64%. The company said it has divested its entire stake in Bhabani Blunt Hair Dressing (Bblunt) to Honasa Consumer for Rs 84.5 crore. Honasa Consumer (HCPL), the parent company of direct to consumer brand, Mamaearth, has acquired Bblunt, a hair care, hair colour and styling products brand from Godrej Consumer Products (GCPL), along with Bblunt salons operated by Bhabani Blunt Hair Dressing. Godrej Consumer Products will receive a total of Rs 84.5 crore from the divestment business.

Coal India rose 1.24%. The state-run coal major`s consolidated net profit jumped 47.74% to Rs 4,558.39 crore on 19.73% increase in sales to Rs 25,990.97 crore in Q3 December 2021 over Q3 December 2020. Profit before tax jumped 32.90% to Rs 6,302.20 crore in Q3 December 2021 as against Rs 4,742.20 crore in Q3 December 2020. Total expenses rose 16.27% year-on-year (Y-o-Y) to Rs 22,780.95 crore in Q3 December 2021. Cost of raw material consumed increased 25.55% to Rs 2389.29 crore. Consolidated coal production (raw coal) rose 4.49% to 163.82 million tonnes (MT) in Q3 FY22 as against 156.78 million tonnes (MT) in Q3 FY21. Offtake (raw coal) jumped 12.50% to 173.77 MT in Q3 FY22 as against 154.46 MT in Q3 FY21.

Reliance Industries (RIL) rallied 3.36%. The company said that Jio Platforms will invest $200 million in Glance, an AI-driven lock-screen platform. The transaction is subject to the satisfaction of customary closing conditions and regulatory approvals. Jio Platforms (Jio), a subsidiary of Reliance Industries, has built an all-IP data strong future proof network with latest 4G LTE technology (through its wholly owned subsidiary, Reliance Jio Infocomm). The proposed investment by Jio is aimed at accelerating Glance`s launch in several key international markets outside of Asia such as the USA, Brazil, Mexico and Russia. The company is aiming to create the world`s largest live content and commerce ecosystem on the lock screen and will use the funds raised to expand globally.

One 97 Communications (Paytm) slipped 1.42%. The company said that it had disbursed 1.9 million loans through its platform in January 2022, up 331% Y-o-Y (year-on-year). The value of the loans disbursed was Rs 921 crore, an increase of 334% Y-o-Y. Gross Merchandise Value (GMV) processed through the Paytm platform during January 2022 aggregated to approximately Rs 83,481 crore, up 105% Y-o-Y.

Balkrishna Industries gained 2.17%. The company reported 2% rise in net profit to Rs 329 crore on a 39% increase in total income to Rs 2,079 crore in Q3 FY22 over Q3 FY21. Raw Material costs zoomed 58% to Rs 1,015 crore in Q3 FY22 from Rs 642 crore in Q3 FY21. EBITDA in Q3 FY22 was Rs 507 crore, up 6% Y-o-Y. EBITDA margin was 24.4% in Q3 FY22 as against 31.9% in Q3 FY21. "EBITDA margin was impacted on account of higher Raw Material costs, increased power and fuel costs and marketing spends,� the company said in a statement.

Anant Raj hit an upper circuit of 10% at Rs 73.55. The company`s net profit rose 59.51% to Rs 11.82 crore on 34.01% rise in net sales to Rs 97.37 crore in Q3 December 2021 over Q3 December 2020. On a consolidated basis, profit before tax (PBT) spurted 682.35% year-on-year to Rs 18.62 crore in Q3 December 2021. Total expenses rose 12% year-on-year to Rs 84.84 crore in Q3 December 2021. Cost of sales increased 18.87% to Rs 65.90 crore.

Vishnu Chemicals hit an upper circuit limit of 5% at Rs 1168.65 after the company`s consolidated net profit surged 566.94% to Rs 24.61 crore on 126.69% increase in net sales to Rs 297.19 crore in Q3 December 2021 over Q3 December 2020. Profit before tax (PBT) spurted 674.37% year-on-year to Rs 33.84 crore in Q3 December 2021. EBITDA surged 198% to Rs 46 crore in Q3 December 2021.

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