Market slumps on Ukraine crisis; breadth weak

The benchmark indices suffered substantial losses in early trade on selling pressure in index pivotals. Global equities skid as tensions rise over Russia`s military buildup near Ukraine. Oil prices on Monday hit their highest in more than seven years on fears that a possible invasion of Ukraine by Russia.

At 9:30 IST, the barometer index, the S&P BSE Sensex, slumped 1,218.56 points or 2.10% at 56,934.36. The Nifty 50 index dropped 363.45 points or 2.09% at 17,011.30.

In the broader market, the S&P BSE Mid-Cap index fell 2.36% while the S&P BSE Small-Cap index skid 2.81%.

The market breadth was weak. On the BSE, 433 shares rose and 2,506 shares fell. A total of 84 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 6,266.75 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,881.32 crore in the Indian equity market on 27 January 2022, provisional data showed.

On the macro front, Industrial output slumped to a 10-month low of 0.4% in December 2021, dragged down by manufacturing, capital goods and consumer durables output along with an unfavourable base, according to data released on Friday by the National Statistical Office (NSO). The IIP had registered a growth of 1.3% a month ago and 2.2% in December 2020.

Meanwhile, the Union government on 13 February 2022 has filed the draft red herring prospectus (DRHP) of state-owned Life Insurance Corporation of India (LIC) with market regulator SEBI to launch the much-awaited IPO before the end of March.

Stocks in Spotlight:

ONGC advanced 2.05%. The state-run oil major`s consolidated net profit surged 334.12% to Rs 10,931.61 crore on 45.27% rise in net sales to Rs 145,685.58 crore in Q3 December 2021 over Q3 December 2020.

Dr. Reddy`s Laboratories skid 3.36%. The pharma major announced that it has entered into an exclusive sales and distribution agreement with Novartis India (NIL) for the Voveran range, the Calcium range and Methergine in India.

Glenmark Pharmaceuticals slipped 1.04%. The company`s consolidated net profit fell 3.4% to Rs 239.75 crore on a 13.9% rise in net sales to Rs 3,141.47 crore in Q3 December 2021 over Q3 December 2020.

Voltas fell 2.98%. The company`s consolidated net profit dropped 24.9% to Rs 96.56 crore on a 10.1% fall in net sales to Rs 1,772.06 crore in Q3 FY22 over Q3 FY21.

Sequent Scientific rallied 3.63%. The company`s consolidated net profit dropped 51.1% to Rs 18.56 crore on a 0.8% increase in net sales to Rs 358.05 crore in Q3 FY22 over Q3 FY21.

Anupam Rasayan India dropped 4%. The company posted a 75.1% jump in consolidated net profit to Rs 37.9 crore in Q3 FY22 from Rs 21.65 crore registered in Q3 FY21. Net sales grew 44.6% to Rs 266.1 crore in Q3 FY22 over Q3 FY21.

Global Markets:

Overseas, most Asian stocks are trading lower on Monday on tensions between Russia and Ukraine. Some airlines have reportedly canceled or diverted flights to Ukraine amid heightened fears that an invasion by Russia is imminent despite intensive weekend talks between the Kremlin and the West.

US stocks slid on Friday as increased tensions between Ukraine and Russia led investors to dump risky assets like equities.

In economic data, the University of Michigan`s preliminary February gauge of consumer sentiment fell to 61.7, from January`s level of 67.2, the lowest reading since October of 2011.

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