Nifty nears 17,350; IT stocks rally

Benchmark indices traded with strong gains in morning trade, tracking positive Asian stocks. The Nifty hovered at 17,350 level. All the sectoral indices on the NSE traded in green.

At 10:27 IST, the barometer index, the S&P BSE Sensex, jumped 810.38 points or 1.42% at 58,010.27. The Nifty 50 index advanced 244.05 points or 1.43% at 17,346.90.

In the broader market, the S&P BSE Mid-Cap index rose 1.47% while the S&P BSE Small-Cap index gained 1.14%.

The market breadth was strong. On the BSE, 2,103 shares rose and 1,151 shares fell. A total of 144 shares were unchanged.

Economy:

The Budget Session of Parliament begins today (31 January 2022). Economic Survey 2021-22 will also be tabled today. Finance Minister, Nirmala Sitharaman, will present the Union Budget for the year 2022-2023 tomorrow (1 February 2022) in the Lok Sabha and its copy will be laid on the Table of the Rajya Sabha soon thereafter. This year it will be a paperless budget and the Session will be held amidst Covid protocol.

With a view to ensure Covid safety protocol, both the Houses of Parliament will function in shifts from Wednesday (2 February 2022). The Rajya Sabha proceedings will be held from 10 AM to 3 PM and Lok Sabha from 4 PM to 9 PM. The first part of the Budget Session will continue till 11th of February and it will have 10 sittings. This time in the Rajya Sabha, the Zero Hour, which usually runs for one hour, has been reduced to 30 minutes. After a month-long recess, the second part of the session will begin from 14th of March and conclude on 8th of April this year in which there will be 19 sittings.

Results Today:

Tata Motors (up 0.64%), BPCL (up 2.19%), Indian Oil Corporation (up 1.21%), UPL (up 2.09%) and Sun Pharmaceutical Industries (up 1.71%) are Nifty companies that will announce their quarterly results today.

Hindustan Petroleum Corporation, DLF, Aarti Drugs, Ajanta Pharma, LT Foods, Edelweiss Financial Services, Exide Industries, GIC Housing Finance, Hester Biosciences, Infibeam Avenues, KEC International, KPIT Technologies, Krsnaa Diagnostics, Navin Fluorine International, Satin Creditcare Network, Shipping Corporation of India, Suven Life Sciences and UCO Bank will also announce their quarterly earnings today.

New Listing:

Shares of AGS Transact Technologies were currently trading at Rs 173.40 on the BSE, at a discount of 0.91% as compared to the issue price of Rs 175. The scrip was listed at Rs 176, representing a premium of 0.57% to the initial public offer (IPO) price. So far, the scrip has hit a high of Rs 181.85 and a low of Rs 168.05. Over 5.09 lakh shares of the company have changed hands in the counter till now. The initial public offer (IPO) of AGS Transact Technologies received bids for 22,34,74,265 shares as against 2,86,74,696 shares on offer, according to stock exchange data. The issue was subscribed 7.79 times.

The issue opened for bidding on 19 January 2022 and closed on 21 January 2022.

Buzzing Index:

The Nifty IT index added 2.81% to 34,804, rising for second trading session. The IT index rallied nearly 4% in two days.

Mindtree (up 6.54%), Tech Mahindra (up 4.75%), L&T Technology Services (up 3.74%), L&T Infotech (up 3.49%), Wipro (up 3.47%), Infosys (up 3.01%) and HCL Technologies (up 2.84%) were top gainers in IT space.

Earnings Impact:

Blue Dart Express rose 2.95% to Rs 6928.70 after the company`s consolidated net profit rose 29.48% to Rs 123.42 crore on 20.98% rise in net sales to Rs 1254.75 crore in Q3 FY22 over Q3 FY21. Profit before tax (PBT) rose 43% to Rs 165.38 crore in Q3 FY22 over Q3 FY21. EBITDA rose 8.3% year-on-year to Rs 288 crore in Q3 FY22. EBITDA margin stood at 22.7% in Q3 FY22 as against 25.5% in Q3 FY21. The company`s board has declared interim dividend of Rs 25 per share for the financial year ended 2021-22.

Multi Commodity Exchange of India (MCX) fell 1.33% after the company reported a 52% fall in consolidated net profit to Rs 4.46 crore on a 17% decline in total income to Rs 104.06 crore in Q3 FY22 over Q3 FY21. EBITDA in the third quarter was Rs 52.78 crore, down by 28% from Rs 73.45 crore in Q3 FY21. The company made a provision of Rs 11.01 crore for tax during the quarter. It had written back tax provisions amounting to Rs 4.21 crore in the same period last year. The average daily turnover (ADT) in overall commodity futures stood at Rs 24,556 crore in Q3 FY 21-22 vis-�-vis Rs 32,684 crore in the corresponding quarter of FY 20-21. The notional ADT of options increased by 965% to Rs 8,610 crore in Q3 FY21-22 from Rs 808 crore during Q3 FY20-21.

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