Sensex, Nifty turn range bound; breadth strong

The benchmark indices traded in a range during mid-morning trade. All the sectoral indices on the NSE were in the green. The Nifty continued to hover above 17,300 level.

At 11:30 IST, the barometer index, the S&P BSE Sensex, jumped 660.3 points or 1.15% at 57,937.24. The Nifty 50 index advanced 221.15 points or 1.29% at 17,331.30.

In the broader market, the S&P BSE Mid-Cap index rallied 2.58% while the S&P BSE Small-Cap index rose 2.28%.

The market breadth was strong. On the BSE, 2,451 shares rose and 738 shares fell. A total of 112 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.

The Budget session of Parliament is set to commence on 31 January 2022 and will conclude on 8 April 2022. The government will present the Budget for fiscal 2022-23 on 1 February 2022. The Economic Survey is likely to be tabled on 31 January 2022 after the president`s address.

On the political front, developments in the upcoming assembly polls in Uttar Pradesh, Uttarakhand, Goa, Punjab, and Manipur will be closely watched. Polls in all the five states will be held between 10 February 2022 and 7 March 2022 in seven phases. The counting of votes and the result will be declared on 10 March 2022.

COVID-19 Update:

India reported more than 2.51 lakh (2,51,209) new coronavirus cases and 627 deaths in the last 24 hours, on Friday. With 627 deaths and 3,47,443 recoveries, active cases declined to 21.05 lakh (21,05,611). The daily positivity rate is now at 15.88%.

Buzzing Index:

The Nifty Metal index advanced 2.26% to 5,569.10. The index fell 0.72% in the past trading session.

Jindal Steel & Power (JSPL) (up 4.21%), Hindustan Copper (up 3.36%), National Aluminium Co. (NALCO) (up 3.25%), NMDC (up 2.83%) and Steel Authority of India (SAIL) (up 2.70%) were the top gainers in the Metal segment.

Stocks in Spotlight:

Bharti Airtel advanced 2.06%. The telecom operator on Friday announced that Google will invest $1 billion in the company as part of its India Digitization Fund. Google and Bharti Airtel will partner on a long-term, multi-year agreement to accelerate the growth of India`s digital ecosystem. As part of the partnership, Google will commit to equity investment as well as a corpus for potential commercial agreements, to be identified and agreed on mutually agreeable terms over the course of the next five years.

Google will make an equity investment of $700 million for a 1.28% stake in Bharti Airtel at a price of Rs 734 per share. Meanwhile, $300 million will go towards implementing commercial agreements, which will include investments in scaling Airtel`s offerings that covers a range of devices to consumers via innovative affordability programs as well as other offerings aimed at accelerating access and digital inclusion across India`s digital ecosystem. The deal will be subject to necessary regulatory approvals. Both organizations are committed to working towards building an open technology ecosystem that serves customers and businesses with innovative digital services, and have agreed to jointly explore and invest across a wide spectrum of areas to create digital solutions that uniquely serve India`s requirements.

Route Mobile soared 7.02%. The company`s consolidated net profit rose 22.43% to Rs 46.51 crore on 46.23% increase in net sales to Rs 562.77 crore in Q3 December 2021 over Q3 December 2020. On a consolidated basis, profit before tax jumped 24.77% to Rs 57.92 crore in Q3 December 2021 over Q3 December 2020. Sequentially, Route Mobile`s net profit rose 10.29% and net sales rose 29.2% last quarter. EBITDA stood at Rs 77.2 crore, a Y-o-Y growth of 73.5% and sequential growth of 25.2%. EBITDA margin was at 13.7%, 14.2% and 11.6% in Q3 FY22, Q2 FY22 and Q3 FY21, respectively. EBITDA margin declined sequentially owing to increase in sales & marketing cost and hiring of developers related to Rapid initiative.

Birlasoft rallied 2.90%. The company`s consolidated net profit rose 10.5% to Rs 114 crore on a 6% increase in revenue to Rs 1,071.9 crore in Q3 FY22 over Q2 FY22. As compared Q3 FY21, the company`s net profit and revenue are higher by 18.2% and 21.7%, respectively. EBITDA in the third quarter was Rs 162.8 crore, up 7.2% Q-o-Q and up 12.7% YoY. In dollar terms, the company`s revenue for Q3 FY22 was $143.4 million, up 4.7% Q-o-Q and up 20.1% Y-o-Y. Revenue was up 5% Q-o-Q in constant currency. The company had signed deals of total contract value (TCV) $182 million during the quarter.

Global Markets:

Most Asian stocks advanced on Friday, following a volatile session on Wall Street overnight where investors reacted to comments from the Federal Reserve and U.S. GDP data. The Taiwan market is closed for a holiday on Friday.

US stocks gyrated wildly on Thursday as investors juggled positive economic news with mixed corporate earnings, geopolitical unrest and the prospect of a more hawkish Federal Reserve.

On the macro front, the US economy expanded by 5.7% in 2021. It was the strongest calendar-year growth since a 7.2% surge in 1984 after a previous recession. The economy ended the year by growing at a solid 6.9% annual pace from October through December, the Commerce Department reported Thursday.

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