Sensex drops 1024 pts, Nifty ends at 17,213.60; HDFC twins drag

The domestic equity barometers ended with deep cuts after a weak session on Tuesday. After hitting the day`s low of 17,119.40 in afternoon trade, the Nifty managed to trim losses and close above the 17,200 mark. Barring the Nifty PSU Bank index, all the sectoral indices on the NSE ended in the red. Private banks and financial shares tumbled.

The barometer index, the S&P BSE Sensex, dropped 1,023.63 points or 1.75% to 57,621.19. The Nifty 50 index fell 302.70 points or 1.73% to 17,213.60.

HDFC Bank (down 3.65%), Bajaj Finance (down 3.15%), Bajaj Finserv (down 2.94%) and HDFC (down 2.93%) were major drags.

Ongoing Russia-Ukraine conflict, fears of an aggressive monetary tightening by the US Federal Reserve and rising crude oil prices spooked investors. Relentless selling by foreign portfolio investors (FPIs) also put pressure on domestic shares.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, jumped 8.14% to 20.44.

In the broader market, the BSE Mid-Cap index declined 1.25% and the BSE Small-Cap index skid 0.75%.

The market breadth was negative. On the BSE, 1,405 shares rose and 2,101 shares fell. A total of 144 shares were unchanged.

COVID-19 Update:

India added 83,876 new cases in the last 24 hours. The daily positivity rate stood at 7.25%. The country`s active caseload currently stands at 11,08,938.

Economy:

The Reserve Bank of India`s (RBI) Monetary Policy Committee (MPC) will meet on 8-10 February 2022 instead of 7-9 February 2022, the central bank said on 6 February 2022. The change in the committee`s meeting schedule comes after 7 February 2022 was declared as a public holiday by the Maharashtra state government following the demise of renowned singer Lata Mangeshkar.

Numbers to Watch:

MCX Gold futures for 5 April 2022 settlement rose 0.29% to Rs 48,061.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.07% to 95.55.

In the commodities market, Brent crude for April 2022 settlement fell 71 cents at $92.56 a barrel. The contract rose $2.16, or 2.37% to settle at $93.27 a barrel in the previous trading session.

Foreign Markets:

The Dow Jones index futures were down 111 points, indicating a weak opening in the US stocks.

Shares in Europe and Asia were mixed on Monday as investors continued to consider last week`s jobs data from the U.S. and central bank decisions in Europe.

Last week, investors in the region digested the latest decision from the European Central Bank, which kept interest rates unchanged in spite of record inflation levels across the euro zone. The Bank of England, meanwhile, raised the country`s benchmark bank rate from 0.25% to 0.5% last week in order to curb rampant inflation.

Stunningly strong US jobs data soothed concerns about the global economy but also added to the risk of an aggressive tightening by the Federal Reserve.

US employers added a burst of 467,000 jobs in January despite a wave of omicron inflections that sickened millions of workers, kept many consumers at home and left businesses from restaurants to manufacturers short-staffed. The Labor Department`s report on Friday also showed the unemployment rate ticked up from 3.9% to 4%. Estimated job growth for December was also revised much higher, from 199,000 to 510,000.

Investors continued to monitor the situation around Ukraine, with White House national security adviser Jake Sullivan reportedly warning Sunday that a Russian invasion could be imminent.

Stocks in Spotlight

State Bank of India (SBI) gained 0.57%. The banking major reported 62.27% rise in net profit to Rs 8,432 crore on 4.41% rise in interest income to Rs 69,678 crore in Q3 FY22 over Q3 F21. Provision and contingencies contracted by 32.6% to Rs 6,973 crore in Q3 FY22 over Q3 FY21. Provision Coverage Ratio (PCR) at the end of Q3 FY22 stood at 88.32%.

Tata Steel advanced 0.57% after the company`s consolidated net profit soared 139.3% to Rs 9,598.16 crore on a 45.9% jump in net sales to Rs 60,524.72 crore in Q3 December 2021 over Q3 December 2020. Consolidated profit before tax (PBT) grew 117.5% to Rs 12,165.58 crore in Q3 FY22 from Rs 5,593.19 crore in Q3 FY21.

Shree Cement rose 0.57%. The cement major reported a 23.6% fall in consolidated net profit to Rs 482.70 crore in Q3 FY22 from Rs 631.58 crore posted in Q3 FY21. Consolidated net sales grew 2.2% to Rs 3,637.11 crore in Q3 FY22 over Q3 FY21.

Bank of Baroda jumped 5.86% after the state-run bank`s net profit rose 107.05% to Rs 2,197.03 crore on 0.37% increase in total income to Rs 20,482.26 crore in Q3 December 2021 over Q3 December 2020. Net Interest Income (NII) increased to Rs 8,552 crore in Q3FY22 as against Rs 7,477 crore in Q3FY21, registering a growth 14.38% YoY. Global NIM increased to 3.13% in Q3FY22 from 2.77% in Q3FY21.

One 97 Communications (Paytm) added 0.44%. Paytm reported a consolidated net loss of Rs 778.50 crore in Q3 December 2021, higher than net loss of Rs 535.50 crore in Q3 December 2020. Consolidated net sales jumped 88.6% to Rs 1,456.10 crore in Q3 December 2021 over Rs 772 crore in Q3 December 2020.

InterGlobe Aviation (IndiGo) jumped 9.91% after the low-cost air carrier reported consolidated net profit of Rs 129.79 crore in Q3 December 2021, compared with net loss of Rs 620.14 crore in Q3 December 2020. Revenue from operations was at Rs 9294.8 crore for the quarter, an increase of 89.3% against a 50.3% increase in capacity compared to same period last year.

Affle (India) advanced 2.69% after the company`s consolidated net profit surged 102.58% to Rs 62.07 crore on 125.53% increase in net revenue from operations to Rs 339.40 crore in Q3 FY22 over Q3 FY21. EBITDA was at Rs 67.7 crore, an increase of 76.4% y-o-y and up by 29.9% q-o-q.

Jyoti Resins and Adhesives hit an upper circuit limit of 20% at Rs 1414.35 after the company`s net profit rose 25.38% to Rs 4.89 crore on 51.74% rise in net sales to Rs 48.86 crore in Q3 December 2021 over Q3 December 2020.

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) surged 12.84% after the company`s consolidated net profit surged 122.92% to Rs 540.78 crore on 57.82% increase in net sales to Rs 2,380.33 crore in Q3 FY22 over Q3 FY21.

CreditAccess Grameen jumped 11.19% after the company reported a standalone net profit of Rs 129.2 crore in Q3 FY22 as against a net loss of Rs 71.6 crore in Q3 FY21. Net Interest Income increased by 40.4% YoY to Rs 349.4 crore during the quarter.

Lakshmi Machine Works gained 3.40%. The company reported a 93.5% jump in consolidated net profit to Rs 64.37 crore in Q3 FY22 from Rs 33.26 crore posted in Q3 FY21. Consolidated net sales grew by 90.5% to Rs 911.7 crore in Q3 FY22 from Rs 478.56 crore posted in the same quarter last year.

CMS Info Systems gained 2.05% after the company reported a 48% increase in consolidated net profit to Rs 60.24 crore in Q3 FY22 from Rs 40.7 crore posted in Q3 FY21. Consolidated net sales grew by 21.4% to Rs 403.65 crore in Q3 FY22.

Primary Market:

The initial public offer (IPO) of Vedant Fashions (Manyavar) received bids for 52,32,872 shares as against 2,54,55,388 shares on offer, according to stock exchange data at 16:54 IST on Monday (7 February 2022). The issue was subscribed 21%.

The issue opened for bidding on 4 January 2022 and it will close on 8 February 2022. The price band of the IPO is fixed at Rs 824-866. An investor can bid for a minimum of 17 equity shares and in multiples thereof.

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