Sensex jumps 696 pts, Nifty closes at 17,780 mark; banks rally

Domestic equity indices ended with robust gains on Wednesday, rising for the third straight session. The Nifty managed to close near the 17,800 mark. All the sectoral indices on the NSE ended in the green. Healthcare, banks and financial stocks were in demand.

The barometer index, the S&P BSE Sensex, added 695.76 points or 1.18% to 59,558.33. The Nifty 50 index advanced 203.15 points or 1.16% to 17,780. Both the indices rose about 4% in three straight sessions.

Investors cheered the union budget 2022-23 with its higher capital expenditure and thrust on infra. The government`s focus on boosting manufacturing as well as an underlined emphasis on areas such as startups, modern mobility and clean energy, boosted investors sentiment.

Strength was broad based. The S&P BSE Mid-Cap index added 1.08% while the S&P BSE Small-Cap index rallied 1.54%.

The market breadth was strong. On the BSE, 2299 shares rose and 1062 shares fell. A total of 96 shares were unchanged.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 6.882% compared with 6.828% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.83, compared with its close of 74.82 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement fell 0.32% to Rs 47,810.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.39% to 96.01.

In the commodities market, Brent crude for April 2022 settlement rose 11 cents or 0.12% at $89.27 a barrel.

Global Markets:

Shares in Europe and Asia advanced on Wednesday. Markets in mainland China, Hong Kong, Singapore and South Korea were closed on Wednesday for the Lunar New Year holidays.

In US, the Institute for Supply Management said its manufacturing index came in at 57.6 for January, down 1.2 points from December. The data also showed that prices jumped by 7.9 points to 76.1 month over month.

Buzzing Segment:

The Nifty Bank index rose 2.14% at 39,330.50. The index has risen 4.35% in three sessions.

IndusInd Bank (up 4.96%), IDFC FIRST Bank (up 3.90%), Punjab National Bank (up 3.27%), Kotak Mahindra Bank (up 3.22%), AU Small Finance Bank (up 3.19%), RBL Bank (up 2.66%), Axis Bank (up 2.60%), HDFC Bank (up 2.54%), SBI (up 1.38%), Federal Bank (up 0.95%), ICICI Bank (up 0.67%) and Bandhan Bank (up 0.39%) surged.

Earnings Impact:

Dabur India rose 2.01%. The FMCG major reported 2.3% rise in consolidated net profit to Rs 503.3 crore on a 7.8% increase in revenue from operations to Rs 2,941.8 crore in Q3 FY22 over Q3 F21. EBITDA in Q3 FY22 was Rs 724.2 crore, up by 10.6% from Rs 655.1 crore in Q3 FY21. EBITDA margin stood at 24.6% in Q3 FY22 as against 24% in Q3 FY21.

HDFC rose 7.30% after the company`s standalone net profit rose 11.44% to Rs 3,260.69 crore. The housing finance company`s total income stood at Rs 11792.21 crore in Q3 FY22. Profit before tax rose 7.88% to Rs 4048.18 crore in Q3 FY22 over Q3 FY21. The net interest income (NII) for the quarter ended 31 December 2021 stood at Rs 4,284 crore compared to Rs 4,005 crore in the previous year. The reported Net Interest Margin (NIM) was 3.6%. As at 31 December 2021, the assets under management (AUM) stood at Rs 6,18,917 crore as against Rs 5,52,167 crore in the previous year.

Jubilant Foodworks declined 4.04%. The QSR chain operator reported 9.8% growth in net profit to Rs 1,373 crore as revenue from operations rose by 12.9% to Rs 11,935 crore in Q3 FY22 over Q3 FY21. EBITDA in Q3 FY22 was Rs 3,174 crore, up by 13.9% from Rs 2,786 crore in Q3 FY21. EBITDA margin was 26.6% in Q3 FY22 as against 26.4% in Q3 FY21. Domino`s Like-for-Like (LFL) sales growth stood at 7.5% in Q3 FY22 as compared to a negative 0.2% in Q3 FY21. LFL sales growth refers to the year-over-year growth in sales for non-split restaurants opened before previous financial year. Meanwhile, the board of directors has approved and recommended for approval of shareholders, the sub-division of equity shares from face value of Rs 10 each to face value of Rs 2 each.

Procter & Gamble Hygiene & Health Care fell 0.79%. The FMCG company reported a 15.4% fall in net profit to Rs 212.06 crore in quarter ended December 2021 from Rs 250.62 crore posted in quarter ended December 2020. Net sales increased by 7.3% to Rs 1,092.98 crore in quarter ended December 2021 from Rs 1,018.44 crore recorded in the same period last year. Profit before tax fell nearly 15% to Rs 287.50 crore in quarter ended December 2021 versus quarter ended December 2020.

Laxmi Organic Industries hit an upper circuit limit of 5% at Rs 477.75 after the company`s consolidated net profit surged 81.60% to Rs 82.10 crore on 97.44% increase in net sales to Rs 859.88 crore in Q3 FY22 over Q3 FY21. Profit before tax (PBT) jumped 87.66% year-on-year to Rs 100.36 crore in Q3 FY22. Total expenses jumped 98.34% to Rs 761.53 crore with cost of materials consumed soaring 176.74% to Rs 553.72 crore during the period under review.

Alkyl Amines Chemicals fell 4.58% after the company`s net profit declined 45.70% to Rs 45.88 crore on 16.30% increase in revenue from operations to Rs 376.66 crore in Q3 FY22 over Q3 FY21. Profit before tax fell 46.24% to Rs 62.26 crore in Q3 FY22 over Q3 FY21. EBITDA fell 46% year-on-year to Rs 66.6 crore in Q3 FY22. EBITDA margin stood at 17.7% in Q3 FY22, lower than 21.6% in Q2 FY22 and 38% in Q3 FY21.

VIP Industries surged 12.48% after the company posted a consolidated net profit of Rs 33.47 crore in Q3 FY22 as compared to a net loss of Rs 7 crore reported in Q3 FY21. Net sales jumped 70.9% to Rs 397.34 crore in Q3 FY22 from Rs 232.53 crore posted in Q3 FY21. The company posted a pre tax profit of Rs 43.71 crore in Q3 FY22 as against a pre tax loss of Rs 8 crore registered in Q3 FY21.

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