Sensex rises 187 pts, Nifty ends above 17,250; Bajaj twins gain

The domestic equity barometers ended with decent gains after a volatile session on Tuesday. The Nifty closed above the 17,250 mark after hitting the day`s low of 17,043.65 in mid-morning trade. While metals, banks, financials and autos advanced, IT, media, realty and oil & gas stocks declined.

The barometer index, the S&P BSE Sensex, added 187.39 points or 0.33% to 57,808.58. The Nifty 50 index gained 53.15 points or 0.31% to 17,266.75.

Tata Steel (up 3.10%), Bajaj Finance (up 1.74%), Bajaj Finserv (up 1.69) and Reliance Industries (up 1.64%) supported the indices.

In the broader market, the BSE Mid-Cap index declined 0.45% and the BSE Small-Cap index skid 1.40%.

The market breadth was weak. On the BSE, 1095 shares rose and 2238 shares fell. A total of 78 shares were unchanged.

COVID-19 Update:

India added 67,597 new cases in the last 24 hours. The daily positivity rate stood at 5.02%. The country`s active caseload currently stood at 9,94,891.

RBI Meet:

The Reserve Bank of India (RBI)`s rate-setting Monetary Policy Committee (MPC) meeting commenced on 8 February 2022 and the outcome would be announced on 10 February 2022.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.812% as compared with 6.879% 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 74.7450, compared with its close of 74.69 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement rose 0.07% to Rs 48,262.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.19% to 95.58.

In the commodities market, Brent crude for April 2022 settlement fell $2.27 at $90.42 a barrel. The contract fell 58 cents, or 0.62% to settle at $92.69 a barrel in the previous trading session.

Foreign Markets:

Shares in Europe and Asia advanced on Tuesday as investors continue to assess the inflation and central bank policy outlook.

The US Labor Department on Thursday is set to release consumer price index data for January.

New Listing:

Shares of Adani Wilmar settled at Rs 265.20 on the BSE, a premium of 15.30% as against the issue price of Rs 230. The scrip was listed at Rs 221, representing a discount of 3.91% to the initial public offer (IPO) price. The scrip hit a high of Rs 265.20 and a low of Rs 221 during the day. Over 75.10 lakh shares of the company changed hands in the counter. The initial public offer (IPO) of Adani Wilmar was subscribed 17.37 times. The issue opened for bidding on 27 January 2022 and it closed on 31 January 2022. The price band of the IPO was fixed at Rs 218-230.

Buzzing Segment:

The Nifty Pharma index rose 0.47% to 13,444.70. The index fell 1.92% in the past three sessions.

Pfizer (up 2.95%), Cipla (up 1.81%), Divi`s Laboratories (up 1.73%), Biocon (up 0.96%), Cadila Healthcare (up 0.92%), Sun Pharmaceutical Industries (up 0.9%), Strides Pharma Science (up 0.85%), Natco Pharma (up 0.66%), Dr. Reddy`s Laboratories (up 0.11%) and Alembic Pharmaceuticals (up 0.08%) advanced.

Stocks in Spotlight:

Bharti Airtel rose 0.33%. The telecom major reported a 2.8% decline in consolidated net profit to Rs 830 crore in Q3 FY22 from Rs 853.6 crore in Q3 FY21. Total revenues stood at Rs 29,867 crore, up 18.3% YoY on a comparable basis and 12.6% YoY on a reported basis, backed by strong and consistent performance delivery across the portfolio. Average Revenue Per User (ARPU) rose 11.63% year on year to Rs 163 in Q3 FY22 as against Rs 146 in Q3 FY21 on comparable basis.

Escorts rose 1.08%. The company`s consolidated net profit dropped 32.36% to Rs 193.71 crore on a 2.83% decline in revenue from operations to Rs 1,984.28 crore in Q3 December 2021 over Q3 December 2020. Profit before tax (PBT) skid 31.60% to Rs 261.62 crore in Q3 FY22 from Rs 382.49 crore in Q3 FY21.

Wockhardt rose 1.52%. The drug maker said that it has received permission from the Central Drugs Standard Control Organization (CDSCO) to export up to 80 million doses of Sputnik Light and up to 20 million doses of Sputnik V Component I vaccine.

Biocon gained 1.15%. Biocon Pharma, a subsidiary of Biocon, received approval of its ANDA for Posaconazole Delayed-Release tablets from the US FDA. This product is indicated for use in the prevention of certain fungal infections in patients with severely weakened immune systems and is available in 100mg strength.

Hindalco Industries added 0.75%. The company`s wholly owned subsidiary, Novelis Inc, reported net income attributable to its common shareholder of $262 million in the third quarter of fiscal year 2022, compared to $176 million in the prior year period. Net income from continuing operations increased to $259 million compared to $195 million in the prior year period. Excluding special items in both years, third quarter fiscal year 2022 net income from continuing operations increased 15% to $241 million, driven mainly by lower interest expense and unrealized derivative gains in the current year.

Net sales increased 33% to $4.3 billion for the third quarter of fiscal year 2022, compared to $3.2 billion in the prior year period, primarily driven by higher average aluminum prices. Total flat rolled product shipments were 930 kilotonnes in the third quarter of fiscal year 2022, in line with the prior year period shipments of 933 kilotonnes. Shipment growth was constrained by the continued semiconductor chip shortage impacting the automotive industry.

Godrej Consumer Products shed 1.17%. The company`s consolidated net profit rose 5.08% to Rs 527.60 crore on a 8.08% increase in net sales to Rs 3,302.58 crore in Q3 December 2021 over Q3 December 2020. Profit before tax (PBT) fell 2.69% to Rs 624.75 crore in Q3 FY22 from Rs 642.03 crore in Q3 FY21.

Bajaj Electricals fell 1.03%. The company reported 50.9% fall in consolidated net profit to Rs 48 crore on a 12% fall in net sales to Rs 1,320 crore in Q3 FY22 over Q3 FY21.

The board of Bajaj Electricals has approved the demerger of the power transmission and power distribution businesses of the company. "There will be no change in the shareholding pattern of the demerged company," Bajaj Electricals said.

TVS Motor Company advanced 3.02% after the company posted an 8.5% increase in standalone net profit to Rs 288.31 crore on a 5.8% rise in net sales to Rs 5,706.43 crore in Q3 FY22 over Q3 FY21. It posted a 11.15% jump in EBITDA to Rs 568 crore in Q3 FY22 from Rs 511 crore recorded during the third quarter of last year. EBITDA margin for Q3 FY22 stood at 10% as against 9.5% during the corresponding period last year.

Jindal Stainless fell 2.83%. The company`s consolidated net profit surged 159.6% to Rs 441.78 crore on a 58.2% surge in net sales to Rs 5,670.02 crore in Q3 December 2021 over Q3 December 2020.

Goa Carbon hit an upper circuit limit of 20% at Rs 418.20 after the company reported net profit of Rs 16.30 crore in Q3 December 2021, compared with net loss of Rs 1.30 crore in Q3 December 2020. Revenue from operations was at Rs 216.06 crore for the quarter, a surge of 166.05% compared to same period last year.

IPO Update:

The initial public offer (IPO) of Vedant Fashions (Manyavar) received bids for 6,53,32,020 shares as against 2,54,55,388 shares on offer, according to stock exchange data at 16:33 IST on Tuesday (8 February 2022). The issue was subscribed 2.57 times.

The issue opened for bidding on Friday (4 February 2022) and it will close today (8 February 2022). The price band of the IPO is fixed at Rs 824-866 per share. An investor can bid for a minimum of 17 equity shares and in multiples thereof. The IPO of 3,63,64,838 equity shares of Re 1 each comprised of an offer for sale of up to 3,63,64,838 equity shares (including anchor portion of 1,09,09,450 equity shares).

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