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Sensex rises 850 pts ahead of Union Budget announcement

Published on Feb 01, 2022 10:29

Key indices traded with strong gains in morning trade ahead of the Union Budget 2022. The Nifty scaled 17,550 level and edged higher. All sectoral indices on the NSE traded in the green.

At 10:24 IST, the barometer index, the S&P BSE Sensex, jumped 850.57 points or 1.47% at 58,864.27. The Nifty 50 index advanced 239.35 points or 1.38% at 17,579.90.

In the broader market, the S&P BSE Mid-Cap index rose 0.77% while the S&P BSE Small-Cap index gained 0.85%.

The market breadth was strong. On the BSE, 1,988 shares rose and 1106 shares fell. A total of 113 shares were unchanged.

Union Budget 2022:

Finance Minister Nirmala Sitharaman will present the Union Budget for the Financial Year 2022-23 in the Lok Sabha at 11:00 am today. The copy of the Budget will be laid on the Table of the Rajya Sabha soon thereafter.

This is the fourth budget to be presented by Finance Minister Nirmala Sitharaman in Parliament. For the Budget-2022-23, the FM had held several pre-budget consultation meetings with stakeholder groups including economists, agriculture and agro processing industry, trade union and labour organizations, financial sector and capital markets, industry, services and trade, social sector, infrastructure and climate change sector. Sitharaman had also held pre-budget consultation with finance ministers of states and union territories for the budget.

Nifty Results Today:

Tech Mahindra (up 0.42%) and Adani Ports and Special Economic Zone (up 1.65%) are two Nifty companies that will announce their quarterly results today.

Buzzing Index:

The Nifty Metal index gained 1.41% to 5,550.75, rising for third consecutive trading session. The metal index added 2% in three days.

APL Apollo Tubes (up 1.95%), Jindal Steel & Power (up 1.59%), Hindalco Industries (up 1.26%), Tata Steel (up 1.06%) and Vedanta (up 1.01%) were the top gainers. Among the other gainers were NMDC (up 0.76%), JSW Steel (up 0.72%) and Steel Authority of India (up 0.51%).

January Auto Sales:

Bajaj Auto fell 0.15%. The two-wheeler maker`s total vehicle sales declined 15% to 3,63,443 units in January 2022 over January 2021. Sequentially, total vehicle sales rose 0.27% in January 2022 over December 2021. The company`s total domestic sales declined 12% while total exports fell 16% year-on-year last month. Bajaj Auto`s total two-wheeler sales fell 16% to 3,23,430 units while total commercial vehicles sales fell 1% to 40,013 units in January 2022 over January 2021.

Escorts added 0.5%. The company said its Agri Machinery division sold 5,707 tractors in January 2022 as against 9,021 tractors sold in January 2021, a drop of 36.7% YoY. Domestic tractor sales in January 2022 declined by 40% to 5,103 tractors from 8,510 tractors sold in January 2021. Export tractor sales in January 2022 was at 604 tractors against 511 tractors sold in January 2021, registering a growth of 18.2% on YoY basis. Escorts said that the industry wholesales continue to be impacted in January 2022, due to unseasonal rainfall in certain part of country, high base of last year and inflationary impact on short term demand leading to higher level of channel inventory in certain geographies.

Earnings Impact:

Bharat Petroleum Corporation fell 2.32%. The PSU OMC`s standalone net profit fell 19.47% to Rs 2,462.45 crore on 51.42% increase in net sales to Rs 101,045.25 crore in Q3 FY22 over Q3 FY21. Profit before tax (PBT) declined 21.04% year-on-year to Rs 3,281.65 crore in Q3 FY22 The company`s operating margin (profit before tax, exceptional item and other income/revenue from operations) stood at 2.19% in Q3 FY22 as against 2.87% in Q2 FY22 and 3.54% in Q3 FY21. The Average Gross Refining Margin (GRM) of BPCL during nine months ended 31st December 2021 is $6.78 per barrel (April - December 2020: $2.90 per barrel).

Indian Oil Corporation (IOCL) fell 2.36%. The company`s standalone net profit jumped 19.2% to Rs 5,860.80 crore on a 57% surge in net sales to Rs 1,66,788.16 crore in Q3 December 2021 over Q3 December 2020. Standalone profit before tax stood marginally lower by 4.1% at Rs 7,479.56 crore in Q3 FY22 as against Rs 7,796.16 crore reported in Q3 FY21. Average Gross Refining Margin (GRM) for the period April - December 2021 stood at $8.52 per bbl as against $2.96 per bbl during April - December 2020. The core GRM or the current price GRM for the period April - December 2021 after offsetting inventory loss/ gain comes to $5.40 per bbl. Meanwhile, the board on 31 January 2022 have declared a second interim dividend of Rs 4 per equity share.

Hindustan Petroleum Corporation (HPCL) dropped 4.14% to Rs 301 after the company`s standalone net profit tanked 63.1% to Rs 868.86 crore on a 40.8% surge in net sales to Rs 96,260.20 crore in Q3 FY22 over Q3 FY21. Standalone profit before tax tumbled 63.2% to Rs 1,160.66 crore in Q3 FY22 as against Rs 3,157.87 crore reported in Q3 FY21. Average Gross Refining Margin during the nine months ended as on 31 December 2021 stood at $4.50 per bbl as against $2.35 per bbl during the corresponding nine months of the preceding financial year. The operating profit margin declined to 0.88% in Q3 FY22 from 3.53% in Q3 FY21. Crude throughput rose 6% to 4.24 million metric tonnes (MMT) in Q3 FY22 from 4 MMT in Q3 FY21. It is higher by 67.58% as compared with 2.53 MMT in Q2 FY22.

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