Sensex soars 814 pts, Nifty ends at 17,339.25; Tech Mahindra jumps 4.8%

Benchmark indices ended with strong gains on Monday, tracking positive global cues. The Nifty closed below the 17,350 level after hitting the day`s high of 17,410 in intraday trade. All the sectoral indices on the NSE ended in the green. IT, PSU banks, and realty shares were in demand.

The S&P BSE Sensex, surged 813.94 points or 1.42% at 58,014.11. The Nifty 50 index soared 237.9 points or 1.39% at 17,339.25.

Tech Mahindra (up 4.88%), Infosys (up 3.05%), Reliance Industries (up 2.18%) and HDFC Bank (up 1.52%) boosted the indices.

Buying was wide spread. The S&P BSE Mid-Cap index rose 1.76% while the S&P BSE Small-Cap index added 0.99%.

Buyers outnumbered sellers. On the BSE, 1,861 shares rose and 1,674 shares fell. A total of 151 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, jumped 6.07% at 21.9525.

Economy:

Finance Minister Nirmala Sitharaman tabled the Economic Survey 2021-22 in the Lok Sabha today. Sitharaman will present the Union Budget for the year 2022-2023 tomorrow (1 February 2022) in the Lok Sabha and its copy will be laid on the Table of the Rajya Sabha soon thereafter. This year it will be a paperless budget and the Session will be held amidst Covid protocol.

The Economic Survey 2021-22 states that the year ahead is well poised for a pick-up in private sector investment with the financial system in a good position to provide support to the revival of economy. India will witness GDP growth of 8% to 8.5% in 2022-23, supported by widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth, and availability of fiscal space to ramp up capital spending.

The growth projection for 2022-23 is based on the assumption that there will be no further debilitating pandemic related economic disruption, monsoon will be normal, withdrawal of global liquidity by major central banks will be broadly orderly.

Referring to First Advance Estimates, the Survey states that the Indian economy is estimated to grow by 9.2% in real terms in 2021-22, after a contraction of 7.3% in 2020-21.

Dwelling on the sectoral aspects, the Survey states that Agriculture and allied sectors have been the least impacted by the pandemic and the sector is expected to grow by 3.9% in 2021-22 after growing by 3.6% in the previous year. In the current year, food grains production for the Kharif season is estimated to post a record level of 150.5 million tonnes.

According to Survey, the industrial sector went through a sharp rebound from a contraction of 7% in 2020-21 to an expansion of 11.8% in this financial year.

The Survey said that the services sector has been the hardest hit by the pandemic, especially segments that involve human contact. This sector is estimated to grow by 8.2% this financial year following last year`s 8.4% contraction.

The Survey added that total consumption is estimated to have grown by 7% in 2021-22 with government consumption remaining the biggest contributor as in the previous year.

In conclusion, the Survey is quite optimistic that overall macro-economic stability indicators suggest that the Indian Economy is well placed to take on the challenges of 2022-23 and one of the reasons that the country`s Economy is in good position is its unique response strategy.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.686% as compared with 6.768% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 74.65, compared with its close of 75.07 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement fell 0.07% to Rs 47,580.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.24% to 97.04.

In the commodities market, Brent crude for March 2022 settlement rose 83 cents or 0.94% at $89.35 a barrel.

Global Markets:

Shares in Europe and Asia advanced on Monday. Official data released Sunday showed Chinese factory activity growth slowing in January. The country`s official manufacturing Purchasing Managers` Index for January was at 50.1, just above the 50 level that separates growth from contraction. January`s reading compared against December`s figure of 50.3.

Meanwhile, a private survey released over the weekend showed Chinese manufacturing activity contracting in January. The Caixin/Markit manufacturing PMI came in at 49.1 for the month.

Buzzing Segment:

The Nifty Realty index jumped 3.14% to 480.25. The index has risen 3.93% in two sessions.

Brigade Enterprises (up 7.03%), Godrej Properties (up 5.20%), Phoenix Mills (up 4.36%), DLF (up 3.58%), Oberoi Realty (up 2.18%), Prestige Estates Projects (up 1.74%), Sobha (up 1.71%), Macrotech Developers (up 1.09%), Indiabulls Real Estate (up 0.45%) and Sunteck Realty (up 0.39%) advanced.

Stocks in Spotlight:

Tata Motors jumped 4.04%. On a consolidated basis, the auto major reported net loss of Rs 1,516.14 crore in Q3 December 2021 as against net profit of Rs 2906.45 crore in Q3 December 2020. Total revenue from oeprations fell 4.53% to Rs 72,229.29 crore in Q3 December 2021 over Q3 December 2020. Pre-tax loss stood at Rs 612.12 crore in Q3 December 2021 compared with pre-tax profit of Rs 4,167.39 crore in Q3 December 2020.

NMDC rose 0.51%. The state-owned mining company on Monday increased prices of lump ore by Rs 300 a tonne and fines Rs 200 per tonne, with immediate effect. NMDC fixed prices for lump iron ore (65.5%, 6-40mm) at Rs 5200 per ton and iron fines (64% - 10mm) at Rs 4,260 per ton with effect from 31 January 2022.

Sun Pharmaceutical Industries rose 0.83%. The drug company`s consolidated net profit grew 11.13% to Rs 2,058.80 crore on a 11.61% rise in total revenue from operations to Rs 9,863.06 crore in Q3 FY22 over Q3 FY21. Consolidated profit before tax (PBT) jumped 14.01% to Rs 2,466.19 crore in Q3 FY22 from Rs 2,163.05 crore in Q3 FY21. India formulation sales stood at Rs 3,167.60 crore, rising 15% over same quarter last year. The US formulation sales was at $397 million, recording a growth of 6% over Q3 last year. The emerging markets formulation sales stood at $239 million, growing 17% over Q3 last year. The rest of world formulation sales was at $181 million, rising 3% over same quarter last year. The R&D investments stood at Rs 547.10 crore as compared to Rs 559.50 crore for Q3 FY21. The EBITDA was at Rs 2,557.40 crore, up 8% over Q3 last year, with an EBITDA margin at 26.1%.

NTPC rose 1.32%. The PSU power major reported 24.63% increase in standalone net profit to Rs 4131.99 crore on 17.77% rise in net sales to Rs 28864.79 crore in Q3 December 2022 over Q3 December 2021. Profit before tax rose 51.87% to Rs 5409.01 crore in Q3 FY22 over Q3 FY21. Total expenses rose 12.54% year-on-year to Rs 24428.12 in Q3 FY22. Total fuel cost climbed 23.17% to Rs 15631.96 crore in Q3 FY22 over Q3 FY21.

UPL fell 1.08%. The company`s consolidated net profit soared 24.89% to Rs 1,179 crore on a 23.78% increase in revenue from operations to Rs 11,297 crore in Q3 FY22 over Q3 FY21. EBITDA grew 21% to Rs 2,666 crore in Q3 FY22 over Rs 2,209 crore in Q3 FY21. The rise in EBITDA was on the back of house manufacturing with backward integration linkages supported by effective raw material sourcing and overall cost management. EBITDA margin fell 61 bps to 23.6% in Q3 FY22 as against 24.2% in Q3 FY21.

IndusInd Bank fell 3.51%. The private sector bank`s net profit increased by 36.18% to Rs 1161.27 crore in Q3 FY22 from Rs 852.76 crore in Q3 FY21. The bank`s total income in the third quarter ended December 2021 rose by 7.4% YoY to Rs 9614.27 crore. The bank`s operating profit before provisions and contingencies for the quarter increased by 7.8% year on year to Rs 3205.07 crore. Standalone profit before tax stood at Rs 1551 crore in Q3 FY22, 38.5% higher than Rs 1,119.76 crore.

Britannia Industries added 0.98%. The FMCG company`s consolidated net profit skid 18.4% to Rs 369.18 crore on a 13.7% increase in net sales to Rs 3,530.70 crore in Q3 FY22 over Q3 FY21. Consolidated profit before tax (PBT) dropped 17.7% to Rs 505.40 crore in Q3 FY22 from Rs 613.73 crore in Q3 FY21.

Tata Coffee rose 1.46% after the company`s consolidated net profit jumped 38.4% to Rs 69.46 crore, driven by improved operating performance in the value-added businesses. Net sales grew by 17.5% to Rs 626.07 crore in Q3 FY22 over Q3 FY21. Consolidated profit before tax (PBT) surged 34.9% to Rs 91.72 crore in Q3 FY22 from Rs 67.98 crore in Q3 FY21.

Bajaj Healthcare declined 1.77%. The company`s standalone net profit dropped 34% to Rs 17.45 crore on a 6% decline in net sales to Rs 167.57 crore in Q3 FY22 over Q3 FY21. Revenues from operations slipped on account of a drop in the sales volume of ascorbic acid (Vitamin C) & CH base.

Blue Dart Express rose 2.91% after the company`s consolidated net profit rose 29.48% to Rs 123.42 crore on 20.98% rise in net sales to Rs 1254.75 crore in Q3 FY22 over Q3 FY21. Profit before tax (PBT) rose 43% to Rs 165.38 crore in Q3 FY22 over Q3 FY21. EBITDA rose 8.3% year-on-year to Rs 288 crore in Q3 FY22. EBITDA margin stood at 22.7% in Q3 FY22 as against 25.5% in Q3 FY21. The company`s board has declared interim dividend of Rs 25 per share for the financial year ended 2021-22.

Multi Commodity Exchange of India (MCX) fell 1.41% after the company reported a 52% fall in consolidated net profit to Rs 4.46 crore on a 17% decline in total income to Rs 104.06 crore in Q3 FY22 over Q3 FY21. EBITDA in the third quarter was Rs 52.78 crore, down by 28% from Rs 73.45 crore in Q3 FY21. The company made a provision of Rs 11.01 crore for tax during the quarter. It had written back tax provisions amounting to Rs 4.21 crore in the same period last year. The average daily turnover (ADT) in overall commodity futures stood at Rs 24,556 crore in Q3 FY 21-22 vis-�-vis Rs 32,684 crore in the corresponding quarter of FY 20-21. The notional ADT of options increased by 965% to Rs 8,610 crore in Q3 FY21-22 from Rs 808 crore during Q3 FY20-21.

Arihant Capital Markets jumped 4.40% after the company`s consolidated net profit rose 46.53% to Rs 13.10 crore on 68.17% increase in net sales to Rs 48.23 crore in Q3 December 2021 over Q3 December 2020.

Amber Enterprises India surged 13.32% after the company`s consolidated net profit rose 19.27% to Rs 32.12 crore on 27.41% increase in net sales to Rs 974.29 crore in Q3 December 2021 over Q3 December 2020. Profit before tax (PBT) rose 7.45% to Rs 42.84 crore in Q3 December 2021 over Q3 December 2020. Operating EBIDTA increased 19% to Rs 74 crore during the period under review. Operating EBIDTA stood at 7.6% in Q3 December 2021 as against 8.2% in Q3 December 2020.

New Listing:

Shares of AGS Transact Technologies settled at Rs 161.30 on the BSE, at a discount of 7.83% as compared to the issue price of Rs 175. The scrip was listed at Rs 176, a premium of 0.57% to the initial public offer (IPO) price. The scrip has hit a high of Rs 181.85 and a low of Rs 153.80. Over 11.63 lakh shares of the company changed hands in the counter.

The IPO of AGS Transact Technologies received bids for 22,34,74,265 shares as against 2,86,74,696 shares on offer, according to stock exchange data. The issue was subscribed 7.79 times. The issue opened for bidding on 19 January 2022 and closed on 21 January 2022. The price band of the IPO was fixed at Rs 166-175.

Primary Market:

The IPO of Adani Wilmar received bids for 212.82 crore shares as against 12.25 crore shares on offer, according to stock exchange data at 16:45 IST on Monday, (31 January 2022). The issue was subscribed 17.37 times.

The issue opened for bidding on 27 January 2022 and it will close today, 31 January 2022. The price band of the IPO is fixed at Rs 218-230. An investor can bid for a minimum of 65 equity shares and in multiples thereof. The IPO comprises a fresh issue of upto Rs 3,600 crore (including an anchor portion of 4,08,65,217 equity shares).

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