Sensex tanks 1747 pts; Nifty ends below 16,900 mark; NSE VIX spurts 23%

The benchmark indices ended with substantial losses on Monday. All the sectoral indices on the NSE ended in the red. Banks, metals and realty shares slumped. The sentiment was impacted by weak global cues on account on Russia-Ukraine tensions. Global stocks tumbled after the White House warned of a possible imminent Russian invasion of Ukraine. Crude oil prices spiked to $95 a barrel mark due to the Ukraine crisis.

The S&P BSE Sensex, tanked 1,747.08 points or 3% at 56,405.84. The Nifty 50 index slipped 531.95 points or 3.06% at 16,842.80.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, jumped 23% to 22.98.

In the broader market, the S&P BSE Mid-Cap index skid 3.51% while the S&P BSE Small-Cap index lost 4.15%.

The market breadth was weak. On the BSE, 567 shares rose and 2984 shares fell. A total of 119 shares were unchanged.

Economy:

India`s inflation based on wholesale price index (WPI) stood at 12.96% in January 2022 compared with 2.51% in January 2021.

"The high rate of inflation in January, 2022 is primarily due to rise in prices of mineral oils, crude petroleum & natural gas, basic metals, chemicals and chemical products, food articles etc as compared the corresponding month of the previous year," the Ministry of Commerce & Industry said in a statement today.

WPI grew 13.56% in December 2021, while the figure for November 2021 was 14.87%.

Meanwhile, India`s Industrial output slumped to a 10-month low of 0.4% in December 2021, dragged down by manufacturing, capital goods and consumer durables output along with an unfavourable base, according to data released on Friday by the National Statistical Office (NSO). The IIP had registered a growth of 1.3% a month ago and 2.2% in December 2020.

LIC IPO:

Life Insurance Corporation of India (LIC) has filed its draft share sale prospectus with the capital markets regulator SEBI, paving the way for India`s largest initial public offering (IPO). LIC plans to sell 31.62 crore shares, which is about 5% of its total equity base.

The IPO issue is expected to be the country`s largest public issue and will hit the capital market in March 2022. The IPO is 100% offer for sale by Government of India and there will be no fresh issue of shares by LIC.

LIC has 66% market share in New Business Premiums with 283 million policies and 1.35 million agents as of 31st March last year. As of September 2021, its assets under management (AUM) stood at Rs 39.6 lakh crore. The embedded value of LIC as of 30 September 2021, stood at Rs 5,39,686 crore.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper fell to 6.669% as compared with 6.698% 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 75.57, compared with its close of 75.36 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement rose 1.12% to Rs 49,665.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.21% to 96.28.

In the commodities market, Brent crude for April 2022 settlement rose 5 cents to $94.49 a barrel.

Global Markets:

Shares in Europe and Asia tumbled on Monday as investors continued to track tensions in Ukraine and remarks from U.S. Federal Reserve officials about the interest rate outlook.

Multiple countries have urged their citizens to leave Ukraine amid fears of an imminent Russian invasion, with U.S. President Joe Biden`s national security advisor Jake Sullivan warning on Sunday that the Kremlin has accelerated its extraordinary military buildup along the country`s border over the past 10 days.

Western leaders have threatened severe sanctions against Russia in the event of any incursion into Ukraine, as leaders continue to pursue diplomatic solutions. The Kremlin has denied any intention to invade its neighbor, accusing Washington of stoking "hysteria."

Buzzing Segment:

The Nifty Bank index tumbled 4.18% to 36,908.55. The index has crashed 5.39% in two sessions.

Federal Bank (down 6.99%), Punjab National Bank (down 6.54%), IDFC FIRST Bank (down 6.14%), SBI (down 5.54%), AU Small Finance Bank (down 5.48%), ICICI Bank (down 4.84%), RBL Bank (down 4.83%), Kotak Mahindra Bank (down 4.67%), IndusInd Bank (down 4.59%), Axis Bank (down 3.91%), HDFC Bank (down 3.08%) and Bandhan Bank (down 2.47%) tumbled.

Stocks In Spotlight:

Sequent Scientific spurted 6.09%. The company`s consolidated net profit dropped 51.1% to Rs 18.56 crore on a 0.8% increase in net sales to Rs 358.05 crore in Q3 FY22 over Q3 FY21. Consolidated profit before tax (PBT) tanked 52.3% to Rs 23.61 crore in Q3 FY22 from Rs 49.54 crore in Q3 FY21. EBITDA (post-ESOP) skid 42.81% to Rs 36.20 crore in Q3 FY22 as against Rs 63.30 crore in Q3 FY21. EBITDA margin stood at 10.1% in Q3 December 2021 from 17.8% in Q3 December 2020.

Bharat Dynamics rallied 2.43%. The company`s net profit surged 333.54% to Rs 213.26 crore on 75.13% increase in total revenue from operations sales to Rs 803.90 crore in Q3 December 2021 over Q3 December 2020. Profit before tax (PBT) rose 335.57% to Rs 298.54 crore in Q3 December 2021 over Q3 December 2020. The supply chain disruptions due to COVID pandemic had adversely impacted the production and sales during the last two quarters of this financial year and the preceding financial year. The easing of restrictions in movement of men and material have resulted in improved production and sales in third quarter of current financial year, the company said.

Maithan Alloys rose 7.67% after the company`s consolidated net profit surged 441.23% to Rs 300.11 crore on 107.08% rise in net sales to Rs 923.32 crore in Q3 December 2021 as over Q3 December 2020. Profit before tax (PBT) jumped 451.52% to Rs 394.34 crore in Q3 December 2021 over Q3 December 2020.

UFlex jumped 8.30% after the company`s consolidated net profit rose 95.85% to Rs 313.21 crore on 63.46% rise in net sales to Rs 3387.76 crore in Q3 December 2021 over Q3 December 2020. The consolidated EBITDA stood at Rs 618.70 crore for Q3FY22, up by 48.5% YoY. Profit before tax jumped 63.19% to Rs 397.55 crore.

Reliance Industries (RIL) fell 1.60%. Jio Platforms (JPL), India`s leading digital service provider, and SES, a leading global satellite-based content connectivity solutions provider, today announced the formation of a joint venture - Jio Space Technology - to deliver the next generation scalable and affordable broadband services in India leveraging satellite technology. JPL, a subsidiary of RIL, and SES will own 51% and 49% equity stake in the joint venture.

Grasim Industries declined 3.92%. Grasim Industries reported 26% rise in consolidated net profit to Rs 1,746 crore on a 16% increase in revenue to Rs 24,402 crore in Q3 FY22 over Q3 FY21. EBITDA declined by 8% to Rs 4,107 crore in Q3 FY22 from Rs 4,476 crore in Q3 FY21.

Dr Reddy`s Laboratories declined 2.78%. The pharmaceutical major has entered into an exclusive sales and distribution agreement with Novartis India (NIL) for the Voveran range, the calcium range and Methergine in India.

Glenmark Pharmaceuticals slipped 2.28%. The pharmaceutical major`s consolidated net profit fell 3.4% to Rs 239.75 crore on a 13.9% rise in net sales to Rs 3,141.47 crore in Q3 December 2021 over Q3 December 2020. Consolidated profit before tax (PBT) slipped 1.4% to Rs 343.04 crore in Q3 FY22 from Rs 347.97 crore in Q3 FY21. EBITDA was at Rs 693.20 crore for the quarter ended as on 31 December 2021 as against Rs 530.10 crore in the previous corresponding quarter, registering an increase of 30.8% Y-o-Y (year-on-year).

Ipca Laboratories shed 2.97%. The company`s consolidated net profit fell 25.81% to Rs 196.96 crore on 1.48% increase in net sales to Rs 1430.47 crore in Q3 December 2021 over Q3 December 2020. EBITDA before forex gains declined 18% to Rs 310.83 crore. EBITDA margin stood at 21.53% in Q3 FY22 as against 6.47% in Q3 FY21.

Mrs. Bector Food Specialities skid 3.23%. The company`s consolidated net profit dropped 25% to Rs 16 crore on a 17% rise in revenues to Rs 263 crore in Q3 FY22 over Q3 FY21. On a consolidated basis, EBITDA skid 16% to Rs 33 crore in Q3 FY22 as against Rs 40 crore in Q3 FY21. EBITDA margin stood at 12.6% in Q3 December 2021 from 17.6% in Q3 December 2020.

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