MARKET OVERVIEW

The key equity benchmarks ended with deep cuts on Wednesday. The Nifty closed below the 17,950 mark. PSU banks, autos and metal shares advanced while IT, FMCG and private banks declined.

The barometer index, the S&P BSE Sensex, slumped 656.04 points or 1.08% to 60,098.82. The Nifty 50 index tumbled 174.65 points or 0.96% to 17,938.40.

Infosys (down 2.77%), TCS (down 1.87%), ICICI Bank (down 1.82%) and HDFC (down 1.65%) dragged the indices.

In the broader market, the BSE Mid-Cap index declined 0.34% and the BSE Small-Cap index rose 0.03%.

The market breadth was negative. On the BSE, 1,579 shares rose and 1,827 shares fell. A total of 89 shares were unchanged.

Rising global inflation, firm crude oil prices and fears of a rate hike by the US central bank continue to weigh on investors sentiment. Adding to woes is sustained net outflow of foreign funds from the domestic shares.

COVID-19 Update:

In last 24 hours, India registered 2,82,970 new COVID-19 infections in a day taking the tally to 3,79,01,241, according to the Union Health Ministry data on Wednesday. The country reported 441 new deaths taking the death toll to 4,87,202. The country recorded 1,88,157 recoveries, taking the total number of recoveries to 3,55,83,039. The active cases comprise 4.83% of the total infections, while the national COVID-19 recovery rate has decreased to 93.88%, the ministry said.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper fell to 6.599% as compared with 6.627% 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 74.42, compared with its close of 74.58 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement rose 0.08% to Rs 47,966.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.15% to 95.59.

In the commodities market, Brent crude for March 2022 settlement rose 81 cents at $88.32 a barrel.

Foreign Markets:

European shares bounced back while most Asian stocks ended lower on Wednesday. Investors remain jittery over the U.S. Federal Reserve's schedule for hiking interest rates and tightening its ultra-loose pandemic-era monetary policy.

The U.K. inflation rate soared to a 30-year high in December, the Office for National Statistics said Wednesday, as higher energy costs, resurgent demand and supply chain issues continued to drive up consumer prices. Inflation hit an annual 5.4%, its highest since March 1992 and up from 5.1% in November, itself a decade high.

Europe's most closely watched government bond yield turned positive for the first time since 2019. The yield on the 10-year German bund rose as high as 0.021% on Wednesday after trading in negative territory for over 30 months. It then eased down to 0.010%. Bund yields had been as low as minus 0.841% in March 2020.

US stocks fell sharply Tuesday as government bond yields hit COVID-era highs and after Goldman Sachs reported disappointing earnings. Microsoft announced that the software giant will buy video game company Activision Blizzard in an all-cash transaction valued at $68.7 billion.

Buzzing Segment:

The Nifty PSU Bank index rose 2.21% to 2,801.65. The index fell 1.79% in the previous session.

Bank of Maharashtra (up 4.61%), Bank of Baroda (up 3.85%), Jammu & Kashmir Bank (up 2.43%), Canara Bank (up 2.29%), Punjab National Bank (up 2.17%), State Bank of India (up 1.63%), Bank of India (up 1.5%), Indian Overseas Bank (up 1.46%), Central Bank of India (up 0.94%), Punjab & Sind Bank (up 0.9%) and Union Bank of India (up 0.56%) surged.

Stocks in Spotlight:

One 97 Communications (Paytm) slumped 4.33% to Rs 997.35. The stock hit a record low of Rs 990 in intraday today. The stock entered the bourses on 18 November 2021. It was listed at Rs 1955, a discount of 9.07% compared with the initial public offer (IPO) price of Rs 2150. The counter has declined 53.61% from its IPO price.

The IPO of Paytm was subscribed 1.89 times. The issue opened for bidding on 8 November and it closed on 10 November. The price band of the IPO was fixed at Rs 2080 to Rs 2150 per share.

JSW Energy rose 2.68% after the company's consolidated net profit surged 162.23% to Rs 323.93 crore on 17.69% increase in net sales to Rs 1,893.54 crore in Q3 December 2021 over Q3 December 2020. EBITDA for the quarter was higher by 35% YoY at Rs 882 crore vis-a-vis Rs 655 crore in the corresponding period of previous year.

Bajaj Finance fell 2.28%. The NBFC major posted an 85% jump in consolidated net profit to Rs 2,125.2 crore on a 28% increase in total income to Rs 8,535.06 crore in Q3 FY22 over Q3 FY21. On the asset quality front, gross NPA and net NPA as of 31 December 2021 stood at 1.73% and 0.78% respectively, as against 2.45% and 1.10% as of 31 September 2021. The Company has provisioning coverage ratio of 56% on stage 3 assets and 156 bps on stage 1 and 2 assets as of 31 December 2021.

L&T Technology Services (LTTS) slumped 6.30%. The IT major reported 8.2% rise in consolidated net income to Rs 248.8 crore in Q3FY22 over Q2FY22. Revenue rose 5% to Rs 1687.50 crore.

LTTS announced that it has been awarded a deal worth $45 million from a U.S. based automotive Tier 1 company, to be its strategic engineering partner and provide engineering services for its Electric Vehicle (EV) product portfolio.

Tata Elxsi jumped 9.58%. The Tata Group company's net profit jumped 43.49% to Rs 150.95 crore on 33.18% increase in revenue from operations to Rs 635.41 crore in Q3 December 2021 over Q3 December 2020.

Saregama India fell 1.26%. On a consolidated basis, the company's net profit rose 37.43% to Rs 43.40 crore on 12.27% increase in net sales to Rs 150.34 crore in Q3 December 2021 over Q3 December 2020. The company's Operating Income before Content Charge, Interest and Depreciation (OIBCID) increased to Rs 62.9 crore in Q3 FY22 from Rs 43.6 crore in corresponding quarter last year (i.e. 44% growth YoY).

Just Dial fell 2.78%. The local search engine company reported 61.2% drop in net profit to Rs 19.4 crore on 6.3% fall in operating revenue to Rs 158.90 crore in Q3 December 2021 over Q3 December 2020.

Trident hit a lower circuit of 5% at Rs 61.40. The company reported an 88% jump in consolidated net profit to Rs 211 crore on an 84% rise in revenue from operations to Rs 1,980 crore in Q3 FY22 over Q3 FY21.

ICICI Prudential Life Insurance Company slumped 5.52%. On a consolidated basis, the life insurer's net profit rose 2.53% to Rs 312 crore in Q3 December 2021 over Q3 December 2020. While the company's net premium income rose 1.15% to Rs 9,073.97 crore, net income from investments slumped 96.18% to Rs 737 crore in Q3 December 2021 over Q3 December 2020.

DCM Shriram jumped 7.10% after the company's consolidated net profit jumped 38.4% to Rs 349.57 crore on a 26.3% decline in net sales to Rs 2,716.48 crore in Q3 FY22 over Q3 FY21.

RITES added 1.85%. The company entered into a memorandum of understanding (MoU) with CSIR-Central Road Research Institute (CRRI) to explore opportunities for cooperation in the infrastructure sector.

Raymond rose 3.21%. Ten X Realty, the step-down wholly owned subsidiary of Raymond, has signed a binding term sheet for joint redevelopment of residential project in the western sub-urban district of Mumbai. The project is estimated to have, in aggregate, revenue potential of around Rs 2,000 crore over a period of next 5 years. This is in line with the company's growth plan to expand its realty horizons beyond Thane.

IPO Updates:

The initial public offer (IPO) of AGS Transact Technologies received bids for over 2,47,05,080 shares as against 2,86,74,696 shares on offer, according to stock exchange data at 16:33 IST on Wednesday (19 January 2022). The issue was subscribed 86%.

The issue opened for bidding on 19 January 2022 and it will close on 21 January 2022. The price band of the IPO is fixed at Rs 166-175. An investor can bid for a minimum of 85 equity shares and in multiples thereof. The IPO comprises an offer for sale aggregating up to Rs 680 crore.

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Nifty PSU Bank index closed up 2.21% at 2801.65 today. The index has gained 14.00% over last one month. Among the constituents, Bank of Maharashtra added 4.61%, Bank of Baroda jumped 3.90% and Jammu and Kashmir Bank Ltd rose 2.67%. The Nifty PSU Bank index has soared 44.00% over last one year compared to the 23.53% increase in benchmark Nifty 50 index. In other indices, Nifty IT index has dropped 2.13% and Nifty Services Sector index has slid 1.34% on the day. In broad markets, the Nifty 50 has declined 0.96% to close at 17938.4 while the SENSEX has dropped 1.08% to close at 60098.82 today.

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The key equity benchmarks ended with deep cuts after a week session on Wednesday. The Nifty closed below the 17,950 mark. Shares across most sectors declined with IT, FMCG and private financials declining the most.

As per provisional closing data, the barometer index, the S&P BSE Sensex, slumped 656.04 points or 1.08% to 60,098.82. The Nifty 50 index tumbled 174.65 points or 0.96% to 17,938.40.

In the broader market, the S&P BSE Mid-Cap index lost 0.34% while the S&P BSE Small-Cap index rose 0.03%.

The market breadth was negative. On the BSE, 1,596 shares rose and 1,811 shares fell. A total of 88 shares were unchanged.

Firm global crude prices, increasing expectations of March rate hike by US central bank and rising geopolitical tensions on the Ukraine border dented investors' sentiment.

COVID-19 Update:

In last 24 hours, India registered 2,82,970 new COVID-19 infections in a day taking the tally to 3,79,01,241, according to the Union Health Ministry data on Wednesday. The country reported 441 new deaths taking the death toll to 4,87,202. The country recorded 1,88,157 recoveries, taking the total number of recoveries to 3,55,83,039. The active cases comprise 4.83% of the total infections, while the national COVID-19 recovery rate has decreased to 93.88%, the ministry said.

IPO Updates:

The initial public offer (IPO) of AGS Transact Technologies received bids for over 2.32 crore shares as against 2.86 crore shares on offer, according to stock exchange data at 15:11 IST on Wednesday, (19 January 2022). The issue was subscribed 0.81 times.

The issue opened for bidding on 19 January 2022 and it will close on 21 January 2022. The price band of the IPO is fixed at Rs 166-175. An investor can bid for a minimum of 85 equity shares and in multiples thereof. The IPO comprises an offer for sale aggregating up to Rs 680 crore.

Buzzing Index:

The Nifty IT index fell 2.12% to 37,284.60, extending losses for third day. The index has declined 3.97% in three sessions.

L&T Technology Services (down 6.21%), Mphasis (down 3.64%), Infosys (down 2.90%), MindTree (down 2.56%), Larsen & Toubro Infotech (down 2.28%), TCS (down 1.78%), Wipro (down 1.59%) and HCL Tech (down 1.54%) declined.

Stocks in Spotlight:

Bajaj Finance fell 2.24% to Rs 7573.30. The NBFC major posted an 85% jump in consolidated net profit to Rs 2,125.2 crore on a 28% increase in total income to Rs 8,535.06 crore in Q3 FY22 over Q3 FY21.

L&T Technology Services (LTTS) slumped 6.23% to Rs 5083.85. The IT major reported 8.2% rise in consolidated net income to Rs 248.8 crore in Q3FY22 over Q2FY22. Revenue rose 5% to Rs 1687.50 crore.

LTTS announced that it has been awarded a deal worth USD45 million from a U.S. based automotive Tier 1 company, to be its strategic engineering partner and provide engineering services for its Electric Vehicle (EV) product portfolio.

Tata Elxsi jumped 9.87% to Rs 5083.85. The Tata Group company's net profit jumped 43.49% to Rs 150.95 crore on 33.18% increase in revenue from operations to Rs 635.41 crore in Q3 December 2021 over Q3 December 2020.

Just Dial fell 2.56% to Rs 818.05. The local search engine company reported 61.2% drop in net profit to Rs 19.4 crore on 6.3% fall in operating revenue to Rs 158.90 crore in Q3 December 2021 over Q3 December 2020.

Trident hit a lower circuit of 5% at Rs 61.40. The company reported an 88% jump in consolidated net profit to Rs 211 crore on an 84% rise in revenue from operations to Rs 1,980 crore in Q3 FY22 over Q3 FY21.

ICICI Prudential Life Insurance Company slumped 5.39% to Rs 574.75. On a consolidated basis, the life insurer's net profit rose 2.53% to Rs 312 crore in Q3 December 2021 over Q3 December 2020. While the company's net premium income rose 1.15% to Rs 9,073.97 crore, net income from investments slumped 96.18% to Rs 737 crore in Q3 December 2021 over Q3 December 2020.

DCM Shriram jumped 7.80% to Rs 1092.05 after the company's consolidated net profit jumped 38.4% to Rs 349.57 crore on a 26.3% decline in net sales to Rs 2,716.48 crore in Q3 FY22 over Q3 FY21.

RITES added 1.89% toRs 272.75. The company entered into a memorandum of understanding (MoU) with CSIR-Central Road Research Institute (CRRI) to explore opportunities for cooperation in the infrastructure sector.

Global markets:

Shares in Europe and Asia declined on Wednesday as global markets take a downturn after a sell-off on Wall Street on Tuesday, prompted by rising bond yields.

Investors remain jittery over the U.S. Federal Reserve's schedule for hiking interest rates and tightening its ultra-loose pandemic-era monetary policy.

The U.K. inflation rate soared to a 30-year high in December, the Office for National Statistics said Wednesday, as higher energy costs, resurgent demand and supply chain issues continued to drive up consumer prices.

Inflation hit an annual 5.4%, its highest since March 1992 and up from 5.1% in November, itself a decade high.

US stocks fell sharply Tuesday as government bond yields hit Covid-era highs and after Goldman Sachs reported disappointing earnings. Microsoft announced that the software giant will buy video game company Activision Blizzard in an all-cash transaction valued at $68.7 billion.

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