At 13:30 IST, the barometer index, the S&P BSE Sensex, dropped 72.65 points or 0.12% at 58,715.60. The Nifty 50 index lost 13 points or 0.07% at 17,547.25.
Selling was broad based. The S&P BSE Mid-Cap index fell 0.34% while the S&P BSE Small-Cap index shed 0.16%.
Sellers outnumbered buyers. On the BSE, 1,597 shares rose and 1,711 shares fell. A total of 92 shares were unchanged.
Broader Market Losers:
Godrej Properties (down 8.62%), M&M Finance (down 3.12%), Zee Entertainment Enterprises (down 2.5%) and Max Financial Services (down 2.4%) were top losers in Mid Cap space.
Welspun India (down 5%), Radico Khaitan (down 4.73%), Amber Enterprises (down 3.88%), Firstsource Solutions (down 3.62%) and UTI AMC (down 3.44%) were top losers in Small Cap space.
Earnings Impact:
Devyani International fell 2.01%. On a consolidated basis, the company's net profit rose 39.83% to Rs 66 crore on 64.71% increase in net revenue to Rs 624.40 crore in Q3 FY22 over Q3 FY21. The company said it recorded its highest-ever quarterly results in Q3 FY22. The performance surpassed pre-pandemic levels and was driven by new store openings coupled with solid momentum in demand. DIL reported improved profitability during the quarter on the back of several initiatives towards cost-optimization and improving store economics. Gross margins expanded by 270 basis points YoY to 71.4% in Q3 FY22. EBITDA improved by 67.38% to Rs 147.80 crore in Q3 FY22 from Rs 88.30 crore in Q3 FY21. EBITDA margin stood at 23.7% in Q3 FY22 as against 23.3% in Q3 FY21.
Venky's (India) slumped 8.17% to Rs 2411.95 after the company's net profit declined 80% to Rs 21.63 crore in Q3 FY22 from Rs 106.50 crore in Q3 FY21. Revenue from operations rose 18% YoY to Rs 1,098.50 crore during the quarter. Total expenses increased by 35% to Rs 1,079.77 crore in Q3 FY22 over Q3 FY21, due to a surge in raw material costs (up 45% YoY) and higher other expenses (up 13% YoY). "The profit margins of the poultry and poultry products segment for the quarter as well as for the 9 months ended 31st December, 2021 have been severely affected due to steep rise in the prices of key poultry feed ingredients, especially soya which has seen unprecedented increase. The performance of Animal Health Products and Oilseed segments has been good, the company said in a statement.
Numbers to Track:
The yield on 10-year benchmark federal paper rose to 6.931% compared with its previous close of 6.889%.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 74.71, compared with its close of 74.8850 during the previous trading session.
MCX Gold futures for 4 February 2022 settlement rose 0.16% to Rs 47,996.
In the commodities market, Brent crude for April 2022 settlement rose 85 cents or 0.93% at $91.96 a barrel. This is the first time that the benchmark has topped $90 since October 2014. Crude prices rose as demand for petroleum products surges while supply remains constrained.
Global Markets:
European markets opened higher while Asian stocks closed on a positive note on Friday. Markets in Hong Kong returned to trade on Friday after being closed for most of this week due to the Lunar New Year holidays. Over in mainland China, markets remain closed on Friday for the holidays.
U.S. stocks fell on Thursday, dragged down by technology and social-media companies, as Facebook owner Meta Platforms plunged after a disappointing earnings report. Meta Platforms shares plunged after the company's quarterly profit fell short of expectations. The company also issued weaker-than-expected revenue guidance for the current quarter. It was the biggest drop ever for the Facebook parent.
On the data front, investors are awaiting the U.S. Labor Department's nonfarm payroll count due Friday, which is seen as one of the major indicators of the how the U.S. economy is doing.
In Europe, the Bank of England pressed ahead with raising borrowing costs Thursday, nudging up its policy rate to 0.5% from 0.25%. The European Central Bank kept its key interest rates unchanged, but ECB President Christine Lagarde signaled concern about inflation and opened the door to a possible rate hike later this year.
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