The benchmark indices advanced on Tuesday, snapping a five-day losing streak. The Nifty closed near 17,300 level after hitting a day's low of 16,836.80 in early trade. Barring the Nifty IT index, all the sectoral indices on the NSE ended in the green. Banks, auto and FMCG shares were in demand.
The barometer index, the S&P BSE Sensex, jumped 366.64 points or 0.64% at 57,858.15. The Nifty 50 index advanced 128.85 points or 0.75% at 17,277.95. Both the indices lost over 6% in the past five sessions.
In the broader market, the S&P BSE Mid-Cap index rose 1.03% while the S&P BSE Small-Cap index gained 0.81%.
The market breadth was positive. On the BSE, 1,979 shares rose and 1,366 shares fell. A total of 89 shares were unchanged.
The domestic stock market will remain closed tomorrow (26 January 2022) on account of Republic Day.
COVID-19 Update:
India on Tuesday reported 2,55,874 COVID-19 cases in the last 24 hours down from 3,06,064 infections a day before, according to the Union Ministry of Health and Family Welfare data. The health ministry's data also showed as many as 614 fatalities pushed India's death toll to 4,90,462.
Numbers to Track:
The yield on 10-year benchmark federal paper rose to 6.663% as compared with 6.652% 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 74.6025, compared with its close of 74.76 during the previous trading session.
MCX Gold futures for 4 February 2022 settlement rose 0.04% to Rs 48,584.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.28% to 96.165.
In the commodities market, Brent crude for March 2022 settlement rose $1.09 to $87.36 a barrel.
Global Markets:
The Dow Jones futures were trading 149 points lower, indicating a negative start in US markets today.
Shares in Europe advanced while Asia ended lower on Tuesday as investors braced themselves for the meeting of the U.S. Federal Reserve this week, and watched for developments in Ukraine as tensions with Russia grow.
The Federal Open Market Committee is due to meet on Tuesday and Wednesday to decide on the next steps for U.S. monetary policy. Rising inflation is a major concern for the U.S. central bank and investors will listen closely to hear how worried the Fed actually is. Chairman Jerome Powell is due to brief the media on Wednesday afternoon after the FOMC releases its statement.
In Asia, South Korea's economy grew 1.1% in the fourth quarter of 2021 compared to the previous quarter, the Bank of Korea said in a press release on Tuesday. For the full year, the country's GDP expanded by 4% in 2021, the fastest in 11 years, as per reports.
Geopolitical tensions are in focus, with fears of a Russian invasion of Ukraine growing, as the military buildup at the border shows no sign of dissipating and crisis talks remain at an impasse, as per reports.
Buzzing Segment:
The Nifty PSU Bank index jumped 4.24% to 2,767.10. The index fell 5.25% in the past three trading sessions.
Bank of Baroda (up 5.99%), Canara Bank (up 5.61%), State Bank of India (up 3.89%), Punjab National Bank (up 3.82%), Jammu & Kashmir Bank (up 3.70%), Bank of Maharashtra (up 3.07%), UCO Bank (up 2.77%), Central Bank of India (up 2.72%), Bank of India (up 2.05%), Union Bank of India (up 1.19%), Indian Overseas Bank (up 1%), Punjab & Sind Bank (up 0.93%) and Indian Bank (up 0.45%) advanced.
Stocks in Spotlight:
Axis Bank soared 6.76%. The private sector bank's net profit surged 224% to Rs 3,614 crore in Q3 FY22 from Rs 1,117 crore in Q3 FY21. Total income in the third quarter rose by 15% Y-o-Y to Rs 21,101 crore. The bank's operating profit for the quarter grew 17% Y-o-Y and 4% Q-o-Q to Rs 6,162 crore. Net interest income (NII) grew 17% Y-o-Y and 10% Q-o-Q to Rs 8,653 crore. Net interest margin (NIM) for Q3 FY22 improved by 14 bps Q-o-Q to 3.53%. Non-interest income (comprising of fee, trading profit and miscellaneous income) for Q3 FY22 stood at Rs 3,840 crore, up 31% Y-o-Y and 1% Q-o-Q.
Pidilite Industries declined 1.82%. The company's consolidated net profit declined by 20% to Rs 359 crore as compared to the same quarter last year. Net sales grew by 24% to Rs 2,841 crore in Q3 FY22 over Q3 FY21. EBITDA before non-operating income in the third quarter was Rs 550 crore, which is lower by 14% over the same quarter last year. Profit before tax and exceptional items (PBT) in Q3 FY22 stood at Rs 487 crore, down 19% Y-o-Y.
Maruti Suzuki India surged 6.88%. The auto major recorded 48% decline in net profit to Rs 1,011.3 crore on as net sales remained flat at Rs 22,187.6 crore in Q3 FY22 over Q3 FY21. As compared with Q2 FY22, the company's net profit and net sales are higher by 113% and 15%, respectively. The company sold 4,30,668 vehicles the third quarter, which is lower by 13% as compared with 4,95,897 vehicles sold in the same period last year. Sequentially, the sales volume is higher by 13%. Operating EBIT declined 38% Y-o-Y to Rs 919 crore in Q3 FY22. Operating EBIT margin was 4.1% in Q3 FY22 as against 6.7% in Q3 FY21.
Federal Bank jumped 4.35%. The private bank posted a 29.1% rise in standalone net profit to Rs 522 crore in Q3 FY22 from Rs 404 crore posted in Q3 FY21. The bank's total income stood at Rs 3,926.75 crore in Q3 FY22 as compared to Rs 3,934.90 crore in Q3 FY21. Operating profit before provisions and contingencies fell 4.4% year on year to Rs 914.29 crore in Q3 FY22. Net interest income came at Rs 1,539 crore in Q3 FY22, 7% higher than Rs 1,437 crore posted in the same quarter last year. Net interest margin improved marginally to 3.27% in Q3 FY22 from 3.22% in Q3 FY21. Provisions and contingencies contracted 48% to Rs 213.9 crore in Q3 FY22 from Rs 4141 crore in Q3 FY21. The capital adequacy ratio stood at 14.37% in Q3 FY22 as compared to 14.31% in Q3 FY21. Provision coverage ratio stood at 79.62% in Q3 FY22 compared to 86.32% a year earlier.
Burger King India rose 0.04%. The firm's net loss in Q3 FY22 narrowed to Rs 15.15 crore from Rs 29.02 crore in Q3 FY21. Revenue from operations in the third quarter was Rs 279.89 crore, up 72% Y-o-Y. Gross profit was Rs 184.92 crore in Q3 FY22, up by 77.38% from Rs 104.25 crore in Q3 FY21. The company EBITDA in Q3 FY22 was at Rs 32.82 crore as against Rs 24.09 crore in Q3 FY21, up 36% Y-o-Y. However, EBITDA margin in the third quarter had declined to 11.7% from 14.8% in the corresponding quarter last fiscal. During the quarter, Burger King added 20 restaurants and as on 31 December 2021, its total restaurant count was 294. According to the company, presently 9 restaurants are under construction and 65 are in pipeline.
IndiaMART InterMESH tumbled 14.40%. The company's consolidated net profit declined 12.47% to Rs 70.20 crore on 8.35% rise in net sales to Rs 188.10 crore in Q3 December 2021 over Q3 December 2020. On a consolidated basis, profit before tax (PBT) fell 12.39% year-on-year (Y-o-Y) to Rs 93.30 crore in Q3 December 2021. IndiaMART InterMESH said the growth in revenue was driven by improvement in realization from existing customers and increase in number of paying subscription suppliers. Deferred revenue grew by 25% Y-o-Y to Rs 790 crore as at 31 December 2021. EBITDA was Rs 79 crore (down 10% Y-o-Y). EBITDA margin for Q3 FY22 stood at 42%, lower than 51% in Q3 FY21. EBIT for the period was Rs 75 crore (down 10% Y-o-Y) with EBIT margin of 40% in Q3 FY22 as against 48% in Q3 FY21.
SBI Cards and Payment Services advanced 4.44%. The company reported an 84% jump in net profit to Rs 385.7 crore on a 23.6% rise in total income to Rs 3,139.66 crore in Q3 FY22 over Q3 FY21. SBI Cards said increase in revenue was primarily due to higher income from fees and services in Q3 FY22. Profit before tax grew by 83% to Rs 518 crore in Q3 FY22 over Q3 FY21. Earnings before credit costs increased by 23% to Rs 1,144 crore in Q3 FY22 as compared to Q3 FY21. Total operating cost rose 28% year on year to Rs 1,719 crore in Q3 FY22, due to higher business volumes & festive campaigns. Finance costs increased by 6% to Rs 277 crore in Q3 FY22 from RS 261 crore in Q3 FY21.
The Ramco Cements slumped 4.06%. The company's standalone net profit declined 59% to Rs 83 crore despite a 16% rise in revenue to Rs 1,556 crore in Q3 FY22 over Q3 FY21. EBITDA fell by 41% to Rs 238 crore in Q3 FY22 from Rs 403 crore in Q3 FY21. While the variable costs had gone up due to sharp fuel price increase, cement prices had declined sharply in Dec'21, the company said. Cement sales rose 15% Y-o-Y to 3 million tonnes while generation of wind power declined by 35% Y-o-Y to 2.28 crore units in the third quarter.
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