The benchmark indices hit fresh intraday low during mid-morning trade. Media and PSU banks bucked the broader selling pressure. The Nifty continued to trade below its 17,000 mark.
Fears of monetary policy tightening, geo-political tensions of Russia invading Ukraine and firm crude oil prices dented investors sentiment. The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 7.78% to 23.02.
At 11:30 IST, the barometer index, the S&P BSE Sensex, slumped 1,135.34 points or 1.96% at 56,722.81. The Nifty 50 index tumbled 327.85 points or 1.90% at 16,950.10.
In the broader market, the S&P BSE Mid-Cap index declined 2.03% while the S&P BSE Small-Cap index slipped 1.02%.
The market breadth was weak. On the BSE, 1,235 shares rose and 1,971 shares fell. A total of 127 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 7,094.48 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 4,534.53 crore in the Indian equity market on 25 January 2022, provisional data showed.
The Budget session of Parliament is set to commence on 31 January 2022 and will conclude on 8 April 2022. The government will present the Budget for fiscal 2022-23 on 1 February 2022. The Economic Survey is likely to be tabled on 31 January 2022 after the president's address.
On the political front, developments in the upcoming assembly polls in Uttar Pradesh, Uttarakhand, Goa, Punjab, and Manipur will be closely watched. Polls in all the five states will be held between 10 February 2022 and 7 March 2022 in seven phases. The counting of votes and the result will be declared on 10 March 2022.
COVID-19 Update:
India saw a marginal rise in fresh cases, reporting over 2.86 lakh (2,86,364) in the last 24 hours, ending at 9 A.M. on Thursday. With around 3.06 lakh (3,06,357) recoveries, the number of active cases has declined to 22 lakh (22,02,472). The daily positivity rate has increased slightly to 19.59%, while the weekly positivity rate is now 17.75%.
Economy:
The International Monetary Fund (IMF) has raised its forecast for growth in India's gross domestic product (GDP) in FY23 by 50 basis points (bps) to 9%. India's GDP growth forecast for FY24 was also raised by 50 bps to 7.1%. Explaining the upward revision in an update to its World Economic Outlook report, the IMF said it expects an improvement in India's credit growth which would boost consumption and investment and "better-than-anticipated performance of the financial sector".
Primary Market:
The initial public offer (IPO) of Adani Wilmar received bids for over 2.10 crore shares as against 12.25 crore shares on offer, according to stock exchange data at 11:06 IST on Thursday, (27 January 2022). The issue was subscribed 0.17 times.
The issue opened for bidding on 27 January 2022 and it will close on 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 portions of 4,08,65,217 equity shares).
Buzzing Index:
The Nifty Pharma index declined 2.04% to 12,825.35. The index rose 0.72% in the past trading session.
Torrent Pharmaceuticals (down 14.90%), Aurobindo Pharma (down 3.49%), Alembic Pharmaceuticals (down 3.48%), Laurus Labs (down 3.47%) and Abbott India (down 3.30%) were the top losers in the Pharma segment.
Cipla rose 1.12%. The pharmaceutical major reported a 2.6% decline in consolidated net profit to Rs 729 crore in Q3 FY22 from Rs 748 crore posted in Q3 FY21. The drug maker's total revenue from operations grew by 6% year-on-year to Rs 5,479 crore in Q3 FY22 over Q3 FY21. Consolidated profit before tax grew by 3.2% to Rs 1,054 crore in Q3 FY22 over same period last year. Consolidated EBITDA fell 3% to Rs 1,243 crore in Q3 FY22 from Rs 1,281 crore posted in the same quarter last year. EBITDA margin declined to 22.7% in Q3 FY22 from 24.8% in Q3 FY21.
Glenmark Pharmaceuticals lost 0.49%. On Thursday, the pharmaceutical major announced that it received final approval from the USFDA for bisoprolol fumarate and hydrochlorothiazide tablets. Bisoprolol fumarate and hydrochlorothiazide tablets is the generic version of Ziac tablets of Teva branded pharmaceutical products R&D, Inc. According to IQVIA sales data for the 12 months period ending November 2021, the Ziac tablets market achieved annual sales of approximately $30.3 million. Bisoprolol and hydrochlorothiazide combination is used to treat high blood pressure (hypertension). High blood pressure adds to the workload of the heart and arteries.
Torrent Pharmaceuticals tumbled 14.90%. The company's consolidated net profit fell 16% to Rs 249 crore on 6% increase in revenue from operations to Rs 2,108 crore in Q3 December 2021 over Q3 December 2020. On a consolidated basis, EBITDA fell 5% year-on-year to Rs 585 crore in Q3 December 2021 over Q3 December 2020. R&D spend rose 9% to Rs 123 crore during the period under review. Profit before tax was flat at Y-o-Y at Rs 357 crore in Q3 FY22. India revenues stood at Rs 1,072 crore, up 15% Y-o-Y, driven by robust performance of top brands in all our focus therapies.
J B Chemicals & Pharmaceuticals advanced 2.61%. The pharmaceutical company announced that it will acquire brands for the India market from Sanzyme for Rs 628 crore. Sanzyme is a leading player in the probiotics and reproductive health segment in the country. The company is engaged in the manufacture, distribution and marketing of specialty probiotics formulations, infertility management products and nutraceuticals products. It operates in the gastroenterology, nephrology, urology and gynaecology therapy areas. As per IQVIA MAT Dec 2021 data, the revenue for the combined brands was Rs 160 crore.
Global Markets:
Asian stocks fell across the board on Thursday as investors digest an overnight update from the U.S. Federal Reserve that indicated the central bank plans to raise interest rates as soon as March. Supply concerns stemming from tension between Russia and Ukraine saw oil prices touch highs not seen since 2014.
The Federal Reserve on Wednesday said it is likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month in what U.S. central bank chief Jerome Powell pledged will be a sustained battle to tame inflation.
"The committee is of a mind to raise the federal funds rate at the March meeting assuming that the conditions are appropriate for doing so," Powell said in a news conference, pinning down a policy statement from the central bank's Federal Open Market Committee that only said rates would rise "soon."
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