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PremiumIndian shares were set for a sixth session in red on Tuesday amid interest rate worries and geopolitical tensions. However, after the gap-down start, the indices staged a smart rebound to recover most losses amid low-level buying in stocks.
The 30 stock S&P BSE Sensex of the Bombay Stock Exchange opened the trade in the red at 57,158.63 points and tumbled to a low of 56,409.63 points within a few minutes of opening of the trade. The Nifty also opened in the negative at 17,001.55 points and touched a low of 16,836.80 points in the early morning trade. However, the markets turned green later in the day. Sensex ended 366 points up, at 57,858.15. Nifty closed the day at 17,277.95 (128 points up).
Axis Bank soared over 6 per cent a day after the company posted 224 per cent surge in its third quarter profit year-on-year. Axis Bank ended the day at ₹750. The Bank on Monday said its net profit surged 224 per cent to ₹3,614 crore during the third quarter of the current financial year as compared with the same quarter of last year.
Maruti Suzuki India rise 7.49 per cent at ₹8650. Bharti Airtel rose 2.69 per cent to ₹708.15. IndusInd Bank 3.83 per cent higher at ₹882.40 and State Bank of India 4.03 per cent higher at ₹514 were among the major Sensex gainers.
Wipro tumbled 1.75 per cent to ₹562.85. Bajaj Finserv fell 1.34 per cent to ₹15498.20. Reliance Industries fell for the second consecutive day after announcing Q3 results. Reliance Industries was 0.16 per cent down at ₹2373.35. Overall, 19 of 30 Sensex stocks ended in the green. On the Nifty, 36 stocks advanced while 14 declined. It moved from between a day's low of 16,836.80 and high of 17,309.15.
Shares of B2B e-commerce firm Indiamart Intermesh plunged over 14% to ₹5,029 apiece on the BSE in Tuesday's deals after the company posted a 12.4% decline in consolidated net profit to ₹70 crore in the December 2021 quarter. The company had registered a net profit of ₹80.2 crore in the corresponding period of the last fiscal.
Oravel Stays Limited, the parent company of travel-tech firm OYO, has received in-principle approval from BSE and NSE to list on the respective bourses, sources said.
OYO has filed preliminary documents for a ₹8,430 crore initial public offering (IPO). The offering will consist of a fresh issue of shares of up to ₹7,000 crore and an offer-for-sale of as much as ₹1,430 crore.
Here's what brokerages say on the bank stock.
SpiceJet Ltd has moved the Supreme Court against a Madras high court order that had directed winding up of the airline company.
Senior advocate Mukul Rohatgi on Tuesday mentioned this plea for hearing and argued that the matter needs to be heard urgently. The apex court agreed to hear the matter on 28 January.
India's top car maker Maruti Suzuki India Ltd posted a 48% fall in third-quarter net profit on Tuesday, as a global chip shortage slowed production and high material costs squeezed margins.
The company reported a profit of 10.11 billion rupees ($135.43 million) for the three months ended Dec. 31, compared with 19.41 billion rupees a year earlier.
For the quarter ending December 2021, Federal Bank reported a 29% rise in its standalone net profit at ₹521.7 crore as compared to ₹404 crore in the same quarter last rise. Shares of Federal Bank were trading over 2% higher at ₹93 apiece on the BSE in Tuesday's afternoon deals.
The lender's net income interest (NII), which is the difference between interest earned and interest expended, grew over 7% to ₹1,539 crore from ₹1,437 crore year-on-year (YoY). The bank reported net interest margin (NIM) at 3.27% during the December ending quarter.
India's Future Group on Tuesday challenged its own lenders in the Supreme Court in a bid to avoid being named a defaulter for missing payments, citing its ongoing dispute with partner Amazon.com Inc, according to a legal filing seen by Reuters.
Future, the country's second-largest retailer, has since 2020 failed to complete its $3.4 billion retail asset sale to a rival due to a row with Amazon, which argues the Indian group violated certain non-compete contractual terms the two sides had. Future denies any wrongdoing.
Fintech company Lendingkart on Tuesday said it has partnered with Bank of Maharashtra to co-lend business loans to micro, small and medium enterprises (MSME). Through this partnership, Lendingkart aims to make economical credit available to MSME borrowers at their doorstep powered by the ‘zero touch’ technology platform Lendingkart ‘2gthr’.
Leveraging on its competencies in manufacturing advanced lithium-based salts, specialty chemical manufacturer Neogen Chemicals Ltd (NCL) has announced the establishment of a 250- MT electrolyte formulation capacity, highlighted domestic brokerage and research firm HDFC Securities.
CMP: ₹778
Target: ₹856
Upside: 10%
Time Horizon: 6-9 months
A. Digital channels steering growth in new customer addition
B. Cost ‘variable’-ization efforts yielding results
C. Revenue Granularization to continue
Recommendation: We recommend a BUY rating on the stock with a target price of ₹856/share, implying an upside of 10% from the CMP.
Quick service restaurant chain Burger King India Ltd on Monday reported narrowing of net loss to ₹15.15 crore for the third quarter ended December 31, 2021. The company had posted a net loss of ₹29.02 crore during October-December period of the previous fiscal year, Burger King said in a regulatory filing. Revenue from operations was up 71.51 per cent to ₹279.89 crore during the quarter under review as against ₹163.19 crore in the corresponding period of 2020-21. Total expenses were at ₹298.23 crore, up 45.56 per cent from ₹204.89 crore in the year-ago period.
Ministry of Electronics and Information Technology, on Monday released a five-year roadmap and vision document for the electronics sector titled "USD 300 bn Sustainable Electronics Manufacturing & Exports by 2026".
Adani Wilmar's three-day initial public offering (IPO) will open for public subscription this week on Thursday, January 27, 2021. The price band has been fixed at ₹218-230 a share for its issue through which it aims to raise up to ₹3,600 crore.
The public issue of Adani Wilmar, which markets its edible oils and some food products under Fortune brand, comprises fresh issue of equity shares and there will not be any secondary offering.
India’s new stock listings are losing their edge as a worsening outlook for global equities leads investors to take profit from high-profile consumer technology stocks that debuted with inflated valuations.
Gold and silver prices edged higher in Indian markets today but the gains were muted amid flat global rates. On MCX, February gold futures were up 0.1% to one-month high of ₹48,613 per 10 gram while silver rose 0.17% to ₹64,069 per kg. In global markets, gold was steady fuelled by escalating Ukraine tensions but concerns about a faster pace of US Federal Reserve policy tightening capped gains. Spot gold was little changed at $1,840.24 per ounce while silver fell 0.8% to $23.77 an ounce.
A double whammy of lower realisation and elevated input costs weighed on the operating performance of The Ramco Cements Ltd in the December quarter. As a result, its Ebitda at ₹230 crore, fell 42% year-on-year, missing consensus estimate by 25%. Ebitda is short for earnings before interest, tax, depreciation and amortization.
Shares of Indian Energy Exchange (IEX) declined nearly 3% to ₹233 apiece on the BSE in Tuesday's opening deals after the company posted a nearly 39% rise in its consolidated net profit at ₹80 crore in the December quarter mainly on the back of higher revenues. The company had posted a net profit of ₹58 crore in the year-ago quarter.
India's crude oil imports in December hit their highest level in a year as strong demand prospects in the world's third-largest oil consumer and importer prompted refiners to stock up.
Crude oil imports last month rose 7.1% versus November to 19.65 million tonnes, data on the website of the Petroleum Planning and Analysis Cell (PPAC) showed on Monday.
We started the week on a flat note yesterday owing to mixed global cues. After some initial trades, the negativity reoccurred across the broader market. In fact, as the day progressed the sell off intensified to breach all intraday support one after another. In the process, the market plunged like a bottomless pit to hasten towards 17000 mark. Due to minor recovery in the end, the Nifty eventually settled above 17100 by shedding nearly 3%.
It was indeed one of the worst sessions in recent months. The way market fell yesterday despite Dow futures was maintaining its positive posture, is clearly an indication that market is sensing something unpleasant which is not known in public domain. Such scenarios are always tricky and turns out awful for markets. In merely 5 sessions, we are back to 17000 from 18300 odd levels. Taking a glance at the daily chart, we can see Nifty reaching its cluster of supports (17000 - 16800). So ideally if things do not worsen on global front, we may see some respite in coming session. However such global developments are beyond anyone’s control. So if any further aberration happens, then one would have to be on the cautious side.
However we still believe that it’s an excellent opportunity for investors to start accumulating some quality propositions. Since the volatility has spiked up, we advise traders to stay light and should avoid carrying aggressive bets overnight. On the higher side, 17300 - 17500 are to be seen as immediate hurdles. If any recovery has to happen, it would only be led by the banking space because it has shown less weakness and is trading at its strong support zone.
Shares of Bharti Airtel surged over 1.7% in Tuesday's opening deals to ₹701 apiece on the BSE in an otherwise weak market after the company announced that the board will consider and evaluate the proposal for issuance of equity shares through preferential issue.
In the short term, 16950 is the last resort of support for this market. If that breaks on a closing basis, we might plummet further to 16500-16550. On the upside, the resistance level is at 17400-17500. Traders can utilize upward corrections to sell this market.
Private lender Axis Bank on Monday reported a 224% year-on-year (YoY) rise in standalone net profit at ₹3,614 crore for the December quarter (Q3FY22) compared with a profit of ₹1,116.6 crore in the corresponding quarter last year. On a quarter-on-quarter (QoQ) basis, Axis Bank's profit registered a 15% growth. The private sector lender's net interest income rose 17% over a year ago to ₹8,653 crore. Other income stood at ₹3,840 crore, up 31% YoY. The bank's retail loans grew 18% YoY and 6% QOQ to ₹3,67,494 crore and accounted for 55% of the net advances.
Here is the list of the top 10 stocks that are likely to be in focus on Tuesday.
Bitcoin gained after tumbling to its lowest level in six months in the previous sessions. The largest cryptocurrency was marginally higher at $36,013 after earlier dropping to $32,951, its lowest price since July 23. That took losses from its all-time high of $69,000 hit in November past 50%. Bitcoin is down over 21% in 2022 (year-to-date) so far.
Check crypto prices here.
Japan's Nikkei index touched a five-month low on Tuesday, weighed down by investor caution over the situation in Ukraine and a potential faster-than-expected U.S. rate hike ahead of the Federal Reserve policy meeting due later in the day.
By 0213 GMT, the Nikkei share average fell 1.9% to 27,061.36, after dropping as much as 2.1% to 27,006.37, its lowest since Aug. 20. The broader Topix lost 2.02% to 1,891.00.
Wall Street bounced back from a steep sell-off to close higher overnight, with bargain hunters pushing the indexes into a positive territory.
The rupee on Monday slumped by 17 paise to close at a more than three-week low of 74.60 against the US dollar due to high crude oil prices, forex outflows and heavy losses in domestic equities amid growing geopolitical worries. Forex traders said the strength of the American currency in the overseas market and weak appetite for riskier assets also dragged down the local unit. Moreover, market participants are now eyeing the US Fed's January 25-26 meeting for further cues.
PSU metal Nalco and auto stock continue to be among two stocks that have been put under the ban for trade on Tuesday, January 25, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). These securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
On the other hand, Vodafone Idea, Indiabulls Housing Finance, and Bharat Heavy Electricals Limited (BHEL) that were was part of the list in the previous sessions, are out of the list of F&O stock ban for today by the stock exchange.
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