PremiumIndian indices struggled on Monday as the market witnessed heavy selling. Both the Sensex and the Nifty50 plunged closed to 1.75% as most sectors were in the red except PSU bank and power. HDFC twins, Bajaj twins, Infosys, Wipro ICICI Bank dragged the indices. In Asia, shares in Shanghai and Hong Kong advanced, while Japan, Australia and South Korea saw a decline.
Worries over rising inflation, a stunning US jobs data, continuing Ukraine concerns hit the market sentiments badly on Monday. With major central banks signalling aggressive tightening of rates, the volatility in global markets is set to continue for the next few days.
On Monday, the key benchmark Indian indices crashed as most sectors including IT, FMCG, telecom, capital goods ended in the red. The few sectors that managed to stay positive were PSU banks and power. This is the third straight session that saw the markets shedding points.
The Sensex opened the session lower at 58,549.67 and the loss widened as the day went. The index reached a high of 58,707.76, before sliding downwards to settle at 57,621.19, 1,023.63 points lower, tracking weak global cues. The Nifty50 slipped marginally to open at 17,456.30, reaching a high of 17,536.75, before plunging 302.70 points to end at 17,213.60. Persistent foreign fund outflows added to the weak market sentiment.
PowerGrid, SBI, NTPC, Tata Steel, and Ultratech were the only gainers among the 30 Sensex constituents. HDFC twins, Bajaj twins, Kotak Bank, ICICI Bank, Wipro, ITC, Bharti Airtel, Asian Paints were among the losers.
On the Nifty50, SBI, PowerGrid, ONCG were among the few who managed to eke out gains, while HDFC Bank, Britannia, Bajaj Finance, Tata Consumerer were among the top losers.
Management remains confident of delivering double-digit revenues while maintaining current EBITDA Margin for FY22 despite RM headwinds through price hike, judicious A&P spend and cost optimization. Maintain BUY with revised TP of Rs. 680 as we continue to value it at 49x FY24E.
“Indian markets opened in red following mixed Asian market cues as investors continued to monitor the situation around Ukraine crisis and digest U.S. jobs data and central bank moves in region. During the afternoon session markets added losses to continue their weak trade amid persistent foreign fund outflows, foreign portfolio investors (FPIs) pulled out as much as ₹6,834 crore from Indian markets in the first four trading sessions of February. Traders were seen adding positions in Utilities, Metal and PSU stocks while selling was witnessed in Capital Goods, Healthcare and Telecom sector stocks."
We maintain BUY on ABCL with a revised SOTP-based TP of INR157 and initiate coverage on ABSLAMC with a target price of INR720 (29x Sep-23 NOPLAT+ cash and investments).
The share price of State Bank of India (SBI) surged on Monday after the company announced robust growth in its earnings and profit on the weekend.
Defying the general weakness in the market, trading in SBI share started with significant gains at ₹534 against its previous session's close at ₹530.20.
At the BSE at around 13.23 pm, the share of SBI was trading 1.09% higher at ₹536. Earlier the scrip surged to a high of ₹549.05.
State Bank of India share has rallied despite a sharp drop in the key indices. The benchmark Sensex was down 1.42% or 835.59 points.
Tokyo shares ended lower on Monday following selloffs prompted by worries over US interest rate hikes.
The benchmark Nikkei 225 index dropped 0.70 percent or 191.12 points to end at 27,248.87 and the broader Topix index fell 0.24 percent, or 4.57 points, to 1,925.99.
The dollar stood at 115.30 yen in Asian trade, up from 115.21 yen on Friday in New York.
Here is the list of the top 10 stocks that are likely to be in focus on Monday
State Bank of India (SBI) Research Report stated that the Reserve Bank of India (RBI) is likely to increase the repo rate by 20 bps outside MPC. The report titled ‘20 bps hike in reverse repo rate outside MPC’ is authored by Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India.
Lupin Ltd's performance for the quarter ended December failed to lift investor confidence. The stock slipped to 52-week lows on Monday.
Central Depository Services (India) Limited (CDSL) consolidated net profit for the third quarter ending December 2021 rose 55% to ₹83 crore as compared to ₹54 crore in the same quarter last year. The total income for the quarter under review rose 58% to ₹163 crore from ₹103 crore in the year-ago quarter. Shares of CDSL were trading over 3% lower on the NSE in Monday's deals.
Shares of paint maker Kansai Nerolac Ltd fell around 3% on the National Stock Exchange in opening deals on Monday. The December quarter earnings of the company were lacklustre, especially as the industrial paints segment, where it is a market leader, continued to lag.
Equity benchmark Sensex fell 700 points in early trade on Monday, tracking losses in index majors HDFC twins, Infosys and Maruti amid persistent foreign fund outflows and a mixed trend on Asian bourses.
The BSE gauge was trading 710.78 points or 1.22% lower at 57,933.22 in early trade. Likewise, the Nifty dropped 209 points or 1.19% to 17,307.
India's biggest bank State Bank of India (SBI) reported 62% jump in standalone net profit at ₹8,432 crore for the quarter ended December 2021, helped by lower provisions, as compared to ₹5,196 crore in the year-ago quarter. Shares of SBI surged in Monday's opening deals to ₹531 apiece on the BSE.
At market pre-opening, the Sensex was down 95 points at 58,547.67, while Nifty50 was at 17516, lower by 43 points
Stock markets are expected to witness volatility this week with domestic factors such as RBI policy decision and quarterly earnings by big players driving the investor sentiment, analysts said.
Also, movement of the rupee, Brent crude and foreign institutional investors (FIIs) would be keenly watched by investors, they added.
"Among important events, participants will be closely eyeing the MPC’s monetary policy review meet this week and its outcome is scheduled on February 9. Besides, on the macro front, IIP data will be released on February 11," said Ajit Mishra, VP Research, Religare Broking.
"We have some big names like Bharti Airtel, Jindal Steel, ACC, Hero Motocorp, Tata Power, Hindalco and M&M that will announce their numbers during the week along with several others," Mishra added.
"Markets have been witnessing volatile swings, mirroring their global counterparts and it may continue in near future. Besides, the upcoming event i.e MPC's review and earnings would further add to the choppiness," he said.
Among others, TVS Motor Company, Union Bank of India, IRCTC, NMDC and SAIL will also announce their quarterly results.
Steel major Tata Steel on Friday said its consolidated net profit more than doubled to ₹9,598.16 crore for the quarter ended December 2021, mainly on account of higher income.
In a regulatory filing, the company said it had clocked a net profit of ₹4,010.94 crore in the year-ago period.
Total income during the October-December quarter also jumped to ₹60,842.72 crore, from ₹42,152.87 crore earlier.
Shree Cements Ltd on Friday reported a decline of 23.57 per cent in its consolidated net profit at ₹482.70 crore for the third quarter ended December 31, 2021.
It had reported a net profit of ₹631.58 crore in the October-December quarter a year ago, Shree Cements said in a filing to the BSE.
Its revenue from operations was up 2.24 per cent at ₹3,637.11 crore during the quarter under review as against ₹3,557.21 crore in the corresponding quarter last fiscal.
Digital payments and financial services firm One97 Communications, which operates under Paytm brand, on Friday reported widening of consolidated loss to ₹778.5 crore in the December 2021 quarter.
Paytm had registered a loss of ₹535.5 crore in the same period a year ago, according to late night BSE filing by the company.
Its consolidated revenue from operations, however, increased by about 88 per cent to ₹1,456 crore during the reported quarter from ₹772 crore it posted in the December 2020 quarter.
The country's largest lender State Bank of India (SBI) on Saturday reported 62.27 per cent jump in standalone net profit at ₹8,432 crore for the quarter ended December 2021, helped by lower provisions.
This is the highest ever quarterly profit reported by the lender.
SBI had posted a standalone net profit of ₹5,196 crore in the same period of 2020-21.
Chinese shares started Monday with strong gains after a week-long holiday, tracking an earlier jump in Hong-Kong listed names and as concerns eased about regulatory headwinds for the nation’s battered tech sector.
The CSI 300 Index, which fell into a bear market just before the Lunar New Year holidays, rallied as much as 2.4% in early trading. The Shanghai Composite Index also rose. In Hong Kong, the Hang Seng China Enterprises Index edged up 0.2% after adding nearly 3% on Friday in its first session post the break.