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Benchmark Indian indices fell for the second week in a row amid weak global cues and sustained selling by foreign institutional investors on concerns over high valuations as well as rising inflation. For the week, the Sensex closed 2.49% lower at 59306.93 and the Nifty closed 2.45% down at 17671.65.
Top losers among Nifty sectoral indices were Energy (-4.3%), Bank (-3%), IT (-2.8%), Metal (-2.2%). PSU Bank index inched up 0.1% to end in green.
Broader markets also fell as Nifty Midcap 100 fell 2% and Nifty Smallcap 100 dropped 1.9%.
In Nifty 50, top losers were Axis Bank (-9.2%), Adani Ports (-9%), NTPC (-8.5%), BPCL (-6.6%) and Coal India (-6.5%). Top gainers were UltraTech Cement (6.8%), ICICI Bank (5.6%), UPL (5.1%), Asian Paints (4%) and Shree Cements (3.2%).
Foreign Institutional Investors were net sellers and they sold for Rs 15702.3 crore and Domestic Institutional Investors were net buyers for Rs 9427.2 crore.
Company News
Axis Bank: The lender’s share plunged 9.2% for the week as its loan growth was tepid . The bank’s net profit soared 86.21% YoY to Rs 3,133.32 crore. Total income rose 2.99% YoY to Rs 20,134.39 crore in Q2FY22. The bank’s Net Interest Income (NII) grew 8% YoY to Rs 7,900 crore from Rs 7,326 crore in Q2 FY21. Net interest margin (NIM) in Q2FY22 stood at 3.39%.
Tech Mahindra: The company’s consolidated net profit increased 25.7% to Rs 1,338.7 crore in Q2FY22, from Rs 1064.6 crore in the year-ago period. Its revenue from operations was up 16.1% to Rs 10,881.3 crore in the quarter, compared with Rs 9,371.8 crore in the same period last year. The board has proposed a special dividend of Rs 15 per share.
ITC: The conglomerate posted a 10.09% increase in consolidated profit after tax (PAT) at Rs 3,763.73 crore in the September quarter of FY22, helped by a recovery across all segments. The PAT stood at Rs 3,418.69 crore in the year-ago period. Its operating revenue was at Rs 14,844.38 crore, up by 12.9% from Rs 13,147.81 crore in the same period last year. Shares fell about 5.6% during the week.
Kotak Mahindra Bank: The lenders shares dropped 5.8% after its net profit fell 7% to Rs 2,032 crore in second quarter of FY22 from same period last year. Total income rose 2% YoY to Rs 8,408.87 crore in Q2FY22. The bank’s operating profit jumped fell 4.35% to Rs 3,120 crore in Q2FY22 from Rs 3,262.12 crore in Q2FY21.
Bajaj Finserv: The company posted 13.8% YoY rise in consolidated net profit to Rs 1,122.13 crore. Total income increased 19.6% YoY to Rs 18,008.22 crore in Q2FY22. Profit before tax in Q2 FY22 stood at Rs 2,792.28 crore, up by 29.5% from Rs 2,156.60 crore in Q2 FY21. Shares of the company lost 4.4%.
Economy News
The production of eight core industries rose 4.4% in September this fiscal year as most of the sectors, except crude oil, registered growth, according to data released by the government. The core sectors have registered growth of 0.6 per cent in September last year.
Production of natural gas jumped 27.5%, refinery products rose 6% and cement output climbed 10.8 per cent in September. However, crude oil production declined by 1.7% YoY in September.
Global Markets
The US market closed at record highs as technology and internet-based companies reported strong results and shares of consumer discretionary rose. Investors’ sentiments were also boosted by Biden’s progress in the massive infrastructure stimulus plan. The three major indices in the US gained for the week and for the month. For the week, the S&P 500 rose 1.33%, the Dow edged up 0.4% and the Nasdaq jumped 2.71%.
In the Asian markets, Japan’s major indices were mixed for the week. Ahead of the country’s general election, Nikkei rose 0.3%, while the broader Topix inched down 0.05%. Japan’s corporate earnings were positive which lifted market participants’ sentiments. The country’s central bank maintained a dovish stance at its monetary policy meeting.
China’s stock markets fell as continued concerns about its property sector and fresh lockdown amid rising coronavirus cases weighed on the markets. For the week, the large-cap CSI 300 fell 0.92% and the Shanghai Composite index lost about 1%.