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Domestic benchmark indices fell for the week as investors were concerned over rising global inflation and Fed’s potential rate hike to curb inflation. In addition, muted corporate earning from India Inc, increasing coronavirus cases and non-stop selling by FIIs weighed on the markets. For the week, the Sensex tanked 3.57% to 59,037.18 and the broader index Nifty 50 fell 3.5% to 17,617.15.
In the cash segment, Foreign Institutional Investors (FIIs) sold for Rs 12643.7 crore and Domestic Institutional Investors were net buyers for only Rs 508.1 crore during the week.
Top losers were Nifty IT [-7.1%], Pharma [-5.2%], Media [-3.8%], FMCG [-2.7%] and PSU Bank [-2.7%]. Nifty Energy index rose marginally by 0.8%. India VIX, a gauge for volatility, jumped 14.1%.
Among Nifty 500 index, top gainers were SIS Ltd [17.6%], Angel One [14.5%], Tata Elxsi [14.1%], Adani Green [14%] and Hitachi Energy India [13.8%]. Top losers were Sterlite Technologies [-23.7%], Tata Teleservices [-22.6%], Hikal [-18%], Dr. Lal Pathlabs [-17.2%] and Info Edge (India) [-16.4%].
Company News
Reliance Industries Ltd: The conglomerate posted a consolidated net profit of Rs 18,549 crore in Q3FY22. This is an increase of 41% from Rs 13,101 crore reported in the year-ago period. Revenue from operations rose 54% to Rs 1.91 lakh crore for the reported quarter as compared to Rs 1.23 lakh crore in the same period last year.
The company’s retail arm Reliance Retail has acquired a 54% stake in domestic robotics company Addverb for about Rs 983 crore, a senior official of the robotic firm said Tuesday. The funds received from Reliance will be used to expand business overseas as well as set up one of the biggest robotic manufacturing facilities in Noida.
Hindustan Unilever Ltd (HUL): The FMCG major said its standalone net profit for the quarter ended December rose 16.76 per cent year-on-year (YoY) to Rs 2,243 crore from Rs 1,921 crore in the corresponding quarter last year. The company said its total revenue including other income rose 10.23 per cent YoY to Rs 13,183 crore in Q3FY22 from Rs 11,959 crore in the same quarter a year ago.
HDFC Bank: The bank reported an 18% jump in standalone net profit in the Q3FY22 at Rs 10342.2 crore in Q3FY22 compared with Rs 8758.29 crore in the year-ago period. The rise was attributed to higher loan growth and lower provisioning for bad loans. Net interest income stood at Rs 18,443.48 crore in Q3FY22, up 13% from the year-ago period. Net NPAs stood at 0.37% in the reported quarter.
Bajaj Finance: The NBFC posted an 85 per cent jump in consolidated net profit to Rs 2,125 crore in the Q3FY22 on the back of robust growth in net interest income (NII) and lower provisions. In the same period last year, it reported a net profit of Rs 1146 crore. Consolidated NII jumped 40 per cent to Rs 6,000 crore in the reporting quarter, compared to Rs 4,296 crore in the corresponding period of last financial year.
Bajaj Finserv: The NBFC reported a 2.6% drop in consolidated net profit to Rs 1255.79 crore in Q3FY22 from Rs 1289.9 crore in Q3FY21. Revenue was up 10% at Rs 17,586.74 crore in the reported quarter from Rs 15,958.53 crore in the year-ago period.
JSW Steel: The company reported a 69% jump in consolidated net profit at Rs 4,516 crore for the quarter ending December 31, 2021 from a net profit of Rs 2,669 crore in the year-ago period. Consolidated total income climbed 74% to Rs 38,225 crore in Q3FY22 from Rs 22,006 crore in the year-ago period.
Asian Paints: The paint manufacturer reported 18% decline in consolidated net profit at Rs 1,016 crore for the quarter ending December 31, 2021, compared with Rs 1,238 crore in the year-ago period. Consolidated revenue from operations rose 26% to Rs 8,527 crore from Rs 6,788 crore in Q3FY21. Rising raw material prices and low demand from the automotive sector weighed on the company’s profit margin.
Bajaj Auto: The two-wheeler maker reported a consolidated total revenue from operations of Rs 9,021.65 crore in October-December 2021 quarter, up 1.25% from Rs. 8,909.88 crore in the same period last fiscal. Net Profit stood at Rs. 1,429.68 crore in Q3FY22, down 16.7% from Rs. 1,716.26 crore in the year-ago period.
HCL Technologies: The IT firm posted a 13.6% decline in net profit at Rs 3,442 crore in the December quarter of FY22 as against a net profit of Rs 3,982 crore in the year-ago period. However, the company said it had seen all round “stellar performance” across verticals and geographies. Its revenue grew 15.7% to Rs 22,331 crore in the quarter compared with Rs 19,302 crore in the same period last year.
Hero MotoCorp: The company has announced an investment of up to Rs 420 crore in Ather Energy. Hero already has a 34.8% stake in Ather. Hero said it is addressing the emerging mobility opportunity through organic and inorganic initiatives.
Global Markets
The US markets came under heavy selling pressure as market participants were worried over rising interest rates and the prospects of Federal Reserve tightening monetary policy aggressively to fight inflation. Tepid corporate earnings from big banks such as JP Morgan Chase and Goldman Sachs weighed on financial-related stocks. Weak results from Netflix and fall in semiconductor shares dragged technology index. Markets were also spooked by tensions brewing between the US and Russia over Ukraine. For the week, the S&P 500 plunged 5.68%, the Dow lost 4.58% and the Nasdaq tanked 7.55%.
Chinese markets rose for the week as the government eased its monetary policy and signalled additional support for the property sector. China’s economy grew by 8.1% in 2021, and industrial production rose steadily through the end of the year and offset a drop off in retail sales, according to the country’s statistical agency. On a weekly basis, the CSI 300 index rose 1.11% and Shanghai Composite index rose 0.04%.
Japan’s stock market fell for the week as Nikkei 225 index dropped 2.14% and the broader Topix index was down 2.62%. The country’s central bank Bank of Japan (BoJ) maintained its dovish stance during the January monetary policy meeting, keeping key interest rates unchanged.