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Domestic markets fell for the week on a host of factors which included Fed’s announcement on aggressive monetary policy tightening, weak global cues, higher oil prices, lower-than-expected corporate earnings from Indian Inc and heavy selling by Foreign Institutional Investors. The Sensex closed 3.11% lower to 57,200.23 and Nifty fell 2.92% to 17,101.95.
During the week, Foreign Institutional Investors sold for Rs 22,158.2 crore in the cash segment. Domestic Institutional Investors bought for Rs 10,849.4 crore in the cash segment.
Broader markets also tanked tracking benchmark indices. Nifty Smallcap 100 plunged 3.72% and Nifty Midcap 100 fell 2.5%.
Among sectoral indices, top losers were BSE Consumer Durables [-6.8%], Nifty IT [-6.1%], Nifty Realty [-5.2%], Nifty Metal [-4.4%] and BSE Energy [-4.1%]. Top gainers were Nifty PSU Bank [6.9%], BSE PSU [1.9%], BSE Bankex [0.7%].
Nifty 500 index fell 3% for the week. Among Nifty 500 stocks, top gainers were Sharda Cropchem [58.7%], Gujarat Ambuja Exports [12.6%], MMTC [12.2%], Bank of Baroda [11.4%] and TV18 Broadcast [11.3%]. Top losers were Lux Industries [-23.7%], IndiaMART [-21.2%], Tata Teleservice Maharashtra [18.5%], Mahindra Logistics [-17.2%] and Torrent Pharma [-16%].
Company News
Reliance Industries Ltd (RIL): The company is in talks with investors to raise $3 billion in equity to fund its renewable energy business, Mint reported citing sources. The discussions led by Manoj Modi are at a preliminary stage. Funds would go to Reliance New Energy Solar Ltd., the news report said.
Bharti Airtel: Google will invest up to $1 billion in Bharti Airtel through a mix of equity investment and commercial partnership in affordable devices, the companies announced. The shares would be issued on a preferential basis at a price of Rs 734 per share and Google will get a 1.28 per cent stake in the company.
State Bank of India (SBI): The lender’s Chairman Dinesh Kumar Khara said that all the requisite approvals for setting up of National Bad Assets Company have been received. As many as 15 accounts will be transferred to NARCL in this financial year, he added while addressing a virtual press conference.
Meanwhile, the lender listed its maiden issue of $300-million Formosa bonds on India INX GIFT IFSC. This is the first such issuance by any Indian Bank in Formosa Bond market. Formosa bond is a bond issued in Taiwan.
Maruti Suzuki: The company’s revenue fell 1% at Rs 23,246 crore in Q3FY22 versus Rs 23,457.8 crore in the year-ago period. Net profit fell 48% to Rs 1,011.3 crore in the reported quarter from Rs 1,941.4 crore in the year-ago period. EBITDA was down 30% to Rs 1,559 crore in Q3FY22 from Rs 2,226.1 crore in Q3FY21.
Kotak Mahindra Bank: The private-sector lender’s net profit stood at Rs 2,131 crore in Q3FY22 as against Rs 1,854 crore in the year-ago period. Net Interest Income stood at Rs 4,334 crore in the reported quarter compared with Rs 3,876 crore in the corresponding quarter last fiscal. The net NPA stood at 0.79% in the Q3FY22 as against 1.06% in Q2FY22.
Axis Bank: The private-sector lender reported a 224% jump in standalone net profit at Rs 3,614 crore for the quarter ending December 31, 2021, on the back of higher deposit and loan growth and improving asset quality. The lender reported net profit of Rs 1,117 crore in the year-ago period. The bank’s net interest income (NII) grew 17% YoY to Rs 8,653 crore. Net interest margin (NIM) for Q3FY22 improved by 14 bps QoQ to 3.53%.
Punjab National Bank (PNB): The lender reported a two-fold jump in standalone net profit to Rs 1,126.78 crore for the third quarter ended December, as bad loans marginally declined. The public-sector lender had earned a net profit of Rs 506.03 crore in the year-ago period. Total income during October-December 2021 declined slightly to Rs 22,026.02 crore as against Rs 23,298.53 crore in the year-ago period.
Bharat Petroleum Corporation Ltd (BPCL): The company said it will invest Rs 10,000 crore over the next five years in setting up city gas distribution networks in the cities for which it secured licences in the latest bidding round. BPCL recently won licences to retail CNG to automobiles and piped natural gas for cooking purposes in six geographical areas or GAs bid out in the latest 11th bidding round of PNGRB.
Canara Bank: The lender’s net profit rose by 115.8 per cent year on year at Rs 1,502 crore for the third quarter ended December 2021 (Q3FY22) due growth in Net Interest Income (NII) and lower provisions. The net profit was Rs 696 crore in Q3FY21. The bank’s NII grew by 14.11 per cent to Rs 6,946 crore in Q3FY22 as against Rs 6,087 crore in Q3FY21.
Global Markets
The benchmark indices in the US markets rose for the week after the US Federal Reserve on Wednesday said it will hike interest rates in March and reiterated its plans to end bond purchases that month to arrest rising inflation. For the week, the S&P 500 index rose 0.77%, the Dow Jones gained 1.35% and the Nasdaq inched up 0.01%.
The US economy expanded by 5.7% in 2021 as the government pumped in trillions of dollars in COVID-19 relief to support the country’s economy. Gross domestic product increased at a 6.9% annualized rate in the fourth quarter, the Commerce Department reported.
The Chinese markets fell ahead of a week-long Lunar New Year holiday as Jerome Powell announced faster rate hikes and monetary tightening. For the week, the Shanghai Composite index lost 4.6% and the CSI 300 index slumped 4.5%. Meanwhile, China’s central bank has cut the rate on 14-day reverse repo by 10 bps.
Japan’s stock markets also closed in the negative territory for the week, with the Nikkei 225 index declining 2.92% and the broader Topix slumping 2.61% in the week.