MARKETS: Sensex recovers 900 pts from day’s low; Nifty Bank up 1%, IT weak

Markets at 12 noon

LIVE market updates: The headline indices remained in the red zone treading within a broad range. The BSE Sensex was at 57,144, lower by 347 points, while the NSE Nifty was 82 points lower at 17,067.

On the Sensex, Axis Bank continued to be the top gainer and had inched up nearly 6 per cent, followed by Bharti Airtel (up 3.5 per cent), SBI (2.7 per cent up) and IndusInd Bank (up 2.6 per cent). On the Nifty, Hero MotoCorp, Coal India, BPCL, UPL and Bajaj Auto were the additonal gainers.

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Across broader markets, the BSE MidCap index was now up 0.3 per cent, led by gains in Zee Entertainment, Federal Bank, Vodafone Idea, Canara Bank, BEL, Bayer Crop, ICICI Securities, Page Industries, RBL Bank, Tata Power, Adani Power, all up between 2.5-6 per cent. The BSE SmallCap index was also up marginally in green.

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Sectorally, auto, FMCG, pharma, metals and realty were in the green zone, while PSU Bank index was up nearly 3 per cent being the biggest gainer on the NSE. Energy, consumer durables, IT and financials, meanwhile, were in the negative territory.

Among stocks, shares of Deepak Nitrite dipped 9 per cent on the BSE after the company reported a 500 basis points (bps) contraction in its consolidated earnings before interest tax and depreciation and amortisation (EBITDA) margins at 22 per cent in the December quarter (Q3FY22). READ MORE.

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Asian markets

Japan’s Nikkei index fell 2.5 per cent touching a two-year low on Tuesday, weighed down by investor caution over the situation in Ukraine, inflationary risks and on concerns of a faster-than-expected rate hike by the Federal Reserve. The index later closed 1.7 per cent lower. Meanwhile, other asian indices were also sharply in the red with Hang Seng, Kospi, and Shanghai composite down 1.7 per cent, 2.7 per cent and 1.9 per cent respectively.

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Markets at 11 AM

LIVE market updates: The benchmark indices continued to reel under selling pressure and were down up to 0.9 per cent. The BSE Sensex was at 56,980, down 511 points and the NSE Nifty was 143 points lower at 17,006.

Reliance, HDFC twins, Infosys, Asian Paints, and ICICI Bank were the top laggardspulling the indices down, and were lower by 0.7-2.7 per cent. Other top losers on the bourses included Titan, Wipro, Bajaj twins, Ultratech Cement, Kotak Bank, Infosys and Nestle, all lower 1-2 per cent.

In the broader markets, the BSE MidCap and SmallCap indices were also muted with the former being marginally in the green and the latter down 0.2 per cent.

Individually, shares of Reliance Industries have fallen 7 per cent in the past two trading sessions, despite the company’s clarification on loan of Rs 750 crore granted to Shapoorji Pallonji Company by its arm Reliance Ventures Limited (RVL). A sharp decline in stock price has seen, RIL’s market capitalisation decline by Rs 1.17 trillion in past two trading days. READ MORE.

On the flip side, SBI Cards was up 3 per cent on the BSE after the company reported a strong 84 per cent yoy increase in net profit at Rs 386 crore in the December quarter. The interest income rose 9 per cent YoY to Rs 1,273 crore and fee income was up 31 per cent at Rs 1,616 crore, resulting in revenue increase of 24 per cent to Rs 3,140 crore.

Further, recently listed Zomato, which shed nearly 20 per cent on Monday, was up 7 per cent in intra-day trade after the company’s co-founder and CEO Deepinder Goyal assured employees that the fall in the stock price was due to the global sell-off in growth tech stocks.

Among sectors, realty, consumer durables, IT, pharma and financials were the top losers. Meanwhile, metals and banking stocks continued to be the major gainers.

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Markets at 10 AM

LIVE market updates: The benchmark indices recouped their opening losses staging a smart pull-back in early morning deals. Gains in select counters including Axis Bank, Bharti Airtel, SBI, Tata Steel and TCS, all up between 0.5-4 per cent, were supporting the recovery.

The BSE Sensex was now up 80 points at 57,573 and the NSE Nifty was at 17,198, higher by 50 points.

“The excessive volatility is likely to continue for a few more days until clarity emerges out of the crucial Fed meet. The market is discounting a hawkish Fed and if the Fed indicates four rate hikes in 2022, the market will again turn weak. On the contrary, if the Fed sounds less hawkish, the oversold markets may stage a comeback and even a sharp rebound on short covering,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“Investors, however, have to be cautious and be slightly defensive in their strategy since valuations have not become cheap. But since there is value in high quality financials and IT, long-term investors can start nibbling in these segments”, he added.

This apart, in the broader markets, the BSE MidCap and SmallCap indices also recovered sharply and were now in the green zone, trading up 0.8 and 0.9 per cent, respectively.

Sectorally, metals, and public sector banks were the top gainers on the Nifty, up 1 per cent each.

Among individual stocks, IndiaMART InterMESH hit a fresh 52-week low of Rs 5,258, down 10 per cent on the BSE after the company reported a disappointing set of numbers for the December quarter. Consolidated net profit declined 12 per cent year-on-year to Rs 70 crore, while its revenue from operations grew 8 per cent YoY to Rs 188 crore. READ MORE.

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Opening Bell

LIVE market updates: The benchmark indices started lower on Monday carrying their sharp losses into a sixth straight session. The BSE Sensex was 856 points down at 56,635, while the NSE Nifty was at 16,898, lower by 250.

In the broader market, the BSE MidCap and SmallCap indices were also in red and were down up to 2.8 per cent.

Among the Sensex-30 constituents, Axis Bank, PowerGrid, Bharti Airtel and Tata Steel were the only gainers, up 0.5-2 per cent. JSW Steel and Coal India were the additonal gainers on the Nifty.

On the flip side, Asian Paints, Wipro, Kotak Bank, HDFC twins, L&T, RIL, Tech M, Nestle, Ultratech Cement, Titan, Infosys and HUL were the leading losers, down 1-3 per cent.

Sectorally, all indices were in the red zone, except Nifty Metals and PSU Banks, up 0.5 per cent each. The biggest losers were the Nifty IT, Consumer Durables and Financials indices, down 1 per cent each.

The volatility index on the NSE was up 4 per cent around 23 level, it had surged 21 per cent on Monday by close.

Individually, shares of Deepak Nitrite were trading nearly 6 per cent lower on the BSE post the company’s Q3 results posted on Monday. The company reported nearly 12 per cent YoY increase in net profit at Rs 242.46 crore, and its revenue grew 39.49 per cent to Rs 1,722.27 crores from a year ago.

On the flip side, Axis Bank was the leading gainer on the bourses, up 3 per cent on the back of its strong earnings for the December quarter. The private sector lender’s net profit soared 224 per cent YoY to Rs 3,614 crore for the third quarter ended December 2021 on improvement in net interest margin (NIM) and other income. Net interest income (NII) rose by 17 per cent YoY to Rs 8,653 crores.

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Pre-open session

LIVE market updates:

The benchmark indices were in the red zone in pre-open trades amid continued weakness across Asian markets. The BSE Sensex was down 316 points at 57,175, while the NSE Nifty was 136 points lower at 17,013.

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LIVE market updates: The benchmark indices are likely to remain under pressure for a sixth session on Tuesday and start lower amid downbeat global cues ahead of the crucial US Federal Reserve meet outcome on late Wednesday night.

At 8 am, the SGX Nifty February futures were quoting 16,986 level, over 150 points lower than Nifty’s spot close the previous day.

Among individual stocks, Brightcom Group, Cipla, Federal Bank, Indiabulls Real Estate, Macrotech Developers, Maruti Suzuki and SRF are some of the companies to announce December quarter results today. READ MORE

Shares of SBI Cards and Axis Bank are also likely to be in focus, following the strong Q3 performance. The former has reported a 84 per cent YoY surge in Q3FY22 PAT at Rs 386 crore, backed by higher interest and fee income. The latter’s net profit soared 224 per cent YoY to Rs 3,614 crore on improvement in net interest margin (NIM) and other income.

Bharti Airtel too is likely to be in limelight, as the company’s board is scheduled to meet on Friday to evaluate a proposal for raising funds.

Global cues

In the US, key benchmark indices rallied nearly 5 per cent from the lows of the day to end marginally higher on Monday. The Dow Jones and the S&P 500 gained 0.3 per cent each, while the Nasdaq added 0.6 per cent.

Meanwhile oil prices cooled-down from their recent highs. Brent Crude slipped 1.8 per cent to $86.27 a barrel, and WTI Crude declined 2.2 per cent to $83.31 a barrel.

Despite the sharp pullback in the US markets, the major markets in Asia were nursing losses. Japan’s Nikkei had plunged 1.7 per cent, Kospi too tumbled nearly 2 per cent, and Taiwan had shed 1.2 per cent. Straits Times was down 0.8 per cent, while Shanghai quoted flat.