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Mid - Session

Market behaviours during the course of the trading session.

Indices crash to new day's low; Nifty wipes out 500 pts

24-Jan-22 14:40 Hrs IST

The benchmark indices continued to drag lower, attaining new intraday lows during mid-afternoon trade. The sectoral indices tumbled across the board. The Nifty managed to hover above 17,100 level.

At 14:30 IST, the barometer index, the S&P BSE Sensex, tumbled 1,709.52 points or 2.90% at 57,327.66. The Nifty 50 index slumped 507.85 points or 2.88% at 17,109.30.

In the broader market, the S&P BSE Mid-Cap index declined 3.87% while the S&P BSE Small-Cap index dropped 4.44%.

The market breadth was weak. On the BSE, 463 shares rose and 3,088 shares fell. A total of 123 shares were unchanged.

COVID-19 Update:

In last 24 hours, India added 3,06,064 new cases. The country's daily positivity rate stood at 20.75%. India's Active caseload currently stands at 22,49,335. Meanwhile, India reported 439 deaths linked to COVID-19.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.637% as compared with 6.620% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.65, compared with its close of 74.4325 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement rose 0.61% to Rs 48,543.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.11% to 95.75.

In the commodities market, Brent crude for March 2022 settlement rose 56 cents at $88.45 a barrel.

Buzzing Index:

The Nifty Bank index fell 2.31% to 36,708.15. The index lost 5.21% in eight trading sessions.

RBL Bank (down 6.37%), IDFC First Bank (down 4.60%), Kotak Mahindra Bank (down 3.46%), Punjab National Bank (PNB) (down 3.09%) and Federal Bank (down 3.09%) were the top losers in the Bank segment.

ICICI Bank fell 1.44%. The bank's standalone net profit grew by 25% to Rs 6,194 crore in Q3 FY22 from Rs 4,940 crore in Q3 FY21. Total income during the quarter rose by 11% Y-o-Y to Rs 27,070 crore. The profit before tax increased by 34% to Rs 8,141 crore in Q3 FY22 from Rs 6,078 crore in Q3 FY21. The core operating profit (profit before provisions and tax, excluding treasury income) increased by 25% to Rs 10,060 crore in the quarter ended 31 December 2021 from Rs 8,054 crore in the quarter ended 31 December 2020.

Net interest income (NII) in Q3 FY22 stood at Rs 12,236 crore, up by 23% from Rs 9,912 crore in Q3 FY21. The net interest margin was 3.96% in the quarter ended 31 December 2021 as against 3.67% in the quarter ended 31 December 2020 and 4% in the quarter ended 30 September 2021. Provisions (excluding provision for tax) declined by 27% to Rs 2,007 crore in Q3 FY22 from Rs 2,742 crore in Q3 FY21. Provision coverage ratio was 79.9% at 31 December 2021. The bank continues to hold COVID-19 provisions of Rs 6,425 crore as of 31 December 2021.

Yes Bank shed 1.97%. The private sector bank's net profit jumped 76.8% to Rs 266.43 crore in Q3 FY22 from Rs 150.71 crore posted in Q3 FY21. Meanwhile, the bank's total income fell 12.1% to Rs 5,632 crore in Q3 FY22 over Q3 FY21. Profit before tax surged to Rs 356 crore in Q3 FY22 from Rs 86.7 crore reported in Q3 FY21. Meanwhile, the bank's operating profit before provisions & contingencies fell 66.4% to Rs 730.68 crore in Q3 FY22 over Q3 FY21. Net interest income (interest earned less interest expended) declined 31.1% to Rs 1,764 crore in Q3 FY22 from RS 2,560 crore posted in Q3 FY21. Net interest margin declined to 2.4% in Q3 FY22 from 3.4% in Q3 FY21.

The bank's provisions and contingencies (excluding tax provisions) sharply declined by 82% to Rs 375 crore in Q3 FY22 as compared to Rs 2,089 crore posted in the same quarter last year. Meanwhile, the bank's provision coverage ratio slipped to 79.3% in Q3 FY22 from 81.5% posted in Q3 FY21. On the asset quality front, the bank's gross non-performing assets (NPAs) stood at Rs 28,654.49 crore as on 31 December 2021 as against Rs 28,740.59 crore as on 30 September 2021 and Rs 29,546.54 crore as on 31 December 2020. Fresh slippages were significantly lower quarter on quarter at Rs 978 crore in Q3 FY22 versus Rs 1,783 crore last quarter. In a filing to BSE, the bank said the resolution momentum continued with Rs 610 crore of cash recoveries and Rs 573 crore of upgrades during the quarter.

Bandhan Bank advanced 2.39%. The microfinance bank reported a 35.8% rise in standalone net profit to Rs 858.97 crore on a 6.5% rise in total income to Rs 4,120.95 crore in Q3 FY22 over Q3 FY21. Profit before tax rose 35.4% to Rs 1,144 crore in Q3 FY22 over Q3 FY21. Operating profit before provisions and contingencies rose 1.4% to Rs 1950.14 crore in Q3 FY22 as compared to Rs 1,923.18 crore in Q3 FY21.

Net Interest Income (NII) for the quarter grew by 2.6% to Rs 2,124.7 crore as against Rs 2,071.7 crore in the corresponding quarter of the previous year. Net interest margin (annualised) for the quarter ended 31 December 2021 stood at 7.8% as against 7.6% in Q2 FY22. Gross NPAs as on 31 December 2021 is at Rs 9,441.6 crore (10.81%) against Rs 8763.6 crore (10.82%) as on 30 September 2021. Net NPAs as on 31 December 2021 stood at Rs 2,413.1 crore (3.01%) against Rs 2,265.8 crore (3.04%) as on 30 September 2021.

CSB Bank rose 1.39%. The bank's standalone net profit surged 179.5% to Rs 148.25 crore on a 5.6% decline in total income to Rs 579.81 crore in Q3 FY22 over Q3 FY21. In Q3 FY22, the NII stood at Rs 303.34 crore as against Rs 251.19 crore in Q3 FY21 and Rs 278.38 crore for the previous quarter, rising 21% Y-o-Y (year-on-year) and 9% Q-o-Q (quarter-on-quarter) respectively. The increase in NII was powered by the spread and volume effects combined with impressive interest income recoveries on Gold loan NPAs.

The operating profit Q3 FY22 stood at Rs 147.55 crore as against Rs 197.19 crore for Q3 FY21 and Rs 149.38 crore for Q2 FY22, mainly due to decrease in treasury profit and PSLC commission payout. On the asset quality front, the gross non-performing assets were at Rs 388.95 crore as of 31 December 2021 as against Rs 586.83 crore reported on 30 September 2021 and Rs 686.39 crore as of 30 June 2021. The gross NPA ratio was 2.62% as of 31 December 2021 as compared with 4.11% as on 30 September 2021 and 4.88% as of 30 June 2021. The net NPA ratio was 1.36% as of 31 December 2021 as against 2.63% reported on 30 September 2021 and 3.21% as of 30 June 2021.

Global Markets:

European stocks declined across the board on Monday morning as investors braced themselves for the next meeting of the U.S. Federal Reserve this coming week, and watched for developments in Ukraine as tensions with Russia grow. The Federal Open Market Committee is due to meet on Tuesday and Wednesday to decide on the next steps for U.S. monetary policy. Meanwhile, the Wall Street's main indexes ended sharply lower on Friday as Netflix shares plunged after a weak earnings report.

Asian stocks traded mixed on Monday as investors looked ahead to the U.S. Federal Reserve's monetary policy meeting this week. China has delivered another rate cut with the People's Bank of China cutting the rate on 14-day reverse repo by 10 bps. China's recent cut of two key policy interest rates opened the door to more monetary easing actions ahead. This is despite the sentiment that the Federal Reserve will probably hike rates from March.