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End - Session

Detailed review of the post market session of the day.

Sensex tumbles 554 pts, Nifty holds 18,100; NSE VIX jumps 6%

18-Jan-22 16:56 Hrs IST

The domestic equity benchmarks ended with deep cuts on Tuesday. Selling was triggered due to negative global cues, firm crude oil prices and FIIs turning net sellers in the domestic equities. The Nifty closed below the 18,150 mark. All the sectoral indices on the NSE ended in the red. Auto, metals and realty shares tumbled.

The barometer index, the S&P BSE Sensex, slumped 554.05 points or 0.90% to 60,754.86. The Nifty 50 index lost 195.05 points or 1.07% to 18,113.05.

In the broader market, the BSE Mid-Cap index declined 2.20% and the BSE Small-Cap index lost 1.92%.

The market breadth was weak. On the BSE, 1,145 shares rose and 2,285 shares fell. A total of 83 shares were unchanged.

The NSE's VIX index, a gauge of the market's expectation of volatility over the near term, jumped 6.05% to 17.78.

In the commodities market, Brent crude for March 2022 settlement rose $1.60 at $87.66 a barrel. Brent crude firmed up in the international markets to over seven-year high on worries about possible supply disruptions after Yemen's Houthi group attacked the United Arab Emirates. The attack has escalated hostilities between the Iran-aligned group and a Saudi Arabian-led coalition.

The Organization of the Petroleum Exporting Countries (OPEC) is due to release its monthly oil market report on Tuesday where traders are likely to watch for signs that global oil demand has been affected by the surge in COVID-19 cases around the world.

FM Nirmala Sitharaman Press Conference:

The Union Finance Minister N. Sitharaman is addressing a press conference in the national capital about the Antrix Devas issue. She highlighted the issues and status of Antrix Devas case and implications of the Supreme Court order. She also hit out at the previous UPA governments for the issue.

The Supreme Court on Monday upheld the winding up of Devas Multimedia, saying it is a case of fraud of a huge magnitude which cannot be brushed under the carpet.

Antrix Corporation is the commercial arm of the Indian Space Research Organisation (ISRO). Devas Multimedia is a Bengaluru-based startup. Both the companies signed a satellite deal in 2005 under which Antrix agreed to build, launch and operate two satellites and lease out 90% of satellite transponder capacity to the Bengaluru-based company, which had planned to use it to offer hybrid satellite and terrestrial communication services throughout India.

The controversial deal was cancelled later and the decade-old-long legal battle between Antrix and Devas ended in the Supreme Court on Monday.

COVID-19 Update:

In last 24 hours, India registered 2,38,018 new COVID-19 infections in a day taking the tally to 37,618,271, according to the Union Health Ministry data on Tuesday. The country reported 310 new deaths taking the death toll to 4,86,761. The country recorded 1,57,421 recoveries, taking the total number of recoveries to 3,53,94,882. The active cases comprise 4.62% of the total infections, while the national COVID-19 recovery rate has decreased to 94.09%, the ministry said.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.627% as compared with 6.636% 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 74.58, compared with its close of 74.25 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement fell 0.09% to Rs 47,872.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.08% to 95.33.

Foreign Markets:

Shares in Europe and Asia declined on Tuesday as global investors remain attuned to the policy direction of the U.S. Federal Reserve and the start of corporate earnings season.

Global markets have been focused of late on assessing the potential speed and trajectory at which the Fed will move to hike interest rates and tighten its ultra-loose pandemic-era monetary policy. The central bank's increasingly hawkish tone has led to a rise in bond yields, which spiked again on Tuesday and roiled risk assets.

Chinese President Xi Jinping cautioned against a rapid rise in interest rates on Monday that could derail the global recovery from the coronavirus pandemic.

The Bank of Japan (BOJ) left monetary policy unchanged. The BOJ upgraded its inflation forecasts at its policy meeting on Tuesday, but as inflation is set to remain well below its 2% target in the coming years, it stressed its resolve to maintain its ultra-loose monetary settings. The central bank also revised up next fiscal year's growth forecast and offered a more upbeat view on the economy than three months ago.

Buzzing Segment:

The Nifty Realty index fell 2.61% to 502.65. The index rose 2.44% in the past two sessions.

Sunteck Realty (down 5.07%), DLF (down 4.21%), Oberoi Realty (down 3.86%), Godrej Properties (down 3.76%), Phoenix Mills (down 2.5%), Indiabulls Real Estate (down 2.18%), Sobha (down 0.88%), Macrotech Developers (down 0.6%) and Brigade Enterprises (down 0.41%) tumbled.

Prestige Estates Projects rose 3.43%. The realty company's sales booking for Q3 increased by 110.6% to Rs 4267.6 crore, compared to Rs 2,026 crore recorded in Q3 last FY21. It posted its highest-ever quarterly collections in Q3 FY22, at Rs 2431.6 crore, up 70% YoY.

Stocks in Spotlight:

Tata Motors fell 2.68%. The company has announced a marginal price hike on its passenger vehicles. Effective 19 January 2022, an average increase of 0.9% will be implemented, depending on the variant and model, the auto maker said.

EKI Energy Services hit an upper circuit limit of 5% at Rs 10,760.25 after the company's net profit rose 98.41% to Rs 161.21 crore on 55.10% increase in net sales to Rs 687.82 crore in Q3 December 2021 over Q2 September 2021.

Moschip Technologies hit an upper circuit limit of Rs 5% to Rs 89.35 after the company reported consolidated net profit of Rs 2.11 crore in Q3 December 2021 as against net loss of Rs 1.43 crore in Q3 December 2020.

PTC Industries jumped 3.04% after the company announced the allotment of 20 hectares (50 acres) of land by Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) to PTC's wholly owned subsidiary Aerolloy Technologies (ATL) in Lucknow node of the UP Defence Industrial Corridor. The company intends to set up fully integrated material manufacturing capabilities of all exotic materials, including titanium, cobalt, and nickle superalloys, at this facility.

Angel One rose 1.84%. The company reported consolidated profit at Rs 164.6 crore in Q3FY22 against Rs 73.2 crore in Q3FY21. Total income surged 92.4% to Rs 607.10 crore from Rs 315.6 crore YoY.

HFCL slumped 7.31% after the company's consolidated net profit fell 4.71% to Rs 81.10 crore on a 4.86% decline in revenue from operations to Rs 1,215.21 crore in Q3 FY22 over Q3 FY21.

Ramkrishna Forgings declined 3.20%. The company's standalone net profit surged to Rs 45.12 crore in Q3 FY22 from Rs 16.67 crore in Q3 FY21. Revenue from operations increased by 50.70% YoY to Rs 606.05 crore during the quarter. Further, the company's board has approved 5-for-1 stock split.

ICICI Securities slipped 0.60%. The company reported a 42.4% jump in consolidated net profit to Rs 380.3 crore in Q3 FY22 from Rs 267 crore posted in Q3 FY21.

Tata Steel Long Products slumped 5.38% after the company's net profit declined 65.8% to Rs 103.8 crore in Q3 FY22 from Rs 304.3 crore posted in Q3 FY21.

Tatva Chintan Pharma Chem tumbled 8.95%. The company reported a 9.2% increase in consolidated net profit to Rs 22.8 crore on a 31% jump in net sales to Rs 104.6 crore in Q3 FY22 over Q3 FY21. Sequentially, however, the company's net profit and net sales have declined by 29.7% and 15.4%, respectively.

Tech Mahindra slipped 3.54%. The IT major announced 100% acquisition of Com Tec Co IT (CTC) for 310 million euros, including earnouts and synergy linked payouts. Tech Mahindra is also investing a cumulative amount of 20 million euros, in SWFT and Surance, for a 25% ownership in each of these two InsurTech ventures funded by the same founding group as CTC.

Hathway Cable & Datacom slipped 3.23% after the company's consolidated net profit declined 45.76% to Rs 33.93 crore on 2.89% rise in net sales to Rs 455.03 crore in Q3 December 2021 over Q3 December 2020.