Equities slide lower amid weak global cues and heavy sell off

7 Feb 2022 , 12:35 PM

The benchmark indices witnessed a sharp decline during early afternoon trade, as FMCG, pharma and bank scrips dragged the market lower. The Nifty hovered tad above 17,300 level, falling sharply from 17,413.65 during the intraday trade.

At 12:30 IST, the barometer index, the S&P BSE Sensex, dropped 751.80 points or 1.28% at 57,893.02. The Nifty 50 index skid 210.85 points or 1.20% at 17,305.45.

In the broader market, the S&P BSE Mid-Cap index lost 0.91% while the S&P BSE Small-Cap index fell 0.56%.

The market breadth was negative. On the BSE, 1,450 shares rose and 1,925 shares fell. A total of 142 shares were unchanged.

COVID-19 Update:

India added 83,876 new cases in the last 24 hours. The daily positivity rate stood at 7.25%. The countrys active caseload currently stands at 11,08,938.

Economy:

The Reserve Bank of Indias (RBI) Monetary Policy Committee (MPC) will meet on 8-10 February 2022 instead of 7-9 February 2022, the central bank said on 6 February 2022. The change in the committees meeting schedule comes after 7 February 2022 was declared as a public holiday by the Maharashtra state government following the demise of renowned singer Lata Mangeshkar.

Derivatives:

The NSEs India VIX, a gauge of markets expectation of volatility over the near term, jumped 4.69% to 19.7850. The Nifty 24 February 2022 futures were trading at 17,275, at a discount of 30.45 points as compared with the spot at 17,305.45.

The Nifty option chain for 27 January 2022 expiry showed maximum Call OI of 25.7 lakh contracts at the 18,000 strike price. Maximum Put OI of 37 lakh contracts was seen at 16,500 strike price.

Buzzing Index:

The Nifty PSU Bank index rose 1.99% to 3,051.95. The index lost 2.40% in the past two sessions.

Bank of Baroda (up 7.41%), Union Bank of India (up 5.52%), Indian Bank (up 4.63%), Bank of India (up 4.25%) and State Bank of India (SBI) (up 2.43%) were the top gainers in the PSU Bank segment.

State Bank of India (SBI) advanced 2.43%. The Indias largest public sector bank posted a 62.3% rise in standalone net profit to Rs 8,432 crore on a 3.1% rise in total income to Rs 78,351.54 crore in Q3 FY22 over Q3 FY21. The banks operating profit before provisions and contingencies rose by nearly 7% to Rs 18,521.64 crore in Q3 FY22 over Q3 FY21. Meanwhile, the banks standalone profit before tax stood at Rs 11,547.6 crore in Q3 FY22, 65.2% higher than Rs 6,990 crore posted in the same quarter last year. Net interest income rose by 6.4% to Rs 30,687 crore in Q3 FY22 from Rs 28,820 crore posted in Q3 FY21. Net interest margin slightly improved to 3.4% in Q3 FY22 from 3.34% posted in the corresponding quarter last year. Provision and contingencies contracted by 32.6% to Rs 6,973 crore in Q3 FY22 over Q3 FY21. Provision Coverage Ratio (PCR) at the end of Q3 FY22 stood at 88.32%.

Bank of Baroda jumped 7.41%. The state-run banks net profit rose 107.05% to Rs 2,197.03 crore on 0.37% increase in total income to Rs 20,482.26 crore in Q3 December 2021 over Q3 December 2020. The banks profit before tax (PBT) rose 82.15% to Rs 2,976.29 crore in Q3 December 2021 over Q3 December 2020. Net Interest Income (NII) increased to Rs 8,552 crore in Q3 FY22 as against Rs 7,477 crore in Q3 FY21, registering a growth 14.38% YoY. Global NIM increased to 3.13% in Q3 FY22 from 2.77% in Q3 FY21. The banks provisions and contingencies (excluding tax provisions) fell 27.33% to Rs 2,507.04 crore in Q3 December 2021 over Q3 December 2020.

IPO Updates:

The initial public offer (IPO) of Vedant Fashions (Manyavar) received bids for 42,76,401 shares as against 2,54,55,388 shares on offer, according to stock exchange data at 12:15 IST on Monday (7 February 2022). The issue was subscribed 0.17 times.

The issue opened for bidding on Friday (4 February 2022) and it will close on Tuesday (8 February 2022). The price band of the IPO is fixed at Rs 824-866 per share. An investor can bid for a minimum of 17 equity shares and in multiples thereof. The IPO of 3,63,64,838 equity shares of Re 1 each comprised of an offer for sale of up to 3,63,64,838 equity shares (including anchor portion of 1,09,09,450 equity shares).

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