Indices drift lower, start on a weak note; breadth weak

24 Jan 2022 , 09:32 AM

The benchmark indices made a weak start to the week as IT stocks drag the markets. The Nifty manages to trade above 17,500 mark.

At 9:30 IST, the barometer index, the S&P BSE Sensex, dropped 274.38 points or 0.46% at 58,762.80. The Nifty 50 index lost 97.90 points or 0.56% at 17,519.25.

In the broader market, the S&P BSE Mid-Cap index fell 1.36% while the S&P BSE Small-Cap index declined 1.81%.

The market breadth was weak. On the BSE, 974 shares rose and 1,969 shares fell. A total of 109 shares were unchanged.

The build-up to the upcoming budget session would be the key event that the market would be looking for in the near future. The Budget session of Parliament is set to commence on 31 January 2022 and will conclude on 8 April 2022. The government will present the Budget for fiscal 2022-23 on 1 February 2022. The Economic Survey is likely to be tabled on 31 January 2022 after the presidents address, as per reports.

On the political front, developments in the upcoming assembly polls in Uttar Pradesh, Uttarakhand, Goa, Punjab, and Manipur will be closely watched. Polls in all the five states will be held between 10 February 2022 and 7 March 2022 in seven phases. The counting of votes and the result will be declared on 10 March 2022.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,148.58 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 269.36 crore in the Indian equity market on 21 January 2022, provisional data showed.

Upcoming Nifty 50 Results:

Axis Bank (down 0.73%) and HDFC Asset Management Company (down 1.54%) will announce their quarterly results today.

Stocks in Spotlight:

Reliance Industries (RIL) rose 0.69%. RILs consolidated net profit (after exceptional items) rose 37.9% to Rs 20,539 crore on 52.2% rise in gross revenue to Rs 2,09,823 crore in Q3 December 2021 over Q3 December 2020. The Q3 FY22 net profit was boosted by an exceptional item (gain) of Rs 2,872 crore on account of divestment of shale gas assets, partially offset by provisions for liabilities pertaining to GAPCO amounting to Rs 36 crore.

ICICI Bank gained 1%. The private bank posted 25% rise in net profit to Rs 6,194 crore on 23% rise in net interest income to Rs 12,236 crore in Q3 December 2021 over Q3 December 2020.

JSW Steel declined 2.52%. The steel majors consolidated net profit surged 69.20% to Rs 4,516 crore on 74.16% jump in total revenue from operations to Rs 38,071 crore in Q3 December 2021 over Q3 December 2020. Profit before tax (PBT) soared 61.32% to Rs 6,261 crore in Q3 December 2021 over Rs 3,881 crore in Q3 December 2020. Consolidated production of crude steel grew 22% to 5.21 million tonnes (MT) in Q3 FY22 as against in Q2 FY22. Total sales rose 16% Q-o-Q (quarter-on-quarter) to 4.63 MT in Q3 FY22 as compared to Q2 FY22.

Bandhan Bank advanced 2.51%. The private bank posted 35.7% rise in net profit to Rs 859 crore on 2.6% rise in net interest income to Rs 2,124.7 crore in Q3 December 2021 over Q3 December 2020.

Global Markets:

Overseas, most Asian stocks traded lower on Monday as investors looked ahead to the U.S. Federal Reserves monetary policy meeting this week. The Federal Open Market Committee is due to meet on Tuesday and Wednesday to decide on the next steps for U.S. monetary policy.

Wall Streets main indexes ended sharply lower on Friday as Netflix shares plunged after a weak earnings report.

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