Sensex, Nifty Log Worst Day In Two Months

• Ongoing FII Selling and liquidity outflow from markets.

• Rising crude oil prices.

• Geopolitical tensions between Russia and Ukraine.

• Fears of impact of tapering of stimulus on economic recovery. Tapering is expected to begin by March

Source: Compilation of analysts' view

India's stock benchmarks declined, dragged by losses in realty and metal stocks. All the 19 sectoral indices compiled by BSE Ltd. declined, amid a global selloff on account of the U.S. Fed tapering and escalating tensions in Ukraine over a potential war with Russia.

The Sensex fell 2.62% to 57,491.51. This is the steepest single day decline in nearly two months since Nov. 26. The 30-stock gauge shed over 2,050 points to an intraday low of 56,984.01. The Nifty also declined by 2.66% to 17,149.10. The 50-stock gauge fell below 17,000 in intraday trade.

Sensex and Nifty have now declined for five consecutive sessions, making it the longest losing streak in over 10 months.

JSW Steel Ltd. had the largest drop, falling 6.7%.Today 48 of 50 shares fell, while two rose.

Sensex and Nifty have now fallen 8% off the record highs registered on October 19, 2021 and are 5% off the closing levels on Oct. 19.

The broader indices underperformed their larger peers with the S&P BSE SmallCap falling 3.8% and MidCap indices shedding nearly 4.5%. All the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Realty and Metal losing over 5%.

The market was skewed in the favour of bears. About 511 stocks advanced, 3,072 declined and 123 remained unchanged.

“Indian equities corrected massively, possibly reacting to US equities trending lower and rise in crude oil prices. In my view, there were no positive triggers to take the market upwards in the near term", Amar Ambani, Senior President & Head – Institutional Equities, YES Securities wrote in a note and added that "while a further 500 points downside cannot be ruled out in the Nifty, on the brighter side, the stock market is much lighter and healthier, heading into the Union Budget, after the high in mid-October 2021".

• Zomato has 3.67 million shares change hands in a large trade

• Details of buyers, sellers are not known immediately

Source: Bloomberg

Murugappa Group company Tube Investments of India has acquired 70% stake in EV startup Cellestial for Rs 161 crore.

• Tube Investments will be forming a new subsidiary to pursue clean mobility business interests, including the electric three-wheeler business.

• Initial capital of Rs 350 crore will be infused into the new subsidiary.

Source: Exchange filing

Ola Electric Mobility Pvt. raised more than $200 million as it works to gain an early lead in the market for battery-powered scooters.

• The latest funding round values the electric two-wheelers manufacturer at $5 billion, the company said in a statement on Monday.

• Investors who participated in the funding round included Alpine Opportunity Fund, Edelweiss, Tekne Private Ventures.

India's stock benchmarks shed over 2% in intraday trade, as all sectors witnessed a sharp decline, amid extended selling pressure across the world due to fears over impact of tapering of monetary stimulus on the recovery.

The Sensex shed over 1,000 points in intraday trade. Over the last five sessions, the 30-stock gauge has shed over 3,300 points. The NSE Nifty 50 also fell below 17,300 in intraday trade for the first time in 2022.

Sensex shed 1.95% to 57,883.87. The 30-day stock gauge shed 2,23% to an intraday low of 57,720.94. The Nifty also declined by similar magnitude to 17,232.60.

The broader indices underperformed their larger peers with the S&P BSE MidCap falling 3.60% and S&P BSE SmallCap tumbling nearly 4.5%. All the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Realty shedding 6%.

The market breadth was skewed in the favour of bears. About 493 stocks advanced, 3,002 stocks declined and 123 remained unchanged.

Sensex sheds over 1,000 points in intraday trade. Over the past five sessions, the 30-stock gauge has fallen over 3,300 points. The NSE Nifty 50 slipped below 17,300 in intraday trade for the first time since Dec. 31.

• Variable rate repo auction of Rs 75,000 crore scheduled for today.

• RBI had scheduled a Rs 50,000 crore and Rs 75,000 crore variable rate repo auction last week amidst rise in call money market rates.

Source: RBI

Shares of Avenue Supermarts shed as much as 6.5%, the most in eight sessions, to Rs 4,021.

• The stock has shed 10% over the last two sessions.

• The relative strength index on the stock was below 30, indicating it may be oversold.

• Trading volume on the stock was over two times the 30-day average volume, at this time of the day.

Source: Bloomberg

Indian sovereign bonds fall ahead of heavy debt supply this week and as traders stay on the sidelines before the federal budget on Feb. 1. The rupee declines.

• 10-year yields rise 3bps to 6.65%; 6.54% 2032 bond yield up 2bps to 6.64%

• USD/INR up 0.1% to 74.52.

Source: Bloomberg

Shares of Zomato Ltd. fell over 19%, the steepest intraday decline since its debut to Rs 91.6 apiece.

• Trading volume on the stock was over nine times the 30-day average volume at this time of the day.

• The relative strength index on the stock is at 18, suggesting it may be oversold.

• Of the 19 analysts tracking the company, 14 maintained 'buy', one maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 76.4%

"Zomato is witnessing a vertical fall and slipped below the low made on a listing day which is not a good sign for any counter. There is a risk-off situation across the globe amid fear of tightening by the US Fed where if we look at the trend then there is a sharp sell-off in growth stocks (new edge businesses) especially loss-making companies. Many new edge companies came out with unrealistic valuations amid euphoria in the market but we know that only a few companies will survive in the long run and I believe Zomato has the potential to perform in the long run," Santosh Meena, Head of Research, Swastika Investmart Ltd. wrote in a note and added that "the recent price correction is leading to stock at a reasonable valuation where aggressive investors can use this correction as a buying opportunity with a long-term view".

India's stock benchmarks opened lower, dragged by metals, consumer durables and metal stocks, amid weak global cues.

The S&P BSE Sensex fell 0.15% to 58,940.11. The NSE Nifty 50 also declined by similar magnitude to 17,591.55.

The broader indices underperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap falling over 0.6%. Thirteen of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Information Technology, Consumer Durables, Metal falling over 1%.

The market breadth was skewed in the favour of bears. About 1,261 stocks advanced, 1,553 declined and 109 remained unchanged.

"Markets are under pressure due to sharp drop in values of crypto currencies and also the Nasdaq listed new-age stocks", Deven R Choksey, MD, KRChoksey Holdings Pvt. Ltd. wrote in a note and added "though India’s economy and growth are full of promise and potential, traders may face the brunt of sell offs, largely due to the collateral damage of erosion in values of crypto and new-age stocks".

• Biocon raised to 'reduce' from 'sell' at Kotak Securities; price target set at Rs 350.

• Hindustan Zinc cut to 'reduce' at Kotak Securities; price target set at Rs 325.

• Bajaj Finserv raised to 'reduce' from 'sell' at Kotak Securities; price target set at Rs 15,900.

Source: Bloomberg

Fullerton India and One97 Communications Ltd. announced partnership to provide lending products to merchant partners and consumers.

• The two firms with leverage data-driven insights and offer products like BNPL, merchant loans, personal loans.

• The firms will focus on specifically catering to MSMEs across small cities and towns.

Source: Exchange Filing

• ICICI Bank raised to 'buy' from 'accumulate' at Dalal & Broacha; price target set at Rs 974.

• Bandhan Bank raised to 'hold' from 'sell' at Investec; price target set at Rs 325.

• Bandhan Bank cut to 'accumulate' at Nirmal Bang; price target set at Rs 320.

• Hindustan Zinc raised to 'buy' at Systematix Shares & Stocks; price target set at Rs 385.

• Persistent Systems raised to 'buy' from 'neutral' at Phillips Securities; price target set at Rs 5,000.

• Cipla raised to 'outperform' from 'neutral' at Credit Suisse; price target set at Rs 1,150.

Source: Bloomberg

• Tata Elxsi raised to 'buy' on Weakness at Dalal & Broacha

• UltraTech Cement cut to 'neutral' at Choice Equity

• Jyothy Labs raised to 'buy' at Elara Secs India; price target set at Rs 185

• Polycab India cut to 'reduce' at Spark Capital Advisors

• PVR raised to 'add' at Spark Capital Advisors; price target set at Rs 1,850.

• HDFC Life raised to 'buy' at Elara Secs India; price target set at Rs 880.

Source: Bloomberg

• Cadila Health raised to 'outperform' at DAM Capital; price target set at Rs 520.

• Hindustan Unilever raised to 'buy at Nirmal Bang; price target set at Rs 2,725.

• Kajaria Ceramics raised to 'buy' at BOB Capital Markets

• Mphasis raised to 'accumulate' at Dolat Capital; price target set at Rs 3,550

Source: Bloomberg

Indian bond traders will weigh a continued rise in oil pricesand the central bank’s intervention in the debt market in recent weeks.

• The ‘Others’ category data, which includes the central bank, showed Rs 1,820 crore of purchases on Friday, the highest in two weeks: CCIL data

• RBI sold Rs 2,230 crore ($299.6 million) of bonds in the week to Jan. 14 after it sold Rs 5,640 crore in the week before that, separate data showed

• RBI also bought Rs 70 crore of bonds in the secondary market

• USD/INR fell 0.1% to 74.4275 on Friday

• 10-year yields rose 1bps to 6.63% on Friday; underwriters rescued 5-year debt sale at auction

• Global funds sold net Rs 3,150 crore of Indian Stocks on Friday: NSE

• They bought Rs 156 crore of sovereign bonds under limits available to foreign investors, and added Rs 119 crore of corporate debt

• State-run banks bought Rs 1,500 crore of sovereign bonds on Jan. 21: CCIL data. Foreign banks sold Rs 746 crore of bonds.

Source: Bloomberg

Asian stocks fell on Monday and U.S. equity futures rebounded as traders weighed concerns about tightening Federal Reserve monetary policy.

Shares fell in Japan, South Korea and Australia after one of the worst stretches for global shares last week since the pandemic began. Gains in S&P 500 and Nasdaq 100 contracts held out the hope of some respite. The dollar was steady.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index's performance, fell 0.73% to 17,507.50 as of 8:20 a.m.

The Fed on Wednesday is expected to signal a March liftoff in interest rates and balance-sheet reduction later this year to help fight inflation.

In the volatile cryptocurrency sector, bruised Bitcoin stabilised around $36,000 in the wake of a plunge over the past three days. Digital coins have shed more than $1 trillion in value since a November high.

Meanwhile, traders are monitoring U.S.-Russia tension over Ukraine.

Reliance Industries Q3 FY22 (Consolidated, YoY)

• Revenues up 57% at Rs 1,85,047 crore vs Rs 1,17,860 crore (Bloomberg Estimate: Rs 1,75,000 crore)

• Net profit up 41.6% at Rs 18,549 crore vs Rs 13,101 crore (Bloomberg Estimate: Rs 15,046.7 crore)

• Ebitda up 37.7% at Rs 29,706 crore vs Rs 21,566 crore (Bloomberg Estimate: Rs 28380.4 crore)

• Ebitda margins at 16.1% vs 18.3% (Bloomberg Estimate: 16.2%)

Reliance Jio (Standalone, QoQ)

• Revenues up 3.3% at Rs 19,347 crore vs Rs 18,735 crore (Bloomberg estimate: Rs 19,387 crore)

• Net profit rose 2.4% to Rs 3,615 crore vs Rs 3,528 crore (Bloomberg estimate: Rs 3,860 crore)

• Ebitda up 2.4% at Rs Rs 4,847 crore vs Rs 4,731 crore

• Ebitda margins at 26.1% vs 26.3%

JSW Steel Q3 FY22 (Consolidated, QoQ)

• Revenues up 17.1% at Rs 38,071 crore vs Rs 32,503 crore (Bloomberg estimate: Rs 36,796.9 crore)

• Net profit down 39.2% at Rs 4,357 crore vs Rs 7,170 crore (Bloomberg estimate: Rs 4,872.9 crore)

• Ebitda down 12.3% at Rs 9,132 crore vs Rs 10,417 crore (Bloomberg estimate: Rs 9,415.3 crore)

• Margins at 23.9% vs 32.0% (Bloomberg estimate: 25.6%)

Vodafone Idea Q3 FY22 (Consolidated, QoQ)

• Revenues up 3.3% at Rs 9,717.3 crore vs Rs 9406.4 crore (Bloomberg estimate: Rs 9,772.5 crore)

• Net loss at Rs 7,230.9 crore vs Net loss of Rs 7132.3 cr (Bloomberg estimate: Net loss Rs 6998 crore)

• Ebitda down 1.2% at Rs 3,816.5 crore vs Rs 3,862.9 crore (Bloomberg estimate: Rs 4037.6 crore)

• Ebitda margins at 39.3% vs 41.1% (Bloomberg estimate: 41.3%)

ICICI Bank Q3 FY22 (Consolidated)

• Net Profit: Rs 6194 crore vs Rs 4940 crore (YoY) (Bloomberg Estimate: Rs 5,800 crore)

• NII: Rs 12,236 crore vs Rs 9912 crore (YoY)

• GNPA: 4.13% vs 4.82% (QoQ)

• NNPA: 0.82% vs 0.99% (QoQ)

Yes Bank Q3 FY22 (Consolidated)

• Net Profit: Rs 266.43 crore vs Rs 151 crore (YoY) (Bloomberg estimate: Rs 128 crore)

• NII: 1764 crore vs Rs 2560 crore (YoY)

• GNPA: 14.65% vs 15% (QoQ)

• NNPA: 5.29% vs 5.5% (QoQ)

L&T Finance Holding Q3 FY22 (Consolidated, YoY)

• NII down 6% at Rs 1,563.91 crore crore vs Rs 1,661 crore

• Net profit down 12% at Rs 325.99 crore vs Rs 290.66 crore

Gland Pharma Q3 FY22 (Consolidated, YoY)

• Revenues up 24% at Rs 1,063.32 crore vs Rs 859.42 crore

• Net profit up 34% at Rs 273.03 crore vs Rs 204.10 crore

• Ebitda up 34.19% at Rs 321.07 crore vs Rs 239.26 crore

• Ebitda margins at 30.2% vs 27.8%

Bandhan Bank Q3 FY22 (Consolidated)

• NII up 3% at Rs 2,124.7 crore vs Rs 2,071.73 crore (YoY)

• Net profit up 36% at Rs 858.97 crore vs Rs 632.59 crore (YoY)

• GNPA at 10.81% vs 10.82% (QoQ)

• NNPA at 3.01% vs 3.04% (QoQ)

Share India Securities Q3 FY22 (Consolidated)

• NII up 108% at Rs 195.31 crore vs Rs 93.82 crore (YoY)

• Net profit up 178% at Rs 48.96 crore vs Rs 17.61 crore (YoY)

• The company approved dividend of Rs 2 per share.

INOX Q3 FY22 (Consolidated, YoY)

• Revenues up 1,892% at Rs 296.47 crore vs Rs 14.88 crore

• Net loss down 101% at Rs 1.32 crore vs Rs 102.78 crore

• Ebitda down 171.22% at Rs 57.97 crore vs Rs 81.39 crore (negative)

• Ebitda margins at 19.55% vs -546.98%

• PTC India: Has called for a third-party audit of allegations related to board appointments at subsidiary PTC India Financial.

• Birla Corporation: Inaugurated the Mukutban integrated cement plant, the the largest greenfield investment of Rs 2,744 crore by the company, taking its cement business to 2 crore tonnes annually.

• Philips Carbon Black: To consider proposal for sub-division of the equity shares of the company having a face value of Rs 2 each and alteration of authorised capital on Feb. 9.

• Oil and Natural Gas Corporation: ONGC Videsh has into the development stage of a major gas discovery in Brazil with the submission of declaration of commerciality. The company holds 25% participating interest of the block.

• Arshiya: Received NCLT approval of the demerger between Arshiya and Arshiya Rail Infrastructure.

• Inox Leisure: Has approved a scheme of merger of Shouri Properties with Inox Leisure Ltd.

• FDC: FDC was granted ANDA approval by the U.S. Food and Drug Administration for an antibiotic, Ofloxacin Otic Solution, 0.3%.