SSPL WEALTH PVT LTD

End - Session

Detailed review of the post market session of the day.

Benchmarks rise for 3rd day; Nifty closes above 18,000; IT shares advance

11-Jan-22 16:35 Hrs IST

Domestic stock market ended with decent gains on Tuesday, rising for the third straight session. IT stocks were in demand as three sector bigwigs are set to announce their Q3 results on Wednesday. Metal stocks tumbled on profit selling. The undertone of the market was bullish in anticipation of strong Q3 earnings. However, gains were capped due to concerns over rising covid-19 cases.

The barometer index, the S&P BSE Sensex, advanced 221.26 points or 0.37% to 60,616.89. The Nifty 50 index added 52.45 points or 0.29% to 18,055.75. Both these indices have risen 1.7% in three sessions.

The broader indices lagged the benchmarks. The S&P BSE Mid-Cap index rose 0.01% while the S&P BSE Small-Cap index gained 0.15%.

Buyers outpaced sellers. On the BSE, 1,933 shares rose and 1,513 shares fell. A total of 67 shares were unchanged.

COVID-19 Update:

India reported 1,68,063 new cases in the last 24 hours. The daily positivity rate stood at 10.64%. The country's active caseload currently stands at 8,21,446. Active cases stands at 2.29% and recovery rate currently stands at 96.36%. There were 69,959 recoveries in the last 24 hours, which increases total recoveries to 3,45,70,131.

Economy:

The employment across nine sectors of the economy stood at 3.10 crore in the July-September 2021 quarter, increasing by 2 lakh from the July-September 2021 quarter, according to labour ministry data released Monday. As per Quarterly Employment Survey (QES) report released by minister Bhupender Yadav, the total employment in 9 sectors in April-June 2021 was 3.08 crore.

Of the total employment estimated in the selected nine sectors, Manufacturing accounted for nearly 39%, followed by Education with 22% and Health as well as IT/BPOs sectors both around 10%.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.570% as compared with 6.590% at close in the previous trading session.

In the foreign exchange market, the rupee higher against the dollar. The partially convertible rupee was hovering at 73.91, compared with its close of 74.05 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement rose 0.22% to Rs 47,532.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.12% to 95.88.

In the commodities market, Brent crude for March 2022 settlement rose $1.21 or 1.50% to $82.08 a barrel.

Global Markets:

European stock markets advanced on Tuesday, helped by strong economic data.

U.K. retail sales jumped in December, growing 4.6% compared with December 2019.

Meanwhile, Asian stocks closed on a mixed note as investors expressed concern about inflation as well as likely policy tightening from central banks such as the U.S. Federal Reserve.

Buzzing Segment:

The Nifty IT index rose 1.03% to 38,605.40. The index has risen 1.57% in three sessions.

HCL Technologies (up 4.49%), Tech Mahindra (up 1.66%), Larsen & Toubro Infotech (up 0.96%), L&T Technology Services (LTTS) (up 0.77%), Mindtree (up 0.59%) and MphasiS (up 0.16%) jumped.

TCS (up 0.99%), Infosys (up 0.27%) and Wipro (up 0.06%) advanced ahead of their Q3 results on Wednesday, 12 January 2022.

Coforge added 3.45% to Rs 5769.55 after a foreign brokerage reportedly initiated coverage of the stock with a 'buy' recommendation and target price of Rs 7,400.

Stocks in Spotlight:

Vodafone Idea slumped 20.54% after the company approved the conversion of the full amount of interest related to spectrum auction installments and Adjusted Gross Revenue (AGR) dues into equity. The conversion will result in dilution to all the existing shareholders of the company, including the promoters. Following conversion, it is expected that the government will hold around 35.8% of the total outstanding shares of the company, and that the promoter shareholders would hold around 28.5% (Vodafone Group) and around 17.8% (Aditya Birla Group), respectively.

Hinduja Global Solutions (HGS) climbed 6.06% after the company said its board will consider a share buyback on 14 January 2022. A meeting of the board of directors of Hinduja Global Solutions will be held on 14 January 2022, to consider and explore quantum/timings of buy-back of equity shares of the company, HGS said in an exchange filing today. The board will also consider potential mergers and acquisition opportunities, the company said.

One 97 Communications (Paytm) fell 3.32%. The company said that its loan disbursal volume shot up 401% year-on-year to 4.4 million in the October-December period compared with the same quarter in the previous year. The value of loans disbursed through its platform during the quarter was Rs 2180 crore (run-rate of $1 .2 billion), an increase of 365% y-o-y. Paytm added that its gross merchandise value (GMV) grew 123% year-on-year to Rs 250,100 crores during the December quarter.

JSW Steel declined 3.82%. The steel maker reported a group combined crude steel production of 5.35 million tonnes (MT) for Q3 FY22, rising 28% over 5.07 MT in Q3 FY21, including the production at jointly controlled entity viz. JSW Ispat Special Products (JISPL). On a standalone basis, crude steel production of JSW Steel grew 8% to 4.41 million tonnes (MT) in Q3 FY22 from 4.08 MT in Q3 FY21. Indian operations including joint control jumped 24% to 5.19 MT in Q3 FY22 as against 4.18 MT in Q3 FY21.

Rajratan Global Wire hit an upper circuit of 5% at Rs 2726.15 after the company said that its board will meet on Friday, 28 January 2022, to consider a proposal for sub-division of equity shares of the company.

JSW Ispat Special Products fell 3.29%. The company's crude steel production increase by 43% to 0.14 million tonnes (MT) in Q3 FY22 from 0.10 MT in Q3 FY21. The steel production is higher by 14% as compared with 0.13 MT produced in Q2 FY22.