Weekly Market View – 29th January, 2022

Indian Market Outlook:

The Key benchmark indices fell over 2 percent during the week gone by led by anticipation of the US Federal Reserve’s stance, rising crude oil prices and growing concerns in Ukraine over a potential war with Russia. To tackle soaring inflation, the Fed signalled its intention to begin raising rates as early as March this year. The Fed further announced a reduction in monthly purchases of securities by an additional USD 30 billion for February 2022. Nifty ended the week with 2.92 percent lower at 17101.95 points while the Sensex ended with 3.11 percent lower at 57,200 points. BSE Small cap underperformed the key benchmark indices during the week. BSE Midcap index ended 3.07 percent lower, while the BSE Small cap index fell 3.43 percent. Foreign Institutional Investors were the net sellers during the week; sell equities worth Rs. 22158 crores while the DIIs were the net buyers of Rs. 10849 of crores. Bank Nifty was the outperformer during week rose 0.3 percent. Going forward upcoming week is going to be a busy week as Finance Minister Nirmala Sitharaman will present the Union Budget for fiscal year 2022-23 on February 1. The Economic Survey is scheduled to be placed in Parliament on January 31. Apart from it more data on the economy such as Infrastructure Output (YoY) (Dec) and Nikkei Markit Manufacturing PMI will be released with more corporate earnings coming next week. Automobile sales for January Month will also be released next week. Besides the Budget, developments in the Russo-Ukrainian crisis will also be key for the markets. We advise investors to invest in quality stocks with any further dip.

 

 

 

 

Source:Investing, NDTV, BSE, CNBCTV18, Moneycontrol,

Economic News:

• Gold imports by India accelerated to the highest level in a decade last year as jewelry sales almost doubled, with the demand outlook remaining bright, according to the World Gold Council. Demand revived after two bleak years as Indians once again flocked to jewelry stores in 2021 as fears of the pandemic eased. Weddings and celebrations picked up in full swing in the three months through December, more than doubling full-year imports to about 925 tons, the highest since 2011, according to the council data.

• The government appointed V Anantha Nageswaran as the chief economic advisor. He has assumed charge, the Ministry of Finance said on Friday. The appointment comes just ahead of the government’s economic survey and Budget 2022. The former Chief Economic Advisor Krishnamurthy Subramanian’s term ended in December. Nageswaran has wide-ranging experience across financial markets, research and academic. He holds a postgraduate diploma in management from the Indian Institute of Management, Ahmedabad, and a doctoral degree in finance from the University of Massachusetts, Amherst. His PhD thesis revolved around the empirical behavior of exchange rates.

Industry News:

• Operating profitability of tractor makers is set to shrink by 300-400 basis points in the ongoing fiscal year owing to a sharp increase in raw material prices, primarily steel, along with lower sales volume, ratings agency Crisil said on Friday. Crisil also said it expects domestic tractor sales volume to decline 4-6 per cent in 2021-22 amid the volume growth moderating to 0.7 per cent in April-December 2021. In the ongoing fiscal year, Crisil said, prices of key raw materials such as steel and pig iron, which account for 75-80 per cent of total cost, have risen 35-40 per cent year-on-year in April-December and discretionary costs have normalized.

• Bank credit grew 8.01 per cent to Rs 115 lakh crore and deposits rose 9.28 per cent to Rs 159.83 lakh crore in the fortnight ended January 14, according to RBI data. In the fortnight ended January 15, 2021, bank credit stood at Rs 106.43 lakh crore and deposits at Rs 146.25 lakh crore, as per the RBI’s Scheduled Banks’ Statement of Position in India as on January 14, 2022, released on Friday. In the previous fortnight ended December 31, 2021, advances rose 9.16 per cent and deposits increased 10.28 per cent.

 Company News:

• Kotak Mahindra Bank Ltd.’s quarterly profit rose on higher core income and provision write-back. Net profit for the private lender increased 15% over the year earlier to Rs 2,131 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 2,074-crore consensus estimate of analysts tracked by Bloomberg. Its net interest income rose 12% year-on-year to Rs 4,334. Other income, too, was up 5.4% to Rs 1,361 crore. The net interest margin was at 4.62% for the quarter ended December 2021. The bank’s asset quality improved during the period. Its gross non-performing asset ratio fell 48 basis points sequentially to 2.71%. Net NPA ratio fell 27 basis points over the preceding three months to 0.79% as on Dec. 31.

• A Joint venture of billionaire Gautam Adani-run group’s gas arm and Total of Francewalked away with the most – 14 licences to retail CNG to automobiles and piped cooking gas to households in the latest city gas bidding round, according to oil regulator PNGRB. Adani Total Gas won city gas rights in 14 out of 52 geographical areas (GAs) for which Petroleum and Natural Gas Regulatory Board (PNGRB) declared results on Friday. Hyderabad-based Megha Engineering and Infrastructure won 13 GAs, while state-owned IOC was adjudged winner in 8 GAs.

• Larsen & Toubro (L&T) on Friday reported a consolidated net profit of Rs 2054.74 crore for the December quarter, down 16.70 per cent against a profit of Rs 2466.71 crore in the same quarter last year. The revenue from operations came in at Rs 39,562.92 crore, up 11.14 per cent against Rs 35,596.42 crore in the corresponding quarter last year. The Company bagged orders worth Rs 50,359 crore during the quarter, registering a decline of 31 per cent for the corresponding period in the previous year. The decline is coming on a much larger base due to high-speed rail corridor awarded last year.

Global News

• S. employment costs rose at a robust pace for a second-straight quarter, wrapping up the strongest year of labor inflation in two decades as businesses competed for a limited supply of workers. The employment cost index, a broad gauge of wages and benefits, advanced 1% in the fourth quarter, according to Labor Department figures released Friday.

• S. inflation-adjusted consumer spending fell last month by the most since February, suggesting that Americans tempered their outlays amid the latest Covid-19 wave and the fastest inflation in nearly 40 years.

Forthcoming Corporate Actions – 31^st January – 5^th February

Source: BSE, Elite wealth Research

Source: BSE, Elite wealth Research

Major Economy Indicators

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