Sensex, Nifty down on selling in banking stocks; Axis, ICICI Bank top losers

Market


The Nikkei is down 1% while the Hang Seng fell 0.7%. The Shanghai Composite is bucking the trend and is up 0.4%.

In US stock markets, Wall Street indices bounced off session lows on Wednesday after the US Federal Reserve released meeting minutes said that while the central bank intends to begin raising interest rates to combat inflation, its decisions would be made on a meeting-by-meeting basis.

The Dow Jones ended 0.2% lower while the Nasdaq eased 0.1%.

Back home, Indian share markets opened on a positive note following the trend on SGX Nifty. Benchmark indices started in green as Russia-Ukraine conflict concerns eased.

Today’ session may see some volatility on account of the weekly F&O expiry while investors also take into account the January Fed meeting minutes.

The results season is almost over it seems. Today, market participants are keenly watching Nestle India, and Ambuja Cements as they will announce their December quarter results.

The BSE Sensex is trading down by 129 points. Meanwhile, the NSE Nifty is trading lower by 14 points.

Power Grid and Reliance are among the top gainers today. Axis Bank, on the other hand, is among the top losers today.

The BSE Mid Cap index is up 0.2%. The BSE Small Cap index is trading lower by 0.1%.

Sectoral indices are trading mixed with stocks in the power sector, automobile sector and energy sector witnessing buying.

Banking stocks and finance stocks, on the other hand, are trading in red.

Shares of Blue Star and RHI Magnesita hit their 52-week highs today.

The rupee is trading at 75.13 against the US$.

Crude oil prices slid more than 2% today after both France and Iran said parties are closer to an agreement to salvage Iran’s 2015 nuclear deal with world powers, offsetting ongoing concerns over the situation in Ukraine.

Gold prices are trading up by 0.5% at 49,853 per 10 grams.

Meanwhile, silver prices are trading up by 0.2% at 63,407 per kg.

Gold is up today, trading near an eight-month high touched earlier this week, as the US dollar and Treasury yields dipped on less hawkish-than-feared Federal Reserve minutes.

The Ukraine crisis also boosted demand for the safe-haven metal.

In the previous session, gold edged higher after NATO and US said Russia was increasing its troop build-up near Ukraine.

In news from the automobile sector, Tata Motors is among the top buzzing stocks today.

Tata Motors’ passenger vehicle (PV) business is on a dream run, outpacing the rest of the industry in sales growth and on course to post its first profit before interest and depreciation in a decade this fiscal year.

After posting the highest annual sales in the company’s history in the calendar year 2021, Tata Motors is eyeing a record January-March period with sales of 125,000 vehicles, as per projections. 

If the projected production is achieved, it will take sales for the fiscal year ending March 2022 to 370,000 units, a 65% increase from fiscal 2021.

An improvement in semiconductor supplies, which rose about 10% from the past quarter, is aiding the bullish outlook.

The auto major is far from done it seems. For the next fiscal year, Tata Motors is targeting half a million units, encouraged by strong bookings. In fact, the company has asked component suppliers to be ready for a volume of up to 600,000 units, or production of 50,000 units a month.

Tata Motors has reportedly added a second production line at its Pune plant and entered into an agreement with partner Fiat India to secure higher output of cars from its Ranjangaon plant.

Tata Motors had overtaken Hyundai Motor India in the sales of SUVs in the December quarter, due to a shortage of parts at the South Korean rival’s Indian operations. Now, it may overtake Hyundai for the entire financial year if meets its production and sales targets.

The Tata group company surely has ambitious plans for the future and its strategy is working in its favour as of now. Its financials in fiscal 2021 were much better than what it reported in fiscal 2020. The company reported higher EBITDA margins and positive free cash flow even though revenue declined.

Tata Motors share price is currently trading up by 1.7%.

Moving on to news from the telecom sector, Tata Sons will infuse an additional 24.2 bn in its loss-making unlisted subsidiary, Tata Teleservices, which will use the cash to pay off its lenders before March.

Tata Teleservices will have to pay 15.3 bn to banks by February end and another tranche of 8.9 bn by 11 March.

Tata Sons will raise the cash by participating in the 180-bn mega buyback announced by Tata Consultancy Services (TCS). Along with its group company, Tata Investment Corporation, Tata sons will raise around 129.9 bn by selling their TCS shares.

Note that Tata Teleservices has remained a cash drain for Tata Sons despite the group selling the cellular telephony business to Bharti Airtel. The group has already repaid 600 bn of Tata Teleservices loans and dues to the Indian government.

Tata Teleservices and its listed subsidiary, Tata Teleservices (Maharashtra), were slapped with adjusted gross revenues (AGR) dues after the Supreme Court ordered all telecom companies to pay their past dues to the government based on the AGR.

We will keep you updated on the latest developments from this space. Stay tuned.

Speaking of Tata Teleservices, note that its listed subsidiary Tata Teleservices Maharashtra has had a dream run on the bourses. Have a look at the chart below:

 

chart

Shares of the company were up a massive 680% between November 2020 – November 2021. Although the gains have come down recently.

This article is syndicated from Equitymaster.com

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint.
Download
our App Now!!



Source link

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments