Sensex, Nifty to slide on mixed global signals; Focus on RIL, SBI, Zee, PVR and Paytm shares

Indian equity benchmarks are likely to start the week on a bearish note, following mixed signals from Asian peers. SGX Nifty futures trends also indicated a lower open for domestic exchanges, with Nifty futures trading 34 points, or 0.19%, down to 17,456 on the Singapore Stock Exchange as of 8:00 a.m. .

Some of the key triggers that will set the tone for the market this week include the Reserve Bank of India’s monetary policy, global equity market trends, crude prices, IIP data and quarterly earnings. Investors will keep a close eye on the RBI policy results and its comments on inflation.

National benchmarks gained nearly 2.5% last week as investors applauded the pro-growth budget that aims to get the economy back on track. The 30-stock BSE Sensex index has gained 1,445 points over the past five trading sessions, while the NSE Nifty index has jumped 414 points. On Friday, the stock market ended lower for the second straight session, led by rate-sensitive stocks of real estate, autos and PSU banks. The BSE Sensex ended 143 points, or 0.24%, down at 58,644, and the NSE Nifty fell 44 points, 0.25%, to 17,516. On the sector front, real estate, auto and PSU were among the worst performers, while Metal and Electric gained the most. Of the first 30 stocks in the BSE Sensex pack, 11 heavyweights closed higher, while the rest ended in negative territory. State Bank of India, Mahindra & Mahindra, NTPC, Kotak Mahindra Bank and Wipro were among the top five losers in the BSE Sensex.

Stock to watch

Trusted Industries: Jio, the telecom arm of RIL, has announced a $15 million investment in US technology company Two Platforms Inc. for a 25% stake on a fully diluted basis.

SBI: The country’s largest lender reported a 62.3% year-on-year (YoY) growth in net profit to ₹8,432 million for the third quarter ended December 31, 2021, buoyed by a gain strong in the personal retail segment, driven by home loans, Xpress credit and other loans. The bank’s total revenue increased by 3.1% to ₹78,351 crore in the third quarter of FY22 from ₹75,981 crore in the same period last year.

Zee Entertainment: Private sector lender IndusInd Bank has filed for bankruptcy against the indebted company with the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC). The case concerns the alleged default of a ₹83.08 crore term loan facility granted to Siti Networks, a cable television operator promoted by the Essel Group headed by Subhash Chandra.

Bank of Baroda: The PSU lender reported a 107% year-on-year growth in net profit to ₹2,197,000,000 for the December quarter, driven by higher net interest income and lower provisions. Net interest income rose 14.38% year-on-year (YoY) to ₹8,552.03 crore, while provisions and contingencies fell 27.33% from it a year ago to reach ₹2,507.04 crore.

One97 Communications (Paytm): The country’s leading digital payments and financial services company reported 89% year-on-year revenue growth to ₹1,456 crore for the quarter ending December 2021. EBITDA losses fell to ₹393 crore from ₹488 crore in the corresponding quarter last year.

Recorder: The cinema chain operator has signed an agreement with M3M India to establish an 8-screen multiplex at M3M 65th Avenue, located in Gurugram, Haryana. “M3M 65thAvenue impressed us greatly in terms of architecture and design, as well as location. It has huge potential and is expected to serve around half a million residents in the surrounding area,” said Sanjeev Bijli, co – managing director of PVR.

Tata Steel: The steelmaker reported sharply higher net profit to Rs 9,572.67 crore in the December 2021 quarter from Rs 3,697.22 crore a year ago. Revenue soared to Rs 60,783.11 crore from Rs 41,935.21 crore in Q3FY21.

Easy Trip Planners: The travel agency signed a pact with Yolo Traveltech to acquire its brand name, technology, business expertise, data and team.

Here are the key things investors should know before the market opens today:

US stocks end mixed on strong jobs data

On Wall Street, major US indices closed on a mixed note as strong earnings from e-commerce giant Amazon boosted market sentiment. However, strong U.S. jobs data released on Friday and expectations that inflation will hit a 40-year high this week have raised concerns about a rate hike by the Federal Reserve. The Dow Jones Industrial Average ended down 0.06%, the S&P 500 rose 0.52% and the Nasdaq Composite jumped 1.58%.

Asian stocks generally trade lower

Stocks in the Asia-Pacific region were trading mostly lower, following mixed indices from Wall Street. Investors are pricing in strong U.S. jobs data that has eased concerns about the global economy but raised the risk of Federal Reserve policy tightening.

Japan’s benchmark Nikkei 225 fell 0.8%, Hong Kong’s Hang Seng index fell 0.7% and South Korea’s KOSPI fell 0.9%. Australia’s ASX 200 index also traded down 0.3%.

Meanwhile, Singapore’s Straits Times rose 0.1%, while China’s Shanghai Composite jumped 1.8% in early trades.

business profits

Major players to release their December quarter earnings reports today include TVS Motor Company, Union Bank of India, Texmaco Rail, NALCO, Borosil, Glaxosmithkline Pharmaceuticals, Castrol India, Fortis Malar Hospitals.

Among others, Camlin Fine Sciences, Camlin Fine Sciences, Castrol India, Chemcon Specialty Chemicals, Clean Science and Technology, Future Supply Chain Solutions, Gabriel India, Indo Count Industries, Indian Bank, JM Financial, Jindal Stainless, Lasa Supergenerics, Likhitha Infrastructure, Nucleus Software Exports, Paisalo Digital, Peninsula Land, The Phoenix Mills, PB Fintech, Punjab & Sind Bank, Sansera Engineering, SH Kelkar and Company, Talbros Engineering, Tarsons Products, Texmaco Infrastructure, Tube Investments of India and Zodiac Energy, will also participate publish their earnings report on February 7.

FII withdraws Rs 6,834 crore from Indian markets

Foreign institutional investors (FIIs) withdrew ₹3,627 crore from equities, ₹3,173 crore from debt and ₹34 crore from hybrid instruments, in the first week of February. On Friday, FIIs sold shares worth ₹2,267.86 crore while Domestic Institutional Investors (DII) bought shares worth ₹621.98 crore in the Indian stock market , according to data available on the NSE.