Indian equity benchmarks are set to start the day on a positive note, tracking firm cues from Asian peers and a strong finish at Wall Street overnight. The bullish trends on SGX Nifty also indicated a positive opening for the domestic bourses, with SGX Nifty futures trading 153 points, or 0.88%, higher at 17,501 on the Singapore Stock Exchange at 7:30 AM.
The domestic event will take centre stage today as Finance Minister Nirmala Sitharaman will present her fourth Union Budget in Parliament today. Adding to it, corporate earnings, auto sales numbers, geopolitical tensions, trend in the crude market will also set the tone for the domestic bourses.
On Monday, the benchmark equity indices closed higher as investors cheered Economic Survey 2022, which projected that the Indian economy will grow at a rate of 8-8.5% in FY23. Snapping previous session losses, the BSE Sensex closed 814 points, or 1.41%, higher at 58,014, and the NSE Nifty added 238 points, or 1.39%, to settle at 17,340. In line with the benchmark indices, the broader markets also settled with strong gains. The S&P BSE Midcap index and the S&P BSE Smallcap index rose 1.76% and 1%, respectively. On the sectoral front, most of the indices closed in positive terrain, while pharma and IT space gained the most. The top gainers on the BSE Sensex were Tech Mahindra, Wipro, Bajaj Finserv, Infosys, and State Bank of India.
Stocks to focus
Tata Motors: The auto major reported a net loss of ₹1,516 crore for the third quarter ended December 31, 2021, compared with ₹2,906 crore in the same period last year. Revenue from operations dropped 4% to ₹72,229 crore, as against ₹75,653 crore clocked in the last year period.
Adani Total Gas: The company, a joint venture between Adani Group and TotalEnergies of France, on Monday said it will invest ₹20,000 crore in setting up city gas infrastructure across the country over the next 8 years. As per the company, it will invest 60% of the fund into the 14 licences it won recently.
Auto stocks: Shares of auto companies will be in focus today as they will release their monthly sales numbers. Maruti Suzuki, Mahindra & Mahindra, Bajaj Auto, Tata Motors, TVS Motor Company, Ashok Leyland, Eicher Motors, Escorts, and Hero MotoCorp will unveil their sales figures for January 2022.
Bharat Petroleum Corporation Ltd (BPCL): The state-owned company posted consolidated net profit of ₹2,805 crore in Q3FY22 against ₹1,900.63 crore in Q3FY21. The revenue rose to ₹1,17,702.6 crore from ₹87,292.62 crore in the year ago period.
Hindustan Petroleum Corporation Ltd (HPCL): The oil marketing company registered consolidated profit of ₹868.86 crore and revenue of ₹1,03,422.37 crore in Q3FY22.
Shipping Corporation of India: The company’s net profit rose sharply to ₹311.5 crore in Q3FY22 against ₹131.5 crore in Q3FY21. The revenue surged to ₹1,438.2 crore from ₹872.8 crore in the prior year period.
DLF: The real estate company saw its profit dropping to ₹379.5 crore in Q3FY22 against ₹449 crore in Q3FY21. However, revenue climbed to ₹1,549.7 crore from ₹1,543 crore in the corresponding quarter last year.
Here are the key things investors should know before the market opens today:
Wall Street ends higher
In the overnight trade on Wall Street, the major U.S. indices closed higher after signals from Federal Reserve policymakers that they are not in hurry to raise interest rate. The Fed in its policy meeting last week indicated that it may hike rates by March to counter rising inflation.
On Monday, the benchmark S&P 500 gained 1.89%, the blue-chip Dow Jones Industrial Average added 1.17%, and the tech-heavy Nasdaq Composite ended 3.4% higher.
Asian shares rise in thin trade
Shares in the Asia-Pacific region traded mostly higher in early deals on Tuesday following firm cues from Wall Street. The caution prevailed in the market as investors expect the Bank of England to raise interest rates again this week, while the continued rise in oil prices added to concerns over inflation.
Japan’s Nikkei 225 rose 0.7%, and Australia’s ASX 200 index climbed 0.34%.
The regional market witnessed low volume as the majority of Asian markets such as China’s Shanghai Composite, Taiwan’s TAIEX, and South Korea’s KOSPI remained closed today for the Lunar New Year.
Corporate earnings
More than 100 companies are due to release their December quarter earnings reports today. The list includes some major players such as Adani Ports, Tech Mahindra, TTK Prestige, VIP Industries, Indian Hotels, Indoco Remedies, Cholamandalam Investment and Finance Company, and others.
Among others, Elecon Engineering, Gujarat Ambuja Exports, IFB Industries, Jubilant Ingrevia, Kansai Nerolac Paints, Laxmi Organic Industries, Mangalore Chemicals & Fertilizers, Procter & Gamble Hygiene & Health Care, Poonawalla Fincorp, Sona BLW Precision Forgings, Triveni Turbine, will also release their earnings report on February 1.
FIIs remain net sellers, DIIs turn net buyers
Foreign institutional investors (FIIs) continued to remain net sellers in the Indian equity market on January 31, while domestic institutional investors (DIIs) turned net buyers. As per the data available on the NSE, FIIs sold shares worth ₹3,624.5 crore, while DIIs net bought shares worth ₹3,648.6 crore.
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