Benchmarks end with deep cuts; IT stocks tumble

The key equity benchmarks ended with deep cuts after a week session on Wednesday. The Nifty closed below the 17,950 mark. Shares across most sectors declined with IT, FMCG and private financials declining the most.

As per provisional closing data, the barometer index, the S&P BSE Sensex, slumped 656.04 points or 1.08% to 60,098.82. The Nifty 50 index tumbled 174.65 points or 0.96% to 17,938.40.

In the broader market, the S&P BSE Mid-Cap index lost 0.34% while the S&P BSE Small-Cap index rose 0.03%.

The market breadth was negative. On the BSE, 1,596 shares rose and 1,811 shares fell. A total of 88 shares were unchanged.

Firm global crude prices, increasing expectations of March rate hike by US central bank and rising geopolitical tensions on the Ukraine border dented investors' sentiment.

COVID-19 Update:

In last 24 hours, India registered 2,82,970 new COVID-19 infections in a day taking the tally to 3,79,01,241, according to the Union Health Ministry data on Wednesday. The country reported 441 new deaths taking the death toll to 4,87,202. The country recorded 1,88,157 recoveries, taking the total number of recoveries to 3,55,83,039. The active cases comprise 4.83% of the total infections, while the national COVID-19 recovery rate has decreased to 93.88%, the ministry said.

IPO Updates:

The initial public offer (IPO) of AGS Transact Technologies received bids for over 2.32 crore shares as against 2.86 crore shares on offer, according to stock exchange data at 15:11 IST on Wednesday, (19 January 2022). The issue was subscribed 0.81 times.

The issue opened for bidding on 19 January 2022 and it will close on 21 January 2022. The price band of the IPO is fixed at Rs 166-175. An investor can bid for a minimum of 85 equity shares and in multiples thereof. The IPO comprises an offer for sale aggregating up to Rs 680 crore.

Buzzing Index:

The Nifty IT index fell 2.12% to 37,284.60, extending losses for third day. The index has declined 3.97% in three sessions.

L&T Technology Services (down 6.21%), Mphasis (down 3.64%), Infosys (down 2.90%), MindTree (down 2.56%), Larsen & Toubro Infotech (down 2.28%), TCS (down 1.78%), Wipro (down 1.59%) and HCL Tech (down 1.54%) declined.

Stocks in Spotlight:

Bajaj Finance fell 2.24% to Rs 7573.30. The NBFC major posted an 85% jump in consolidated net profit to Rs 2,125.2 crore on a 28% increase in total income to Rs 8,535.06 crore in Q3 FY22 over Q3 FY21.

L&T Technology Services (LTTS) slumped 6.23% to Rs 5083.85. The IT major reported 8.2% rise in consolidated net income to Rs 248.8 crore in Q3FY22 over Q2FY22. Revenue rose 5% to Rs 1687.50 crore.

LTTS announced that it has been awarded a deal worth USD45 million from a U.S. based automotive Tier 1 company, to be its strategic engineering partner and provide engineering services for its Electric Vehicle (EV) product portfolio.

Tata Elxsi jumped 9.87% to Rs 5083.85. The Tata Group company's net profit jumped 43.49% to Rs 150.95 crore on 33.18% increase in revenue from operations to Rs 635.41 crore in Q3 December 2021 over Q3 December 2020.

Just Dial fell 2.56% to Rs 818.05. The local search engine company reported 61.2% drop in net profit to Rs 19.4 crore on 6.3% fall in operating revenue to Rs 158.90 crore in Q3 December 2021 over Q3 December 2020.

Trident hit a lower circuit of 5% at Rs 61.40. The company reported an 88% jump in consolidated net profit to Rs 211 crore on an 84% rise in revenue from operations to Rs 1,980 crore in Q3 FY22 over Q3 FY21.

ICICI Prudential Life Insurance Company slumped 5.39% to Rs 574.75. On a consolidated basis, the life insurer's net profit rose 2.53% to Rs 312 crore in Q3 December 2021 over Q3 December 2020. While the company's net premium income rose 1.15% to Rs 9,073.97 crore, net income from investments slumped 96.18% to Rs 737 crore in Q3 December 2021 over Q3 December 2020.

DCM Shriram jumped 7.80% to Rs 1092.05 after the company's consolidated net profit jumped 38.4% to Rs 349.57 crore on a 26.3% decline in net sales to Rs 2,716.48 crore in Q3 FY22 over Q3 FY21.

RITES added 1.89% toRs 272.75. The company entered into a memorandum of understanding (MoU) with CSIR-Central Road Research Institute (CRRI) to explore opportunities for cooperation in the infrastructure sector.

Global markets:

Shares in Europe and Asia declined on Wednesday as global markets take a downturn after a sell-off on Wall Street on Tuesday, prompted by rising bond yields.

Investors remain jittery over the U.S. Federal Reserve's schedule for hiking interest rates and tightening its ultra-loose pandemic-era monetary policy.

The U.K. inflation rate soared to a 30-year high in December, the Office for National Statistics said Wednesday, as higher energy costs, resurgent demand and supply chain issues continued to drive up consumer prices.

Inflation hit an annual 5.4%, its highest since March 1992 and up from 5.1% in November, itself a decade high.

US stocks fell sharply Tuesday as government bond yields hit Covid-era highs and after Goldman Sachs reported disappointing earnings. Microsoft announced that the software giant will buy video game company Activision Blizzard in an all-cash transaction valued at $68.7 billion.

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