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Barometers snap 7-day rally, Nifty ends below 18,420; ITC slumps over 6%

Capital Market 

The equity barometers corrected on Tuesday, snapping a rally in the past seven sessions. IT stocks held firm while realty, FMCG and metal shares tumbled.

The Sensex fell 49.54 points, or 0.08% at 61,716.05. It hit a record high of 62,245.43 in afternoon trade.

After hitting an all-time high of 18,604.45 in initial trades, the Nifty 50 index reversed trend and fell 58.30 points, or 0.32% to end at 18,418.75.

Tech Mahindra (up 4.12%), Larsen & Toubro (up 3.26%) and Infosys (up 1.63%) supported the indices.

ITC (down 6.23%), Hindustan Unilever (down 4.06%), Titan Company (down 3.97%) were major drags.

The Sensex rose 4.35% and the Nifty advanced 4.71% in the past seven consecutive sessions.

In the broader market, the S&P BSE Mid-Cap index shed 1.98%. The S&P BSE Small-Cap index declined 1.79%.

Sellers outnumbered buyers. On the BSE, 979 shares rose and 2382 shares fell. A total of 128 shares were unchanged.

Numbers to Watch:

MCX Gold futures for 3 December 2021 settlement rose 0.30% to Rs 47,432.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.46% to 93.52.

In the commodities market, Brent crude for December 2021 settlement rose 55 cents at $84.88 a barrel. The contract fell 53 cents, or 0.62% to settle at $84.33 a barrel in the previous trading session.

Foreign Markets:

Shares in Europe and Asia advanced on Tuesday. Investors mulled corporate earnings as well as the prospect of tightening monetary policy to restrain inflation.

Minutes from the Reserve Bank of Australia's October monetary policy meeting showed the RBA expecting the Australian economy to "return to growth in the December quarter and to its pre-Delta path in the second half of 2022."

In US, the S&P and Nasdaq closed higher on Monday as investors appeared optimistic about the third-quarter earnings season.

U.S. industrial production declined in September as supply constraints continued to hinder manufacturing. Output fell almost 1.28% to its lowest level since February, when it fell 3.02%, according to data released Monday by the Federal Reserve.

Stocks in Spotlight:

Hindustan Unilever (HUL) slumped 4.06%. The FMCG major posted a 9% rise in standalone net profit to Rs 2,187 crore on an 11% increase in revenue from operations to Rs 12,516 crore in Q2 FY22 over Q2 FY21. EBITDA margin stepped up sequentially and stood at 25% in Q2 FY22.

During the quarter, the company reported domestic consumer growth of 11%. HUL said its performance was broad based with all three divisions growing competitively. Business fundamentals remained strong with more than three-fourths of the business gaining market share and penetration.

Sanjiv Mehta, chairman and MD said, "September quarter witnessed a sequential improvement in trading conditions, albeit remained challenging with unprecedented levels of input cost inflation and subdued consumer sentiments. Large parts of our business continue to gain market shares and penetration. Looking forward, we remain cautiously optimistic about demand recovery."

State Bank of India (SBI) declined 1.89%. SBI has allotted 6,000 Basel III compliant non-convertible, taxable, perpetual, subordinated, unsecured, fully paid-up debt instruments in the nature of debentures qualifying as AT-1 capital of the bank of face value of Rs 1 crore each, at par, bearing a coupon of 7.72% p.a. payable annually, aggregating to Rs 6,000 crore to bond subscribers on 18 October 2021.

Meanwhile, the Reserve Bank of India (RBI) on Monday imposed a monetary penalty of Rs 1 crore on SBI for non-compliance with the directions contained in 'Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016'.

TV18 Broadcast fell 1.18%. The broadcasting company posted an 86.67% increase in consolidated net profit to Rs 140 crore on a 29% rise in revenue from operations to Rs 1308 crore in Q2 FY22 over Q2 FY21.

Larsen & Toubro Infotech (LTI) soared 15.93%. The company reported 11.1% increase in consolidated profit to Rs 551.70 crore on 8.8% rise in revenue to Rs 3767 crore in Q2 FY22 over Q1 FY22. The company's EBITDA margin rose to 19.5% in Q2 FY22 from 18.7% in Q1 FY22 but slipped from 22.9% posted in the same period last year. In US dollar terms, the revenue stood at USD $509 million; registering a growth of 8.3% QoQ and 25.8% YoY. Constant Currency revenue growth stood at 8.9% QoQ and 25.5% YoY.

Route Mobile fell 4.06%. The company posted a 22.58% jump in consolidated net profit to Rs 42.07 crore on a 15.4% increase in net sales to Rs 435.67 crore in Q2 FY22 as compared to Q1 FY22. The company's consolidated net profit has risen by 28.3% and net sales have risen by 24.7% in Q2 FY22 over Q2 FY21.

Alok Industries tumbled 11.57%. The company reported net loss of Rs 84.11 crore in Q2 FY22 as against a net profit of Rs 4,798.64 crore in Q2 FY21. Revenue from operations surged 134.24% to Rs 1,904.57 crore in Q2 FY22 over Q2 FY21.

H G Infra Engineering rose 1.55%. The company has been declared as L-1 bidder by National Highways Authority of India (NHAI) for two HAM projects.

TTK Prestige jumped 12.15%. The company's board will consider a stock split on 27 October 2021.

Indian Energy Exchange (IEX) jumped 5.77%. The board of IEX will consider bonus share issue on 21 October 2021.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, October 19 2021. 16:53 IST