January 27,2022:

The benchmark indices witnessed a sharp sell-off as Fed remains hawkish.

US Federal Reserve Chief Jerome Powell, following the FOMC meeting, gave enough hints at interest rates hike from March 2022 as part of its fight to combat inflation.

• BSE Sensex fell 1,418.79 points, or 2.45%, intraday. It closed 581 points or 1% lower at 57,277.

• The NSE Nifty closed 168 points, or 0.97% lower at 17,110, plunging as much as 411 points intraday.

On the sectoral front- Bank, Auto, PSU indices closed in the green terrain while IT and Tech bled red. 

Asian Markets:

Japan’s Nikkei 225 closed 3.1% or 841 points lower at 26,170.30.

South Korea’s KOSPI fell 3.50% or 94.75 points to 2,614.49.

Hong Kong’s Hang Seng index dipped almost 2% to 23,807.00. 

Australia’s ASX 200 plunged 1.88% to 6,838.30.

China’s SZSE Component Index closed 2.77% lower to 13,398.84, and the Shanghai Composite dipped 1.88% to 3,394.25.

Top Trending Stocks On Quantale Dashboard:

News Wrap:

Earnings In Focus: 

Canara Bank Q3 Net Profit Increases 116% To Rs 1,502 Cr

Canara Bank in the third quarter of fiscal’22 saw a 115.8% year-over-year ( YoY) increase in net profit at Rs 1,502 crore as against Rs 696 crore in Q3FY21. In the second quarter of the fiscal’22, it posted a net profit of Rs 1,333 crore.

The bank's Net Interest Income, interest revenues minus interest expenses, rose by 14.11 per cent to Rs 6,946 crore in Q3FY22 as against Rs 6,087 crore in Q3FY21. 

The net interest margin stood flat at 2.79 percent in Q3FY22 versus 2.8 percent in Q3FY21. 

The non-interest income declined 13.03 percent YoY to Rs 3,612 crore in the reporting quarter as against Rs 4,153 crore in Q3FY21. 

The bank’s gross advances increased to Rs 7,29,506 crore, up 9.28 per cent YoY in Q3FY22 as against Rs 6,67,561 crore in Q3FY21.

The bank’s provisions for non-performing assets increased 1.81 percent at Rs 2,705 crore in Q3FY22 versus Rs 2,657 crore in Q3FY21. It also increased sequentially, up Rs 27 crore from Rs 2,678 crore in Q2FY22.

RBL Bank’s NII Increases 11 Percent YoY To Rs 1,010 Cr In Q3FY22

RBL Bank Ltd, for the quarter ended 31 December 2021, reported a 6 percent growth in net profit at 156 crore compared to Rs 147 crore a year ago.

Bank’s net interest income rose 11 per cent to ₹1,010 crore in Q3FY22 as against ₹908 crore in Q3FY21. Sequentially, NII rose 407 percent from ₹31 crore in Q2FY22.

Other income increased 8 percent YoY to ₹620 crore Q3FY22.

Gross non-performing assets stood at 4.84 per cent of gross advances at the end of the fiscal third quarter as against 5.4 per cent at the end of Q2FY22.

Gross NPAs stood at 1.84 per cent in the quarter ended Dec 31, 2021. 

Net NPA stood at 1.85 percent at the end of Q3FY22 compared with 2.14 per cent at the end of Q2FY22. 

Coforge Q3 PAT Rises 51% YoY To Rs 183.7 Cr

IT major Coforge Ltd posted a 50.7 percent year-on-year surge in profit after tax (PAT) at Rs 183.7 crore in Q3FY22 and a 39.3 percent YoY increase in revenue at Rs 16,581 million.

The company said its board has proposed an interim dividend of Rs 13 per share. "The record date for this payout will be 8th February 2022," it added.

The EBIT for the quarter ended December 31, 2021, came in at Rs 246.7 crore, up 14.8 percent sequentially. "Adjusted EBITDA margin for the quarter expanded to 19.5 percent," Coforge said in a press release.

Colgate-Palmolive India Reports Rise In Net Profit, Revenue In Q3

The consumer goods company Colgate-Palmolive India Ltd reported a 1.6 percent rise in its net profit to Rs 252.33 crore for the quarter ended December 31, 2021, as against Rs 248.36 crore in the corresponding quarter a year ago. 

The revenue from operations in Q3FY22 rose 3.84 per cent to Rs 1,271.29 crore compared with Rs 1,224.21crore Q3FY21.

Total expenses were Rs 945 crore in the reporting quarter, up 3.98 percent versus Rs 908.77 crore in the year-ago period.

Big News:

Shareholdings Of Foreign Investors In Nifty 500 Stocks Plunge To 6-Quarter Low

Shareholdings of foreign investors in Nifty 500 index companies plunged to a six-quarter low in the quarter ended December 31, 2021, following a withdrawal of almost $5 billion from the Indian equity market, Motilal Oswal Financial Services said in a report.

The holdings of foreign portfolio investors in Nifty 500 companies declined to 20.9 percent from 21.5 percent in the July-September quarter. 

FPI holdings in Nifty 500 companies fell for the fourth quarter in a row, owing to worries over high valuations of Indian equities compared with other global markets. Consequently, they sold some of their holdings to pursue broader prospects abroad.

Foreign investors disposed of most of their holdings from the financial service sector.

FII's holdings plunged to a 20-quarter low of 35 percent in the Oct-Dec quarter, from a high of 45.2 percent reported in the Q4CY19. 

More To Know: 

• The Enforcement Directorate (ED) arrested Karvy Group's Chief Managing Director (MD) Comandur Parthasarathy and Chief Financial Officer G Krishna Hari in the ₹2000 Crore Security Scam. 

• Tata Finally Takes Air India Home.
   
  “Formalities have been completed. Air India disinvestment transaction is closed. ₹2,700 crore has been received by the government. The shares have been transferred to Talace, the new owner. Consideration amount has been received. The debt of ₹1,53,00 crore has been accepted by the new owner. The new board is currently conducting the meeting,” Tuhin Kanta Pande, secretary of the department of investment and public asset management informed.

• India Mortgage Guarantee Corporation (IMGC) joined hands with Muthoot Homefin (India) Limited (MHIL) to offer mortgage guarantee backed home loan products to customers in the affordable housing segment.

• TVS Motor Company has acquired a 75% stake in the Swiss e-Mobility Group (SEMG). This $100 million deal reaffirms TVS Motor’s goal to expand in Europe via a portfolio of premium and technology leading brands, including Norton Motorcycles and EGO Movement, which it acquired recently.