Domestic equity benchmarks ended with decent gains on Tuesday, extending their winning run to third consecutive session. The Nifty closed above the 18,050 level. Realty and IT stocks advanced while metal stocks declined.
As per the provisional closing data, the barometer index, the S&P BSE Sensex, was up 221.26 points or 0.37% to 60,616.79. The Nifty 50 index added 52.45 points or 0.29% to 18,055.75.
The broader market ended on a mixed note. The S&P BSE Mid-Cap index fell 0.03% while the S&P BSE Small-Cap index added 0.19%.
Buyers dominated sellers. On the BSE, 1,941 shares rose and 1,505 shares fell. A total of 67 shares were unchanged.
COVID-19 Update:
India reported 1,68,063 new cases in the last 24 hours. The daily positivity rate stood at 10.64%. The country's active caseload currently stands at 8,21,446. Active cases stands at 2.29% and recovery rate currently stands at 96.36%. There were 69,959 recoveries in the last 24 hours, which increases total recoveries to 3,45,70,131.
Economy:
The employment across nine sectors of the economy stood at 3.10 crore in the July-September 2021 quarter, increasing by 2 lakh from the July-September 2021 quarter, according to labour ministry data released Monday. As per Quarterly Employment Survey (QES) report released by minister Bhupender Yadav, the total employment in 9 sectors in April-June 2021 was 3.08 crore. Of the total employment estimated in the selected nine sectors, Manufacturing accounted for nearly 39%, followed by Education with 22% and Health as well as IT/BPOs sectors both around 10%.
Stocks in Spotlight:
Vodafone Idea slumped 20.54% after the company approved the conversion of the full amount of interest related to spectrum auction installments and Adjusted Gross Revenue (AGR) dues into equity. The conversion will result in dilution to all the existing shareholders of the company, including the promoters. Following conversion, it is expected that the government will hold around 35.8% of the total outstanding shares of the company, and that the promoter shareholders would hold around 28.5% (Vodafone Group) and around 17.8% (Aditya Birla Group), respectively.
The Net Present Value (NPV) of this interest is expected to be about Rs 16,000 crore as per the company's best estimates, subject to confirmation by the DoT. Since the average price of the company's shares at the relevant date of 14 August 2021 was below par value, the equity shares will be issued to the government at par value of Rs 10 per share, subject to final confirmation by the DoT, the statement added. Last year, the Department of Telecommunications (DoT) had provided various options to the company in connection with Telecom Reforms Package. Later, Vodafone Idea's board in October approved deferring payment of spectrum auction installments and AGR dues by four years. The DoT had also provided a time period of 90 days to the company to exercise the option of converting the interest that would accrue on installment payment during the moratorium period into equity.
JSW Steel declined 3%. The steel maker reported a group combined crude steel production of 5.35 million tonnes (MT) for Q3 FY22, rising 28% over 5.07 MT in Q3 FY21, including the production at jointly controlled entity viz. JSW Ispat Special Products (JISPL). On a standalone basis, crude steel production of JSW Steel grew 8% to 4.41 million tonnes (MT) in Q3 FY22 from 4.08 MT in Q3 FY21. Indian operations including joint control jumped 24% to 5.19 MT in Q3 FY22 as against 4.18 MT in Q3 FY21.
Spandana Sphoorty Financial fell 0.29%. The microfinance company on Monday approved the proposal of raising of funds by way of issuance of securities through private offerings and/or qualified institutions placement or other permissible mode, in one or more tranches, upto Rs 300 crore.
Antony Waste Handling Cell rose 0.09%. The total operating revenue of Antony Waste Handling Cell (tipping revenue from C&T, mechanical power sweeping and waste processing) for Q3 FY22 grew about 22% Y-o-Y (year-on-year), while remaining stable on a sequential basis. The total tonnage handled by the collection & transportation business (excluding those projects with fixed shifts/ trips/ households) in Q3 FY22 has reported around 13% growth over Y-o-Y (year-on-year) and around 3% growth sequentially, while total waste processed by the company during Q3 FY22, improved by around 6% Y-o-Y and around 4% sequentially. Total compost sales during Q3 FY22 stood at 3,144 tons as compared to 2,908 tons in Q2 FY22 and 2,291 tons in Q3 FY21.
JSW Ispat Special Products fell 3%. The company's crude steel production increase by 43% to 0.14 million tonnes (MT) in Q3 FY22 from 0.10 MT in Q3 FY21. The steel production is higher by 14% as compared with 0.13 MT produced in Q2 FY22.
Coforge added 3.34% after a foreign brokerage reportedly initiated coverage of the stock with a 'buy' recommendation and target price of Rs 7,400. The target price implies an upside of 28.15% from the current market price. According to media reports, the brokerage stated that the company has undergone transformation over the past three years, as seen from the surge in new client additions, large deal wins and strengthening of front-end sales team. The firm is well positioned to deliver 18%/32% revenue/earnings per share CAGR over FY22-24, it added.
Hinduja Global Solutions (HGS) climbed 6% after the company said its board will consider a share buyback on 14 January 2022. A meeting of the board of directors of Hinduja Global Solutions will be held on 14 January 2022, to consider and explore quantum/timings of buy-back of equity shares of the company, HGS said in an exchange filing today. The board will also consider potential mergers and acquisition opportunities, the company said.
Rajratan Global Wire hit an upper circuit of 5% at Rs 2726.15 after the company said that its board will meet on Friday, 28 January 2022, to consider a proposal for sub-division of equity shares of the company.
Global Markets:
European stock markets advanced on Tuesday, helped by strong economic data. Meanwhile, Asian stocks closed on a mixed note as investors expressed concern about inflation as well as likely policy tightening from central banks such as the U.S. Federal Reserve.
U.K. retail sales jumped in December, growing 4.6% compared with December 2019, according to the British Retail Consortium.
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