Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Sensex Today Falls 335 Points | IT & Metal Stocks Witness Selling | Adani Transmission Cracks 10%, Adani Ports Zooms 8%
Mon, 6 Feb Closing

Sensex Today Falls 335 Points | IT & Metal Stocks Witness Selling | Adani Transmission Cracks 10%, Adani Ports Zooms 8%

After opening the day on a negative note, Indian share markets continued their downtrend as the session progressed and ended lower.

Benchmark indices were dragged down by IT services companies, after a strong US jobs report renewed fears that the Federal Reserve was likely to continue with aggressive rate hikes for longer.

An ongoing selloff in Adani group stocks further added to pressure.

At the closing bell, the BSE Sensex stood lower by 335 points (down 0.6%).

Meanwhile, the NSE Nifty closed lower by 90 points (down 0.5%).

Adani Ports, BPCL, and Apollo Hospital were among the top gainers today.

Divis Laboratories, JSW Steel, and Hindalco on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,761, down by 79 points, at the time of writing.

Broader markets settled on a positive note. The BSE Midcap ended 0.8% higher while the BSE SmallCap index rose 0.5%.

Sectoral indices ended on a mixed note with stocks in the telecom sector, FMCG sector and realty sector witnessing buying.

While stocks in the power sector, IT sector, and metal sector witnessed selling.

Shares of Zydus Lifesciences, Jindal Saw and ITC hit their 52-week highs today.

--- Advertisement ---
Investment in securities market are subject to market risks. Read all the related documents carefully before investing

Small Cap Trend Alert

Over the past 5 years the Small Cap Index

has Surged by over 200%

Our Head of Small Cap Research has a plan to play this trend

I Want the Details
Details of our SEBI Research Analyst registration are mentioned on our website - www.equitymaster.com
---------------------------------------------------

Asian share markets ended the day on a mixed note. The Hang Seng fell 2%, while the Shanghai Composite index ended 0.8% lower. The Nikkei edged 0.7% higher.

US stock futures are trading on a negative note. Dow futures are trading down by 0.6% and Nasdaq futures are trading down by 1.1%.

The rupee is trading at 82.75 against the US$.

Gold prices for the latest contract on MCX are trading higher by 0.9% at Rs 57,074 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading up by 0.4% at Rs 67,845 per kg.

Speaking of stock markets, Rajashekhar Iyer's stock market journey has taken him from writing notes on stocks for a magazine to a recognized super investor.

His unique investing style uses Benjamin Graham's approach as a base...and to that he has made modifications to evolve a style that is time tested.

To know more about his unique style of investing, tune in to the latest episode of investor hour podcast:

Adani Group promoters prepay US$1.1 billion loan: report

Reportedly, Adani Group promoters have prepaid share-backed loans worth US$1.1 billion on Monday, 19 months ahead of their maturity in September 2024.

The prepayment will release the pledge from three group companies, Adani Ports, Adani Green Energy and Adani Transmission.

The company attributed this step to the continuation of the promoters' commitment to reducing the overall promoter leverage in light of the recent market volatility.

Discover: How to Grow Your Wealth in a Stress-Free Way

The prepayment would result in the release of 168.27 million (m) pledged shares of Adani Ports & SEZ or 12% of the promoter holdings.

Besides Adani Ports, 11.77 m shares or 1.4% of the overall promoter holding of Adani Transmission and 27.56 m shares or 3% of promoter holding in Adani Green Energy will also be released from the pledge.

In its report dated 24 January 2023, Hindenburg Research accused the group of 'stock price manipulation by using shares as collateral'. In a 413-page rebuttal, Adani group denied all the charges.

To know more, check out the technical analysis which Brijesh has shared in this note: Adani Group Stocks: Beginning of an End?

It remains to be seen how the Adani vs Hindenburg battle pans out.

Varun Beverages declares interim dividend

Moving on to news from the FMCG sector, shares of Varun Beverages jumped 5.8% today.

This comes on the back of a 27.7% YoY rise in revenue to Rs 22.1 bn for the December 2022 quarter. It was due to growth in realization per unit through strategic measures.

The company reported a 150.2% YoY rise in net profit to Rs 815.2 m.

Net realization increased by 6% to Rs 164 primarily due to price hikes in select SKUs, rationalized discounts/incentives, and improvement in the mix of smaller SKUs especially the energy drink - Sting, which has a higher net realization.

Total sales volumes grew by 17.8% YoY to 132 m cases compared with 112 m cases a year back.

On a full-year basis, Varun Beverages' net profit surged 107.8% YoY to Rs 15.5 bn on a 49.3% YoY jump in revenue to Rs 131.7 bn. The growth in the profit was mainly driven by high growth in revenue from operations, improvement in margins, and transition to a lower tax rate in India.

--- Advertisement ---
Investment in securities market are subject to market risks. Read all the related documents carefully before investing

Could the Bears Strike During Election Season?

Discover how this Safe Stock Strategy Could Protect Your Wealth & Potentially Lead to Big Long Term Gains

Full details here
Details of our SEBI Research Analyst registration are mentioned on our website - www.equitymaster.com
---------------------------------------------------

Looking forward, it aims to further strengthen our position as a key player in the beverage industry by leveraging our strong presence in fast-growing markets, solid infrastructure, and well-established distribution network.

Meanwhile, the company's board has recommended a final dividend of Re 1 per equity share for the financial year ending 31 December 2022.

It is a Part of RJ Corp group, a diversified business conglomerate with interests in beverages, quick-service restaurantsdairy and healthcare

In January 2023, shares of the company saw a steep decline of 13%. To know why, check out our editorial: Why Varun Beverage share price is falling.

chart

Indian Oil Corporation to partner LanzaJet

Moving on to news from the energy sector, shares of Indian Oil rose 1% today.

This rise in stock came in after the chairman of Indian Oil announced that Indian Oil Corp will sign an agreement with LanzaJet to produce cleaner aviation fuel at its Panipat refinery in northern India.

The company has a tie-up with LanzaTech for converting waste gas to ethanol, and U.S.-based LanzaJet will be helping in upgrading ethanol to jet fuel.

The oil refiner is also in talks with Italy's Snamprogetti SpA for the conversion of gas pipelines into hydrogen pipelines.

By 2030, 2% of aviation fuel produced by Indian Oil will be sustainable aviation fuel.

Indian Oil Corporation is the largest oil refining & petroleum marketing company in India.

With its recent initiative to install EV charging facilities at 10,000 fuel stations in the next three years, it is among the top 5 EV charging infrastructure stocks in India.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Sensex Today Falls 335 Points | IT & Metal Stocks Witness Selling | Adani Transmission Cracks 10%, Adani Ports Zooms 8%". Click here!