All the sectoral indices ended in the red with auto, metal, IT, power, pharma, realty, FMCG, capital goods down 2-6 percent. BSE midcap and smallcap indices fell 4 percent each
The sell-off continued on the fifth session on January 24 with the benchmark indices losing nearly 3 percent each. At close, the Sensex was down 1,545.67 points or 2.62 percent at 57,491.51, and the Nifty was down 468.10 points or 2.66 percent at 17,149.10.
Reliance Industries | CMP: Rs 2,379.90 | The stock price fell 4 percent on January 24. Billionaire Mukesh Ambani-led Reliance Industries reported a net profit of Rs 20,539 crore in the third quarter of 2021-22, up 37.9 percent year-on-year as all business verticals saw strong growth, the oil-to-chemical (O2C), telecom and retail conglomerate said on January 21. Macquarie has retained its underperform call with the target at Rs 2,850 per share. Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Cipla | CMP: Rs 892.30 | The share was up over 2 percent after global brokerage Credit Suisse upgraded Cipla to ‘outperform’ from ‘neutral’ rating. It also raised the share target price to Rs 1,150 from Rs 910 earlier. Credit Suisse believes that the market is underestimating two things – strength of Cipla’s consumer wellness franchise and the increasing sales mix of injectables and respiratory products in the US.
Vodafone Idea | CMP: Rs 10.95 | The scrip fell over 7 percent as analysts were disappointed by the company’s earnings performance for the quarter ended December. Vodafone Idea’s consolidated net loss widened to Rs 7,230.9 crore in Q3FY22 even as revenues rose 3.3 percent sequentially. Brokerage firm Nomura Securities India said that the operating profit of Vodafone Idea was 4-5 percent below its own and Street’s estimate due higher access charges and higher marketing, content and subscriber acquisition costs.
ICICI Bank | CMP: Rs 792 | The stock price ended in the red despite reporting strong set of Q3 earnings. On January 22 ICICI Bank reported over 25 percent growth in net profit for Q3FY22, to Rs 6,193.81 crore from Rs 4,939.59 crore in the same quarter of the corresponding year. Net interest income (NII), or the core income a bank earns by giving loans, was up 23.44 percent to Rs 12,236.04 crore from Rs 9,912.46 crore last year. Other income grew 6.42 percent to Rs 4,987.07 crore. Foreign broking firm JPMorgan has kept overweight call on the stock with a target at Rs 930 as company can continue to drive steady low-risk returns with consistent EPS compounding.
Zomato | CMP: Rs 90.95 | The scrip crashed 20 percent on January 24. The fifth straight session of losses has seen Zomato slip 25 percent during the period, wiping out around approximately Rs 26,000 crore of investor wealth. Recent reports suggesting the Federal Reserve rolling back liquidity amid higher inflation and indicating multiple interest rate hikes this year have weakened the case for investment in richly priced technology stocks with no near-term visibility on profitability.
Sandip Das
