FIIs sell for 4679.84 Cr. in the Indian market! Will the market continue to fall!

Good Morning Everyone, It was a complete blood bath in the Nifty yesterday with huge selling by FIIs to the tune of Rs. 4679.84 Cr. This could be a kind of panic before the US Federal Reserve meeting next week.

However, As I had written yesterday, I have a bearish view of Nifty for the next few weeks. But I am happy that this time most of our MPI family members have booked profit in advance before the fall and kept funds to deploy in the market during this fall.

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Look at those 3 strong bearish candles on the daily timeframe. Shows strong bearishness in the Nifty.

Global Markets:

Stocks fell again on Wall Street on Thursday as technology stocks sold off in the afternoon, pushing the Nasdaq further into what's known as a correction. S&P 500 and the Dow Jones fell 1 percent, each and the tech-heavy Nasdaq declined over 1.3 percent.

Asian shares were trading lower on Friday following a sell-off on Wall Street. MSCI's broadest index of Asia-Pacific shares ex-Japan declined nearly 3 percent. Shares in Japan declined over 1.5 percent. Chinese blue chips were down 0.3 percent. Hong Kong’s HSI was flat. South Korea’s Kospi was down 1 percent. Elsewhere in Australia, stocks slumped over 1 percent.

Indian Market:

Trends on the SGX Nifty indicate a negative start to the day in Nifty.

India from a growth perspective looks really good, said JPMorgan. It is forecasting 9 percent GDP growth in 2022, followed by above 5 percent in 2023. But this is going to be in the context of globally rising rates, says, Mixo Das of JPMorgan

The Ministry of Electronics and Information Technology (MeitY) has sought an additional budget allocation of Rs 20,000 crores. The ministry has cited the need for a fiscal push on the back of renewed investor interest and the need for a further impetus on Digital India.

Inflation, a constant worry for FMCG companies since the onset of the pandemic, will continue unabated for the next two quarters and will moderate only in the second half of 2022, indicated Hindustan Unilever’s (HUL) top management during a virtual media briefing on January 20.

“We are seeing unprecedented inflation; something we have not seen for at least last 30 years. And this is not demand-led but supply-led because of disruptions across the world. I believe, that hopefully in the second half of the year, we should see some moderation in inflation,” said Sanjiv Mehta, Chairman, and Managing Director, HUL, addressing a post-earnings media briefing.

The Reserve Bank of India (RBI) on January 20 said all existing non-deposit-taking NBFC-Investment and Credit Companies (NBFC-ICCs) with asset size of Rs 1,000 crore and above will be permitted to undertake factoring business subject to satisfaction of certain conditions.

Factoring is a transaction in which an entity can sell its receivables to another entity to fulfill immediate working capital or cash flow requirements. The new rules, which is effectively an easing of the existing regulations, will increase the number of NBFCs eligible to undertake factoring business significantly from 7 to 182, the RBI said.

At least 8,27, 979 people joined formal work for the first time in November, showing a marginal uptick in the formal sector job creation over the month-ago period, the payroll data of the Employees’ Provident Fund Organization (EPFO) showed on January 20.

Results today

Reliance Industries, HDFC Life Insurance Company, SBI Life Insurance Company, JSW Steel, Bandhan Bank, CSB Bank, California Software, Elixir Capital, Gland Pharma, Gokaldas Exports, Heritage Foods, Hindustan Zinc, IDBI Bank, Vodafone Idea, Inox Leisure, Jyothy Labs, Kajaria Ceramics, L&T Finance Holdings, Max Ventures and Industries, Oriental Aromatics, Pioneer Distilleries, PNB Gilts, Polycab India, PVR, Ramco Industries, RattanIndia Power, Share India Securities, Supreme Petrochem, Supriya Lifescience, Tanla Platforms, Vinyl Chemicals, and Wendt (India).

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 4,679.84 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 769.26 crore in the Indian equity market on January 20

Stock Specific News:

PNB Housing Finance Limited: The company reported a net profit after taxes (PAT) of Rs 651.96 crore and a net profit margin of 13.78 percent for the quarter ended December 31, 2021. In its quarterly earnings report, the company reported gross non-performing assets (GNPAs) of 7.64 percent and net NPAs of 4.87 percent.

Hindustan Unilever Limited: HUL reported a profit after tax (PAT) of Rs 2,243 crore for the quarter ended December 31, 2021, on Thursday after market hours. In its quarterly earnings report, the company said this was 17 percent higher than the corresponding quarter of the previous fiscal.

Aditya Birla Sun Life AMC: The company's officials will meet analysts and investors on January 25, to discuss financial results.

Havells India: The company reported lower consolidated profit at Rs 305.82 crore in Q3FY22 against Rs 350.14 crore in Q3FY21, revenue jumped to Rs 3,664.21 crore from Rs 3,175.2 crore YoY.

Container Corporation of India: The company reported a higher consolidated profit at Rs 283.39 crore in Q3FY22 against Rs 233.07 crore in Q3FY21, revenue jumped to Rs 1,938.03 crore from Rs 1,766.89 crore YoY.

Cyient Ltd: The company reported a higher profit at Rs 131.8 crore in Q3FY22 against Rs 95.4 crore in Q3FY21, revenue rose to Rs 1,183.4 crore from Rs 1,044.3 crore YoY.

VST Industries: The company reported a higher profit at Rs 82.72 crore in Q3FY22 against Rs 73.71 crore in Q3FY21, revenue rose to Rs 431.48 crore from Rs 380.4 crore YoY.

Data Patterns (India): The company has received a development order worth Rs 27 crores from Defence Research and Development Organisation (DRDO) for the next generation wideband RF front end units for Electronic Warfare (EW) receivers.

Agro Tech Foods: The company reported lower consolidated profit at Rs 6.74 crore in Q3FY22 against Rs 8.14 crore in Q3FY21, revenue fell to Rs 245.74 crore from Rs 246.57 crore YoY.