After opening the day on a positive note, Indian share markets pared gains as the session progressed and traded lower throughout the session.

Indian indices remained under pressure for the second day tracking an overnight fall on Wall Street. Meanwhile, stocks with disappointing earnings dampened overall sentiment.

At the closing bell, the BSE Sensex stood lower by 237 points (down 0.4%).

Meanwhile, the NSE Nifty closed lower by 80 points (down 0.4%).

Coal India, Power Grid Corporation, and HDFC Bank were among the top gainers today.

HUL, Asian Paints, and Bajaj Finance on the other hand, were among the top losers today.

The SGX Nifty was trading at 18,044, down by 69 points, at the time of writing.

Broader markets settled on a negative note. The BSE Midcap ended 0.7% lower while the BSE SmallCap index ended 0.5% lower.

Sectoral indices ended on a mixed note with stocks in the metal sector, FMCG sector, and telecom sector witnessing heavy selling.

While stocks in the power sector and banking sector witnessed buying.

Shares of Jindal Stainless, APL Apollo Tubes, and Swan Energy hit their 52-week highs today.

Asian share markets ended the day on a firm note.

The Hang Seng ended 1.8% higher, while the Shanghai Composite index ended 0.8% higher. The Nikkei edged 0.6% higher.

US stock futures are trading on a mixed note. Dow futures are trading marginally lower while Nasdaq futures are trading higher by 0.3%.

The rupee is trading at 81.14 against the US$.

Gold prices for the latest contract on MCX are trading higher by 0.3% at Rs 56,716 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading up by 0.6% at Rs 68,783 per kg.

Speaking of stock markets, to markets, the Union Budget isn't just an annual accounting exercise. It's the most important event of the year.

If the market views the budget positively, stocks will rise, at least in the short term.

But if the markets don't like the Finance Minister's speech, for whatever reason, there will be a bloodbath.

A hike in royalty payout puts pressure on HUL.

In news from the FMCG sector, shares of HUL tanked 4% intraday.

The dip in the stock was on the back of the board's approval to raise royalty payments to Unilever Group.

The company has entered a new arrangement with Unilever group entities for technology, trademark licenses, and services to HUL.

The new royalty and central services arrangement will envisage a staggered increase of 0.8% over three years. It will come into effect on 1 February 2023.

Under the new agreement, the royalty and central services fees will increase from 2.65% to 3.45% of turnover.

The rise will be staggered over three years, starting with a 0.45% increase in effective cost for the February-December 2023 period.

This rise will be followed by a 0.25% increase in the calendar year 2024 and a 0.1% rise in 2025 to 3.45% of turnover.

The new agreement will be signed as the current technology, trademark license, and central services agreement of HUL with Unilever group expires this year.

The higher payment will reduce the cash balance for the shareholders, driving the EPS down.

Did you know that was a big underperformer? Between 2002 and 2007, the Nifty went up over 250%. In the same period, HUL was actually down 19%.

But for the next 5-year period between 2007-2012, HUL was up 97% while the Nifty was down 6.5%

HUL is the fifth-largest FMCG player by growth and the largest player by market share. HUL is one of the best FMCG stocks.
 

HDFC Life Insurance Q3 profit jumps 15%

Moving on to news from the insurance sector, HDFC Life's share price plunged 2.5% today.

HDFC Life Insurance reported a 15% YoY rise in third-quarter profit on Friday, driven by strong new business growth.

The new business premium grew 29% YoY to Rs 27.25 bn for the quarter from Rs 21.2 bn a year ago. Its retail business grew by 17% for the quarter, faster than the industry growth.

Its net premium income rose 18.6% to Rs 143.79 bn, while the income from investments more than doubled to Rs 49.2 bn.

HDFC Life's total annualized premium equivalent for the nine months grew 21.9% to Rs 81.7 bn.

It is one of India's largest private-sector life insurers. The shares of the company are trading down by 9% over the past year. HDFC Life share price is falling owing to its business slowing down and persistent selling by FIIs.
 

3 takeaways from Union Bank of India's Q3 results

Moving on to the news from the PSU banks sector, shares of Union Bank were in focus today.

Government-owned Union Bank of India recorded strong Q3 earnings, with profitability more than doubling year-on-year.

#1 Twofold jump in net profit

The lender recorded a net profit of Rs 22.3 bn, doubling from last year's figures of Rs 10.9 bn. This was on the back of a 20.3% rise in net interest income to Rs 86.3 bn.

#2 Boost in asset quality

Union Bank's gross non-performing asset (GNPA) ratio stood at 7.9%, down from 11.6% last year. The lender's net NPA ratio stood at 2.1%, down from 4.1%.

#3 Business segment growth

The bank's corporate banking division, which incurred a loss of Rs 1.4 bn for December 2021, posted a massive profit of Rs 11 bn.

Retail banking, which constitutes the bank's major operations, reported a profit of Rs 17.4 bn from Rs 10.8 bn last year.

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