Today’s Market Summarised

Nifty traded in a range of under 120 points today. But inside this range, there was a lot of movement. With the Finance Minister’s announcement mid-day, the index made multiple direction changes.

After opening at 12,705, the index quickly touched a day high of 12,742 and corrected. It was unable to cross yesterday’s high. At 12:30 pm, the index fell as the announcement by Finance Ministry made investors cautious. Nifty gained back to close 12,690.80, down 58.35 points or 0.46%. The index has made a red candle after 7 days of trade.

Bank Nifty opened the day with a gap-down at 28,637. PSU Bank Index fell the most The index of banks started falling from the opening level and struggled throughout the day. Bank Nifty took support at 28,000 and closed the day a little better at 28,278, down 566 points or 1.96%.

Nifty Bank Performed the worst today, after 8 days of gains. Out of this, Nifty PSU Bank fell even more than its private counterpart. Nifty FMCG gained the most today, with most other sectors ending flat.

Most Asian markets closed in red today. Major European markets are also trading in the red today.

News Picks

Shares of Apollo Hospitals closed at Rs 2,110, down 3.89% after the company net profit down 30% to Rs 60 crores year-on-year (YoY). Revenue was down 3% to Rs 2,760 crores (YoY).

Major corrections were seen across all sectors, with banks being hit the most. Despite this, the Finance Minister’s press conference did bring in some cheer. The sectors set to directly benefit the most are realty, cement and fertilisers. These stocks jumped after the announcement. but quickly cooled down.

Shares of Petronet jumped to Rs 243.60, up 1.10% after the company announced its looking into projects in Sri Lanka.

Cochin Shipyard shares fell from green to close at Rs 334.80, down 0.03%. The company announced a net profit of Rs 106.7 crores, down 48% YoY.

Shares of Jubilant Foodworks closed at Rs 2,339.20, up 0.49% for the day. It announced a net profit increase of 5% YoY to Rs 76.9 crores, while revenue fell 18% YoY.

Coal India was among the top losers today after it announced its Q2 Results. Consolidated net profit dropped 16% YoY to Rs 2,951 crores. Share prices closed at Rs 122.10, down 2.98% and the stock price is near its all-time lows.

Grasim jumped 2.97% to Rs 826 after fertilizer stocks went up following the Aatmanirbhar 3.0 announcement. The company’s board approves sale of fertilizer operations to Indorama for Rs 2,650 crores.

Markets Ahead

The Aatmanirbhar 3.0 package announced today will see a total of Rs 2.65 lakh crores to be spent on creating and incentivising new jobs, as well as providing tax relief and support to the real estate sector. Tourism has not received a boost, nor has aviation. Keeping everything aside, the announcements made for realty seem to be very interesting. Even though the highly leveraged industry of building houses and apartments may take some time to recover, associated sectors like steel, paints and cement are expected to do well. Keep an eye out for stocks at good levels. We are writing an in-depth article soon on today’s announcement.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.

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