Today’s Market Summarised

Nifty bounced back today after yesterday’s frightening fall. The index started the new month with a gap-up at 11,464 and stayed volatile between 11,400 and 11,500. It was an amazing day for scalpers as the volatility gave great opportunities on both buy and sell sides. Nifty 50 closed the day at 11,470.25, up 82.75 points or 0.73%.

Nifty Bank closed in red after a strong opening for the day. The index tracking major banks opened the day at 23,900 levels with a gap-up. After facing rejection at 24,200 levels, the index kept moving between 23,500 and 24,100 during the day. We had talked about how the AGR case will not just affect telecoms, but also banks who have given out loans to them. But, banks remained steady after a slight fall before noon, after the negative outcome of the case. Bank Nifty closed the day at 23,812.00, up 0.24%.

Nifty Metal was the top mover of the day. We had pointed out that metal stocks were to be watched on Telegram. Hope you caught the move!

European and Asian markets remained mixed today. 

News Picks

Adani Enterprises closed at ₹282.45, up 1.04% after hitting a high of ₹287.05. We had talked about how the recent Mumbai airport deal makes the group the second-largest private operator in India. The company looks strong in its growth plans, but the high debt of Adani Group still bothers many investors.

Shares of BEML closed the day at ₹690.20, up 3.32%. The company had received an order worth ₹842 crore from the Ministry of Defence.

Auto stocks gained after the August auto sales numbers turned out to be positive for the major Indian players. Highlight of the data was definitely Tata Motors whose sales grew 154% year-on-year. Shares of Tata Motors closed the day at ₹144, up 0.56% after trading in red earlier in the day.

AGR case finally got a partial verdict with The Supreme Court ordering telecom carriers to pay 10% of the pending dues by March 31, 2021 and the rest over a 10 year period. This gave relief to all players, except Vodafone Idea who had asked for a 20 year period to settle dues. Shares of Idea closed at ₹8.80, down 13.73%, recovering after hitting a 20% lower circuit during the day. Airtel shares gained 7.09% after the verdict to close at ₹549.50 to close as Nifty’s top gainer. The payment of dues by insolvent players RCom and Videocon were not discussed as of market close.

Biocon jumped to ₹405.45, up 7.79% after the launch of Semglee (insulin glargine injection) in vial and pre-filled pen presentations in the US. We had talked about this in the morning feed here.

Metal stocks were in focus being the top sector of the day. The sector closed 3.15% up, with our pick of the day Tata Steel moving closing 4.76% up at ₹432.65. Follow us at @fundfolio on Telegram for more!

Markets Ahead

Yesterday’s fall can be seen as a black-swan event caused by the border concerns. Markets look confident to go up, and reach new highs. The fall in GDP data seems to not have affected markets today and won’t in the future. Participants are expecting the numbers to get better next quarter, and to get back up to positive by year end. With AGR dues, GDP numbers and Auto sales already being reflected in the market, future projections look good. Investors waiting for Nifty to hit 7000 levels will have to keep on waiting. And that raises the question : if not now, then when?