Today’s Market Summarised

Nifty opened at 11,960 with a big gap-up from yesterday’s close. It even opened above levels indicated by SGX Nifty. After making a day-high of 11,974 in the first 15 minutes, Nifty slowly fell ever so slightly. It took support at 11,910, Nifty went back up to close at 11,930.35, up 33.90 points or 0.28%. Yes, Nifty traded today in a range of only 64 points! Unbelievably so Nifty made a weekly profit, going up 0.8% for since last Friday’s close. 

Bank Nifty opened the day at 24,676 and went down throughout the day. After making a day-low near 24,360, Bank Nifty closed at 24,478.30, down 0.02%. Considering the gap-up, it was one of the worst performing indexes. 

Auto sector went up the most today with most of the top-gainers from the day coming from this segment. The five-day rally of the Nifty Realty index ended today. The index ended 1.1% lower. All other indices ended flat, with Pharma and banks barely in red.

Major Asian markets are in green today. European markets are also in green. Let’s see how and if the weekend will change things.

News Picks

Shares of Maruti gained the most today with prices closing at Rs 7,102 , up 4.26% for the day. Auto sector had a good day today, with 3 out of the top 5 gainers coming from this segment. Automakers are currently taking a big bet, manufacturing several thousands of cars for the festive season even though retail demand is less. Also, check out this article on Maruti’s past, present and future, by marketfeed.

Shares of Tech Mahindra closed at Rs 847, up 1.14% after the company’s US subsidiary said it will acquire 6.03% stake in US-based VitalTech Holdings for $3 million (roughly Rs 22 crores). Shares calmly went up throughout the day even when Nifty IT formed a red candle. The company posted a Q2 net profit of Rs 1,064 crores, up 9.5% YoY after market hours.

Shares of Asia Granito jumped Rs 279.90, up 5.84% today. Towards the later part of the day, the company informed the exchanges that the board has approved a 5:1 stock split.

Shares of Auto Ancillary stocks stand to benefit after the government said in a notification that it plans to boost Auto component manufacturing through Make in India initiative. Among others, Bharat Forge shares jumped 6.44% to Rs 494.

Aditya Birla Fashion and Retail on Friday approved to raise Rs 1,500 crore by way of preferential issue to Flipkart, for 7.8% total equity in the company. This is big news for the company, and rightly so stocks prices jumped up 7.49% to Rs 165. If you did not know, Aditya Birla Fashion manufactures popular clothing brands like Allen Solly, Peter England, Louis Philippe and VanHeusen. The company also operates fashion retail chain Pantaloons across the country. marketfeed is preparing a full-length article on the company and about this deal, do watch out for it!

Shares in Nifty Metal kept up their rally led by Tata Steel whose share prices went up by 3.27% to Rs 423.05. After market hours, JSW Steel posted a net profit of Rs 1,595 crores for Q2, down 37% YoY even though revenue went up 9%.

Shares of Coal India kept going up from yesterday’s bullishness. Energy sector also went up in general. Yesterday, Coal India had put out a statement saying that their net production for this year as of 20 October is slightly higher than for the same period last year. Shares of Coal India went up 1.64% to Rs 117.70. On a similar note, NTPC share prices also went up 1.77% to Rs 86.15.

Shares of JK Tyres went up 10.43% to Rs 73.05. It has gone up more than 20% in the last two days alone. Last day, the company had announced a 35% YoY drop in net profit to Rs 167.7 crores even while revenue from operations increased to Rs 2,274.84 crores

Markets Ahead

Nifty has once again formed a red candle after nearing 12k. The big gap-up courtesy banks was quickly covered after the fall in Bank Nifty. Pharma also fell throughout the day, just like yesterday. With the heavy consolidation from today, we can expect Monday to probably be a very trending market in either direction. Factors that are causing volatility in the Indian markets are the Q2 results season, upcoming US elections and probable US Stimulus Also, the high production of auto sector without considering the low demand in the retail market might become a huge problem for Q3.

Let’s see how and if the weekend will change things.

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

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