Today’s Market Summarised

Nifty opened the day at 11,604 with a gap-up. Unlike yesterday, the index never dipped into red over the day. After consolidating between 11,595 and 11,635, between 40 points, the Nifty broke out to scale new highs. After touching a high of 11,685, the benchmark index of NSE closed at 11,647.60, up 88.35 points or 0.76%

Bank Nifty was the star of the day. After RBI’s positive remark on the Indian Banking sector, the index jumped 923 points ending with gains of 3.9%. With this, Nifty Bank has gained over 2,500 points in the last six trading sessions. The possible bullishness of the sector was covered in our morning feed here.

Nifty Bank and Nifty Financial Services moved the most today. Nifty PSU Banks moved 4.86%. Sectoral updates at market close are given below :

Asian markets closed mixed. European markets are trading in red at the time of Indian market close.

News Picks

Banks were the top movers today with 4 out of 5 top gainers in Nifty coming from the sector. IndusInd Bank moved the most, astonishing every market participant. Prices closed at ₹677/share, up 11.74% after hitting a day high of ₹689. Axis Bank closed at ₹509.65, up 7.74% while ICICI Bank and SBI were included in the top gainers list as well.

We had talked about how ICICI Bank has a very important level at the ₹400 mark in our morning news feed. Shares of the company closed at ₹409.50, up 4.41% after crossing this line.

Shares of IOC closed at ₹88, up 0.92% after the company announced it was spending Rs 14,800 crore in expanding the capacity of its Barauni refinery. Cashmaking Public Sector Undertakings (PSUs) are leading the government’s plan to boost domestic manufacturing and create jobs.

JSW Steel fell 2.87% to ₹281 after the company announced its new product segment, JSW Radiance. It was the top losing stock in the Nifty 50 index today. Again reaffirms the saying ‘Buy on rumours, Sell on news’. News creates volatility in the short term.

State-run mining company NMDC closed at ₹107.35, up 11.71%. The company had reported a 55 per cent decline in net profit at Rs 533 crore for Q1 FY21 against Rs 1,179 crore during Q1 of FY20.

IT and Pharma stocks were weak today on the note of rupee gaining strength over dollar. Even in between this, SunPharma gave amazing profits today with the stock closing at ₹554.95, up 4.26%. Also made a fresh 52-week high at ₹574. Hope you caught the move by following @fundfolio on Telegram!

Shares of Idea closed at ₹10.1, up 14.12%. Airtel closed at ₹522.5, up 2.22%. Stocks in the same sector tend to follow similar patterns in trendy markets.

Markets Ahead

Nifty has closed in green for the second week in a row. Markets seem to be confident and riding high towards finding new highs. Foreign Institutional Investors pumping in money to the country is definitely a positive sign. Banks and financial institutions are slowly catching upto Nifty after underperforming it for several months. With the markets being very trendy, a slight retracement can also be expected before further upside. Hope you all had a profitable week!