Today’s Market Summarised

Rapid selling in the markets towards the end of day pulls down every index.

Nifty opened the day with a slight gap-up at 14,955 but continued bearishness. Yesterday’s low was respected in the market along with 14,850. But none of the supports were able to stop the selling. 14,800, the level we discussed yesterday was broken strongly and a day low was created just under 14,700. Just after 3 pm, the index fell more than 100 points in 15 minutes. With an intraday fall of nearly 255 points, Nifty closed the day at 14,721, down 189 points or 1.27%.

Bank Nifty was more bearish than Nifty at market close. But this was not the case in the beginning. The index opened at 34,944 and even tried to move up above the 35,000 mark before noon. From there, it fell nearly 1,000 points to touch the day low.

All major sectoral indices closed in the red today. Nifty PSU Bank fell more than 3.7%, while Nifty Metal(down 2.46%) and Nifty Realty(2.96%) followed closely.

Major Asian markets are trading mixed with small gains and losses. European markets are also consolidating.

News Picks

ITC moved against the trend and closed as Nifty’s top gainer. There are talks of the demerger of its FMCG, hotel business and Infotech business to ‘unlock value in the business.’

Oil marketing and producing companies were among top losers of the day. In fact, 6 out of top 10 losers in Nifty 50 were Public Sector companies. 

One possible reason for this special bearishness in the PSUs could be BPCL declaring a lower than an expected dividend. We had talked about how PSUs were expected to declare higher dividends this quarter and market did not appreciate Rs 5 dividend. BHEL fell by more than 7%, ONGC(down 5%) and more.

Indigo was up sharply in the morning and closed 0.8% up at market close. The airline had doubled airport check-in fees to Rs 200 from today to promote web check-in.

Shares of Tata Motors closed 4.42% down after sales of Jaguar Land Rover in Germany continued to move down. European car sales fell 20% year-on-year in February, the worst February since 2013.

Bharti Airtel shares gained when market was falling heavily between 2:30 and 3 pm. Telecom data published says the company added 58.9 lakh subscribers, while Vi added 17.1 lakh customers and Jio added 19.5 lakh. 

Markets Ahead

Technical weakness with high selling pressure in the last half an hour. Check out the volumes traded during this time, especially in banking stocks! Mind you, Reliance was somehow going up in the last hour otherwise market would have seen sharper falls.

Adani stocks also came under heavy selling pressure with Adani Ports(which we discussed was weak last week) falling more than 4%.

I am pretty sure we can see a huge sell-off from Foreign Institutional Investors. This huge selling was seen even when global markets are consolidating ahead of the Federal Reserve’s Policy announcement.

One possible reason could be the Prime Minister Narendra Modi warning states of the second wave of Covid-19 hitting the country. “If we do not stop it here, then a condition for a nationwide outbreak may emerge,” he said and called for quick and decisive steps to stop it.

Any news when the market is already bearish never help. Indian markets being already technically weak was just searching for a reason to fall. If not for this reason, it would have been due to the Fed Announcement.

Catch you all on The Stock Market Show tonight!