Today’s Market Summarised

Nifty opened the day with gap-up at 14,644 and struggled to go up. With IT pulling down the index and banks trying to push it up, Nifty consolidated for a good 45 minutes before losing steam. After falling slowly, the index fell sharply around 1:30 pm and touched a day low of 14,435. The sudden fall was covered in the next 2 hours, and Nifty closed at 14,564, up just 1 point for the day.

Today was actually a historic day for Bank Nifty. After lagging behind many sectoral indices, Bank Nifty has made a fresh all-time high today. The index opened with a gap-up at 32,556 and tried to sustain but fell. Still, since the index is still bullish, support was taken and Bank Nifty went back up to close at 32,574, up 235 points or 0.73%.

PSU Banks gained the most today and was followed by Nifty Auto. Pharma and Fin Nifty were among the top losers.

European indices are trading flat at the time of Indian market close, but with a bearish bias.

News Picks

NIFTY PSU Bank is up by again by 3% today, after being up 6% yesterday. Bank of Baroda(up 6%) and SBI(up 4%) lead the rally today.

M&M went up more than 5.6% today, after lagging behind yesterday. All major auto manufacturers, especially those of commercial vehicles, had gone up this week after the possibility of a scrappage policy in the Union Budget. We had covered this topic extensively in November, here.

Adani Ports has rallied again today, by going up more than 4.4%. The rally in the stock is continuing today.

Shares of Petroleum resellers, including IOC(up 3.16%) and BPCL(up 2.32%), went up today. This happened as petroleum prices in the country went up to new highs, touching Rs 91/litre in Mumbai.

Shares of Bharti Airtel went up almost 2%, and even touched Rs 600 in the day. This happened after the company said it has received approval for increasing FDI Limit in subsidiaries to 100%.

Shares of DLF went up again, rising 4.82% after the bullishness in the stock continued.

Shares of Granules went up 2% after the company received USFDA approval for Metmorfin Hydrochloride tables.

Shares of Westlife Development went up close to 5%, after the company said it plans to expand aggressively this year and open multiple new outlets. Shares of Burger King went down 2%. We had talked about Quick Service Restaurant stocks in India, here.

Infosys and Wipro have posted stellar results in the day, by when the market closed. Wipro Q3 net profit is up 20% YoY to Rs 2,970 crore, with Rs 1/share as a dividend. Infosys reported net profits were up 16% YoY to Rs 5,197 crore.

Markets Ahead

Bank Nifty is still continuing its bullishness, even in the day of a considerable fall in Nifty. Yes, this was sparked with by the rally in PSU Banks(especially heavyweight SBI). Hope this rally continues and we see Bank Nifty going up even more to 35,000-37,000 and beyond.

US still remains in a state of confusion, with many security experts predicting widespread protests and attacks over the weekend. Joe Biden is all set to swear-in as President on January 20.

An interesting thing happened in the market today, with Reliance losing the title of top-weighted stock in Nifty 50 to HDFC Bank. Reliance’s weightage now stands at just above 10%, while it was over 15% earlier. Nifty 50 is a market-cap weighted index.

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