• Nifty had a gap-up opening today, starting the day at 11,325 and touching a day-high of 11,372 soon after. However, the index corrected over the day, and closed at 11,324, up 0.58%. Nifty struggled to close above 11,350, and is yet to give a technically strong buy signal for the week.

  • But keeping aside technical indications, global markets are definitely going to be delighted by the news of the world’s first COVID-19 vaccine from Russia.

  • Nifty Pharma tumbled by 1.42%, due to the negative sentiment of Lupin moving manufacturing to the US after Trump’s ‘Buy American’ order. However, analysts have said that the move would not hurt the industry that much. Lupin traded flat the entire day while the general Pharma index fell.

  • Nifty Bank shot up by 1.49% to close the day at 22,227 levels. As was mentioned in our morning news feed, Nifty Bank was near a major resistance level and managed to break it. All major banks would have given you easy returns if traded in today. Banks can certainly be watched going forward, as they are building up bullish momentum.

  • European markets are all up by more than 2% at the time of market close. Asian markets are mostly trading in green.

News Picks

  • In a major move, Russia has officially registered the world’s first vaccine against COVID-19. President of Russia, Vladimir Putin, announced that the country is preparing for mass-production. Clinical trials have so far revealed good results, and even Putin’s daughter is said to have been vaccinated. This is great news not just for the market, but also for the entire world population as countries are still struggling to contain the pandemic.

  • Shares of Zee Entertainment Enterprises Ltd (ZEEL) jumped 5.16% to close at Rs 159, once again emerging as Nifty’s top gainer for the day. This goes on to show that sudden dips in share prices of fundamentally strong companies are a buying opportunity and not a cause for panic!

  • Shares of Interglobe Aviation, parent company of Indigo Airlines had a gap-up opening and traders quickly booked profits. This came after company said it will raise up to Rs 4,000 crore through a qualified institutional placement (QIP). Shares closed at Rs 939.55, down 1.43%.

  • Shares of HDFC closed at Rs 1,829, up 1.67% after the company successfully completed its fund raising of Rs 14,000 crores via QIPs, NCDs and Warrants. Financial sector companies in the country and around the world have been successfully raising funds to safeguard themselves from the possibility of bad loans due to the pandemic.

  • Affle India closed at Rs 2,160, up 6.59% today. The share had jumped by 10% yesterday as well. The movement is due to the unexpected Q1 results posted by the company on Friday.

  • Titan closed the day at Rs 1,068, down 3.57% after announcement of poor Q1 results. The company reported a standalone net loss of Rs 270 crore in the quarter ended June against a profit of Rs 371 crore a year ago.

  • Bank of Baroda traded down 2.78% to close at Rs 47.20 after reporting losses for the quarter ended June 30.

  • Yes Bank closed another day at its 5% upper circuit level, taking the price to Rs 15.50. Currently, the combined stake for SBI Group in Yes Bank stands at 34.70%. The US-based investor Bay Tree holds 7.5% while LIC is the third largest institutional shareholder with 5% stake.

Markets Ahead

Banks and other financial entities being able to raise funds easily and efficiently show that institutional investors still believe in the industry. If the raised funds prove enough for the banks to safeguard against the expected increase in bad loans, then it is great news. The positive news of Russia’s COVID-19 vaccine may also influence markets in the coming days. International distribution policy is yet to be known and effectiveness is yet to be confirmed by The World Health Organisation. Is this the light at the end of the tunnel? Can we say millions of lives around the world, and bring back normalcy to our lives? We certainly hope so.

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