Today’s Market Summarised

NSE systems crashed in the day with no trades being executed in the exchange after 11:40 am. With negligible volumes in BSE stocks compared to their NSE counterparts, many traders would surely have suffered. Many orders were also squared off on BSE by brokers to prevent huge losses but only ended up increasing confusion. It is still why or how this happened.

Nifty opened with a gap-up and went up before getting stuck around 10:20 am. But still, only the indices tickers were stuck and stock prices including Nifty Futures prices were moving. At around 11:40 am, trading was halted on the NSE. After many hours of confusion, it resumed at 3:45 pm with Nifty flying back up to 15,000. Nifty closed the day 14,982, up 274 points or 1.86% up. Definitely a freak show in the market today.

Bank Nifty opened the day and went flying up in the first hour of trading. While NSE crashed, shares of private banks were doing exceptionally well on BSE. And just continuing that, Bank Nifty was highly highly bullish. It went up more than 1300 points from the day’s low and closed at 36,452, up 1335 points or 3.8% for the day.

Banks were the most bullish today, along with the Fin Nifty index(up 3.4%). Media closed 1.5% up. No other sector closed above 1%. 

Global markets are mixed, both Asian and European.

News Picks

Shares of Coal India closed 5.48% up in the day as the PSU said it would consider a second interim dividend for this financial year in its meeting of the board of directors scheduled on March 5.

Private banks flew up in the day, with the government lifting embargo on Govt business to private banks. With this, private sector banks can now carry out government-related banking transactions such as taxes and other revenue payment facilities, the Department of Financial Services stated in a press release today. Shares of HDFC Bank went up to close 5% up, Axis Bank and ICICI Bank jumped as well. Industry leaders welcomed this move. Finance Minister tweet included “Private banks can now be equal partners in development of the Indian economy”.

UPL shares closed 2% down after yesterday’s sharp rally.

Cabinet has approved a PLI scheme of Rs 15,000 crore for pharma sector. Patented drugs, anti-diabetes drugs and auto-immune drugs will be promoted to “make India Aatmnirbhar in manufacturing of high-quality drugs”.

The Union Cabinet is set to approve a PLI scheme for electronics, medical devices. Sources say that the PLI scheme could have an investment of over Rs 7,000 crore.

Cabinet has cleared PLI to boost manufacturing of laptops, tablets, PCs and servers.

Shares of Airtel jumped up with the launch of companies new advertising business, Airtel Ads.

Markets Ahead

Such a crazy day in the market. NSE shutting down, and markets remaining open till 5 pm in a day! A lot of traders would have lost money even if it was not their fault today, myself included. But such is the nature of events that unfurled today.

With the government’s new announcement allowing private banks to carry out govt-related transactions, the index got a huge boost. In fact this is the reason why Bank Nifty went up to touch 36,000 and even 36,500 today. The index has closed highly bullish and might continue its rally tomorrow.

Nifty has touched 15,000 with relative ease today. We can see the index going up and retaining bullishness if banks support it.

Also bullish on the all-out announcements of Production Linked Incentive schemes by the government. This will help us grow our economy and along with it our markets in the long term.

Still a crazy crazy day in the market, definitely one that I will never forget! Rumours of cyber attack is floating around, but my question is who would be responsible for the losses incurred by retailers today?

Catch you all on The Stock Market Show tonight!