Today’s Market Summarised

NIFTY opened the day at 18,305 with a small gap-up and then consolidated till 2:15, with failed intermittent efforts to break consolidation. Market-wide profit booking kicked in and the index fell heavily. NIFTY closed the day at 18,210, down 58 points or 0.31%.

BANK NIFTY opened the day absolutely flat at 41,253 and after an initial 5-min red candle, started moving up to take resistance at 41,350. The index consolidated and finally fell along with other sectors. BANK NIFTY closed the day at 40,874, down by 363 points or 0.88%. 

Nifty PSU Bank(+2%) and Nifty IT(+0.97%) closed in the green while Nifty Media(-2%) and Nifty Metal(-1.5%) fell heavily.

Asian markets except Taiwan closed in the red today. European markets are also trading in the red currently.

News Picks

Today, Nifty top gainers list is filled with stocks from multiple sectors including Pharma, FMCG, Bank, IT, etc.

Asian Paints(+4.2%) closed as the Nifty-50 top gainer with plans to hike prices by 7-10 percent. The 2900 level is acting as a support and you can watch the stock in the coming weeks.

Cipla closed 1.6% up after reporting a flat Q2 earnings(QoQ) yesterday. Divis Lab(+2.6%) and SunPharma(+1.4%) also closed in the green.

Cement stocks performed well with Shree Cements(+1.1%) featuring in the top gainers list. Other cement stocks including Ramco Cements(+1.6%), Ultra Tech(+1.1%), JK Cements(+0.8%), Orient Cement(+3.4%), JK Lakshmi Cement(+5.5%) also closed in the green.

UPL(+3.9%) moved up after results from Sharda Corp(-2.6%).

SBIN(+1.2%) hit a fresh all-time high and closed 1.2% up.

Axis Bank(-6.4%) saw profit booking after reporting an 86% rise in YoY net profit yesterday. 

Profit booking after results kicked into Bajaj Finance(-4.7%) also. Bajaj Finserv(-1.8%) also closed in the red.

Stocks from FMCG sector including MCDOWELL-N(+5.8%), GodrejCP(+4.7%), Radico(+2.8%), Marico(+2.1%), Dabur(+1.7%), UBL(+1.7%), Emami(+1.6%), Tata Consumer(+1.2%) and ITC(+0.7%) performed well.

Not a good day for Nifty Metal with Vedanta(-.6%), Nationalum(-4.5%), Jindal Steel(-3.4%), SAIL(-2.4%), APL Apollo(-2.2%), Welcorp(-2%) closing in the red.

Larsen & Toubro Info(+2.3%) has been selected as a Microsoft Azure expert managed services provider.

UBL(+1.7%) said that the beer business in India grew by close to 50% in this quarter.

Tube Investment(+2.1%) has decided to issue NCDs worth up to Rs 100 crores.

The shares of TTK PRESTIGE(+15.3%) soared after it reported a Rs 103 crore consolidated net profit in the second quarter compared to Rs 65.6 crores last year. It has approved a split of shares from a face value of Rs.10 each into Re.1 each.

JK Paper(+5.6%) posted a consolidated net profit of Rs 120 crores in Q2. Other paper stocks such as Orient Paper(+4.3%), Star Paper(+2.1%), Emami paper(+1.4%), Genus Paper(+3.7%), Pudumjee Paper(+4.1%) gained well.

Vardhman Textiles(+9.9%) moved up after reporting a Rs 480 crore consolidated net profit in the second quarter compared to Rs 60.2 crores last year: The estimate was at Rs 300 crores.

IIFL Finance(+5%-UC) reported a Rs 291 crore consolidated net profit in the second quarter compared to Rs 212 crores last year. The estimate was at Rs 130 crores.

ITC(+0.74%) became volatile with media reports saying that an India expert panel is likely to suggest raising national calamity contingent duty on tobacco in the next FY budget. It may also suggest ways to raise tax on tobacco to 80% of the retail price in coming years.

Maruti Suzuki(+0.8%) reported a Rs 475 crore consolidated net profit in the second quarter ended September against Rs 1419 crores last year. The estimate was at Rs 700 crores. Maruti has sold a total of 379,541 units during the quarter and it had more than 200,000 pending customer orders at the end of the quarter. 

Indian Overseas Bank(+1.35%) reported a standalone net profit of Rs 376 crores vs Rs 148 crores last year.

Markets Ahead

NIFTY consolidated with a positive mood till 2 PM and fell heavily becoming weak following the European markets.

Bank Nifty was also in a good consolidation mood in the day and falling like NIFTY at the end. Keep a continued watch on IDFC First Bank and AU Bank among others.

FMCG and IT sectors closed in the green as market participants started being defensive. NIFTY FMCG took support where we had mentioned and moved up.

Markets in general look weak. Let’s see how the US markets move!!!

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