Today’s Market Summarised

Bank Nifty continues to be the spoilsport, pulling Nifty down from its opening at all-time high levels.

Nifty opened the day at 15,778 and was in a mood to fall. It fell nearly 100 points from the opening level and took support at yesterday’s low. From here, the index slowly gained back but without much strength. Nifty closed the day at 15,740, down 11 points or 0.07%.

Bank Nifty was once again bearish while Nifty consolidated. After opening at 35,449, the index fell and easily broke yesterday’s low. But support was taken at 35,000 zone more than once. It even dipped below that range but quickly gained back. Bank Nifty consolidated after the morning fall to close at 35,085, down 358 points or 1%.

Nifty IT(+1.2%) once again gained more than 1% in the day. Nifty PSU Bank(-1.45%), Nifty Metal(-1.06%) and Nifty Bank(-1.01%) were the worst-performing sectors.

Asian markets mostly closed in the red today. European markets are all trading in the green.

News Picks

Tata Motors once again closed among Nifty 50’s top-gainers by gaining 2.1%. The company’s management is currently on day 2 of the five-day meetings with some big names including Rakesh Jhunjhunwala’s Rare Enterprises, Blackrock, Abu Dhabi Investments, Franklin Templeton, JP Morgan and more.

IT stocks gained sharply in the morning but lost some strength in the afternoon. TechM(+2.2%), HCLTech(+1.85%) and Infy(+1.68%) featured on the top-gainers list.

Metal stocks led the top-losers of Nifty with Hindalco(-1.8%), Tata Steel(-1.5%) and JSW Steel(-1.1%) all falling between 1-2%. NMDC(-2.2%), National Aluminium(-2.2%) and Vedanta(-1.7%) also fell in the day.

The rest of the losers in Nifty were formed by financial stocks including Banks and NBFCs. Kotak Bank, HDFC and SBIN fell more than 1%.

Equity shares of DHFL will be delisted from exchanges as part of its debt resolution plan. The stock closed at 10% upper circuit again, but it is best for retailers to stay away from it. 

The company which won the DHFL bid, Piramal Enterprises gained 10.5% to hit fresh 52-week highs. CITI raised targets to Rs 2,260.

The Railway Board will have a press conference today regarding the resumption of train services. IRCTC closed 2.3% up.

Tyre maker Michelin to hike tyre prices by up to 8% in India. JK Tyres, Apollo Tyres and CEAT moved up after the news and then fell down.

Route Mobile expands its global footprint in SouthEast Asia, appoints Elsiyah Susanto as the country manager for Indonesia. The stock shot up after consolidation and closed up 2.6%.

Suven Pharma reported Q4 consolidated net profit at Rs 83.1 crore, up 11% YoY and down 27% compared to last quarter(-27%). It was a sharp fall after the bad results and stock closed 2.8% down.

Competition Commission approved Heineken to buy additional stake in United Breweries by Heineken. The stock closed 2% up at a near 2-year high.

Sugar stocks continue its rally and Balram Chini(+3.4%), Eidparry(+4%), Dwarikesh Sugar(+4.3%), Shree Renuka(+9.7%), Triveni Engineering(+11.6%) gained well.

Sources say the time period of EV subsidy policy may be extended. Greaves Cotton is up by 6.3%, Tata Motors gained sharply near market close.

Infosys gained 1.7% after announced a collaboration with Archrock from the U.S.

Petronet LNG & Bata close with minor cuts ahead of Q4 earnings.

Adani Power continues the gaining momentum, closes at 20% upper circuit. The stock is up 50% in the last 3 trading days. Tata Power closed 3.6% up.

Chemical stocks such Navin Fluor(+6.3%), PIIND(+4.6%), SRF(+4.6%), Deepak Nitrite(+4%) and Aarti Industries(+3.5%) moved well in the day.

Markets Ahead

Markets changed little after PM Modi’s general speech to the nation yesterday. A free vaccination policy for all adults was announced.

The U.S. treasury secretary has once again talked about in favour of a big stimulus package from Joe Biden. This may push up economic activity but concerns of high rates of inflation are present. Stimulus packages 

Once again, smallcaps and midcap indices closed in the green while Nifty closed flat. But their gains have reduced as well. This means that the market may lose steam and is ready to cool down. 

HDFC Bank and other financial stocks continue to remain weak as we discussed yesterday. In fact, Bank Nifty closed quite near to its 35,000 support zone. In fact, while Nifty has gained 1.5% in the last 5 trading days, HDFC Bank has fell by that same %.

Pfizer(+4.34%) which we had talked about many weeks ago, has closed strongly without any “news” helping it. Looks like the start of a good rally to me. ITC has also closed near the day’s high. Do watch out for these stocks.

Catch you all on The Stock Market Show tonight!

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