Today’s Market Summarised

Nifty opened the day at 14,548 and was again bullish through the day. After taking resistance near 14,620 for a while, the index crossed this level just after European markets opened in green. Nifty then moved up and broke its all-time high and went up till 14,666 before correcting. Nifty closed the day at 14,644, up 123 points or 0.85%.

Bank Nifty opened the day and was unstable in the first 30 minutes. It soon broke out above 32,500 but mostly traded sideways. Mostly the index remained sideways, trading in a range of under 300 points. Bank Nifty closed the day at 32,543, up 118 points or 0.37%.

Auto and IT stocks performed the best over the day. PSU Banks also performed well. 

Major Asian markets closed mixed for the day. European markets are currently trading barely in the green.

News Picks

Shares of Tata Motors closed up 6.28% for the day. New multiyear highs are being made from the stock which is doing good after a good performance from JLR and Indian operations.

Shares of Adani Ports closed up 4.8% even after opposition parties in Tamil Nadu putting pressure to cancel the public hearing on Adani’s expansion at Kattupalli Port near Chennai. The public hearing is scheduled on January 22. The Company’s current application is for environmental clearance for a Rs 4,000 crore port and harbour project that is part of a Rs 53,400 crore masterplan.

Tyre stocks including MRF(up 6.75% to near Rs 93,000!) and ApolloTyre (up 6.63%) continued their rally as earnings are expected to surpass pre-covid levels. With lower input costs and higher demand from especially the farm sector, manufacturers have been doing well. The government had also in June imposed a ban on imports of certain new pneumatic tyres used in motor cars, busses, lorries and motorcycles in a move to promote domestic manufacturing. CEAT had reported good earnings yesterday.

After reporting earnings on Monday with a 66% YoY rise in profits, MindTree closed up  6% in the day. CoForge closed up 4%, while TCS hit fresh all-time highs. InfoEdge was also up almost 5%.

Among yesterday’s top gainers, L&T Finance and Indiabulls Housing Finance corrected today. UPL continuing its rally, and is up by more than 2% today.

Asian Paints continued its slow up-rally by gaining almost 2% today. Meanwhile, Indigo Paints IPO has opened and you can read all about it here.

Shares of Federal Bank closed up nearly 2.5% after reporting better than expected Q3 profit numbers. Profits were down 8% YoY, but Net Interest Income was up. Also, Gross Non-Performing Assets(GNPA) are reducing while provisioning for bad loans has doubled from the same period last year.

Markets Ahead

There were no specific inputs from the US, as the excitement from Janet Yellen’s speech faded away. At 8:30 pm tonight in Indian time, Joe Biden and Kamala Harris are set to take oaths to office. Watch out for any big announcements in their speeches.

Auto stocks are again rocking in the market, with auto ancillary companies and especially tyre stocks performing well. But Tata Motors also did well, in fact too well. There are many reports and rumours that the upcoming budget will favour a lot of Electric Vehicle manufacturers, signalled by Tesla’s entry into the Indian market, as well. Tata Motors may stand to benefit from this. The stock has also reached to 2018 ranges, more than 2 and a half years since its consistent falls.

Reliance continuing to grow up is also a good indication that the market would continue its upward journey.

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