Today’s Market Summarised

The RBI Governor’s announcement after the 3-day Monetary Policy Committee Meeting inspired markets to go up.

Nifty opened the day at 14,726 with a small gap-up and fell nearly 80 points in the first minute. In that very minute, this fall was gained back. From here, the index only went up and up. 14,880 was taken as a resistance for the fourth day since March 23. Nifty then consolidated to close the day at 14,819, up 135 points or 0.92%.

Bank Nifty was more bullish in the day. This index also went down in the first minute. After that, the index went up more than 700 points as banks stabilised after the RBI Governor’s announcements. Bank Nifty closed the day at 32,991, up 489 points or 1.51% in the day.

All sectoral indices closed in the green today. Nifty PSU Bank went up 1.9%, followed by Nifty Auto(up 1.6%), Nifty Bank and Nifty IT(up 1.13%).

Asian markets closed mixed in the day. European markets are also trading mixed.

News Picks

The repo rate was kept unchanged at 4% by the Reserve Bank of India. The central bank decided to retain its ‘accommodative’ policy stance. Real GDP growth is seen at 10.5% for FY’22.

Cholafin gained 7% in the day after partnering with Zoho, Razorpay, Zerodha, Ujjivan and Airpay to submit a New umbrella Entity application on March 31. Click here to read what a New Umbrella Entity is.

Shilpa Medicare said they have the production capacity to make 20 crore doses of the Covid-19 vaccine. Stock is up by 9.8%.

India cabinet is also likely to approve the Production Linked-Incentive scheme for air conditioners and LED lights. Amber closed 1% up after shooting up in the day.

Bombay Municipal Corp chief says issuing orders today to allow round the clock delivery of food & e-commerce. Good for Jubilant Food, Westlife and Burger King and shares moved up near market close.

Barbeque Nation began listed at 1.6% down from IPO price but soon went on to go up 20%.

Dixon Tech and Bharti Enterprises signed a deal to form a joint venture company in order to apply for Govt’s Production Linked Incentive (PLI) scheme for manufacturing of telecom & networking products. Dixon shot up 5% near market close. Bharti Airtel also closed nearly 1.6% up.

Dr Reddy’s Lab launched a generic version of Sapropterin Dihydrochloride powder in the US. Also, the government may give emergency vaccine approval to Sputnik-V soon. Dr Reddy closed 1.6% up in the day.

Steel shares including JSWSteel(up 4.6%), Tata Steel continued to do well in the day. SAIL closed 1.37% down in the day.

Adani stocks came under heavy profit booking but recovered a bit tp close the day with losses. Adani Enterprises was down 4.88%, followed by Adani Ports down 2.49%. ATGL was down nearly 8.5%.

Markets Ahead

The general tone of the RBI Governor’s speech itself gave the market a lot of positivity today. That is why there were only 3 stocks falling more than 1% in Nifty 50. The Governor even talked about constituting a committee to review the working of Asset Reconstruction Companies or Bad Banks. This has been long requested and will give some respite to the country’s lending system. This is why the PSU Bank index went up in the day.

Policy rates being kept unchanged was also welcomed. Worries about a lockdown and night curfew announcements across the country were cancelled off by this positivity.

The next important event to look out for will be the Prime Minister’s Meet with Chief Ministers tomorrow. If all goes well there, we might even see 14,900 being broken in the day.

IT and Pharma shares gained a bit as rupee weakened. Chemical companies also did well, over the whole day.

Looking at a good movement in Bank Nifty tomorrow, as it is the weekly expiry.

Catch you all on The Stock Market Show tonight!