Today’s Market Summarised

A very peaceful weekly expiry day in the market.

Nifty opened the day at 15,680 with a small gap-up and was very volatile in the beginning. But then it started showing a small uptrend, which kept on going towards the close. After yesterday’s red closing, Nifty gained back to close at 15,737, up 102 points or 0.65%.

Bank Nifty showed a bit more strength than Nifty today. After opening at 34,913, Bank Nifty traded in a 200 points zone till 1:30pm. But from here, the index gave a breakout and even crossed 35,000. Bank Nifty closed the day at 35,131, up 330 points or 0.95%.

Only Nifty Auto(-0.11%) closed in the red today. Nifty Media(+4.65%), Nifty Realty(+3.34%) and Nifty PSU Bank(+2.4%) performed the best in a good day for the markets. 

Asian markets closed flat in the day. European markets are all trading flat currently.

News Picks

Bajaj Finance(+7.26%) and Bajaj Finserv(+3.76%) closed as Nifty’s top gainers after falling heavily on Monday. The stocks had moved down with concerns of bad asset quality but rebounded strongly today.

14 regional rural banks (RRBs) under the country’s largest lender SBI have posted 4x growth in net profit at Rs 1,004.28 crore in FY21. SBI went up 2.5% in the day.

Indiabulls Housing Finance(+8.87%) once again gained in the day. The company had tied up with the Central Bank for a co-lending partnership and has now gained 20% in the last 5 trading days.

Realty stocks once again went up even with concerns of project delays. DLF(+5.3%),IBREALEST(+7.5%), HEMIPROP(+3%), OBEROIRLTY(+2.9%), BRIGADE(+2.8%), PRESTIGE(+2.7%), SUNTECK(+2.6%) went up in the day.

The Federation of Automobile Dealers Associations (FADA) says, all the segments of the auto sector saw a decline in registrations. The auto index was the only one that closed in the red today.

Divi’s Lab closed 2.5% up in the day after US-based Merck inked a supply agreement with US Government for Covid-19 pill Molnupiravir. Divi’s had earlier said it has been selected by Merck as an authorized manufacturer for the Molnupiravir drug.

Media stocks shot up in the day with Network18(+20%), TV18Broadcast(+14.5%) leading the rally. Including the above, other Reliance-owned companies DEN(14.5%) and Hathway(+11.1%). To learn more about Reliance’s media arm, click here.

JSW Steel’s May crude steel production rises 10% YoY to 1.37 Million Tonnes. Capacity utilisation stands at 91%. The stock closed more than 1% up.

Other steel stocks including SAIL(+3.29%), JindalStel(+2%) also went up in the day.

Tata’s Nelco has received approval from the department of telecommunications (DoT) for the transfer of the licences from TataNet to the company. The stock closed 10% up.

Mazagon Dock reported a net profit up 250% YoY to Rs 275 crore. Revenue is up 7% to Rs 1,110 crore. The stock closed 2.3% up.

YES Bank’s board will meet today to consider fundraising. The stock closed 3% up.

Markets Ahead

Mostly a day of net consolidation. If you look at the heavyweight, while Bajaj twins and banks went up till the end, Reliance fell heavily from the day high. Well, an option sellers’ favourable expiry!

Midcaps and smallcap indices gained more than 1.5% each. This shows that yesterday’s fall was just a random sell-off. Still, I would not turn bullish until Nifty manages to close above yesterday’s high of 15,800.

I would really suggest you read about the media stocks held by Reliance, as they may continue to perform in the coming months. Realty stocks also seem to be active in this cycle of market’s rally, with DLF closing near the day-high.

Expecting some more consolidation in the coming days along with a small correction!

Hope you had a great day in the market!

Catch you all on The Stock Market Show tonight!