Today’s Market Summarised

What a day in Nifty. Pure bloodbath from the first minute of the day.

Nifty opened with a nearly 200 point gap-down at 14,899. And then it continued to move down through the day. With every sector pulling the index down, it kept on falling with no supports. And just when we thought it was over, Nifty fell another 200 points between 3 pm and 3:20 pm. Nifty closed near the day low at 14,529, down 568 points or 3.76%.

Bank Nifty fell nearly 5% in the day! Can you believe that the index which was at 37,000 levels is back to under 35,000. Most top draggers of Nifty today were banking stocks. After opening with a huge gap-down at 35,902, Bank Nifty fell sharply. It is back to levels of 4th February.

In fact, Bank Nifty fell 600 points in the last 30 minutes. The index closed at 34,803, down 1745 points or 4.78%.

Fin Nifty and Bank Nifty fell most in the day. All sectoral indices closed in the red.

Many Asian markets were in deep red today, led by Japan at nearly 4% down. European markets opened with a gap-down but have recovered quite a bit now.

News Picks

No stock in the Nifty 50 index closed in the green today. One of the most surprising moves in the market today was SAIL’s rally up of 4.58%.

Shares of RailTel listed on the markets today after a very successful IPO. RailTel Corporation of India shares has risen 33.5% intraday on its listing day despite Nifty’s fall.

JustDial shares gained 6% in the first few minutes of the day but fell more than 10% after. It had gained 20% yesterday following the launch of B2B JD Mart. HDFC Mutual fund sold a 2.73% stake yesterday at the high for over Rs 108 crore.

HDFC Bank and Kotak Mahindra Bank have bought 10% stake each in Ferbine Private Ltd, a company promoted by Tata Sons. Ferbine was incorporated only on January 18, 2021, to make an application to RBI for the PUE (pan-India umbrella entity) licence. Is this Tata’s year as a whole?

India VIX rose by more than 23% to 28 today, as a result of wild movements in Nifty. India VIX is also known as the fear index and shoots up when the market is volatile. 

Shares of theatre companies INOX and PVR slid as rumours of the Maharashtra govt planning to close all cinema halls. But they recovered as BMC Chief said no such order has been passed yet.

Auto shares fell sharply in the day even with the government finalising Auto sector’s Production Linked Incentive(PLI) for auto and auto components. Maruti has cut production targets by 50,000 units and expects semi-conductor shortage to become a big issue, despite saying earlier that it won’t. Auto index is at a more than 1-month low.

Cement companies are looking to hike prices by Rs 25-40/bag in South India due to higher inputs costs and high demand. Can be looked into for the short term.

Markets Ahead

With the huge fall in Dow Jones yesterday, as we discussed in the pre-market report, Nifty too witnessed a huge fall today. It was the biggest intraday fall in 9-months, since May 2020.

Definitely a good day in the market to start thinking about your favourite stocks. Interestingly because Nifty Midcap and Nifty Smallcap indices did not fall as much, I feel that this is a discount sale, at least for me it was. Dow Futures have gained sharply from their day-low.

Added a few Nifty ETFs with nearly 50% of my available capital. The only variable is our GDP Data coming in a few hours, so it was a risky but calculated bet I would say. Hoping that global markets go green over the weekend.

It was not a great week for the markets with Wednesday’s NSE shutdown, yesterday’s consolidated expiry and today’s sharp fall. Will be long known as a black week for India’s financial markets.

Anyway, another week has gone by. Time to think about whatever we have learned over the week and to use it effectively going forward. Keep a lookout for good charts on your favourite stocks and also have a hot cup of tea to end this week right.

Catch you all on The Stock Market Show tonight!