Today’s Market Summarised

Banks and financial stocks continuing bearishness in the day.

Nifty opened at 15,717 with a small gap-down and started falling. After breaking 15,700, there was a fall which saw the index reaching even 15,580 by noon. When the European markets opened, the markets moved back up. Finally, Nifty closed the day at 15,632, down 120 points or 0.76%.

Bank Nifty looked much weaker in the day after opening at 34,850 with a gap-down. The index fell more than 500 points intraday before trying to move back up. Still, Bank Nifty remained weak and closed the day at 34,415, down 664 points or 1.9%.

All sectoral indices except Nifty FMCG(+0.3%) closed in the red. Nifty Media, Nifty Realty and Nifty Bank closed in deep reds.

All Asian markets closed in the red. European markets are all trading in the green right now.

News Picks

Asian Paints results boosted all paint stocks in the day. Asian Paints reported consolidated net profit at Rs 570 crores, up 161% compared to last year. The stock closed 5.9% up. Other paints including Berger Paints(+3.5%), Kansai Nerolac(+2.9%)  moved up.

Cement stocks were boosted in the day, with ACC posting a 99% YoY increase in net profits to Rs 534 crores. ACC(+7.2%), Ambuja Cem(+4.6%) and UltraTech(+1.5%) closed in the green.

Airline stocks Indigo(-5.2%) and SpiceJet(-2.3%) closed in the red with global fears of reducing travel. Canada has also suspended flights from India until August 21st.

Metal stocks closed in the red and were highly bearish. Hindalco(-3.5%), Tata Steel(-2.6%), JSW Steel(-2.35%), National Aluminium(-4.2%), Jindal Steel(-3.3%), Vedanta(-3.3%), SAIL(-3%) and more closed in deep reds.

All stocks from Bank Nifty closed in the red. AUBank(-3.8%), IndusInd Bank(-3.3%) and IDFC First(-2.6%) closed in the most red. Other large banks including ICICI Bank(-2.1%), HDFC Bank(-1.8%) and SBIN(-1.6%) also moved down.

Wonderla(+4.7%) closed in the green after announcing it will open Hyderabad Amusement Park from August 5.

Recently listed Shyam Metalics reported net profit at Rs 458 crores, up 470% from last quarter. Revenue also jumped 170% QoQ to Rs 2465 crores. The stock closed 2.8% up. 

ZenTec got an export order worth Rs 125 crores. The stock closed 5.8% up.

Sugar manufacturer DCM Shriram fell sharply after reporting more than double net profit of Rs 757 crore. The stock closed 8.5% down. 

Just near market close, Bajaj Finance reported Q1 consolidated net profit at Rs 1,000 crores, down 25% against last quarter. The stock closed 1.2% down but we can see a better reaction tomorrow.

JSW Energy said it is investing Rs 3000 crore in Tamil Nadu. The stock closed 2.5% up.

Markets Ahead

Nifty continued its technical weakness as HDFC Bank once again opened with a big gap-down and moved down. It pulled down the index by 36 points along with HDFC. 

It was interesting to see how Nifty started moving up just ahead of the European markets opening at 12:30 PM. But as those global indices also saw selling, Nifty and Bank Nifty came down back near day-lows.

Tomorrow is a market holiday with Bakrid celebrations, but do not forget that other global markets are open. So their movement tonight and tomorrow night may influence Nifty strongly on Thursday. Don’t forget that Thursday will also be volatile due to the weekly options expiry.

Earnings reports are in focus, with the market so far not appreciating the profit numbers from large-cap companies. We will be able to see a clear mood of the market by month end as many Nifty 50 companies report their Q1 results.

We have a day-off from the market tomorrow, so let’s all spend some time with our friends and family as Eid is celebrated around the world. Let’s see how the global markets perform tonight and tomorrow!