Today’s Market Summarised

A general day of sell-off in the market.

A day with a big gap-up and a big fall in Nifty. With positive global cues running around, Nifty opened with a more than 100 point gap-up at 15,327. With the index struggling to remain above 15,300, a slow fall was seen in the index. It broke last Friday’s high just after 12 pm and right at 1:30 pm, started falling sharply. It fell 383 points from day high to low. Nifty recovered a bit to close at 15,030, down 143 points or 0.95%.

Bank Nifty opened the day at 36,295 with a gap-up. It too could not sustain and started falling. From day-high to day-low, Bank Nifty fell almost 1,300 points. Interestingly, only 1 out of top 10 losers in Nifty was from Nifty Bank. Bank Nifty closed the day at 35,496, down 441 points or 1.23%.

Nifty Metal(up 1.87%), Nifty IT(up 1.67%) and Nifty Pharma(up 1.48%) performed best in the day. Only PSU Bank(down 0.15%) index closed in the red.

European markets are consolidating in the day along with Asian markets. 

News Picks

Oil marketing companies BPCL and IOC closed as Nifty’s top gainers. BPCL is up after the company said it was considering interim dividend on March 16.

JSW Steel closed in the top-gainers index even with 1% year-on-year fall in crude steel production of the company at 13.06 Million Tonnes. The stock was among last day’s top gainers in Nifty. Titan also closed 0.76% up continuing from last day.

Tata Power closed up 5.5% after reports surfaced that the company was in talks with Tesla to set-up charging infrastructure in the country.

IEX closed 6.59% up in the day, after going up nearly 13% at one point. The stock has been seeing huge buying after closing the deal with ONGC and NSE on selling stake in Indian Gas Exchange.

IDBI Bank shares once again shot up in the day, closing more than 9.8%. Last day, reports surfaced of Government and LIC planning sale of stake in the bank stake to private players.

Apollo Hospitals shot up in the morning and closed more than 2.5% up in the day. Amazon is reportedly in talks to pick up a stake in Apollo’s Pharmacy business.

Markets Ahead

We ended Wednesday’s article with this statement, “After today’s consolidation, we may see some wild movements especially in Bank Nifty who surprisingly moved just over 400 points from high to low.” I expected an 800-900 point movement in Bank Nifty, along with a 200-250 point movement in Nifty. But today’s movements were much more than this. Once it fell and crossed 15,100 there was no looking back.

US 10-year Treasury bond yields went up during our market hours and this was the real reason for today’s fall. We are writing an in-depth article on how and why bond yields affect our markets. Bond yields are up more than 10% from yesterday’s low. European markets were negative, along with negative US futures.

With all these factors there, our markets were in a gap-up so had lot of space to fall. Nifty is down just 0.95% at close. We would not have fallen so much if not for the gap-up. Asian markets may open negative on Monday to compensate for their green closings today. Keep an eye out for SGX Nifty levels if you want to predict Monday’s opening levels of Nifty.

A week of gains surprisingly for Nifty. And hopefully a week of gains for your trading account as well. Enjoy your ‘real weekend’ after yesterday’s mini-weekend!

Catch you all on The Stock Market Show tonight!

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