Today’s Market Summarised

Global markets were expected to rally after the Presidential Election in US was called for Democratic candidate Joe Biden. Nifty was expected to rally along with it too, but the events that unfurled today was unexpected.

Nifty opened the day at 12,399, just 31 points away from the all-time high of Nifty. After the first candle took perfect resistance at 12,340, the second one effortlessly broke this level. By 9:20 am today, Nifty made its fresh all-time high after the Covid-crash in March.

By 10 am, profit booking kicked in and the index took support near 12,367 level twice. Just after noon, Nifty started moving up after the European markets also opened with a big gap-up. A fresh high of 12,474 was made and the index closed at 12,461, up 197 points or 1.61%.

Unlike Nifty, Bank Nifty’s lowest point was in the first candle itself. After opening at 27,095, the index of banks went up quickly pushing Nifty up, as well. After facing profit booking in the morning, the index traded sideways for a bit before continuing its journey upwards. Bank Nifty made a fresh-high after the Covid-crash and closed near that level at 27,534, up 735 points or 2.74%.

Nifty Private Bank once again performed the best today. Only Nifty media closed flat for the day, while Nifty Bank and Nifty Financial Services came in next. Metals also did well today.

All major global indices rallied today, and are closing in green.

News Picks

Divi’s Laboratories closed as Nifty 50’s top-gainer today. It had posted a 45.63% year-on-year (YoY) growth in consolidated net profit at Rs 519.59 crore. Share prices closed at 3,423.75, up 5.76%.

Bharti Airtel rallied after Airtel Africa said it plans to sell 4,500 telecom towers to reduce $3.5 billion debt. Shares of the company closed at Rs 471.80, up 4.87%.

BPCL closed at Rs 375.55, up 3.61% after the government said November 16th would be the final date for the company’s divestment.

Shares of Tata Motors closed at Rs 141, up 1.44% after the company said it plans to increase its SUV offerings in India.

Ashok Leyland in its conference call today said that company’s debt stands at Rs 3,076 crores vs Rs 4,284 crores last quarter. This was in between the reported Rs 147 crore loss for the September quarter due to weak demand for commercial vehicles in the wake of the pandemic and overcapacity in the transport sector.

Shares of Balkrishna Industries closed at 1,493, up 2.81% after the company announced highest ever quarterly sales volume in Q2.

Shares of Cipla crashed 2.91% to Rs 767 even after the company announced better than expectted.

ICICI PRUlife raises Rs 1,200 crores through NCDds. The stock was up more than 1% today.

Markets Ahead

How long will this rally in Global Markets continue? As IT lost its fire early in the morning, it held Nifty back. But as expected, IT went even up towards the end of the day and consolidated. Joe Biden winning the election does not totally mean that his actions will be followed, right now. The President Elect will swear in as President of The United States of America only in January, and till then there is no hope for a stimulus or even a policy change. The easing of H1-B visa will help a lot of Indians with relevant skills get entry in to the US. This hiring from an Indian talent pool will help IT companies like Wipro and TCS reduce their costs of salaries. So do watch the space, do watch Bank Nifty scaling highs and of profit-booking in the market.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.