Today’s Market Summarised

Nifty opened the day at 11,140 with a gap-up and went on to create higher lows and higher highs throughout the day. The index faced some resistance around 11,200 (it was a strong support level earlier, now good resistance), but went on to close strongly above it at 11,227.55, up 177.30 points or 1.60%.

Bank Nifty was even stronger than Nifty today. The index went up making similar patterns to Nifty and even pushed it up. The interest on interest case in supreme Court has been moved to October 5th, and the RBI policy meet has been shifted from October 1st. Banks are still under focus for the week, as a revival of the index is expected. The index of major banks in the country closed at 21,665.5, up 683 points or 3.26% for the day.

Asian markets closed in green for the day. European markets are trading strongly in green at the time of Indian market close.

News Picks

The Supreme Court postpones hearing of interest on interest case to October 5, as the Government said it needs 2 days to finalise a solution with inputs from stakeholders.

Shares of Escorts closed at ₹1,293.95, up 7.52% after the company said its joint venture with Japanese tractor manufacturer Kubota Corporation has started commercial production.

Shares of NTPC closed at ₹87.75, up 3.48% after the state-run energy company said its 660-MW thermal power plant in Bihar is ready for commercial electricity generation.

SunPharma jumped in late trade to close at ₹509.90, up 4.14% after the company said it has closed its buyback offer from March 2020. The buyback offer was to buy back 40 million shares at a price up to Rs 425 per equity share, totaling to about Rs 1,700 crore through open market route. But no shares were purchased since the VWAP (Volume Weighted Average Price) of the company during the buyback period was higher than the maximum buyback price, according to a regulatory filing. Also, the company is looking to expand its specialty business across different regions like Greater China and Japan after having established presence in the US market, as per the company’s Annual Report for 2019-20.

Shares of Rural Electrification Corporation (REC) closed the day at ₹101.85, up 2.83% after the company said its shareholders have approved a proposal to raise the overall borrowing limit to Rs 4.5 lakh crore from the existing Rs 3.5 lakh crore.

Shares of Grasim Industries, of Aditya Birla group, closed at ₹735 up 3.79% after LIC increased its stake in the company to 11.86%.

Bank stocks were on fire today after falling heavily last week. Both IndusInd Bank and Axis Bank were in the top gainers list today, after rebounding from lows. Shares of IndusInd bank closed at ₹556, up 7.99% while shares of Axis Bank closed at ₹438.05, up 5.54%.

Broader markets outperformed the Nifty 50 index today. The Midcap index ended with a 3% gain while the smallcap index ended 3.6% higher.

Shares of Jubilant FoodWorks, master franchisee of Domino’s in India hit an all-time high today, after brokerage firm Jefferies started its coverage on the stock with a buy recommendation. Trading for the day closed at ₹2,422.05, up 4.66% after touching an intraday high of ₹2,457.80.

Shares of auto-ancillary stocks, especially tyre stocks did very well today. Shares of CEAT closed at ₹954.10, up 5.41%. Apollo closed at ₹128.00/share, up 6.49%. JK Tyres closed at ₹59/share, up 3.69%. Shares of Balkrishna Industries touched an all-time high of ₹1,483.60 and closed at ₹1,443, up 6.42% for the day.

Shares of PVR Ltd closed at ₹1,223.75, up 11.15% after the West Bengal government allowed re-opening of movie halls from October 1st. This positive sentiment was also seen in the shares of Inox which closed at ₹269.50, up 5.83%, but under today’s open price.

Markets Ahead

Nifty seems to have regained its confidence and is strongly moving up now. As we had talked earlier, the market has regained some bullish sentiment after closing above 11,200. Domestic Institutional investors buying up shares on Friday were also a good sign of recovery. Keep a lookout for jump in the prices of precious after RBI’s policy announcement next week. Gold stocks can be kept in your watchlist. Keep watching this space for more.