Today’s Market Summarised

A volatile day in the market with a sharp fall at the opening, and recovery towards the closing.

NIFTY opened the day at 18,040 with a gap-up and moved down immediately. The low from the Muhurat Trading session on Thursday was easily broken and the index fell 162 points in 15 minutes. From the low, IT stocks, Titan and Reliance pushed the market up. Once 18k was broken, the index found its pace upwards. NIFTY closed the day at 18,068, up 152 points or 0.85%.

BANK NIFTY opened the day at 39,508 and was bearish. The index touched its lowest level in November before bouncing back. By closing time, HDFC Bank and Kotak Bank pushed up the index but it failed to test the day-high. BANK NIFTY closed the day at 39,438, down by 135 points or 0.34%. 

NIFTY PSU BANK(+2.15%), NIFTY IT(+1.27%), METAL(+1.45%), REALTY(+1.38%) and MEDIA(+1.42%) all gained more than 1% in the day. NIFTY PHARMA(-0.70%) and NIFTY BANK closed in the red.

Asian markets closed mixed today. European markets are trading mostly flat currently.

News Picks

TITAN(+4.32%) closed as NIFTY 50’s top-gainer, moving back up to near its all-time highs. 

Shares of Oil Marketing companies shot up with expectations of higher demand after the Central Govt reduced taxes on Petrol and Diesel. IOC(+4.3%) and BPCL(+2.85%) closed among the top-gainers of NIFTY 50. Hindustan Petro(+7.4%) also shot up.

Cement stocks shot up in the day with UltraTech Cement(+4.23%) closing at record highs. Shree Cements(+1.5%), Ambuja Cements(+4%) and ACC(+3.6%) closed in the green among others.

Heavyweights Kotak Bank(3%) and HDFC(+2.75%) closed with gains. Bajaj Finserv(+4.12%) also moved up to help the Fin Nifty close in green while Bank Nifty closed in the red.

IndusInd Bank crashed over 10% after a senior employee group reported RBI of lapses in corporate governance in the Bank’s microfinance arm. The bank denied allegations and reported that a technical glitch caused the issuance of unwanted loans.

Divi’s Lab(-6%) shares fell nearly 6% after reporting its Q2 numbers on Saturday. The pharma company reported a standalone net profit of ₹606 crores for Q2, up 18% YoY. 

SunTV(-5%) shares also fell after reporting its profit numbers on Saturday. However, the rally in Inox Leisure(+5%), PVR(2.2%), Network 18(+6%), TV18(+5.8%) and ZEEL(+2%) kept the Media index in bright green.

Shares of Canara Bank(+6.75%) rallied once again, after receiving upgrades in credit ratings for its Tier I & II bonds. The stock is now up more than 60% from its Qualified Institutional Placement equity issue in August.

Shares of gold-backed lender Muthoot Finance(+8.5%) gained sharply to hit all-time highs after it reported good Q2 numbers. It was followed by Manappuram(+5%).

ICICI Prudential Life(+4.5%) is trying to give a breakout in the daily charts. Keep an eye on it. SBI Life(+1.5%) also gained.

Pfizer closed up by 5% over the developments in its antiviral Covid-19 drug.

Hotel stocks saw a jump in the day with EIHotels(+7%), Chalet(+6.5%) and Wonderla(+5%) closing in the green. However, Tata Group’s Indian Hotels closed in the red after Thursday’s rally.

Other hospitality stocks including Barbeque Nations(+12.3%) and Jubilant Food(+2.5%) also gained. BBQ Nation shares are up more than 50% from October end.

Markets Ahead

The week has started with a lot of volatility in both NIFTY and BANK NIFTY. The IT index has also bounced back from its lows after the TCS results.

An indication of high volatility in the coming days has also been signalled with INDIA VIX also jumping up today. 

There is also a positivity in the market with petrol prices coming down. India is a heavy crude importing country, and this will help inflation to cool down. India’s inflation data is also set to be out soon.

Keep a watch on bluechip companies in the coming days. NIFTY 50 may move up further after sustaining above the 18,080 mark by market closing time.

Bank Nifty is yet to regain strength and may remain weak especially with IndusInd Bank creating uncertainties. Analysts have not changed their views on the stock, but if the allegations are true it can be an issue. We will be covering it in an in-depth article.

Meet you all on The Stock Market Show at 7 PM on YouTube!

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