NIFTY : 11,200.15 +98.50 (0.89%)
NIFTY BANK : 21,642.6 +132.65 (0.62%)

Today’s Market Summarised

  • Nifty had a gap-up opening for the third day in a row tracing global cues. The benchmark index of NSE, Nifty 50, opened at 11,179 and consolidated till 12 noon. As soon as Reserve Bank of India (RBI)’s meeting commenced, Nifty shot up to welcome the policies introduced. After facing resistance at 11,250 levels, the index closed at 11,200, up 0.89%. Nifty traded between 11,100 and 11,300 just like we discussed in the morning article.
  • All major sectoral indices closed in green except Nifty PSU Bank, the index tracking Public sector Banks in the country. Nifty IT emerged as the best performing sectoral index, up 1.88%.
  • Major Asian and European markets are trading in red at the time of market close

News Picks

  • RBI’s policy meeting was surely the most decisive event for the market today. Repo rates remain unchanged at 4%. Measures to increase cash-flow and stimulate the economy were introduced by RBI Governor Shaktikanta Das. Stay tuned for an in-depth analysis of the meeting by later in the day.
  • Infosys was the top-performer for the day in Nifty 50. Created a fresh 52-week high and closed at Rs 972 per share. This came on the back of news that large tech companies are all set to recruit over 1 Lakh people in India. It will help the firms complete projects faster and reduce operational costs. IT companies are among the least affected by the COVID-19 pandemic, as working from home is not a dealbreaker for them unlike other industries.
  • Tata Steel continued its rally even today. Share prices closed at Rs 400.5, up 1.18%. Yesterday, share prices had shot up 6.66% after reports of increased sales volumes across the Metal industry in July.
  • Tata Consumer Products shares rallied to close at Rs 483, up 7.91%. Yesterday we had talked about shares hitting a high of Rs 471.80 after it reported 80% YoY increase in Q1 profits. Share closed in the red due to profit booking yesterday, but today they came back even stronger to create a fresh all-time high.
  • Apollo Tyres closed at Rs 115, down 0.73% after creating a day low of Rs 111. The company on Wednesday had reported a consolidated net loss of Rs 135 crore for the first quarter ended June 30.
  • Share prices of NIIT Ltd rallied to close at Rs 99.80, up 3.42%. The prestigious Massachusetts Institute Of Technology bought a total of 30,00,000 shares in the company earlier.
  • Shares of Zee Entertainment Enterprises continued its strong rebound from the lows created last week, closing the day at Rs 149, up 2.44%.

Markets ahead

RBI has said in its press conference today that it expects real GDP (Gross Domestic Product) to contract this year. The rally in Nifty even after this announcement can only be seen as optimism for a quick recovery. Several measures to increase liquidity have been taken by the central bank. Policies to aid the financial sector have also been introduced, but low growth in fresh loans being issued is a concern. No moratorium extensions have been mentioned, and hence we may see a further rally of Nifty Bank in the coming days.