Today’s Market Summarised

Nifty opened the day at 15,727 with a gap-up and fell to take support at Friday’s close. From here the index kept moving up with small and steady steps. And after 12:45pm, Nifty jumped gained a lot of positivity. The index crossed 15,750 and made a fresh high of 15,773. 

Nifty closed the day at 15,751, up 81 points or 0.54%.

Bank Nifty was in a mood to consolidate in the day. After opening at 35,469, the index traded in a 200 point zone for today. Bank Nifty closed the day at 35,443, up 152 points or 0.43%.

Nifty IT(+1.11%) and Nifty Media(+1.16%) gained most in the day. No other sectoral index gained or lost more than 1%.

Asian markets mostly closed flat with a bullish bias. European markets are all trading flat.

News Picks

Importantly, Prime Minister Narendra Modi is set to address the nation at 5 PM today. Markets moved up after this announcement and hit fresh highs.

Adani Ports saw good buying in the day and closed as Nifty 50’s top-gainer. The stock hit a fresh all-time high in the day and closed 5.37% up. 

Real-time electricity market trades 1436 Million Units and records the highest single day volume of 74 MU supporting the cyclone-affected states. 

Energy stocks moved well in the day. IEX(+2.8%), Torrent Power(+6.9%), Tata Power(4.8%), Adani Power(+20%), Power Grid(+4.8%), NTPC(+4.16%) closed with good gains.

Cement stocks gained in the day with ShreeCem(+3.56%) and UltraCemCo(+2.78%) leading Nifty’s toppers list. Other stocks also gained, including AmbujaCem(2%), ACC(+1.7%), Star Cement(+4%).

Tata Motors closed at its highest level since its all-time high day of March 5. The stock gained 3.15% in the day.

TVS Motors opened with a 4% gap-up and closed at the same level after a block deal took the stock up. 5% equity worth Rs 1,406 crores exchanged in a block deal. Sundaram Clayton, a TVS group company, is likely to have sold 5% stake via block deal.

Titagarh Wagons is said to be the lowest bidder for the Mumbai Monorail Project of Rs 600 crores. Stock closed 5% up. The stock is at a good breakout zone with results to be announced soon.

Piramal group’s resolution plan for DHFL insolvency has been accepted with few conditions. DHFL hit 10% upper circuit, but be careful before entering the stock. It could get delisted. PEL closed 1.4% up.

Telecom Equipment PLI Scheme | Govt estimates increase in production on account of PLI scheme at Rs 2.4 lakh crores & exports at Rs 2 lakh crores. Only HFCL gained 4.22% while other notable names remained muted.

Tyremaker MRF reported Q4 standalone net profit at Rs 317 crores, down 52% YoY and down 38% QoQ. After the result announcement the stock witnessed sharp fall and closed 2.9% down. Interestingly, most other tyre manufacturers closed 1 to 3% up.

E-auction sales of coal is up 53.5% in April-May. Coal India closed 2% up near its 52-week high zone.

Sources say that the Government is planning to bring changes in the banking and insurance laws in the next parliament session. This is essential for privatization to move ahead. You can watch out for the sector and important companies from it.

Graphite electrode prices expected increase by 20% for the July quarter. HEG(+5%) and Graphite(3%) may benefit from this.

Shipbuilding stocks like Cochin Ship(+4%), MAZDOCK(+19.7%), GRSE(+10%) performed well in the day.

Vakrangee went up and hit 10% UC after it entered into a partnership with NSDL Payments Bank to provide Banking Business Correspondent.

After Delhi and Maharashtra announced unlock plans, IRCTC expects more passenger volume and the stock is up by 9%.

Last day, the Govt. launched E-100 pilot project in Pune for the production and distribution of ethanol across the country. Sugar stocks like Balramchini(+6%) Dalmia Sugar(+18%), Eidparry(+4%) gained.

Bajaj Finance expects gross and net NPAs to be higher in Q1 and Q2 due to collections constraints. The second wave of Covid-19 has caused fear in asset quality. Bajaj Finance(-4.4%) and Bajaj Finserv(-2.6%) closed as Nifty 50’s top-losers. Financier HDFC closed 1.3% down in the day.

Tata Consumer Products has entered the premium roast and ground coffee segment with the launch of ‘Sonnets By Tata Coffee’. The stock closed 1.9% up. 

Punjab National Bank fell 2.3% after posting its results. Concerns of high NPA rates dragged the stock down.

Markets Ahead

Markets have started the week with good confidence. In fact, midcaps and smallcap indices were both up more than 1% in a day when Nifty moved just 95 points. IRCTC gained nearly 10%.

The most important announcement was that PM Modi will be addressing the nation at 5 PM. Any important comments from him regarding the economy opening back up and vaccination picking up speed are awaited. Nifty tried to move up after 1 pm when the news came.

Reliance closed with decent gains in the Top-gainers list. The stock is expected to give continued movement in the coming days to push Nifty up.

But, Bank Nifty remaining weak and HDFC Bank moving sideways is not a good sign. Especially with the concern in Bajaj Finance’s asset quality, the whole financial industry is likely to remain muted. But once it does start to move, the impact on Nifty will be huge. 

Anyway, waiting for the PM’s announcement. Stay tuned to marketfeed to hear more about it!

Catch you all on The Stock Market Show tonight!

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