Today’s Market Summarised

Markets see some profit booking on the day after the gap-up.

NIFTY opened the day at 18,604 with a gap-up once again. The market was in a mood for profit booking and fell nearly 200 points in the first hour. There was a bounce-back of nearly 190 points from here but the gains were lost in the next fall after 2 PM. After the last hour fall, NIFTY closed the day at 18,418, down 58 points or 0.32%.

BANK NIFTY opened the day at 39,942 with a gap-up and hit the 40k mark for the first time. From here, the index crashed nearly 600 points from the top in just half an hour. Even with the bounce back, the index failed to hold gains. BANK NIFTY closed the day at 39,540, down 144 points or 0.36%.

NIFTY PSU BANK(-3.7%), NIFTY REALTY(-4.7%), NIFTY FMCG(-3.1%) and NIFTY METAL(-2.4%) fell sharply in the day. NIFTY PHARMA(-1.4%), NIFTY AUTO(-1.5%) and NIFTY MEDIA(-1%) also fell. Only NIFTY IT(+2.2%) closed well in the green.

Asian markets closed mostly in the green today. European markets are all trading flat currently.

News Picks

IT stocks closed among the top-gainers of Nifty 50. TechM(+4%), Infosys(+1.6%), HCL Tech(+0.9%) closed in the green.

OFSS(+4.5%), CoForge(+4.5%), LTTS(+5.7%), LTI(+16%), Mphasis(+5.6%) closed in the green from NIFTY IT index.

L&T(+3.2%) closed in the green after the company quoted the lowest bid at Rs 3,142 crore bid to construct the first Central Secretariat buildings in Delhi’s Rajpath.

Bajaj Finserv(+2.1%) continued its rally and hit Rs 3 lakh crore market capitalisation. However, Bajaj Finance(-1.6%) fell.

ITC(-6.3%) share price fell after the government formed a committee for future taxation policy for tobacco. Other tobacco stocks including Godfrey Phillips(-0.93%), VST Industries(-2.6%) also fell.

Tata Motors(-5.4%) fell sharply in the day after seeing profit booking. Tata Power(-10.7%) and IRCTC(-7.1%) also fell sharply after possible F&O Ban.

Carmakers could face production issues due to the aluminium shortage, which is used in making the body of the vehicles. Most auto stocks closed in the red with Eicher Motors(-4.3%) and Ashok Leyland(-3.4%) also falling.

Reliance(+0.9%) silently hit an all-time high and closed in the top-gainers.

FMCG stocks are mostly in the red, led by ITC(-6.3%) and Hindustan Unilever(-4%). United Spirits(-2.9%), Britannia(-1%) and Colgate(-1.9%) also closed in the red.

HUL(-4%) fell after reporting Q2 Consolidated net profit Rs 2,190 crores vs Rs 1974 crores last year. The estimate was at Rs 2180 crores. The stock however fell. Domestic volume growth is at 11%, better than the estimates of 5-7%.

Many stocks fell sharply from their intraday highs. IRCTC fell 15%, Tata Power fell 10%, IEX 9% and HUL 7%.

TTK Prestige(+12%) opened with a gap-up and closed in green after news of considering a stock split.

Markets Ahead

Markets saw profit booking after many days of the rally. Bank Nifty saw a clear sell-off after hitting the 40k mark. Kotak Bank however saw a rally till the end while SBI fell sharply.

Bank Gross NPA could move up to 8-9% by March 2022, as said by CRISIL. Gross NPAs were at 7.5% as of March 2021. This could create some stress in the industry.

Tata Coffee went up at the beginning of the market opening after news of price increases.

European markets are consolidating after the 1-month of rally. We could see some movement of money between sectors as indices consolidate near the top. 

As we saw, Infosys continued its rally to all-time highs after hitting Rs 7.6 lakh crores market capitalisation.

Yesterday’s low was broken and we saw a 170 point fall in just 5 minutes. But the level of 18,350 was not broken.

Bank NIFTY did hit 40k and there was profit booking seen. We can expect some more volatility in the index in the coming days.

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