Today’s Market Summarised 

Nifty opened the day flat at 11,533 and went up. But the index saw resistance at 11,560 as we had discussed in the morning article, and came down to 11,520 after 11am. It was around this time that the RBI Governor was speaking at an online conference and the index was tensed. But after taking support at that level, and with confidence from the governor’s statements, Nifty went up to close at 11,604.55, up 82.75 points or 0.72%. The index is closing above 11,600 for the first time since August 28.

5 min chart of Nifty

Bank Nifty opened the day with a small gap-up at 22,470 and struggled to go above this level in the morning. The bank index fell strongly following the RBI Governor’s statements regarding the liquidity in the banking sector, but took support near 22,200 and flew back up with the general confidence given by the speech. The index closed the day at 22,573, up 107.9 points or 0.48%.


Nifty Auto was the early performer, flying in early trade. We had updated the sectors bullishness on @fundfolio on Telegram. Nifty Realty was also among the top performing indices along with the Nifty Pharma which jumped in late trade. More on the reasons later.

Asian markets closed mixed today. European markets are trading in green at the time of Indian market close.

News Picks

The highlight of the day was the address by RBI Governor Shaktikanta Das at a conference organised by Federation of Indian Chambers of Commerce & Industry (FICCI). He highlighted the problems faced by the Indian economy, and how RBI plans to tackle them. Talked about India’s opportunity to shine and highlighted 5 areas for sustained growth in the medium term : 

Human capital  – Education and health
Increase efficiency of production
Export growth and global logistics chain
Tourism
Food processing and associated sectors

Bank Nifty dipped the most during the address, but went back up with confidence from the ending statements.

Shares of Sterlite Technologies Ltd closed at ₹162.95, up 3.62% after announcing teaming up Airtel for building optical fibre network across 10 telecom circles. But, the close was below the day-open price of ₹164.80.

Shares of Exide Industries closed at ₹165.35, up 1.35% after the company announced focus of innovations on hybrid and electric vehicles. A very interesting article on the future of Electric Vehicles in India by marketfeed is coming up.

Shares of SpiceJet closed at ₹52.80, down 1.31% after the company reported a net loss of ₹600 crore for Q1FY21. This drop in share price was despite the 7% cut in jet fuel price and the excise duty on Airline Turbine Fuel being reduced to 0% from 11%. Also, the aviation ministry is setting up an interest free line of credit of ₹10,000 crores to the aviation industry for its revival. Read this article to know about the state of airlines in the country. 

Shares of Infosys touched an (adjusted for bonuses and splits) all-time high of ₹1,005. The company has continuously created wealth for investors since its IPO in 1993. US-based Essential Utilities has selected Infosys as a strategic partner to drive its digital transformation yesterday. Shares of the company closed at ₹1,001.80, up 1.97%.

Lakshmi Vilas Bank traded the entire day at 10% Upper Circuit level after discussion due diligence on merger with Clix Capital Deal and both the parties are in discussions on the next steps.

Shares of Dr Reddy’s Laboratories jumped in late trade to close at ₹4,639.60, up 4.44% after Russian vaccine makers announced a tie-up for the production of the COVID-19 vaccine Sputnik V. Nifty Pharma saw a late-stage jump, as well.

Markets Ahead 

Many important points were discussed in the RBI Governor’s speech today regarding the future of Indian economy. He described that India could indeed see a V-shaped recovery if it breaks into the global value chain, from production to distribution and support, which is currently dominated by China. He also said that the markets are being very carefully monitored and actions would be taken as required. So the stage needs to be set, and as we know markets can be a leading indicator of the economy. Has Nifty gotten the confidence it needs to scale higher highs? Keep watching this space for more.

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