Today’s Market Summarised

Markets rallying up over the day with power from the highly bullish Bank Nifty. The day of financial stocks indeed!

Nifty opened the day at 15,000 with a 100 point gap-up and started moving up after a small delay. After trading in a 40-point channel for nearly 4 hours, financial stocks pushed up the index. Nifty broke the resistance at Monday’s high and closed at 15,175, up 269 points or 1.81%.

Bank Nifty opened at 33,748 and was highly bullish. The index consolidated near the 34,000 mark for many hours. But just around 1:45 PM, SBI announced its results and Bank Nifty again shot up over 600 points. Bank Nifty closed the day at 34,606, up 1,272 points or 3.82%.

All sectoral indices closed in the green today. But, Nifty Bank(+3.82%)Nifty PSU Bank(+ 3.8%), Nifty Finserv(+3.2%) and Nifty Realty(+1.15%) were the only indices to close more than 1% in the green.

Major Asian markets closed flat in the day. All European markets are trading in the green at the time of our market close.

News Picks

A day of financial stocks boosted Nifty to its best week since budget week in February. 

State Bank of India reported a Q4 standalone net profit of Rs 6,450 crores, up 80% YoY and 24% compared to last quarter. A dip in Net NPA was seen, from 1.81% last quarter to 1.50% this quarter(if taking moratorium loans also into account for Q3). This gave positivity to Bank Nifty who then rallied up led by HDFC Bank.

Private Banks lead by IndusInd Bank and HDFC Bank were bullish from the day-opening. SBI joined in later after the results announcements. All 7 out of 7 top-gainers were finance stocks.

HDFC and HDFC Bank pushed Nifty up by 100 points today. ICICI Bank, SBI, Kotak Bank, Axis Bank and IndusInd Bank gave nearly another 100 points to Nifty.

Indian government officials said in the day that a proposal for a stimulus package for the Indian economy is under works.

Maharashtra is planning to extend lockdown beyond June 1 on rising black fungal cases and non-availability of vaccines.

M&M(up 1.95%) continued its rally from and closed anong the top-gainers. Tata Motors also gained 1.75% in the day.

Hindalco reported a better than expected Q4 net profit at Rs 1,928 crores, up 188% YoY and 2% QoQ. The stock closed nearly 1.2% up in the day.

After market hours, JSW Steel reported a 56% quarterly increase in net profit to Rs 4,198 crores for Q4. Net profits are up 1,717% compared to Q4 last year. Results were similar to expectations.

After the subsidies on sugar exports were reduced by the government, sugar stocks like Balramchin(-3.3%), and EidParry(-1.3%) ended in the red.

Dr Lal Path Labs reported Rs 83.4 crore net profit, up 156% YoY and down 11% compared to last quarter. The results which were published after market hours are in line with expectations.

HPCL reported net profit of Rs 3,018 crores yesterday, and the stock opened with a gap up of 5% and closed 3% up.

Havells India fell more than 4% in the day, after announcing their Q4 results yesterday.

Markets Ahead

Yesterday, we expected and discussed about a bounce-back to 15,000 or above for Nifty. We did also expect SBI to make Bank Nifty crazy. But what we didn’t expect was the stunning rally from other private banks. Some people can even get confused if the results announcement was from HDFC Bank or SBI seeing how much HDFC moved up.

HDFC Bank and HDFC alone contributing nearly 100 points to Nifty with their high bullishness.

Interestingly, Bajaj Finance and Bajaj Finserv did not move much today. This was probably because they have already have given great returns this month.

Also interestingly, only five Nifty 50 stocks closed in the red. And no stock closed more than 1% down from the index.

Expecting more moves from fertiliser stocks in the next week, including from UPL which has already given a good return to investors. With the confidence from swing picks looking green, expecting another good week for the market next week!

Catch you all on The Stock Market Show tonight!