Today’s Market Summarised

Nifty opened the day flat at 11,938 and immediately made the day’s low at 11,890. However, the index was determined and tried to once again make an attempt to cross the 12,000 level. This failed to happen and the index came down and consolidated to close under today’s open at 11,934.50, up 3.55 or 0.03%.

Bank Nifty continued its downtrend from yesterday and opened with a gap-down at 23,640 level. The index took support at 23,420 levels and went back up to touch a day high near 23,800 around 10.50am. From there, Bank Nifty fell the whole day to close at 23,492, down 220 points or 0.93%.

Only IT and Metals closed in green today. Nifty Pharma fell heavily while all other sectors booked losses, as well.

European markets fell as rising cases of Covid-19 infection have started forcing governments to re-introduce lockdown measures. Asian markets remained mixed for the day.

News Picks

IT stocks gained in expectation of good quarterly results. HCL Technologies, whose results are to be announced on Friday, was the top gaining stock of the day. Shares jumped to Rs 900.90, up 4.05%. Similarly, shares of Coforge Ltd jumped to Rs 2,785.80, up 4.43%. Hope you caught these rallies today!

Wipro Q2 results were posted just after market hours: Net profit declined 3% YoY, while going up 3.15% compared to last quarter. The firm also announced a Rs 9,500 crore share buyback, at Rs 400/share. You can read more about how and why a company does a buyback here.

Shares of Zee Entertainment Enterprises fell 3.77% to Rs 182.70. The stock has fallen almost 15% in the last 5 trading sessions alone. This fall came after a company called Siti Networks defaulted on loan amount of Rs 400 crore against which ZEE has given corporate guarantee of Rs 116 crore. 

Cement Stocks posted 3-4% gains earlier in the day before losing it after European Markets opened in red. UltraTech Cement Ltd closed at Rs 4,380.70, up 1.73%.

While Banks fell, Reliance Industries went up 1.88% to close at Rs 2,279. As we know, Reliance is the biggest constituent of Nifty 50, with a 14.9% weightage in the index.

Surprisingly, shares of Kotak Mahindra Bank went up 2.15% to close at Rs 1,341. This was even in-between Bank Nifty being one of the worst performing sectors of the day.

Shares of Cipla closed in the top losers list after touching an all-time high of Rs 829.05, before noon. Pharma stocks fell after noon, and Cipla closed at Rs 784.50, down 3.58%.

Markets Ahead

The tightening restrictions in major European countries, including Britain, are confusing investors again. As the Covid-19 pandemic is continuing, countries had to take an economic decision to lift lockdowns as recession started kicking in. But now, we can see that lockdowns of various levels are being reintroduced ahead of the winter season. Read our global news article every night to keep up with the news from around the world.

With the interest-on-interest case verdict postponed further, market participants have turned from irritated to infuriated. We see that the 24,000 level by Bank Nifty was not long lived and hence Nifty’s dream of crossing 12,000 was stopped halfway through. Let us hope that this sentiment turns around in the coming days. 

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.