Today’s Market Summarised 

Nifty had a big gap-down opening today tracing global cues at 11,540. The index went up consistently till around 10.45am but faced resistance near 11,590 levels and started falling to create a low of 11,505. European markets opening in red did not give much confidence to Nifty and the index fell again after 2:30pm, creating a fresh low and finally closing at 11,516, down 88.45 points or 0.76%.

5 min chart of Nifty

Bank Nifty performed worse than Nifty today. After opening with a 200-point gap-down at 22,358, the index peaked at 22,500 around 11 am. The index of banks took support near 22,300 multiple times and went up but peaked around 2:30pm and fell to close at 22,320.35, down 253 points or 1.12%.

Nifty Realty performed the worst today, after being yesterday’s top performer. Nifty Pharma was the best performing sectoral index, but even this was a very muted gain.

All major Asian markets closed in red today. All major European markets are also trading in red, at the time of Indian market close.

News Picks

Shares of Dr Reddy’s Laboratories gained 4.26% today, taking the stocks gains to over 8.6% in 2 days. Yesterday, Russia’s sovereign wealth fund had partnered with the pharma major for trials and distribution of Sputnik V Covid vaccine in India. Shares of the company closed at ₹4,825 for the day. It was the Nifty 50’s best performer of the day.              

Shares of Happiest Minds Technologies listed on the stock exchanges today at 10am. Listing of the share was at a price of ₹350, at a price more than double of the issue price of ₹166. Trading closed at ₹371.35/share, up 123% after hitting a day high of ₹394.95. This very successful IPO would surely have given the confidence to many other companies to go on with their listing plans. 

Shares of HCL Technologies closed the day at ₹806.30, up 2.16% after hitting an all-time high of ₹817.5. It was among the top gaining stocks in Nifty 50 today. This jump came after the company announced its partnership with Google Cloud to deliver accelerated business intelligence platforms. Shares of all IT companies were skyrocketing in intraday trade today, with many of our views shared on  Telegram – @fundfolio. Hope you made the most of this.  

Shares of Oil India closed at ₹95, up 1.17% after the company reported lost revenue of Rs 148 crore in 100 days from the closure of oil and gas wells in the vicinity of the Baghjan fire in Assam. The market is a funny place, and this is one such example. But also, don’t forget that ‘markets discount everything’, hence the stock price went up because a ₹148 crore loss might not have been as bad as expected.

Shares of IT services company Mindtree Ltd, closed at ₹1,280, up 1.54% after news came out that co-founder Krishnakumar Natarajan and his relatives sold more than 42 lakh shares worth ₹530 crore. The company had seen a hostile takeover by L&T back in 2019, and then chairman Natarajan exited the board with displeasure. It is a really interesting story, and marketfeed will be doing a story on this later this month.

Shares of Hindalco Industries fell 4.35% to ₹175.80 to become Nifty 50’s worst performer of the day. The company had signed an agreement for the long-term purchase and sale of 60% of Hindustan Copper’s copper concentrate production, helping to reduce dependency on imports. Shares of Hindustan Copper jumped from red to close at ₹37.30, 2.61% in green. The metal index was among the worst performing today, falling 1.37%.

RBI announced their next round of Open Market Operations starting September 24, after concluding the current round today. Read more about Open Market Operations by RBI here, in the article by marketfeed.

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 

 The US Federal Reserve said it would keep interest rates at zero till 2023, but did not make any significant announcements like the markets were hoping. Hence, global markets fell under high selling pressure and Indian markets fell too. Meanwhile, gold prices are still struggling to rise up, which would not have been the case if the markets feared a long and deep economic recession. Keep a close eye on the US markets tonight, as this may probably define the direction of ours tomorrow. Watch this space for more updates.