Today’s Market Summarised

Once you pass a barrier, the rest of the journey is said to be easy. Nifty clearly showed that in today’s trade.

Nifty opened the day flat at 15,440 and moved down. It took support immediately and reversed. From the day-low, Nifty easily broke 15,500 and even touched 15,600 by the day-closing. With help from Reliance and Banks, Nifty closed at fresh all-time high levels of 15,582, up by 148 points or 0.95%.

Bank Nifty opened at 35,109 and moved down just like Nifty. It tried to break the 35,000 support but bounced back chrome there. With a lot of help from ICICI Bank, the index kept moving up in the day, but was more volatile than Nifty. Bank Nifty closed the day at 35,526, up by 385 points or 1.10%.

Nifty Metal gained nearly 2% in the day, followed by Nifty Bank, Finserv, FMCG and Realty at just above 1% gains. Nifty Media fell 1.36% while all others consolidated. Nifty Energy was up 1.7% in the day.

Asian markets closed mixed, but mostly in the green today. European markets are trading flat in the red. 

News Picks

Reliance once again continued its rally back to all-time levels by gaining more than 3.1% in the day. The stock closed at 2,160 after touching an intraday high of Rs 2,190. 4. The company is set to receive in cash a sum of Rs 13,281 crores on account of the first call for its rights issue.

With Morgan Stanley saying that a steel price hike is likely in the 1st week of June, Nifty Metal shot up. JSW Steel(+3%), Tata Steel(+2%) and Hindalco(+1.7%) featured in Nifty 50’s top-gainers list. SAIL(+4.71%) also moved up in the day.

Aurobindo Pharma reported Q4 consolidated net profit posted at Rs 802 crore, down 7% YoY and below expectations. The stock closed 2% in the red after volatility.

With PNB Housing Finance’s board approving fundraising of Rs 4,000 crores by a preferential issue of shares, the stock hit 20% Upper Circuit in the day. Carlyle Group is said to increase its stake from 26% to 30% in the NBFC. Former chief of HDFC Bank, Aditya Puri, also took part in the fundraising and is likely to be nominated to the board to increase investor confidence.

With investors concerned about M&M’s low forecast for Tractor sale growth and high capital expansion plans, the stock fell sharply in the morning. Gained back some losses but closed 4.48% in the red.

With natural gas futures rising 3% in the last 3 days on India’s MCX and increasing international prices, gas stocks went up in the day. GAIL(+4.58%), GujGas(+5%), IGL(+3%) and MGL(1.4%) were the notable gainers. 

Dr Reddy’s closed 2.21% in the green after reports saying that the company is in talks with the Government to bring Sputnik Light into India. 

Bharti Airtel moved up 2% after announcing it upgraded its mobile network in North East by adding 10 Mhz spectrum in the 2300 Mhz band for offering the “best experience” to its customers.

Gold-lenders Manappuram(4.22%) & Muthoot Fin(+3.6%) gained on rising gold prices.

The Q4 results of Divis Lab were above estimates and the stock moved 1.7% up. Meanwhile, Bank of Baroda Q4 reported a net loss of Rs 1,047 crore and fell 3.5%.

Mall developer Phoenix Mills and Canada Pension Plan Investment Board have agreed to form a joint venture to develop a regional retail centre in Alipore, Kolkata. The stock moved 6% up in the morning and closed 3% up.

ITC closes with a gain of 1% ahead of announcing its Q4 earnings. High growth in revenue is expected for the company. 

Markets Ahead

The Supreme Court has grilled the Government today on account of the unavailability of vaccines. The Government once again said that it estimates the entire eligible population to be vaccinated by year-end.

Just after the market closed, India’s Fiscal Deficit numbers for FY21 were reported. It stands at Rs 18.21 lakh crore compared to last year’s Rs 9.34 lakh crore, but near revised estimates. The government has been spending heavily after the beginning of the pandemic and this was expected.

Starting tomorrow, Auto sales data for the month of April will be announced. Do not expect it to be good, as most parts of the country went into lockdown this month.

The country’s GDP data is also expected today. A decent growth is expected and markets will not be reacting if the data is as expected. But if the GDP numbers are too poor, it may affect the market.

Once again, small-cap and midcap indices saw very little movement in the day as Nifty hit new highs. 

Adani increasing the tariffs in Lucknow Airport by up to 10 times is interesting. Will have to now hedge Air Travel with Adani Ent(+1%) shares. 

Airtel has shown a strong closing and might move up more in the coming days as Reliance has. The 500-520 support zone is strong for the stock.

A fresh month starting tomorrow! With India’s Volatility Index(VIX) reaching the lowest levels in a year, expecting some calm moves in the market. How was the month of May for you? Let us know in the comments of the marketfeed app.

Catch you all on The Stock Market Show tonight!