Today’s Market Summarised
Markets fall sharply after RBI announces hike in interest rates.
NIFTY opened at 17,111 and started falling. It tried to take support at 16,920 and played around that zone. There was high volatility after the RBI announcement and market started falling. NIFTY ended the day at 16,677, down by 391 points or 2.29%.
BANK NIFTY opened at 36,288 and fell along with the entire market. A fall of 1,000 points was seen after 2PM as the markets crashed. BANK NIFTY ended the day at 35,264, down by 899 points or 2.49%.
All sectoral indices closed in the red. NIFTY MEDIA (-.2%), NIFTY REALTY (-3.2%) and NIFTY METAL (-3.2%) fell the most in the day.
Asian markets closed mostly in the red. European markets are trading in the red currently.
Today’s Moves
ONGC (+3.7%) gained sharply in the day as international crude oil prices gain strength. Other power stocks PowerGrid (+2.6%), Petronet (+2.6%) and Gujarat Gas (+1.2%) also gained.
Adani Ports (-5.1%) fell with profit booking even after a 30% YoY increase in profits.
Hindalco (-4.7%) fell as aluminium prices fell across the world. National Aluminium also crashed.
Bajaj Finserv (-4.2%) and Bajaj Finance (-4.3%) closed in the top-losers list as institutional investors sold off the stock.
Titan (-4%) stock fell as the company’s Q4 profits fell 7% YoY. Tata group stock Voltas also fell to a long-term support.
Britannia (+3.5%) gained after the Q4 results. The stock flew up in the first 5 minutes then cooled down.
Markets Ahead
Markets have crashed after RBI increased interest rate after almost two years.
NIFTY has broken its consolidation zone and fallen to a 45-day low. The fall is also the largest since March 7th.
Institutions are aggressively selling Indian stocks as profit booking continues. In good news we continue to see participation for the LIC IPO. Subscription has reached 61% with mostly policyholders applying.
With the key interest rate hikes, banks and NBFCs also will increase their interest rates on loans. Long-term loans with floating interest rates may automatically adjust.
With tomorrow being the weekly expiry, we have many factors to watch out for. The U.S. Federal Reserve meeting will conclude tonight and we are expecting an interest rate hike there too. Also, the volatility index or INDIA VIX has reached its highest since late March.
Tomorrow will be an interesting weekly expiry for sure! Do you trade on weekly expiries? Let us know if you are in the comments section of the marketfeed app!
See you all today at 7 PM on The Stock Market Show.