Today’s Market Summarised
Budget day turned out volatile but uneventful by closing time.
NIFTY opened at 17,534 with a gap-up of 200 points for the second day. During the Budget announcement, the index was volatile and traded in a 170 point range. The big fall came after the announcement ended, and even that was regained by closing time. After all this, NIFTY closed the day at 17,576, up 237 points or 1.37%.
BANK NIFTY opened with a big gap-up at 38,495. It traded in a 600 point range till 1 PM, but fell sharply when the day-low was broken. After 1100 points fell from the day-high, it regained most of this amount in less than 2 hours. Bank Nifty closed the day at 38,505, up 535 points or 1.4%.
NIFTY Metal(+4.5%) shot up in the day along with NIFTY Pharma(+2.2%). NIFTY FMCG(+1.9%), NIFTY Bank(+1.4%) and NIFTY IT(+1.5%) also moved up along with the Realty(+1.7%) index.
Most Asian markets closed in green for the day. European markets are all trading in the green currently.
News Picks
Metal stocks gave breakouts on the day led by Tata Steel (+7.5%), Hindalco (+4.5%)and JSW Steel (+4%) in NIFTY 50. Duty exemption on steel scrap was extended in the budget to benefit medium and small enterprises.
In general, metal stocks shot up with Jindal Steel (+6.5%), Vedanta (+5.1%) , SAIL (+4.9%), NMDC (+4.7%) and National Aluminium (+4.2%) also moving up.
With the capital expenditure increased by the Govt for the next Financial Year, cement and construction stocks also rallied along with the metal stocks. UltraTech Cements (+4.1%), L&T (+4.2%) and Shree Cements (+5%) moving up.
Grasim (+2.5%), Ambuja Cem (+4.1%), India Cements (+3.5%), Ramco Cements (+3%) and Dalmia Bharat (+6.7%) also moved up.
SunPharma (+6.8%) moved up after announcing Q3 net profit increase of 11% YoY to Rs 2,058 crores. The stock is near a 6-year high.
IndusInd Bank (+5.7%) bounced back from its fall yesterday and closed in the top-gainer with the market accepting its Q3 results.
BPCL (-4.5%) sees profit booking after reporting net profit at Rs 2,805 crores, up 47% YoY. IOC (-2.7%) and HindPetro (-7.2%) also fell. Oil marketing companies have also reduced commercial 19-Kg LPG cylinder cost by Rs 91 effective from today.
Tata Motors (-2.6%) also fell after announcing Q3 results yesterday. M&M(-1.8%) and Ashok Leyland (-1.5%) fell along with it.
TVS Motors (+3.2%) closed at the day-high after January total sales came 5% higher than last month, but still below estimates.
ITC (+3.4%) jumped to a 7-week high after cigarette and tobacco tax was left untouched in the budget.
Markets Ahead
Budget day came and went faster than expected! Click here to read our article on major announcements from the Budget 2022 including updates on Taxation in Cryptocurrencies and 5G rollout.
India’s January Manufacturing PMI expanded at a slower pace of 54 vs 55.5 in December. The January GST collection came in at Rs 1.40 lakh crore, the highest ever. This was presented during the Budget announcement, and the Finance Minister said this indicates financial recovery.
I am sure that the VIX crash of nearly 9% would have cost the option buyers a lot of money. Overnight positions or non-directional positions hoping big moves in NIFTY like last year would have yielded losses.
Bank Nifty has given a breakout in the daily charts, and may give a gap-up tomorrow. If it gives a good follow-up candle breaking today’s high, we may see the index moving up again.
IT is recovering sharply from the January fall. Crude oil related stocks including Reliance may boost NIFTY in the upcoming sessions as raw material prices show strength.
Did you trade in the market today? If you did, how did it go? Let us know in the comments section of the marketfeed app!
See you on The Stock Market Show at 7PM!
