Today’s Market Summarised
Markets close in red after a long weekend with Infosys crashing down.
NIFTY opened at 17,187, with a big gap-down and tried moving up. But just after noon, the index fell down to near the 17,000 zones. Even with a recovery, the index could not move up. NIFTY ended the day at 17,173, down by 302 pts or 1.73%.
BANK NIFTY opened at 36,851, down by more than 600 points. The index could not break the 37k mark and soon fell by more than 500 points. The index bounced back towards the closing, and BANK NIFTY ended the day at 36,729, down by 734 pts or 1.96%.
NIFTY IT (-4.5%), NIFTY PSU Bank (-2.5%) and NIFTY Finserv (-2.2%) fell the most today. NIFTY FMCG (+0.60%) once again closed in the green.
Asian markets mostly closed in the red. European markets were closed in the day for Easter.
News Picks
NTPC (+6%) continued to shoot up after positive brokerage reports on the company. It closed as the top-gainer in NIFTY.
Life insurance companies – SBI Life (+2.3%), HDFC Life (+1.6%) moved up as LIC IPO gained steam again.
Infosys (-7.2%) crashed and opened with a gap-down after reporting Q4 numbers. Similarly, HDFC (-4.8%) and HDFC Bank (-4.7%) also fell after poor results.
Other IT companies TechM (-4.6%), Wipro (-3.6%), TCS (-3.6%) and HCL Tech (-2%) closed in the top-losers of NIFTY 50.
Mphasis (-5.6%), LTTS (-4.5%), Mindtree (-3.4%)and LTI (-2.7%) also closed in the red from IT companies.
Tata Power (-5.5%) fell after announcing the sale of a 10% stake in its renewable business. Meanwhile, Torrent Power (+4.1%), NTPC (+6%) and Coal India (+1.5%) moved up from the power sector.
This happened as the All India Power Engineers’ Federation said there is only eight days of coal left in thermal power stations in 12 states.
Markets Ahead
NIFTY fell overwhelmingly with the fall of Infosys today. The stock fell because of its poor Q4 results. Other IT companies also fell because of a domino effect.
Global markets also gave cues to NIFTY with Nikkei being 2% down when we opened. European markets were closed today, but the U.S. market will give some indication for tonight.
Infosys falling is a concern but similarly important is the fall of the HDFC twins. HDFC has now fallen 23% from April 4th’s high. You can observe a similar fall in HDFC Bank, as well.
With the worst day in six weeks for NIFTY, we might see some continuation as 3 heavyweights look weak. Reliance will need to bounce back from the 2500-zone in order to keep the markets stable for now.
How was your 4-day weekend from the market? Were you taken by surprise by the fall in Infosys? Let us know in the comments section of the marketfeed app!
See you all today at 7 PM on The Stock Market Show.