Markets lose the initial gains with a sharp fall afternoon.
NIFTY opened the day at 16,290. The index moved up taking support from the trendline of Friday and shot up, but the 16,400 appeared as the villain. NIFTY fell sharply in the afternoon and closed the day at 16,214, down by 51 points or 0.32%.
BANK NIFTY started the day at 34,321 and moved more than 450 pts to the day high. But who was on the upper side? The index found strong resistance at 34,800 and we saw a sharp fall from there. BANK NIFTY ended the day at 34,247, down by 28 points or 0.08%.
Nifty Metal (-8.1%) was completely crushed down. Nifty Auto (-1.8%), Nifty IT (-1%), Nifty Pharma (-1.3%), Nifty Realty (-1%) closed with moe than a 1% change.
All major Asian markets closed in the green. European markets are currently trading in the green.
Today’s Moves
Metal stocks crashed sharply in the day after a hike in export duty on steel. With this, steel prices are expected to fall in the local market.
Tata Steel (-12.6%), JSW Steel (-13.2%) and Hindalco (-3.7%) fell sharply in the day.
Jindal Steel (-17.3%), NMDC (-12.5%), and SAIL (-10.9%) also fell heavily.
Auto stocks did well in expectation that the lower metal prices and petrol prices would be good for the industry. M&M (+4.2%), Maruti (+4.1%), Hero Motocorp (+1.3%) and Eicher Motors (+1.2%) gained from NIFTY 50.
Divis Lab (-9.4%) crashed after the company’s results announcement. Net profits moved up 78% YoY and beat estimates.
ONGC (-4.2%) went down after the government cut excise duty on petrol and diesel. Reliance (-0.67%) and BPCL (-0.21%) were also under pressure.
Markets Ahead
Metals falling as export duty has been hiked was a big shock for the stocks. Today, that drove many market movements, with just Tata Steel pulling down NIFTY by 20 points.
Excise duty cuts on petrol and metal prices aim to control inflation in the country. This was welcomed by the market with a gap-up opening today.
However, the RBI Governor causing volatility was not welcomed!
Pharma and FMCG stocks are showing strength, but do take caution with stocks like Divi’s Lab which are nearing their results announcements.
See you at The Stock Market Show tonight at 7PM.
See you on The Stock Market Show tonight at 7 PM.