Today’s Market Summarised
Markets recover after the gap-down and close in green.
NIFTY opened with a huge gap-down at 16,506 and tried to move lower. It took support before reaching last week’s low and found strong buying for the day. There was a recovery of 460 points from the day-low and NIFTY closed the day at 16,793, up 135 points of 0.81%.
BANK NIFTY opened at 35,970 with a gap-down and moved up. The index moved up 650 points from the day-low but could not turn green. It traded above the 36k mark comfortably towards the latter half of the day. Bank Nifty closed at 36,205, down by 225 points or 0.62%.
NIFTY METAL (+4.9%) closed with huge gains after commodity prices increased worldwide. NIFTY IT (+1.1%) also moved up while most others consolidated.
Asian markets closed mixed today. European markets are all trading well in the red currently.
News Picks
Hindalco (+7.4%), Tata Steel (+6.5%) and JSW Steel (+4.8%) closed in the top-gainers of NIFTY 50. Metal and other commodity prices are moving up worldwide.
Aluminium prices hit record highs in London as Russian supplies face challenges.
Jindal Steel (+6.2%), SAIL (+5.1%), Vedanta (+4.8%) and many other metal stocks closed in green.
Other gainers were from the energy sector. PowerGrid (+6%), BPCL (+4%), Coal India (+3.7%), Reliance (+3.3%) and NTPC (+2.4%) closed in the gainer’s list. GAIL (+7.4%) and Petronet (+5.2%) also moved up.
European gas jumps 33%. Concerns of international inflation exist.
Markets reacted negatively to Biocon’s (-11.5%) subsidiary Biocon Biologics acquiring biosimilar assets of Viatris for up to Rs 25,231 crores.
Dr Reddy (-2.7%) saw selling and slipped to fresh 52-week lows. Most other Pharma stocks remained stable.
Defence-related stocks gained with the Russian attack on Ukraine continuing. HAL (+5.5%), BEL (+5.1%), BDL (+3.7%) and BHEL (+3.5%) moved up in the day. BEL also won orders worth Rs 1,075 crores.
RAIN Industries (-7.2%) crashed the day after reporting a Q4 loss of Rs 97 crores. Carborundum Universal (-7.4%) also fell from the same sector.
UTI AMC (+13.4%) moved up in the day with a strong breakout. The stock hit 20% upper circuit before cooling down.
Reliance (+3.3%) took control of 200 Future Retail stores. Future Retail stock moved up.
Markets Ahead
The current crisis in Ukraine continues with Russia continuing its attack.
India’s Finance Minister said that we are worried about the impact on exports, particularly pharma due to the Ukraine crisis. She also added that the long capital gain tax at the rate of 10% is too low compared to other countries, if changed markets may not like this.
Currently, the smart money is flowing into commodity stocks. Prices of crude, metals and natural gas among others are shooting up across the world. Keep an eye on electricity stocks as well.
The news-driven market continues. But NIFTY is showing some strength and has closed at its highest since last Thursday. The same cannot be said for the Bank index. Reliance is also showing strength due to increasing Oil and Gas prices.
Keep an eye out for more volatility. There are reports of potential talks between Russia and Ukraine. But Putin has today puts Russia’s nuclear forces on ‘special alert’. In case of a nuclear attack, markets may fall heavily even further.
Any specific stocks in mind for the month of March? Let us know in the comments of the marketfeed app!
See you at The Stock Market Show at 7 PM!