Today’s Market Summarised
Markets see a heavy fall following political tensions in Ukraine.
NIFTY opened at 17,099 with a big gap-down once again. After the initial fall of nearly 200 points, the index tried to bounce back up to the opening ranges. Consolidation was seen towards 2 PM, but a sharp fall was seen once again. NIFTY ended the day at 16,842, down 531 points or 3.06%.
BANK NIFTY opened at 37,796 with a gap-down of more than 700 points. Just like the rest of the market, banks also were highly bearish. Support was taken at 37,200 initially but this was broken towards the closing of the day. Bank Nifty closed the day at 36,908, down 1600 points or 4.18%.
All sectors ended in the red. NIFTY PSU Bank (-5.9%), NIFTY Realty (-5.2%) and NIFTY Metal (-5%) fell more than 5% each. Financial stocks also took a big hit.
All Asian markets closed in the red today. European markets are also trading heavily in the red currently.
News Picks
Tensions in Ukraine on the Russian invasion and possible international war pushed down global markets.
TCS (+1%) was the only company in NIFTY 50 to close in the green after the company approved and fixed the record date for its Rs 18,000 crores buyback.
JSW Steel (-6.6%), Tata Steel (-5.4%) and Shree Cements (-5.2%) fell from the construction sector.
Realty stocks also fell heavily with IB Real Estate (-10.4%), DLF (-6.2%) and Godrej Properties (-5.6%) leading the fall.
Financial stocks including HDFC Life (-6.3%), HDFC (-5.3%), SBIN (-5.3%), ICICI Bank (-4.7%) featured in the top-losers of NIFTY 50. LIC Housing (-8.2%), Indiabulls Housing (-7.4%), PNB (-6.6%) and Canara Bank (-6.6%) also fell heavily in the day.
Metropolis (-15.2%) fell heavily in the day after reporting a 30% YoY fall to Rs 41 crores despite a 7% rise in revenue.
Manappuram Finance (-6.4%) fell sharply after reporting Q3 consolidated net profit at Rs 261 crores, down 40% YoY and much below estimate. Peer company Muthoot Finance (-4.8%) also fell.
Ashok Leyland (-6.8%), HDFC (-5.3%) and Lupin (-4.6%) were among some stocks to hit the 52-week low.
Markets Ahead
The tensions in Ukraine led to a sell-off in markets around the world, and our markets also responded. Ukrainian Ambassador told London that they may back down from NATO (North Atlantic Treaty Organization) to avoid war with Russia.
A red day indeed for global markets for Valentine’s Day!
Also, India’s January Wholesale Prices (YoY) came out at 12.96%, higher than the estimate of 12.70%. Markets have turned negative for this year, and NIFTY Midcap has technically fallen to a correction with a fall of 14% from the lifetime high.
It is the biggest fall for NIFTY in 10 months. Heavyweight NIFTY 50 stock HDFC is at a 1-year low. Guessing your portfolios are in red just like the entire market for Valentine’s Day. Let me know in the comments down below!
See you on The Stock Market Show at 7 PM!