Today’s Market Summarised
Indian markets closed in the red with heavy selling in Pharma stocks and struggling global markets.
Nifty opened the day with a small gap-up at 15,860 and consolidated. Just before noon, there was weakness after Nifty fell below 15,850. Just after European markets opened, Nifty crashed and fell to 15,700 level. A retracement was seen but weakness continued. Nifty closed the day at 15,746, down 78 points or 0.49%.
Bank Nifty opened at 35,035 and found it difficult to cross 35,200. The index was volatile and fell nearly 500 points from high to day-low along with Nifty. Once 35,000 was broken and the index fell even more and remained weak. Bank Nifty closed the day at 34,797, down 152 points or 0.44%.
Nifty Pharma crashed 4.33%. Most sectoral indices closed slightly in the red. Nifty Metal managed to closed 1.46% up.
Asian markets mostly mixed, but the sell-off in Chinese and Hong Kong markets continued. European markets are all trading in the red right now.
News Picks
Metal stocks closed in the green with Hindalco(+4.3%), Tata Steel(+2.5%) and JSW Steel(+0.8%) closing in Nifty 50’s top gainers list. China is planning to impose tariffs on steel exports from the country; this could increase demand for India’s steel.
Other Nifty Metal stocks – APL Apollo(+8.7%), National Aluminium(+4.3%) and Jindal Steel(+3.9%) closed with gains.
SBI Life(+2.6%) once again gained near closing time and ended among the top-gainers, continuing bullishness after results. Even when Bank Nifty closed in the red, SBI closed 1.6% up.
Dr Reddy’s fell sharply along with many other Pharma stocks. The company reported Q1 consolidated net profit at Rs 570 crores, down 5% YoY. Also received complaints regarding under the table dealings with healthcare professionals. The stock closed 10.4% down.
Cipla(-3.9%), Divislab(-2.6%) and SunPharma(-2.1%) also moved down from Nifty 50. Other pharma stocks including Lupin(-5.1%), AuroPharma(-4.9%), Biocon(-2.5%), Sparc and Glenmark(-6%) closed in the red.
Alembic Pharma(-11.2%) slips to a 52-week low after weak earnings and company withdrawing their growth guidance.
USFDA to inspect Auro Pharma‘s Unit 1, API(Active Pharmaceutical Ingredient) plant. The stock closed 4.9% down.
INOX LEISURE says it has no discussions with Amazon regarding any deal. News titled ‘AMAZON INDIA IS SHOPPING: INOX, OTHERS ON WISHLIST’ has been surfacing on the internet and Inox said the news is not true. The stock was more than 13% up in the morning and after the news it moved down to close 5.7% up.
Global sugar prices hit fresh 52-week high yesterday. Sugar stocks – Balrampur Chini(+2.9%), Renuka(+5%-UC), Triveni(+5%), EIDPARRY(+2.2%) and Dwarikesh(+4.1%) closed in the green.
Coffee stocks CCL(+16.3%) and Tata Coffee(+9.2%) moved up in the day.
Equitas(+6.3%) and Equitas Small Finance Bank(+4.7%) gained after the board approved a reverse merger with Equitas Small Finance Bank. Shareholders will receive 226 shares of Equitas SFB for every 100 shares of Equitas Holdings.
Happiest Minds closed 5.6% up ahead of results.
Pfizer hit a fresh all-time high and closed 5.8% up. Hope everyone had the stock in their portfolio since we started talking about it many months back.
APL Apollo(+8.7%) shot up after reports that the board will consider a bonus issue on August 6.
ABB INDIA will sell its Mechanical Power Transmission Division (DODGE) to RBC Bearings company for Rs 21,580 crores. Note that the entire ABB is worth just Rs 36,000 crores, so maybe worth it is looking into?
Ramco Cements(-5.5%) fell after reporting Q1 standalone net profit at Rs 170 crores, down 40% from last quarter.
Manappuram jumped up to fresh all-time highs after last week’s breakout and closed 7.8% up.
Zomato touched a fresh all-time high and then moved 11% down from that level. Closed 7% down for the day.
Markets Ahead
The sell-off in our markets was triggered by Dr Reddy’s results and European markets opening in the red. This selling may have triggered some panic and taken Nifty down till 15,700 levels.
There is weakness in the market right now with Nifty unable to sustain above the 15,900 mark. Bank Nifty also is struggling to move above 35,200.
Once again the earnings reports are causing volatility in Nifty, which can be expected till the month-end. Keep an eye out for IndusInd Bank’s results tomorrow.
The heavy call writing at 15,800 along with global markets in the red indicates temporary weakness for Nifty. Let us see if the market can hold above the 15,630 and 15,500 support zones.
Steel stocks continuing to outperform the market and are showing bullish signals. Hoping you all have already added few stocks to your swing watchlists!
Hope you had a great day in the market. Did you catch the Dr Reddy fall? Or did you get trapped in it? Let us know in the comments of the marketfeed app!
