Today’s Market Summarised
Another day of heavy fall in the market as crude oil shocks pulls down the market.
NIFTY opened at 15,867 with a major gap-down and crashed down. There was a glitch in the National Stock Exchange in the morning and price data was not getting updated. There was volatility throughout the day. NIFTY closed the day at 15,863, down 382 points of 2.35%.
BANK NIFTY opened at 33,250 with a gap-down and crashed down. The level of 33,000 was broken early in the day and the index tried to gain back. But towards 2:30 PM, it again crashed. Bank Nifty closed at 32,871, down by 1536 points or 4.47%.
NIFTY REALTY (-5.4%), NIFTY BANK (-4.4%), NIFTY AUTO (-4.2%), NIFTY FINSERV (-4.2%) and NIFTY PSU BANK (-4.5%) fell more than 4% each. Only NIFTY METAL (+2.1%) stayed in the green.
All Asian and European markets are trading in the red.
News Picks
The major news of the day is obviously crude oil prices shooting up and the morning glitch in NSE.
Commodity-based stocks outperformed in the day with ONGC (+13.3%) shooting up. Hindalco (+6.1%), Coal India (+4.2%), Tata Steel (+1.1%) and JSW Steel (+0.82%) closed in the top-gainers of the day.
GAIL (+4%), Vedanta (+3.7%), National Aluminium (+3.5%), NMDC (+3.3%) also gained from the energy and commodities space.
IT and Pharma stocks stayed relatively stable as they are mostly unaffected by changes in crude oil prices and rupee depreciation. Infosys (+0.96%), HCL Tech (+1.3%) and Cipla (+1%) even closed with decent gains.
Airtel (+3.3%) moved up after news of the Telecom Ministry returning up to Rs 8,000 crores of bank guarantees by the company. However, Vodafone Idea (-7.7%) fell despite news of getting a much higher amount.
Financials featured heavily in the top-losers of NIFTY. IndusInd Bank (-7.4%), Axis Bank (-6.6%), Bajaj Finserv (-6.2%), Bajaj Finance (-6.3%) and ICICI Bank (-5%) crashed down.
Auto stocks fell on the fear that increasing crude oil prices will affect sales. Maruti (-6.6%), M&M (-5.7%) and Tata Motors (-5.5%) fell heavily.
Cement and construction stocks also fell in trade in fear of lower demand. JK Cement (-11.4%), Dalmia Bharat (-5.2%), Ultratech Cement (-5.8%) & Ramco Cements (-4.6%) hit fresh 52-week lows. However, Europe is facing building material shortages as energy prices climb.
Markets Ahead
Markets are surely in a panic mode after the events of the weekend. Financials and construction along with Auto were the most affected by the rise in crude oil prices.
Dow Jones Index Futures have fallen 1.6%. The market internationally is also reacting but not as much as us. We are heavily reliant on crude as an economy and this has caused our market to fall.
Nickel has gained 20% in London. Other commodities like European natural gas has jumped 17%. Gas Futures have gone above 300 Euros for the first time.
The market looks highly unstable now! So the best trade in the market now is no trade!
Did you get trapped in the NSE Glitch today? Let me know in the comments down below!
See you on The Stock Market Show at 7 PM!
