stock market recap for 8 january 2021

 

Nifty50: 14,347 ▲ 209 (+1.4%)

  Sensex: 48,782 ▲ 689 (+1.4%)

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After a gap-up opening, the markets continued their upward journey. The market breadth was strong with 41 out of the Nifty50 stocks closing in the green. 

Amongst the sectoral indices, Nifty IT (+3.6%) and Nifty Auto (+3.3%) gained the most, whereas Nifty Metal (-0.6%) and Nifty PSU Bank (-0.4%) were the top losers.

 

Top gainers	Today's change
Tata Steel	▲ 5.2%
Hindalco	▲ 4.8%
Bharti Airtel	▲ 3.5%

 

Top losers	Today's change
Nestle India	▼ 2.0%
HDFC Life	▼ 1.8%
HUL	▼ 1.8%

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MARKET RECAP 

Here are the top stories of the day.

 

IT stocks on a roll ahead of TCS Q3 earnings

        Sector leader, TCS gained 2.9% today ahead of its Q3 results, which will be announced after market hours. Analysts expect QoQ growth of around 4% on constant currencyterms. Apart from this, the street is expecting an upbeat outlook from the management. 

      The rub-off effect was seen in shares of other IT companies, as they surged up to 6% in intraday trade today. IT giants Tech Mahindra (+5.3%), Wipro (+5.2%) and Infosys (+3.9%) were among the top 5 Nifty50 gainers today.

 

M&M drives up on price hike 

        The auto major has announced a price hike of 1.9% across its personal and commercial vehicles effective immediately. After the hike, Mahindra cars will be dearer by ₹4,500 to ₹40,000.

       The company cited increasing input costs as the reason for raising prices across its range. The stock gained 3.0% today, and has risen nearly 19%% in Q3. Price hikes help to maintain margins, till they start affecting demand.

 

Biocon arm bags investment from Abu Dhabi

       Biocon Biologics, a subsidiary of Biocon, has bagged a ₹555 crore equity investment from Abu Dhabi-based ADQ for an 1.8% stake.

       The transaction values the biologics business at $4.1bn and after the transaction. Biocon will hold 89.8% in the company. After news of the investment, Biocon shares closed with a gain of 2%.

 

Phoenix Mills rises on upbeat Q3 update 

      The realty major stated that it witnessed a sustained recovery in demand across its malls, commercial, residential and hospitality properties. Consumption across its retail portfolio in Q3 stood at ₹1,370 crore, up 66% from last year. 

      The stock rallied about 8.8% in the day and closed with gains of 4.7%. It hit its highest levels since March and has gained nearly 33% in Q3.

 

Closing bell

After a brief pause over the last two days, the markets continued their parabolic rise. This week, the Nifty50 gained 2.3%, despite the index heavyweights—Reliance Industries (-2.7%) and HDFC Bank (+0.4%)—underperforming. While the rise in the markets is unabated, one must note that it is in line with equity indices of other major countries. For the time being, traders may want to “make hay while the sun shines.”

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Good to know

What is a parabolic move?
In a "parabolic move", a stock starts going up and buying interest increases dramatically. The stock is basically moving in a near-vertical manner, giving the chart the look of a "parabola".

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Disclosures and Disclaimer 

Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.

 

Upstox Team

Authorised Partner