Nifty: Market Watch: What led to the recovery in the markets in the second half?

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Saloni Goel and here are the top headlines at this hour.

Nykaa lists at 1600 times price to earnings
Ethanol prices hiked for blending in petrol
NBFCs’ collections are at pre-second Covid wave levels
Maruti drives in new Celerio at Rs 4.99 lakh
Telcos get six-month 5G trial extension
And
FM to meet heads of banks, FIs next week

Let’s take a quick glance at what happened on Dalal Street today.

Domestic equity markets staged a strong recovery, thanks to fag end buying the final hour of session. However, the benchmark indices were unable to settle in green and ended with maringal cuts, thanks to selling pressure in metals, banking and realty stocks. Inflation concerns are weighing on global equities. All eyes are set on inflation numbers from US and marco data from India. The BSE barometer Sensex shed merely 80 points to close just about 60,350. Its broader peer, Nifty50, was able to settle above the 18,000 mark, recovering more than 100 points from the day’s lows. The benchmark index gave up 27 points to settle at 18,017. Broader markets ended mixed. BSE midcap index shed half a per cent, whereas BSE Smallcap index ended the session on a flat note. Fear gauge India VIX jumped 2 per cent.

On BSE Sensex, IndusInd Bank and Tata Steel tanked 3 per cent each. HUL, Asian Paints, Power Grid, Titan, HDFC Bank and Kotak Mahindra Bank shed one per cent each. SBI, Maruti, Bajaj Auto, ICICI Bank and NPTC gave up to a per cent each. On the other hand, Airtel and M&M zoomed 3 per cent each, followed by Sun Pharma, Reliance Industries and ITC which added a per cent each. Dr Reddy’s, Bajaj Finserv and Axis Bank gained more than half a per cent each. More than 390 stocks hit upper circuit limits for the day and about 140 stocks hit the lower circuit. Over 110 stocks tested their 52-week highs during the session.

We have Vikas Jain from Reliance Securities to share his views on the day’s action and the road ahead:

Welcome to the show sir:
1. What factors led to the recovery in the markets in the second half?
2. After Zomato, Nykaa too made a stellar debut. Do you see the market fancy for startup IPOs to continue?

We also caught up with Vijay Dhanotiya from CapitalVia Global Research to decode the technical charts for you.
1. What is your take on Nifty 50 considering the current volatility?
2. Nifty Bank has been under pressure recently. Where is it headed now?

Asian markets settled mostly lower for the day. Major European markets were trading mixed in the first few hours of trade. US stock futures were down hinting towards a negative start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!

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