Nifty wipes all its gains, dragged by auto and banks

After a promising start for the day, Nifty came under selling pressure towards the end and lost all its gains.  

Market update at 3.30 PM: After a promising start for the day, Nifty came under selling pressure towards the end and lost all its gains. In the end, it fell nearly 300 points from the intraday high and ended at 17,101, down by 8 points. However, the sell-off was much lesser in Nifty Midcap and Nifty Smallcap as they managed to end the day in the green.  

The top sectors that dragged the market were the auto and the banking sectors. Nifty IT and Nifty Pharma remained firm and closed higher.   

Maruti Suzuki and Tech Mahindra were the top losers among Nifty stocks while NTPC & UPL supported the market till the end and were up by nearly 4 per cent & 2.5 per cent, respectively.  

The last week of January turned out to be quite volatile for Nifty. The index fell nearly 3 per cent but then, it also saw support at the lower level. Next week will be a crucial one as Union Budget would be presented on Tuesday, which would further dictate the market trend.

Market update at 1.15 PM: Indices have been soaring as the day progresses. Nifty is currently up by 1.40 per cent while Sensex has gained nearly 600 points.  

It is a broad-based rally as Nifty Midcap and Nifty Smallcap have surged about 3 per cent & 2.5 per cent, respectively.  

All the sectoral indices are in green with Nifty Realty and Nifty Media gaining around 3 per cent each.   

With such a positive sentiment in the market, the market participants anticipate that the market may witness a recovery mode.  

Market update at 10 AM: All the indices are trading firmly in green with no sign of weakness in the initial hour. Nifty is up by nearly 1.5 per cent while Sensex has gained about 600 points.  

Even mid-cap and small-cap indices are trading over 2 per cent each.  

This rally is majorly led by the IT, realty & energy stocks, and their indices are trading well above 2 per cent each. ONGC and NTPC are the top gainers among Nifty stocks.  

The first hour of a new expiry is generally considered much important as new positions are created with a view of further trends. Thus, February expiry seems to be on a bullish side.  

Pre-market update: Last night, the US market were jittery with NASDAQ falling about 1.4 per cent and Dow Jones closing flat. With this, the Asian markets have opened mixed with a negative bias. SGX Nifty is trading near Thursday's closing. 

In the last trading session, the FIIs sold for around Rs 6,266 crore while the DIIs have bought about Rs 2,881 crore worth of equity. 

Crude oil has surged over 2.5 per cent amid rising geopolitical tensions in Eastern Europe. Meanwhile, the precious metals have dipped significantly with Gold falling below Rs 48,000 (-1.92 per cent) and Silver tumbling over 3 per cent. 

COVID cases seems to be plateauing, but situation needs to be keenly monitored, says government. 

Meanwhile, US GDP data suggests strong economic bounce as it came out to be 6.9 per cent last night.  

Kotak Mahindra Bank, LT, and Dr Reddy’s Laboratories are set to declare their results today. Thus, these stocks will be in focus for the day.