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European markets pull down nifty. FIIs continue selling while DIIs continue buying!

Good Evening every one, The first trading day of this week has turned out in red thanks to the FIIs continuing to sell to the tune of RS. 2198 crores while DIIs still supported the market and bought for Rs. 1047 crores.

The Nifty opened with a gap down and tried to recover from the losses till noon, and that is when the FIIs came in with the huge selling which went on to bring it down close to where it started today and finally closed at 15752 down just by 3 points from where it opened.

On the daily chart, Nifty has again formed an indecisive candle, which still cannot confirm if it will take support here and go up or fall down further.

The major reason for the fall is the rising delta variant of Corona in the UK, due to which European markets also fell this afternoon and the same was reflected in the Indian market.

US markets that opened now also have been falling and we can confirm the same only tomorrow morning.

Sector Watch:

Of course, every sector fell by end of the day and the only sector to stay positive was Realty & Pharma.

Watch out for the pharma sector as we might see some up move soon after the delta variant concerns. As discussed in the pre-market report, HDFC bank results were not exciting to the investors and we could see the private bank sector fall lead by the HDFC bank which fell more than 3 % in the day. Brokerages, though, are positive on the stock. Motilal Oswal has given the stock a target price of Rs 1,800. It said that the bank continues to grow its loan book, and its commercial and rural books both show healthy trends.

Goldman Sachs has a target of Rs 1,803 on the bank’s stock while Morgan Stanley’s target is Rs 2,000. CLSA has a target of Rs 1,850 on the stock.

Similarly, HDFC life came out with their results which were also down compared to last year. HDFC Life Insurance Company reported a 33% fall in standalone net profit to Rs 302.35 crore on a 0.7% rise in total income to Rs 14,604.30 crore in Q1 FY22 over Q1 FY21.

Net premium income during the quarter increased by 31.7% YoY to Rs 7,538.48 crore. However, income from investments (net) declined by 20.4% to Rs 6,963.56 crore in the first quarter.

Profit before tax in Q1 FY22 stood at Rs 306.73 crore, down 32% over Q1 FY21. The Value of New Business (VNB) increased by 40% to Rs 408 crore in Q1 FY22 as against Rs 291 crore in Q1 FY21.

Assets under Management (AuM) increased by 30% to Rs 1,81,272 crore in Q1 FY22 compared with Rs 1,39,975 crore in Q1 FY21. The company's net worth has improved 18% to Rs 8,778 crore in Q1 FY22 from Rs 7,448 crore in Q1 FY21.

Investors who subscribed and got shares allotted in the IPOs of G R Infraprojects Ltd, and Clean Science & Technology must be a happy lot. Both stocks made rocking debuts on the stock markets today.

GR Infra closed at Rs 1,737.95, a premium of 107.6% to its issue price of Rs 837 while Clean Science closed at Rs 1,583, a premium of 76% to its issue price of Rs 900.

Early indications were strong that both stocks would deliver stunning listing gains to their shareholders. The grey market premium (GMP) for both stocks before the start of the day was around 60%. Market analysts have advised shareholders to book partial profits in the stocks and hold the rest for the long term.

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