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Market Report

Wednesday, 10-Aug-2011

NSE

  • The US Federal Reserve's decision not to increase interest rates for the next two years had a positive impact on Indian markets and both benchmark indices closed with significant gains. Auto was the best performer in today's trade and other interest rate sensitive sectors like banking and realty also did well. Fertilizer stocks, too, gained substantially today. Oil & gas and FMCG were the only two sectors that closed with moderate losses. The Sensex closed at 17130, up 273 points from its previous close, and the Nifty shut shop at 5161, up 88 points.

  • The top Nifty gainers today were Tata Motors, Maruti Suzuki, DLF and Hindalco while the biggest losers included Grasim, ONGC, ITC and Cairn.

  • The market is likely to trade rangebound, between 4900 and 5250 and we do not see any significant upside, says Prashastha Seth of IIFL on NDTV Profit. He expects the market to consolidate and bottom out at 4800-4600. We could see a short-term bounce in global markets, he adds.

  • I think the good news for India is that commodity prices continue to remain low, so we could see interest rates starting to come off quickly, says Andrew Holland of Ambit Capital on CNBC TV18. The RBI has scope to lower rates in a more recessionary environment globally as well, whereas, the US and Europe don't have so much scope to reduce interest rates from here, so the policy tools are less, he adds.

  • India is in a much better place than other global markets and going ahead, we expect money to flow into India instead of going out, says Dharmesh Mehta of Enam Securities on NDTV Profit. Now evaluations are getting reasonable and attractive and we are likely to see reversal in trend in prices of diesel and petrol, he adds.

  • There is support for the Nifty at 4956 and 4840 and resistance at 5177 and 5282, says Ashwani Gujral, technical analyst, on ET Now.

NIFTY 3-Month