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Market Report

Wednesday, 12-Sept-2012

NSE

  • The 30-share Sensex ended at 18,000.03 up 147.08 points or +0.82% and the 50-share Nifty ended at 5,431.00 up 41.00 points or +0.76%. The Sensex and the Nifty reached an intra-day high of 18,012 levels and 5,436 mark, respectively.

  • Benchmark share indices ended higher amid a volatile trading session, shrugging off July IIP data which came in at 0.1% lower than the expected 0.3%. The market rose for a sixth consecutive session to close at its highest since February 23 on rising hopes for government reforms after the aviation minister signalled the country was moving to allow foreign direct investment into the sector, with investors also hopeful India will open up the multi-brand retail sector and raise fuel prices to lower its subsidy burden.

  • On the global front, European shares and the euro rose on Wednesday after Germany's top court gave its backing to the euro zone's new 700 billion euro European Stability Mechanism bailout fund. German approval of the ESM was crucial to boost the euro zone's crisis fighting powers and a key requirement for the European Central Bank's new plan to buy the bonds of struggling euro members.

  • Investors are also hopeful the Federal Reserve will announce new U.S. asset purchases when it concludes its two-day meeting on Thursday. Positive action from US Fedwill provide boost to Indian markets, says Destimoney Securities. Liquidity is going to help Indian markets and even if there is some positive action from US Fed, that again will provide boost to Indian markets, it adds.

  • Participation should increase beyond those two-three sectors like tech, pharma, FMCG and once the participation gets broader then the gains will look more sustainable. And we should, at some point, probably retest 5600 in the next few weeks, says Ashwani Gujral.

  • The market can improve further and our take on the market for the next few months is that it will move in the range of 5000 to 5500, says Kimeng Securities.

  • For the time being 5470 is the key level to watch out on the upside, otherwise the strategy remains to keep buying on dips and look at stocks which are in the outperforming mode as well as use intraday corrections on the stocks to buy into, says Mitesh Thacker.

NIFTY 3-Month