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Market Report

Friday, 21-Sept-2012

NSE

  • The 30-share Sensex finally closed today at a 52-week high of 18752.83 points, up 403.58 points or +2.20%, with 26 constituents ending higher. The NSE 50-share Nifty index shot up by 136.90, or +2.46% to 5691.15 after rising to day's high of 5700.00 on very very big volumes.

  • Markets gained over 2% today with the Sensex today closing at one-year high surging by 404 points as the stock market gave thumbs up to UPA government's resolve to push ahead with economic reforms on the back of continued support from the Samajwadi Party. During the previous high, the BSE benchmark index had ended at 18763 on July 1, 2012 while the Nifty closed at 5701 on May 1, 2011.

  • The European markets too started in the green with the CAC and DAX gaining 0.4% and 0.3% respectively. Meanwhile, FTSE slipped into the red, losing 0.1%.

  • To carry on reforms, the Govt today announced the reduction of withholding tax to 5% from 20% on all forex loan which was earlier available only to the infra loans and activation of Rajiv Gandhi Equity Scheme. Govt's move to slash tax on overseas borrowings will be positive for the rupee and infra companies, says analysts.

  • The stability or the survival of the UPA-II is not now in question. There will be continuation of reforms. Things are looking positive for the government, reforms and market, adds the analysts.

  • SP Tulsian, of sptulsian.com, says that he expect the Nifty to not fall below 5350 level. Bank Nifty has reached a level of 11400-11500. Bank Nifty can again fall to a low of 10200 as Bank Nifty is exhibiting the maximum activity.

  • Equity will outperform debt this year, markets will continue to do well, says Anand Tandon, CEO, JRG Securities.

  • Investors are in a trending phase of the market where corrections will be much shorter than the rallies, so people have to maintain or rather change their frame of mind to a trending market, says Ashwani Gujral.

  • Medium trend is on upside, says Mitesh Thacker. The only thing is that with this kind of momentum, it is difficult to predict where the market will take a stop, but at any 100 to 120 points of correction, people should use those points to buy into, he adds.

NIFTY 3-Month