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Market Report

Thursday, 04-Oct-2012

NSE

  • Rising for the fourth straight day, the 30-share Sensex closed at 19058.15, up 188.46 points or +1%. The 50-share NSE Nifty after breaching 5800-level, ended at 17-month high levels of 5787.60 up 56.35 points or +0.98%. Sensex has gained 480 points in the last four days.

  • The Sensex today breached the 19,000 mark for the first time in 15 months as it rose 188 points ahead of the Cabinet meeting. After resuming 30 points lower compared to yesterday, the BSE benchmark index hit 19107.04, its highest since July 2011.

  • Elsewhere in Asia, the Nikkei surged 1%. Hang Seng and Straits Times edged up as well.

  • Sensex has closed above 19,000 for the first time since July mainly on the wave of positive sentiment on account of expected reforms announced by the government. Liquidity infused by FIIs through consistent buying in the past few days also played a part, said K Subramanyam of Asit C Mehta Investment Intermediates.

  • Nifty index has run up smartly in the last one month from a low of 5217 on Sept 9 to a high of 5806 on Thursday, supported by robust volumes, says Vinit Pagaria of Microsec Capital Ltd. The momentum is likely to take the Nifty higher up to 5900 in the short term. However, there is very stiff resistance in the 5900-6000 zone and hence traders should turn cautious as the Nifty nears that zone. Book profits near 5900, he says.

  • We would probably see the Nifty move up to about 5830 kind of levels in the short term, says Prakash Diwan, Portfolio Strategist. And then consolidation phase and then probably 6000 will make a logical sense rather than a spike up, he adds.

  • Worst may be over: Nifty companies likely to report 28 pc jump in Q2 profits, reports ET Bureau. The growth in net profit in the September quarter for the Nifty companies is expected to be better than in the previous six quarters, it adds.

  • Indian Cabinet has today evening allowed 49% FDI in insurance against 26% earlier. The cabinet also cleared the Pensions Bill and allowed FDI in Pension Funds. Upto 26% FDI in the pension sector will now be permissible. However, Parliament approval is required for the bills to take effect.

NIFTY 3-Month

(Data/Charts courtesy NSEI/Yahoo!/iCharts/The Economic Times)