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Market Report

Friday, 05-Oct-2012

NSE

  • The 30-share Sensex closed today 119.69 points down, or -0.63% at 18938.46. The Nifty closed at 5746.95, down 40.65 points or -0.70%.

  • The Nifty showed a sudden fall of nearly 900 points, or over 15%, within seconds, triggering the circuit filter, halting all trade at 0950 hrs for 15 minutes. This happened due to a technical glitch caused by erroneous sell orders worth Rs 650 crore executed by broker Emkay Global Financial Services.

  • During the period, the investor wealth slumped by nearly Rs 10 lakh crore, though for a brief period. The incident occurred on a day when expectations were high for a significant upward rally on the bourses, following some major reform measures approved by the government last evening, including FDI in sectors like insurance and pension. Trading resumed at NSE at 1005 hrs.

  • A healthy up move, on back of fresh reforms, was expected in markets today. However, the initial euphoria evaporated due to confusion due of erroneous trades on NSE near start of the day.

  • Market was also worried that these reform bills need to be approved by Parliament before becoming a reality and notably, the main opposition party, BJP, seems opposed to raising the FDI limits.

  • Asian shares rose as investor risk aversion eased after the European Central Bank said it was ready to buy bonds of troubled euro zone countries, while markets awaited a key US jobs report. As of this writing, US stocks are up; Dow hits 5-year high on jobs report, as it climbed after a surprise drop in unemployment rate pointed to continued improvement in US labour market.

  • Market provides buying opportunity at current levels, says Ashwani Gujral. Investors should not get worried with two or three days where the market does not go up because when it turns, it will probably clear out the deficit in a single day, he adds.

  • Market trend remains strong in long to medium term, says Mitesh Thacker. In the short term, my only worry is that with today's fall you might see some kind of suspect in the continuation of the trend. While the longer term trend and the medium term trend still remain very strong, firmly on the upside, he explains.

  • There are classic signs of a bull market, where sector rotation is happening this week itself, says Jagdish Malkani, Member, NSE. We have seen huge spike ups in brokerage stocks even today. There has been a big block deal, so sector rotation, theme rotations and brokerage stocks have had a great run this week itself, he points out.

NIFTY 3-Month

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