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Market Report

Monday, 15-Oct-2012

NSE

  • India's BSE index Sensex rose +0.21% or 38.37 points, to close at 18713.55 points. The 50-share NSE index Nifty rose +0.2% or 11.20 points, to end at 5687.25 points. For the most part of the day markets were stuck in a tight range and the Sensex traded in a range of 130 points.

  • Indian shares edged higher today as defensive sectors regained some of their appeal after under-performing last month when investors favoured riskier stocks. Gains in Indian shares were also helped by higher European shares on hopes Spain will request a bailout and following data in China showing subdued inflation and rebounding exports. The Asian markets ended on a flat note on growth concerns ahead of the third-quarter corporate earnings season.

  • Sept WPI inflation has come in today at 7.81% vs 7.55% in Aug. Stronger-than-expected inflation data today appeared to reduce the likelihood that Reserve Bank of India will cut interest rates at the monetary policy meet on October 30. The central bank is under pressure to lower interest rates as its anti-inflationary stance has hurt growth.

  • As the impact from September's fiscal and economic reforms fade, investors fear lack of monetary policy action could prevent further gains in stock markets.

  • The focus of the market is currently on the second quarter earnings (2QFY13) which have just started coming out, says Vikrant Shah of Latin Manharlal Securities. Investors and analysts will closely watch the management commentary. In the coming week, indices may come down to test their 8-week moving averages at 5553 for the Nifty & 18335 for the Sensex, he adds.

  • The earnings season is going to disappoint the investors, says Prashasta Seth of IIFL Wealth, reports ET Now. It will be very difficult for markets to sustain at these levels post the next seasons. After the earnings season, you could see a further rally, possibly in December, if liquidity continues the way it is, he adds.

  • We are in a 100 point range of about 5635-5725. As long as we remain in this range, it is positive given that global markets are choppy and all on a daily basis the market got extremely overbought and now slowly it is correcting, says Ashwani Gujral in a chat with ET Now. Given that we have tested 5635 couple of times now, chances are that we will come out on the right side of 5730, he adds.

  • Market to remain firmly on the upside, says Mitesh Thacker. You can call it consolidation but after rallying about 10% and above in a matter of two-and-a-half weeks, markets will take their own time to settle down at high levels which is quite a positive event. In the short term, it will also mean that the index might not be doing much, he explains.

NIFTY 3-Month

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